Thailand tightens e-commerce rules: import duty on all online purchases starting 2026

Effective 1 January 2026, the country will abolish the current 1,500-baht duty-free threshold for imported goods purchased online. Under the new regulation, all foreign products sold through e-commerce platforms will be subject to import duty if their value exceeds one baht, in addition to the existing 7% Value Added Tax (VAT). 

This policy aims to create a level playing field for domestic businesses and is expected to generate at least three billion baht annually in additional revenue for the government. The move reflects Thailand’s commitment to fair taxation and its efforts to adapt to the rapid growth of online shopping and cross-border trade.  

Why this matters 

Currently, imported goods priced below 1,500 baht account for more than 30 billion baht annually, according to Panthong Loikulnan, Director-General of the Customs Department. The existing exemption has given foreign sellers a competitive advantage over Thai businesses, particularly small and medium-sized enterprises (SMEs) that are required to pay taxes on their products. 

By removing the exemption, the government seeks to address this imbalance and ensure that all businesses, local and foreign, operate under fair tax rules. This change is not only about revenue generation but also about protecting Thai SMEs and promoting sustainable economic growth. 

Implementation strategy 

The success of this policy will rely heavily on data integration with major e-commerce platforms. The Customs Department is accelerating negotiations with companies such as Shopee and Lazada to directly link sales and import data for efficient tax collection. This digital verification process will be supplemented by random physical inspections to ensure compliance. 

Director-General Panthong emphasized that this approach aligns with global practices, noting that many countries, including the United States, have already eliminated their de minimis thresholds to prevent tax evasion and protect domestic markets. 

Future considerations 

Looking ahead, officials are exploring ways to simplify the tax process further. One proposal under review is a “lump-sum tax” system, which would apply a flat rate of 20–30% on all imported goods. However, implementing this system would require legislative amendments. The Customs Department has confirmed that the 2026 policy complies with all existing international trade agreements, including Free Trade Area (FTA) commitments, and is consistent with similar adjustments being made by other major economies worldwide. 

Impact on businesses and consumers 

The new policy will have wide-reaching implications: 

• For consumers: Even small online purchases from overseas will incur import duties, which may influence buying behavior and encourage support for local retailers. 
• For businesses: Importers and e-commerce platforms will need to review their pricing strategies, supply chains, and compliance processes to accommodate the new tax requirements. SMEs may benefit from reduced competitive pressure as foreign goods become less price-advantaged. 

Our team of experts can help you stay compliant and competitive in a rapidly evolving regulatory environment. 

Reference: 

• Thailand to Impose Import Duty on All Online Foreign Purchases Starting 2026 - Thailand News. Retrieved from Thailand News