Thailand Customs has announced that it will officially abolish the “De Minimis” tax exemption policy starting January 1, 2026. Consequently, from that date onward, all imported goods—regardless of their value—will be subject to import duties and Value-Added Tax (VAT). As a result, the long-standing tax-free threshold of 1,500 THB for small cross-border e-commerce parcels will come to an end, thus marking the official conclusion of the “duty-free era.”
Key Policy Points
1.Removal of the tax-free allowance: The tax exemption threshold will be reduced from 1,500 THB to 1 THB.
2.Scope of application: Applies to all imported goods through all channels, including cross-border direct shipments from e-commerce platforms such as Shopee and Lazada.
3.Effective date: The new policy will take effect on January 1, 2026, with December 31, 2025 being the last day under the previous rules.
4.Estimated tax burden: Average import duty is approximately 10% and VAT is 7%. The policy is expected to increase annual government tax revenue by about 3 billion THB.
Underlying Logic of the Policy
According to Director-General Phanthong, tax-free direct imports caused unfair competition. Furthermore, many low-priced, uninspected products entered the market. As a result, this harmed domestic small and medium enterprises and consumers.
The objectives of this policy adjustment are to:
1.Create a fair trade environment
2.Protect domestic industries
3.Strengthen product quality control
4.Accelerate the modernization of tax, customs clearance, and appeals procedures through the “Customs Quick Win” initiative
Recommendations for Businesses and Sellers
Given the end of the tax exemption policy, cross-border e-commerce sellers and importers should adjust their compliance strategies as early as possible:
Plan pricing structures in advance
Consequently, considering the increase in tariffs, businesses should recalculate product costs and retail prices to avoid profit margin compression.
Improve import declaration and documentation management
Therefore, ensure consistency and completeness of invoices, customs declaration forms, packing lists, and other required documents to prevent penalties arising from inaccurate reporting.
Strengthen tax compliance awareness
Therefore, companies should work closely with accountants and customs brokers to ensure that all import transactions are taxed in accordance with the law, avoiding retroactive fines for undervaluation or tax evasion.
Coordinate data synchronization with e-commerce platforms
The government has required platforms such as Shopee and Lazada to provide transaction and product data. Businesses should cooperate proactively and establish a compliant supply chain.
Monitor the list of prohibited imported goods
This includes items such as e-cigarettes and products that have not passed TIS certification, ensuring that goods are legal, safe, and meet relevant standards.
Indeed, stepping from the “duty-free era” into a “full taxation era” is not just a policy change. Moreover, it signals an upgrade in market order. Consequently, in the new tax environment, those who are able to establish compliant, transparent, and trustworthy operating systems first will be the ones who remain competitive.
WELLION reminds all partners: compliance is not a burden. It is the starting point of trust and brand value. Let us work together to promote the healthy development of cross-border trade and build a fairer and more orderly market environment.
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