How to Calculate Duties and Taxes on Imports to Thailand requires a precise understanding of customs valuation, classification, and local tax laws. Import duties and taxes are mandatory charges based on the product's classification (HS Code), its customs value, and the country of origin. The official authority, the Thai Customs Department (กรมศุลกากร), enforces a strict de minimis threshold: shipments with a Cost, Insurance, and Freight (CIF) value over THB 1 are subject to Value Added Tax (VAT), and shipments over this value are also subject to import duty unless a specific exemption applies.
The calculation of customs duties in Thailand is based on the World Trade Organization (WTO) Valuation Agreement, which uses the Transaction Value Method. The dutiable value is determined on a CIF (Cost, Insurance, and Freight) basis, meaning the total cost includes the price of the goods, the cost of shipping (freight), and the cost of insurance to the port of entry in Thailand. The correct classification of goods is paramount, requiring the use of an 11-digit import tariff code (based on the 8-digit ASEAN Harmonized Tariff Nomenclature or AHTN) to determine the applicable duty rate. Trade agreements, such as those under ASEAN or bilateral FTAs, can significantly reduce or eliminate the import duty rate, provided the goods meet the Rules of Origin requirements.
To accurately calculate import tax in Thailand and the total landed cost, importers must first determine the Customs Value (CIF). This value serves as the base for calculating the Import Duty, and subsequently, the base for other taxes like Value Added Tax (VAT) and Excise Tax. The primary taxes on imports are Import Duty and VAT. The standard VAT rate is 7% and is applied to the cumulative value of the goods, duty, and other applicable taxes. For certain products, such as alcohol, tobacco, and luxury items, an additional Excise Tax and a corresponding Interior Tax are also levied, further increasing the total tax base for VAT.
For low-value shipments, the rule on how import duty is calculated in Thailand has changed significantly for 2025. Previously, goods under THB 1,500 were exempt from both duty and VAT. Now, the Duty De Minimis Threshold and Tax De Minimis Threshold are both set at THB 1 (CIF value). This means almost all commercial imports are subject to VAT. A special low-value shipment regime applies to goods with a CIF value over THB 1 but not exceeding THB 1,500, where they are exempt from import duty but are still subject to the 7% VAT. This change aims to create a level playing field for domestic businesses and is a critical factor when using an import tax calculator Thailand tool.
All formal import declarations are processed through the Thailand National Single Window (THAI-NSW) system, which facilitates the electronic submission of the e-Customs Declaration and related documents to the Thai Customs Department. Importers must ensure their documentation, including the commercial invoice and bill of lading/air waybill, clearly reflects the CIF value for accurate customs valuation.
Determine the Customs Value (Dutiable Value): Calculate the CIF value (Cost of Goods + Insurance + Freight) in Thai Baht (THB). This is the base for all subsequent calculations.
Calculate Import Duty: Multiply the Customs Value (CIF) by the specific Import Duty Rate (determined by the 11-digit HS Code and country of origin/FTA).
Calculate the VAT Base: Sum the Customs Value (CIF) + Import Duty + Excise Tax (if applicable) + Interior Tax (if applicable) + any other fees.
Calculate Value Added Tax (VAT): Multiply the VAT Base by the standard VAT rate of 7%. The total duties and taxes are the sum of Import Duty, Excise Tax, Interior Tax, and VAT.
Low-Value Shipment (CIF THB 1,000): Since the value is over THB 1 but under THB 1,500, the shipment is exempt from Import Duty but is subject to 7% VAT. VAT = (THB 1,000) x 7% = THB 70. Total payable = THB 70.
Standard Dutiable Shipment (CIF THB 5,000, Duty Rate 10%): Import Duty = THB 5,000 x 10% = THB 500. VAT Base = THB 5,000 (CIF) + THB 500 (Duty) = THB 5,500. VAT = THB 5,500 x 7% = THB 385. Total payable = THB 500 + THB 385 = THB 885.
Misclassifying the goods by using an incorrect 11-digit import tariff code, which can lead to incorrect duty rates, penalties, or shipment delays.
Failing to declare the full CIF value (Cost, Insurance, and Freight), as Thai Customs uses this as the basis for valuation, not just the FOB value.
Assuming the THB 1,500 de minimis still applies to VAT; all imports over THB 1 are now subject to the 7% VAT in 2025.
Thailand operates several special regimes that impact customs duties in Thailand. These include Free Trade Zones (FTZs) and Bonded Warehouses, which allow for the storage, processing, or re-export of goods without immediate payment of duties and taxes. Additionally, the government has extended the temporary measure for Low-Value Goods (LVG) throughout 2025, ensuring that while LVG shipments (CIF value over THB 1 up to THB 1,500) are exempt from import duty, they are explicitly subject to the 7% VAT. Importers should also check if their goods are subject to Excise Tax or Interior Tax, which are levied on specific categories like luxury goods, and are included in the VAT base calculation.
The standard Value Added Tax (VAT) rate on imports to Thailand is 7%. This rate is applied to the cumulative value of the goods, plus all duties and other taxes.
Thailand uses the CIF (Cost, Insurance, and Freight) value as the Customs Value (dutiable value) for calculating ad valorem import duties and taxes, in line with WTO principles.
The de minimis threshold for import duty is effectively THB 1 (CIF value). Shipments with a CIF value over THB 1 are subject to duty, though a special exemption applies to goods valued up to THB 1,500, which are duty-free but subject to VAT.
The official customs declaration system is the Thailand National Single Window (THAI-NSW), which includes the e-Customs Paperless Service for electronic submission and clearance of import and export documents.