How to Avoid Custom’s Tax

When you ship or bring any item into Thailand, there’s a chance you’ll get charged import duty and VAT by Thai Customs.

Although it’s hard to calculate exactly how much tax you’ll pay, since the calculation depends on the customs value, tariff classification, VAT, and Customs’ assessment, there are legal ways to decrease or even avoid it.

It may sound like bad advice, but don’t worry too much about customs taxes or trying to calculate everything yourself.

There are different formulas and requirements for different items. So it’s hard to come up with the exact amount you’ll need to pay.

Even if you ship the same item with the same price to Thailand, you might pay a different amount if the declared value or tariff classification is assessed differently.

You have a high chance of being assessed for taxes if you ship your stuff by air or courier, even if the things are for personal use.

Here are a few rules you can follow to decrease or avoid custom tax legally:

1. if items are used household or personal effects, describe them accurately as used goods and avoid unnecessary retail packaging when practical
2. if you bring new items, keep receipts, invoices, and proof of payment with you so customs officers can verify the actual value
3. if you buy something from overseas and have it shipped to Thailand, ask the seller to include an accurate invoice with the item description, value, shipping cost, and country of origin; don’t ask the seller to mark it as a gift or declare a lower price

We can’t guarantee the result since taxes are based on Customs’ assessment under Thai customs rules.

Even the major shipping providers like DHL, FedEx, and UPS may only be able to estimate the amount of taxes you’ll need to pay. They normally can’t guarantee the exact amount until Customs assesses the shipment.

You’ll face fewer tax challenges if you bring allowable personal effects with you when traveling to Thailand. Thai Customs’ passenger allowance normally covers personal effects in a reasonable amount with a total value of no more than THB20,000, provided they are not prohibited, restricted, or intended for commercial use. Anything over the allowance should be declared.

Shipping by sea can give you fewer tax problems because freight forwarders can often help calculate tax for you ahead of time.

And you can pay taxes to the freight forwarder. They will take care of customs clearance for you, and you won’t need to worry about anything.

So if you’re afraid of bringing items into Thailand that might warrant higher taxes, it’s better to talk to a shipping company and let them calculate the tax.

You can then decide whether or not you want to ship the item or bring it with you.

In addition, for household and personal stuff that qualifies for Thai Customs’ duty-free allowance, you may not need to pay taxes for these items when shipping by sea.

Avoiding Custom Tax

You can ship used household and personal stuff into Thailand without having to pay import taxes and duties if you qualify for Thai Customs’ duty-free allowance for personal and household effects.

If you’re married to a Thai citizen, your Thai spouse may be able to use this allowance if he or she has lived outside of Thailand for at least a year.

If you aren’t married to a Thai, you must hold a non-immigrant visa, permission to stay, or work permit that allows you to stay in Thailand for at least one year, such as:

• a non-immigrant B visa or extension for working or doing a business
• a non-immigrant ED visa or extension for studying in a school or university
• a non-immigrant O visa or extension for retirement, marriage, guardian, or accompanying a spouse

The visa or permission must already be granted, or you must have supporting documents issued by a government organization, such as:

• a work permit, or a certified letter from the immigration department or relevant government agency stating that you’ll be allowed to stay in Thailand temporarily for at least a year

Your shipment should also arrive within the time period allowed by Thai Customs, normally not more than one month before you arrive in Thailand and not more than six months after you arrive, unless Customs grants an extension.

What Qualifies as Household Items?

Household items must be common household equipment such as electronic devices, furniture, and books.

These household items must be used, imported in reasonable quantities, and can’t be used for commercial reasons.

You must be the owner of the household items.

There is an additional rule for importing household items, including furniture and electronics such as TVs, air conditioners, and microwaves.

You can ship one of each item under the duty free allowance.

If you bring more than one, you’ll be taxed on each extra item depending on the tax rate.

But if you move to Thailand with your family, you can generally bring two of each item.

You need to file an additional application for the duty-free allowance for these household items.

The form will normally be prepared by your shipping company.