Another Amazing Thailand experience in which one pays a tax on a tax on a tax on a tax...
I recently imported some tractor parts from Italy and got an unexpectedly high bill for additional charges from the courier, UPS. Imagine my surprise to find from the very friendly and helpful UPS people that 10% duty is applied not only to the goods, but also to the courier charge. Imagine my further surprise to find that Customs stick on a per-kilogram charge BEFORE they calculate the 10% duty, and then imagine my diminishing surprise (by this time) to find that Revenue Department charges 7% VAT on the whole lot, including the duties.
And then imagine my complete lack of surprise to find that there was a further "taxable charge" payable to UPS (presumably for sorting out the above) and yet another 7% VAT on that. So I paid Thai VAT on a service to pay Thai VAT on a Thai duty on a Thai duty.
The figures (Thai Baht) worked out as follows:
a. cost of goods - 2,724.50
b. air freight charge - 4,301
c. Thai customs charge (300 per kilo) - 900
d. insurance (for something or other) - 70
e. Sub-total - 7,995.50
f. Thai customs duty (10%) on ALL of above - 799
g. VAT on both (e) AND (f) - 615
h. Taxable charge - 150
i. VAT on (h) - 10.50
j. Grand total - 9,570
From the above trouser-emptying experience, you can work out that the total import tariff comes to 85% of the value of the goods!! Riap Roi? Or Rip Off?
Not Really Amazed At All
Phang Nga