There are 4 types of taxes which required to be paid when importing car to Thailand.
Starting from import duty, excise tax, local tax, and VAT. The cost price used for tax calculation is known as the CIF price.
CIF is stand for Cost, Insurance and Freight.
For example, If the price of a car in the country of origin is 500,000 baht.
Transportation and insurance fee from the country of origin of 200,000 baht. The total CIF cost 700,000 baht.
Import car tax calculation.
1. Import Duty
Import duty is the collection of taxes on imported goods for consumption in the Kingdom. In most cases, the import duty on cars is 80% of the CIF. There are some exceptions, such as MG cars, that will not be subject to import duty due to Thailand and China having a free trade agreement which is called as FTA.
2. Excise Tax
Excise tax is the collection of goods and services that are extravagant. Calculation principles will vary depending on vehicle type, engine size and CO2 emissions.
Excise tax has the following formula:
Excise tax = [(CIF + Import duty) x tax rate ] / [1 – ( 1.1 x tax rate ) ]
3. Local Tax
Local tax is an additional excise tax collected to be allocated to the Bangkok Metropolitan Administration and local governments at 10% of the excise tax.
4. VAT
VAT will be charged at 7% of the final price.
VAT = (CIF + Import Duty + Excise Tax + Local Tax) x 7%
Example of Calculation
For an example, let’s set CIF at 700,000 THB.
Import Duty (80％) = 700,000 x 80% = 560,000
Excise Tax(Usually around 30％） = [(700,000 + 560,000) x 30% ] / [1 – (1.1 x 30%)] = 564,179
Local Tax = 564,179 x 10% = 56,417.9
VAT 7% = (700,000 + 560,000 + 564,179 + 56,417.9) x 7% = 131,641.78
The total price of car including importing tax will be 700,000 + 560,000 + 564,179 + 56,417.9 + 131,641.78 = 2,012,238.68 THB
Thai government has announced the reduction of the import duty rate of EV car in 2022. A discount starting from 40% depending on the size of the battery and others.
