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In December 2002 the government announced that import duty is to be slashed on "luxury" goods.

From press reports it seems as if the government want to promote Thailand as a shopping destination, previously this has only been the case for goods manufactured within the country as all imports suffer from heavy taxes.
This announcement states that import duty will be lowered on 20 categories, and describes luxury goods as perfume, clothing, and leather goods, these are usually taxed at 40%.

This is good news but no date is given as to when this might take place.
(regrettably July 2005 and still no more on this)

With low monthly salaries in Bangkok and Thailand in general, it is easy to see why a lot of goods are reasonably priced. Everything that is made in Thailand is much cheaper than goods made anywhere else, imported goods are much more expensive due to excessive import duties, and the Government constantly tinkering with taxation.

VAT Refund For Tourists

When this was first introduced, it surprised me, a new scheme to allow you to reclaim the VAT on your purchases - subject to certain conditions of course. Until recently it appeared as if the process was an elaborate game with many unseen downfalls that would prevent you from getting your refund, but now it has all been streamlined and actually works very well.
It works like this:-
There are certain restrictions though, briefly they are:-

you cannot be air crew

you cannot have stayed in Thailand for more than 180 days in the current calendar year

Your minimum purchase per dealer - per day must be at least 2000 Baht

Your TOTAL purchases must be over 5000 Baht

The goods must leave Thailand within 60 days of purchase

You must depart Thailand by air from an International Airport (Bangkok, Chiang Mai, Phuket, or Hat Yai at the time of writing)

Most important
When you purchase your goods, it must be from a dealer capable of giving you a PP10 VAT refund form AND you MUST have your passport with you to get one. Keep the receipts and credit card vouchers as well.
IMPORTANT
Your goods, dealer's receipt, and PP10 form need to be inspected and approved BEFORE you check in, there are customs offices clearly marked where this is done. Without a stamp applied here, you cannot get a refund. If you go "Airside" it is not too late, at least in Don Muang, Bangkok. You can now go back out, get stamped, and go back through immigration, but there are usually long queues here and you will have to ensure you have time.
You get your refund processed in the departure lounge of the airport, and you must have your purchases with you as hand baggage.

This all sounds a bit complicated, but it is far easier now than when it was first introduced! The staff are fast efficient and friendly.

A fee of 100 Baht is charged for each refund. Up to 10,000 Baht is refunded in cash, over 10,000 Baht by way of a bank draft in the post (less bank charges and postage) For credit card purchases, the VAT refund is applied directly to your account, but be prepared for a wait of up to 3 months. HOWEVER, last time I used the refund system, my credit card purchase had the VAT refunded in cash.
In Bangkok at least, if you forget to have the goods inspected before reaching the departure lounge, it is "possible" to go back out and complete the process, BUT, you have to go back out through immigration, and get your passport stamped back into Thailand. Presumably, after getting your PP10 form stamped, another airport tax fee would need to be paid before you can get back "airside". If you can manage all this in under an hour - I'd be very surprised indeed!

Any problems with your refund?

VAT Refund For Tourist Office
Revenue Department
Phaholyothin Road
Bangkok 10400
Thailand

Phone Bangkok (+66) 02 272 9387 or 8195 Fax (+66) 02 617 3559
E-Mail vrt@rd.go.th or vrefund@pasi.rd.go.th

What to Buy

Many things you might usually expect to be cheap in the Far East, like cameras, watches, and electronics, are quite expensive in Thailand, due to massive import tax.

Most luxury imported items are far more expensive than even the UK! The best prices for small items of consumer electronics such as Mp3 players, portable CD players etc. are at MBK Centre, (Mah Boon Krong). This is a vast building adjoining Tokyu Department store opposite Siam Square and Siam Discovery Centre, it's so big, even Mark Thatcher couldn't miss it!
Don't go on Saturday or Sunday or at school chucking out time though, unless you enjoy a crowd or looking at schoolgirls.

Computers and Computer Equipment

The Thai government has recently slashed import duty on all IT equipment, to stimulate technology, what once was expensive is now a bargain. Memory, mother boards, processors, etc. as well as Notebook/Lap-Top computers. You can save almost £1000.00 on some Sony notebooks, although you can only get them with American English keyboards. PLUS, don't forget the mountain of ripped-off software for a mere fraction of the normal cost. Not the cheapest in the region, but now a definite "buy" (unless you are going to Malaysia which is even cheaper.) CLICK HERE for my page on computers.

Watches

Real Watches - These attract only 5% import duty, and the VAT can be claimed back at the airport, so they are a bargain. A solid gold Rolex is some £3000.00 less than the UK price.
Copy Watches Most people like to take these home either as gifts or to sell, if you get caught with more than 2 or 3 though, be prepared for your local customs to confiscate them.

What to look for:- There are 3 basic types of copy watch in Thailand:-

1) CHEAP & NASTY made in Hong Kong.
These are sold by street-side vendors and wandering salesmen in beer bars. The first thing to look at is the side of the strap, if it is made of layers of metal (like a Swiss roll) then it's cheap and nasty, buy it for a child to break within a few months. Generally, they can be bought for 50% of the first asking price. My advice is to avoid these, and if you do buy one, remember there is no guarantee, and remember that all the faulty ones are "recycled" back to gullible tourists. Check it out, make sure the hands move, that the hour changes, and also check that the watch face is on upright. If it's a day/date watch, carefully ensure that the date and day actually change! Don't buy a "gold" finished watch if you want it to look the same in 3 weeks, and don't ever get it wet.

2) GOOD QUALITY, but still obviously a copy, made in Taiwan
These can be quite decent with some very convincing Rolex available, apart from the tell-tell second hand, a real Rolex is clockwork automatic not quartz and the second hand moves round with a continuous motion
A second variant is an almost genuine article with an automatic movement. As above, make the usual checks to see it works and check that the bracelet clasp is working, this seems to be a poor feature on some designs. You may be told a copy diver's watch is waterproof, please don't be silly and believe them!
The best buys are all steel finished in chrome with metal bracelets, avoid "gold" watches, they have only the thinnest of coatings and will not last a few weeks of wear.

3) HIGH QUALITY usually from Taiwan
A great many copy premium watches are to be found in MBK Centre, some fine examples of the art, which make you wonder why the genuine article is so expensive. These would not fool a dealer, but are in the region of 90%+ accurate in all but price. All main major brands are there, expect to pay up to 6000 Baht for a really fine example and 2000 Baht upwards, for the rest.

IMPORTANT Check your watch thoroughly before and after purchase to make sure the one in the bag is the one you selected, remember, all faulty ones are "recycled" via unwary tourists! Particularly check the face is upright and that the hands meet at 12:00.

CLOTHES

Clothes are far and away the best bargains, and with the constant sales and promotions, you may find the already reasonable prices reduced by a further 10 - 50%. The streets and markets are packed with vendors selling copies of Ralph Lauren and Timberland etc. but they are usually of very poor quality, and wearing them around Bangkok instantly brands you as a "Cheap Charlie"! If you want something to do the gardening in, OK, otherwise you will look like a right twat wearing them.

You can buy the real thing for a fraction of the normal European prices in virtually every department store and from their own outlets in some shopping malls, the prices are fixed and remain the same throughout the country aside from sale promotions. Arrow, Hardy Aimies, Crocodile, Daks, Elle, Louis Feraud, Guy Laroche, Lacoste, Pierre Cardin, Nino Cerrutti etc. are all priced for the local market. A New Man shirt that costs £75.00 in the UK can be bought in Bangkok for a mere £15.00 or less, genuine Lacoste shirts are around £25.00.

Tailor Shops

Follow your own feeling on this, but in 18 years I have yet to see a decent cheap suit, although there are some quality tailors here, the usual ones that target tourists are best avoided in my opinion, they make outrageous offers that are impossible to honour. If the tailor can make the suit for you within 24 hours, it will probably look like it. You can buy a decent smart suit or you can buy a cheap one. My advice, buy an off the peg suit for quite sensible prices starting at a mere 3600 Baht for Arrow, you can see the quality and have any minor alterations done free. Real top quality tailoring is available, but it will take 3-4 weeks.

Some people recommend certain tailor shops, but in practice, all the 24 hour tailors, more likely than not, sub contract the work to the same back street sweat shops.

An exception to the rule here is copies!
Get your favourite shirt, trousers, or jacket copied, brilliant service, just give them the original and get an identical copy for a mere fraction of the price! Ladies too, bring your fashion magazines and have a copy of that latest dress made in 24 hours.

What NOT to Buy

GEMSTONES!

Unless you are an expert, and I mean "a REAL expert", don't even go into a gem stone shop, and never buy from people at tourist sites etc.
The most complaints handled by the Tourism Authority and the Tourist Police stem from the sale of gem stones. PLUS, VAT is not reclaimable either, possibly a subtle hint?

Cameras and Electronics

Usually no bargains here due to high import duty, but since late 2004 some manufacturers seem to be pricing goods specifically for the Thai market. I bought a Sony digital camera in 2005 for less than the Hong Kong, Singapore, or UK price.

Duty Free Shops

There are several outlets for the "King Power" airport duty free store, but don’t be fooled, with the exception of cigarettes, wine, and spirits, EVERYTHING else they stock is available in regular shops at much lower prices. Also, their goods are priced in US$. This came about when the Baht crashed in 1997, and was to preserve their profit margins. The only people seen there are bus loads of Taiwanese who don't seem to have much say in where they are taken.

Street Vendors

Everything for sale on the street in "Tourist" areas is available for at least 50% less in other areas. Most expensive street vendors are in and around Patpong and on Silom Road. Sukhumvit Road is also a bit pricey, but a slightly better bet.
If you can see a hotel from the vendor's pitch, then it's going to be far more expensive than elsewhere.

Good cheap street vendors can be found around Pratunam Market area, Look for Bayoke Tower and Indra Regent Hotel. Bayoke Tower is the tallest building in Thailand, find it and you'll be almost there.

Central Bangkok Shopping Map

If you are fit, everything here is just about within walking distance.

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