Thailand’s alcoholic beverage market offers significant business potential, but entering it requires careful compliance with a strict regulatory framework. The key authorities involved are the Excise Department, Customs Department, and the Revenue Department — each playing a distinct role in the approval, taxation, and import process. This guide outlines the essential steps for company registration, obtaining import licenses, and understanding the regulatory differences between wholesale and retail distribution.
1. Legal Framework
- Alcoholic Beverage Control Act B.E. 2551 (2008)
- Regulates production, import, sale, and advertising.
- Excise Tax Act B.E. 2560 (2017)
- Governs taxation and licensing for excisable goods.
- Customs Act B.E. 2560 (2017)
- Controls import/export procedures.
- Foreign Business Act B.E. 2542 (1999)
- Restricts foreign-majority companies from retail without special licenses.
2. Company Registration Requirements
- Company Type:
- Register a private limited company with the Department of Business Development (DBD).
- Foreign shareholders >49% require a Foreign Business License (FBL) for import/wholesale (List 3 of FBA).
- Minimum Capital:
- No fixed minimum, but sufficient for operations (typically ฿2–5 million).
- Registered Address:
- A physical Thai address for official correspondence and for excise license purposes.
3. Location Requirements
The business must be located in an area where alcohol sales are permitted, regardless of the type of license requested. Even an import license will not be granted if the premises are situated in a zone designated as alcohol-free. These restricted areas are typically near temples, schools, dormitories, or national parks.
Each local Excise Department office can provide detailed zoning maps upon request.
4. Excise Department / Licensing :
Excise Department – Company Documents :
- Certificate of Incorporation.
- Company Tax ID (from the Revenue Department).
- VAT Registration (if revenue >฿1.8 million/year).
- Full lease agreement, including all the attachments – floor plan, chanot, tabian baan, ID cards of landlord(s) if physical persons or DBD and ID card of legal representative of the Company if juristic person.
Alcoholic bevarages Import License:
- Form Por. 1 (Application for Alcoholic Beverage Importer License). The license allows the Company to import alcoholic beverages – This process is normally documentary; in some specific cases Excise may request a set of pictures of the venue. Rarely is a physical inspection is conducted.
Alcoholic beverages sales licenses
Normally two kind of licenses are obtained:
1) sales type 1, wholesale – can sell minimum quantity 10 liters, no subject to sales time restrictions;
2) sales type 2, retail – can sell by bottle with a maximum of 10 liters, only during allowed times.
Additional licenses are legally required for venues such as restaurants, clubs, or bars that operate past midnight or serve alcohol by the glass. These include restaurant, entertainment, or nightclub licenses, depending on the type of activity. In such cases, a complete set of venue photographs is mandatory for the license application.
Product-Specific Approvals:
Label Approval:
Labels must be submitted to the Thai FDA (the labels must include Thai language, alcohol content, health warnings).
Retail Price Calculation
Enter the retail price breakdown into the system — this is used to calculate the 5% retail tax. Your operator will input all relevant cost data for your product, including FOB cost, freight, customs clearance, taxes, local delivery, marketing, management, company overheads, and commercial margin. Once this information is entered, you’ll define the final retail price, and the system will calculate your profit per bottle. Please note: the retail price must match your official company pricelist and may be verified during post-market inspections by the Excise Department.
5. Import Process & Taxes
Customs : Clearance: Submit import declaration (Form 99/1) with:
- Commercial invoice
- Bill of lading
- Certificate of Origin (for tariff reductions)
- Excise Department permit
Tax Calculation:
- Customs Duty: 0% for all Countries
- Excise Tax: 1000 THB per liter of alcohol in one liter of product. Therefore, the formula is: 1,000 THB X content in liters X percentage of alcohol. Example for a 0.75 liters bottle with 14% alcohol: {14 x 0.75 x 1,000)/100 = 105 THB.
- Additional (local tax): a total of 17,5% of the amount of excise tax. In our case, 105 x 17.5% = 18.375 THB. Total due to excise: 105 + 18.375 = 123.375 THB
- 5% retail tax: base on your declared retail price.
- VAT: 7% (on sum of CIF + duty + excise + retail tax).
6. Additional requirements and definitions
The importer/distributor must keep records of sales and report monthly to the Excise Department
Ownership Restrictions:
- Foreign-majority companies require FBL (List 1) – rarely granted for retail.
- Thai nationals or 51% Thai-owned entities preferred.
Operating Hours:
- Sales prohibited 2:00–5:00 PM and 12:00 (midnight)–11:00 AM daily (see recent updates on location specific exemptions such as entertainment venues and hotels).
7. Wholesale Sales Process: Step-by-Step Flowchart
8. Practical Tips
- Consult Experts: Engage a Thai law firm for FBL/licensing support.
- Local Partnerships: Collaborate with Thai entities for retail market access.
- Digital Compliance: Use Excise Department’s e-Excise System for filings.
9. Conclusion
Importing wine and spirits into Thailand demands meticulous planning across company registration, licensing, tax, and sales compliance. While wholesale is feasible for foreign investors, retail sales remain heavily restricted. Success hinges on understanding Thailand’s excise laws and partnering with local experts to navigate bureaucratic hurdles. Things in Thailand changes quickly: always verify requirements with the Excise Department, as regulations frequently evolve.
The comments herein are for discussion and information purposes only and are not guaranteed to be up to date. Nothing herein should be or can be relied on as legal advice,
For any questions, you may contact Formichella & Sritawat at [email protected]
© 2025 Formichella & Sritawat Attorneys at Law
