Sales Tax on Low-Value Goods (LVGs)

Sales Tax (Amendment) Bill 2022 was passed on 4th August 2022

Online Shopping Tax?

All eCommerce (eg: Lazada, Shoppee, etc) orders that are shipped from overseas are expected to be imposed with a sales tax soon.

Low-Value Goods: Any prescribed goods or class of goods outside Malaysia which are sold at a price not more than a prescribed amount and brought into Malaysia in the manner as prescribed.

Note: It was proposed for the goods priced at RM500 or below (To be gazetted).

Seller: A person, whether in or outside Malaysia, who sells low-value goods on an online marketplace or operates an online marketplace for the sales and purchase of low value goods.

Taxable Person: A registered seller or a seller who is liable to be registered under section 12

Note: Registered seller means any seller who is registered under section 13

Rate: 10% (to be gazetted)

Effective date: It was earlier proposed to be effective 1 January 2023 (to be gazetted)

Transitional Provisions: Goods purchased before the effective date but delivered to Malaysia after the effective date are not subject to Sales Tax

Source: Sales Tax (Amendment) Bill 2022 > https://www.parlimen.gov.my/bills-dewan-rakyat.html?uweb=dr

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Sales tax on LVGs.pdf

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