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country-icon Malaisie

09.12.22

Impose Sales Tax on imports of low value goods

The Malaysian parliament has passed the Sales Tax (Amendment) Bill 2022, which introduces the taxation of low value goods sold online and imported to into Malaysia.     Currently, taxes are not imposed on imports of low-value goods (RM500). It results in an unfair treatment of local traders since local produced goods are subject to sales taxes.   As of 1 Jan 2023, 10% of SST (Sales and Service Tax) will apply to low valued goods (LVG) sold online and imported into Malaysia by vendors based in or outside of Malaysia. The Minister of Finance will determine low-value goods based on the class and price of goods, and the channel used to import the goods into Malaysia.    

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