Free Malaysia Today
10% sales tax on online goods to apply from Jan 1
Story by FMT Reporters •
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PETALING JAYA: A 10% sales tax will be imposed from Jan 1 on online sales of goods costing below RM500, according to a recent customs guide.

The low-value goods tax will apply on goods bought online and delivered to Malaysia by vendors registered with the finance ministry.

The tax was introduced in an amendment to the Sales Tax Act passed by the Dewan Rakyat in August last year and was to have been imposed from April 1 this year but was postponed.

The Dewan Rakyat was told last year that the government expects to collect RM200 million a year from the tax.

The deputy finance minister then, Shahar Abdullah, said the tax would level the playing field between online sellers both inside and outside Malaysia, and would empower local markets and businessmen.
The tax was first mooted by former finance minister Tengku Zafrul Aziz when tabling the 2022 budget.

So mudah n carousel counted?

Inb4 protes

CCB i now buy everything online. Groceries also. So everything will be 10% higher compared to purchase at physical store?

Niama jus keep on taxing the rakyat...
Gov so many minister all makan taik punya

low value goods - tax! high value goods also tax. luxury goods tax also. might as well just say tax everything

no balls to bring back gst have to resort to this...madani oh madani...

Nope. This tax only applies to international items that  are  shipped to Malaysia.

This post has been edited by Epci: Dec 15 2023, 08:14 PM

It was supposed to be collected if sellers are from oversea only. Now local online sellers also kena?

It’s called GST

Tu la gst 6% don’t wan la now charge u 10% sales tax on everything … but y ok rm500 below and not rm500 above stuff wanna protect helang ?

GST only 6%...this one 10% ....please bring back GST

full of shit sst

Seems to mean locally available goods would not be taxed, but shipped from overseas ones will.

In November, the Small and Medium Enterprises Association of Malaysia (Samenta) urged Putrajaya to implement the tax to mitigate the “uneven competition” between brick-and-mortar stores and online marketplaces.

Samenta president William Ng said local retailers have to pay taxes, rent and overheads, while online sellers often avoid their tax responsibility and tend to pay lower rent and overheads, if any.

I think like GST last time, taobao helps to collect and charge a sum during checkout.

Lowyat garage sales also kena

tell me how many % of the local seller here not selling stuff that was imported from china, probably less than 2%

Local sellers supposedly import in big scales and already subjected to import duty before this.

This new tax is to kill those dropshippers or small scale businesses.

Diesel remove
8% sst
10% online

Hahaha

Anwar give u a ranciao smile

this is for china sellers on local platform

example u see china sellers sell rm10 on shopee, so after tax will be rm11. government wan to help local sellers actually. now many china sellers on shopee lazada didnt pay any tax

So CBU car like tesla purchased online and ship from oversea will get addtional 10% tax?

only for goods below rm500.......

Really CCB, they wanna digitalised so much of things. Now they wanna up tax somemore. KNN wanna makan duit only.

oh missed the word below.

reform ranjao

Show the whole how stupiak u are lol

Fark b40

Below 500 tax 10% , above tax even more

Gone liao this country

whose hole? your mom?

Tesla costs below RM500?

Low value goods tax. Luxury goods tax. So when want to do middle value goods tax? Topkek government.

pandai dia potong subsidi, buat tax baru cakap kerajaan x cukup duit

tapi bila derma palestine 1 juta, buat roadshow 3 hari raikan dia berkuasa 1 tahun ok je ada duit

there is already existing kastam tax for goods >rm500

Back to cash, brick and mortar stores guys...

That's also 10% right?

who ever said reform must be good for you?
this is a form of reform just not for you

I don't know how this will be implemented, but people have short memory. You don't just pay 6% on GST. GST is not implemented on end user sale only.

Roket support

ever since pmx, all i hear is tax tax tax
but never cut expenditure

f la y we need to work hard to feed them

Japan has tax hike glasses

Malaysia has tax hike AI ?

I think 20% cause my recent purchase as below.
Total cost is rm500+
I have to pay extra rm100+ to the DHL guy

Big wrong move from PH for always wanting new and higher taxes. With removal of subsidy, just wait for hyper inflation

why stop at 10%, can go 20%

economically it's a good idea.

Less dark economy.

you can choose

1. Taxation of 10%, ringgit remains stable as government no longer print money but choose the painful path to increase taxation but maintain value of ringgit.

2. No taxation, but ringgit depreciates another 10% due to more deficit and printing of money.


You buy from China, RM300, gomen tax 10%, you pay RM330.

You buy from China, gomen no tax, but ringgit falls 10%, you need RM330 to buy the same amount of good.

Which one you choose?

This post has been edited by Chrono-Trigger: Dec 15 2023, 09:22 PM

Extra burden on b40 who are looking to stretch their already tight pockets. Now you want to protect local businesses who wants to maximise their profits instead of helping to cushion b40 problems.

Its far simpler to have one gst rather than multiple small taxes that probably end up making items cost more.

How can you guarantee both scenario 1 & 2? Just making assumptions and it will magically happen?

In before fahmi ask lowyat to delete your comment. Haha

As if the RM 200 million makes any difference to increase our currency strength, don't get brainwashed my friend.

can choose to not have 1mdb, stealth LCS, 1billion moral pulis, overbloated civil service, expired vaksins, faulty ventilators, corruption and leakages?

want to increase tax or reduce subsidy? in tandem, reduce the size of the civil service and remove all ministers pension.
rakyat suffer, civil service must also sacrifice together. not just makan kuih during meetings and go training and lawatan luar negara.

This post has been edited by nasiputih: Dec 15 2023, 09:38 PM

Buy item for $499, the tax is $49.90. 😵‍💫

Well said.

As many people already mentioned, PMX is not righting the wrongs but continue the wrongs ways to stay in power.

Really a big letdown.

Since when buy online is cheap.

Buy groceries item are more expensive than at brick & mortar stores.

Anwar: UBAH GAYA HIDUP ANDA

really KNNBCCB la...can donate so much millions like rakyat are not suffering? zzz...

fake reform je, what those comments as shared on other social medias are TRUE!! as this kerajaan MPs full with pengkhianat only!

Anwar cai said PMX need at least 5 years

relax la

Government need money, Scared lost votes if introduce GST, then introduce so many type of taxes.

Rafizi garbage formula 🗑️

above also kena
remember the luxury tax being announced

basically all kena

not really
when u buy stuff at physical stores...u buy from the middle man...aka NSK, giant, TF value mart..etc etc

u buy online, u buy straight from the source aka producer

maybe voters are orang kampong. that dont buy online from us, thailand, china.
so this tax no impact on those voters?

This post has been edited by nasiputih: Dec 15 2023, 09:50 PM

taobao order zerghrush

fast fast place your sex toys order from taobao

I think nowadays most old folks can buy online already. So easy buy from shopee or lazada.

So I don't know la. I cuma nampak this PH government mcm takut sgt dgn GST. Padahal semua benda tax tax tax sama je at the end.

The GST % which proposed by team Bossku shld be changed with "HIGH" tax on items that cost very high & to those who hv very high-income tax.

Meanwhile, "LOW" tax shld charged on items that cost certain value or low price to those who hv low-income tax/etc...

Else, what is the "best" use for LHDN to keep digging income tax because their way of digging the tax doesn't seem like comforting the rakyat at all. They giving RM100 to e-wallet also useless because that is their "rasuah" to deceive rakyats. I believe many will think, "wah dpt RM100, maka kerajaan bagus."

end user absorbs the full brunt of GST

the middleman just claim back the cost and pay the difference collected

Read la



Read

Basically a GST concept

Ok.... so I guess items that are bought overseas and sent here, then supplier sell to customers not chargeable 10% ah?

But then again..... 10% markup.........

Apa lanjiao we have luxury tax now we also tax low value items? This gomen really want to gorek every cent from rakyat?

rmb to buy ur iherb on christmas sales, next year sure more than 10%

Sooo items bought from personal shoppers won't get taxed right? Since they aren't selling the items on any specific online platforms (unless if they consider X or Google Forms online platforms, idk) and I highly doubt they sell more than RM 500,000 worth of goods to Malaysia every year.

cosplayer hobby in shambles ( most of the item brought from china and else where, rarely local made )

Haha malu la bro

Dulu marah sbb menteri berlambak
Skrg dia pun sama

Aku xtau mana 1 lg bebal
Yg mengundi or yg diundi

Tp x sebodoh org yg ckp grab tu rosmah punya

I think this was actually a loophole to avoid import tax, and government covered it now.

TS copy pasta article doesn't mention this nor tax is for 'imported' goods. Dunno he copy pasta wrong or shit article writer.

Bulan April 2023 tu hari suppose apply this 10% things
but madani postpone. but shopee and lazada since Januari 2023
already price up transaction fees + service fees

Rip

actually banyak orang sakit hati due to cost of living naik like F these days

imagine roadside ciken rice also now rm7, rm8

rice wit egg rm4

wtf

too bad either this or pas. haih

ur business ok boss? hopefully everything should be better

but this time if they gila wanna do pkp for the second time, memang GG lah malaysia

jangan komplen, madani suci murni

Tu dia Mahaldahni datang lagi..simpan duit guys lagi bagus..tu mesej sebenarnya..

Delayed imposition of sales tax on B2C low value goods goes ahead 1 January 2024

https://www.vatcalc.com/malaysia/malaysia-s...-to-march-2023/

Reforms to sales tax on small value packages have now been confirmed for 1 January 2024. The Royal Malaysian Customs Department had previously postponed the imposition of sales tax reforms on small parcel imports twice in 2023.

The Malaysian Sales Tax Bill passed in the Parliament in 2022 imposes 10% Sales Tax on the imports of goods being sold to consumers under a de minimis threshold. This is RM 500 (approx $112) valued at CIF (Cost + Insurance + Freight). This applies to sellers (‘Registered Sellers’) and digital platforms facilitating Registered Sellers. There is an annual sales threshold of MYR 500,000, approximately US$ 115,000. Local equivalent sales of goods may be at lower rates of 5% or 0% depending on the HS Code classification – but this does not apply to imports which are all subject to 10%. Excise goods (e.g. cigerettes) are not included.

The Malaysian Customs Department has issued a FAQ‘s to help sellers and marketplaces.

https://mysst.customs.gov.my/assets/documen...206.11.2023.pdf

Sales Tax on imported e-commerce low value goods

Any online sellers or facilitating marketplaces selling to consumers imported goods shipped by air RM500 will have to charge 10% Sales Tax in the checkout or be subject to import tax. Previously, such sales are exempt. Both resident sellers and foreign will be required to follow this new obligation – meaning non-resident tax registrations for foreign sellers. It is not yet clear how collections online will be coordinated with border control to prevent double taxation.

Sellers are required to complete a consignment note with the goods being imported, clearly indicating their tax registration number. Returns are completed in a by-monthly basis.

This follows the examples of shifting the import tax burden from the border customs control to the checkout in jurisdictions including Australia, New Zealand and the EU e-commerce package.

Once registered to report collected import Sales Tax, non-residents will be expected to file each quarter. They will have to submit their return and Sales Tax collected by the end of the following month. This is payable in Ringgit Malaysia.

? seller pays?… is it the buyer who pays the rm11.00?, so it’s the buyer who pays..
the seller still collects rm10, buyer pays rm11 instead of rm10..
eventually, it will still fall back to supply and demand..

We should embrace all the taxes with open heart..asal bukan puas..kek

i think too many ppl buy on shopee, MYR flowing out faster than coming in. So our govt tax online purchases.

topkek they want to impose this tax to local seller not foreign seller.

PH govt also topkek sometimes. too much MYR outflow kot

MYR will drop further on monday....

they always like to announce this stuptard news on Friday after market close... topkek

China seller didn’t pay tax but punished us Malaysians who want cheaper goods and pay more tax? Nice…

This tax is for foreign sellers (and the tax actually paid by local consumers/small resellers).

Last time zaman Bijan i experienced before, taobao system auto applying GST at checkout citing its gomen directive. Its gone after LGE remove the GST.

So long story short, all this while we have the rule above RM500 will kena import taxes (subjected to the courier declaration and spot checks). This new tax is to cover off the remaining range of under RM500 items, which mean technically gomen can tax everything you imported be it above RM500 or under RM500.

This post has been edited by msacras: Dec 16 2023, 10:49 AM

Local taxes are paid by the buyer

This new tax just covers the loophole where items below rm500 become tax free

It is nothing to do with the seller in china

Unless u request DDP terms

Wow, you have a brilliant comment that no one in the world knows about! If buy online is not cheap, the rakyat must be idiots all this while. Also, if your comment is true, it totally defeats the very reason given for implementing this tax, right?

RTX4090 up 10%?