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 10% Tax For Online Purchases Of Overseas Goods

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TSRaddus
post Dec 18 2023, 04:48 PM, updated 2y ago

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can explain how this actually works in practice?

lets say I buy Item from overseas online store which is a small boutique from UK ship to malaysia

and they dont know about the 10% malaysia tax

when the product enters malaysia, kastam will hold the product i bought, contact me to pay the 10% tax? then can do online payment ke to imigration or must go office sweat.gif



https://says.com/my/lifestyle/lvg-10-tax?ut...RxLgLwNUC7-ij3M
QUOTE
Meanwhile, sellers will need to register with RMCD

Who needs to register?

According to the department's announcement, any seller — whether in Malaysia or overseas — selling goods under RM500 that are brought into Malaysia by land, sea, or air, with a total sales value of LVG exceeding RM500,000 within 12 months, needs to register as a Registered Seller.

Registration for such sellers has been open since 1 January 2023.

The new sales tax on LVG is meant to encourage Malaysians to purchase more locally made products and to level the playing field between foreign and local sellers, who are currently subject to a 5% to 10% sales tax on items sold.


This post has been edited by Raddus: Dec 18 2023, 04:49 PM
frossonice
post Dec 18 2023, 04:52 PM

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Baconateer
post Dec 18 2023, 05:09 PM

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they charge the sellers la

the sellers will just increase the price by 10%

what's so difficult?
ShadowR1
post Dec 18 2023, 05:28 PM

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Yay ... everything increases 10%.


TSRaddus
post Dec 18 2023, 05:34 PM

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QUOTE(ShadowR1 @ Dec 18 2023, 05:28 PM)
Yay ... everything increases 10%.
*
Safe to assume seller will auto increase 10% price?


hoonanoo
post Dec 18 2023, 05:35 PM

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QUOTE(Baconateer @ Dec 18 2023, 05:09 PM)
they charge the sellers la

the sellers will just increase the price by 10%

what's so difficult?
*
so buy from shoppee also kena?
Baconateer
post Dec 18 2023, 05:45 PM

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QUOTE(hoonanoo @ Dec 18 2023, 05:35 PM)
so buy from shoppee also kena?
*
Sellers selling local products no kena

Sellers selling imported products kena
evangelion
post Dec 18 2023, 05:47 PM

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Still cheaper from overseas, I have seen same item rm20 shipped from China, local (reseller) rm80 (cheapest I can find online)……, the disadvantage is shipping takes few weeks……..consider the margin, resellers can absorb the 10%, but of course there’s always greed…

This post has been edited by evangelion: Dec 18 2023, 05:48 PM
evangelion
post Dec 18 2023, 05:52 PM

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QUOTE(Baconateer @ Dec 18 2023, 05:45 PM)
Sellers selling local products no kena

Sellers selling imported products kena
*
I believe the reseller margin v good……unless greed takes over, they can always absorb the tiny tax in comparison with their margin…
Baconateer
post Dec 18 2023, 05:54 PM

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QUOTE(evangelion @ Dec 18 2023, 05:52 PM)
I believe the reseller margin v good……unless greed takes over, they can always absorb the tiny tax in comparison with their margin…
*
thts up to thm

cuz each item below 500 will be taxed 10%
TSRaddus
post Dec 18 2023, 05:55 PM

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QUOTE(Baconateer @ Dec 18 2023, 05:54 PM)
thts up to thm

cuz each item below 500 will be taxed 10%
*
more of my concern is possibility of item get stuck at custom

This post has been edited by Raddus: Dec 18 2023, 05:56 PM
geelim77
post Dec 18 2023, 05:57 PM

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just wait for price of things to go UP UP UP next year lar
evangelion
post Dec 18 2023, 05:57 PM

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QUOTE(Baconateer @ Dec 18 2023, 05:54 PM)
thts up to thm

cuz each item below 500 will be taxed 10%
*
Like I said above…..
Same item rm20 shipped from China, local (reseller) rm80 (cheapest I can find online)……, the disadvantage is shipping takes few weeks.
If I’m not in hurry, I’m ok with paying 10% more shipped directly from China…
Baconateer
post Dec 18 2023, 05:58 PM

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QUOTE(Raddus @ Dec 18 2023, 05:55 PM)
more of my concern is possibility of item get stuck at custom
*
but the sellers should be the one handling this

not the buyers
Baconateer
post Dec 18 2023, 05:58 PM

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QUOTE(evangelion @ Dec 18 2023, 05:57 PM)
Like I said above…..
Same item rm20 shipped from China, local (reseller) rm80 (cheapest I can find online)……, the disadvantage is shipping takes few weeks.
If I’m not in hurry, I’m ok with paying 10% more shipped directly from China…
*
yes

a massive difference
Creaky
post Dec 18 2023, 05:58 PM

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Following this thread because this tax so damn confusing... I frequently make purchases via X and Discord with Japanese hobbyists/proxies, and not online marketplace. So that means my merchant kena tax, on top of the inclusive Japan sales tax when they purchase my items??? If they don't somehow disclose it on the form then kastam tahan my parcel until I pay???
evangelion
post Dec 18 2023, 05:59 PM

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QUOTE(Raddus @ Dec 18 2023, 05:55 PM)
more of my concern is possibility of item get stuck at custom
*
Just try once buy online (shopee or Lazada) shipped from overseas….get a feel of it first hand..something under rm30 and see how it goes…
TSRaddus
post Dec 18 2023, 06:02 PM

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QUOTE(evangelion @ Dec 18 2023, 05:59 PM)
Just try once buy online (shopee or Lazada) shipped from overseas….get a feel of it first hand..something under rm30 and see how it goes…
*
i buy now still ok

wait try after 1/1/2024
evangelion
post Dec 18 2023, 06:05 PM

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QUOTE(Raddus @ Dec 18 2023, 06:02 PM)
i buy now still ok

wait try after 1/1/2024
*
If item cost rm30 shipped from overseas, local resellers sell at rm90…..I don’t think you will fight over the rm3 tax….
Chanwsan
post Dec 18 2023, 06:44 PM

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Wait what? I always thought this only applies to imported items purchased by ourselves? Those shopee lazada sellers who bought in bulk to resell individually will still be subjected to this tax? Like that I might as well continue buying from overseas
PCLover2010
post Dec 18 2023, 08:12 PM

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Buying games from Steam powered / EPIC / GOG.com / Origin, etc will kena or not??
ShadowR1
post Dec 18 2023, 08:16 PM

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QUOTE(Raddus @ Dec 18 2023, 05:34 PM)
Safe to assume seller will auto increase 10% price?
*
Nope. Just as general everything online will increase 10% and more.
SUSsmallydupe
post Dec 18 2023, 10:18 PM

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QUOTE(PCLover2010 @ Dec 18 2023, 08:12 PM)
Buying games from Steam powered / EPIC / GOG.com / Origin, etc will kena or not??
*
That one awal awal sudah kena from lge era
narf03
post Dec 19 2023, 01:08 AM

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those sellers in china selling to every countries on the planet, over 200 countries, 200 different rules and law, do they really care ?
BL98
post Dec 19 2023, 01:17 AM

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QUOTE(evangelion @ Dec 18 2023, 05:47 PM)
Still cheaper from overseas, I have seen same item rm20 shipped from China, local (reseller) rm80 (cheapest I can find online)……, the disadvantage is shipping takes few weeks……..consider the margin, resellers can absorb the 10%, but of course there’s always greed…
*
Seller increase 10% due to tax is greed

then government tiba-tiba extra tax 10% is not greed?
BL98
post Dec 19 2023, 01:18 AM

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Thanks Madani
narf03
post Dec 19 2023, 01:23 AM

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QUOTE(BL98 @ Dec 19 2023, 01:17 AM)
Seller increase 10% due to tax is greed

then government tiba-tiba extra tax 10% is not greed?
*
human society is evolving, last time old generations buy from physical shops, today new generations buy from online shops, gov used to tax physical shops, now they have to tax from online shop else gov will lose income.

its fair, just hope the transition is painless.
evangelion
post Dec 19 2023, 07:03 AM

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QUOTE(BL98 @ Dec 19 2023, 01:17 AM)
Seller increase 10% due to tax is greed

then government tiba-tiba extra tax 10% is not greed?
*
If by pay this tax, buying directly from overseas, going through customs is easier, faster and seamless…..it’s worth it, don’t u think?
Ramjade
post Dec 19 2023, 08:58 AM

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QUOTE(narf03 @ Dec 19 2023, 01:08 AM)
those sellers in china selling to every countries on the planet, over 200 countries, 200 different rules and law, do they really care ?
*
They don't need to care. They don't need to collect tax for govt. Govt put the tax. No payment = you don't get your item. Basically tollgate.
TSRaddus
post Dec 19 2023, 09:15 AM

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QUOTE(Ramjade @ Dec 19 2023, 08:58 AM)
They don't need to care. They don't need to collect tax for govt. Govt put the tax. No payment = you don't get your item. Basically tollgate.
*
So how to pay the tax if kena
ben_ang
post Dec 19 2023, 09:17 AM

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QUOTE(Creaky @ Dec 18 2023, 05:58 PM)
Following this thread because this tax so damn confusing... I frequently make purchases via X and Discord with Japanese hobbyists/proxies, and not online marketplace. So that means my merchant kena tax, on top of the inclusive Japan sales tax when they purchase my items??? If they don't somehow disclose it on the form then kastam tahan my parcel until I pay???
*
with my experience with my company's machine parts frm spain when kena tax last time, when parts reached kastam, they will ask u to pay tax, in this case probably fedex/DHL/pos laju will contact u for the payment
so better make sure the contact given can reach u, 10% based on the declared price in this case.u agreed, fedex/DHL/pos laju collect money and send ur item, no agree probably will return back to country of
origin.
japan side tax probably quoted inside the price, so japan side i think no problem, this is MY side import tax.
Ramjade
post Dec 19 2023, 09:20 AM

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QUOTE(Raddus @ Dec 19 2023, 09:15 AM)
So how to pay the tax if kena
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Give you a letter and ask you pay to your courier office.
TSRaddus
post Dec 19 2023, 09:27 AM

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QUOTE(Ramjade @ Dec 19 2023, 09:20 AM)
Give you a letter and ask you pay to your courier office.
*
Serious

Why got 2 conflicting answers above
Creaky
post Dec 19 2023, 10:42 AM

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QUOTE(ben_ang @ Dec 19 2023, 09:17 AM)
with my experience with my company's machine parts frm spain when kena tax last time, when parts reached kastam, they will ask u to pay tax, in this case probably fedex/DHL/pos laju will contact u for the payment
so better make sure the contact given can reach u, 10% based on the declared price in this case.u agreed, fedex/DHL/pos laju collect money and send ur item, no agree probably will return back to country of
origin.
japan side tax probably quoted inside the price, so japan side i think no problem, this is MY side import tax.
*
I know the procedure when kena kastam tahan... The issue is tax. My sellers are not registered seller because they sell very niche items and I highly doubt the value of items they send to Malaysia reach RM 500,000, because again, they're not dedicated companies to sell items, they're just hobbyist. Because they don't fulfill the criteria of registered seller, is my stuff still subject to LVG tax?? Is Malaysia so damn desperate until they want to tax items bought for personal use? I can't even get most of the stuffs I buy in Malaysia.

Edit: Adding more details on how I usually buy my stuffs from Japan. When my sellers have stuffs they want to sell, they post on X. We communicate through private message or email or Google Forms to place order and make payment through PayPal. We don't go through any online marketplace whatsoever.

This post has been edited by Creaky: Dec 19 2023, 10:47 AM
TSRaddus
post Dec 19 2023, 10:54 AM

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This post has been edited by Raddus: Dec 19 2023, 10:55 AM
marvinben
post Dec 19 2023, 12:02 PM

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Local ecommerce platform will probably include the tax already (shopee, Lazada)

Shopee:
"18.7 Seller acknowledges and agrees that Seller will be responsible for paying all taxes, customs and duties for the item sold and Shopee cannot provide any legal or tax advice in this regard. As tax laws and regulations may change from time to time, Sellers are advised to seek professional advice if in doubt. "

Lazada
"No. All overseas products from Lazada are delivered at no additional cost to you, since the stated price includes customs fees and import duties. You are not expected to pay any additional duties or taxes.

Those from China (ali, Taobao) you'll have to clear your items at Customs yourself.
If you're not sure of the value of your goods, or the declared value is fishy, the Custom officer will estimate at his discretion the market price. (This is where your proof of purchase/transaction will be useful)
narf03
post Dec 19 2023, 12:03 PM

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QUOTE(ben_ang @ Dec 19 2023, 09:17 AM)
with my experience with my company's machine parts frm spain when kena tax last time, when parts reached kastam, they will ask u to pay tax, in this case probably fedex/DHL/pos laju will contact u for the payment
so better make sure the contact given can reach u, 10% based on the declared price in this case.u agreed, fedex/DHL/pos laju collect money and send ur item, no agree probably will return back to country of
origin.
japan side tax probably quoted inside the price, so japan side i think no problem, this is MY side import tax.
*
dont think it will work, especially extremely cheap items, like below rm10, when item arrived, custom will have to evaluate the price of the item, check if tax paid, if not contact buyer, then keep item in storage, when seller paid, seller need to come to custom to collect, custom employee will have to find the item and give to buyer, that process make rm1 tax ?

i guess if the item is cheap, the buyer will just tell custom f. it im not going to collect or just ignore custom, then custom will have millions and billions of cheap items in their storage within years. they dont make money, they only make loss.
TSRaddus
post Dec 19 2023, 12:04 PM

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QUOTE(marvinben @ Dec 19 2023, 12:02 PM)
Local ecommerce platform will probably include the tax already (shopee, Lazada)

Shopee:
"18.7 Seller acknowledges and agrees that Seller will be responsible for paying all taxes, customs and duties for the item sold and Shopee cannot provide any legal or tax advice in this regard. As tax laws and regulations may change from time to time, Sellers are advised to seek professional advice if in doubt. "

Lazada
"No. All overseas products from Lazada are delivered at no additional cost to you, since the stated price includes customs fees and import duties. You are not expected to pay any additional duties or taxes.

Those from China (ali, Taobao) you'll have to clear your items at Customs yourself.
If you're not sure of the value of your goods, or the declared value is fishy, the Custom officer will estimate at his discretion the market price. (This is where your proof of purchase/transaction will be useful)
*
Its not clear how we need to pay to customs

I ask this i get 10 different answers

Or is it pay to the courier like dhl fedex

This post has been edited by Raddus: Dec 19 2023, 12:04 PM
evangelion
post Dec 19 2023, 12:17 PM

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QUOTE(Raddus @ Dec 19 2023, 12:04 PM)
Its not clear how we need to pay to customs

I ask this i get 10 different answers

Or is it pay to the courier like dhl fedex
*
Hopefully someone clear everything up and just say “blanket all goods at 10%, expect tobacco, alcohol, etc”
marvinben
post Dec 19 2023, 12:47 PM

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QUOTE(Raddus @ Dec 19 2023, 12:04 PM)
Its not clear how we need to pay to customs

I ask this i get 10 different answers

Or is it pay to the courier like dhl fedex
*
And you'll get 10 more different answers after this 10% tax implementation. Everytime I go to clear my items at local customs here, they'll recommend me to hire an agent (less paperworks for everyone), with this taxation in place I really doubt the Officer wants to deal case by case basis. I dont know what system will be in place and I'm very sure NO SYSTEM YET IS IN PLACE.

Let me outline customs clearance process thats in place now.
1. Your parcel got marked by Customs at Port of Entry (or airport).
2. Your courier will email you with choice of appointing them as agent (small fee of course) or you clear yourself.
3. If you appoint your courier as agent, they'll pay first on your behalf and you need to pay them during delivery, End of drama assuming you dont need AP from SIRIM or Pharmaceutical.
4. To clear it yourself, you need to go to where your item is being detained, get your parcel, open parcel and declare content, show invoices, proof of payment, forex rate during transaction, and pay. Details can search around, different place different procedure.

Some things I'm not very clear yet, lets say the whole CIF Is less than rm500, but the item got extra import duty, am I going to be charged 10& Sales Tax + the extra import duty too?
croco_2002
post Dec 20 2023, 08:25 AM

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QUOTE(Raddus @ Dec 18 2023, 06:02 PM)
i buy now still ok

wait try after 1/1/2024
*
The implementation date (i.e., registration date) starts from 1 January 2023 and the imposition of Sales Tax on LVG starts on 1 April 2023.After 1st April only start need to pay.
TSRaddus
post Dec 20 2023, 08:41 AM

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QUOTE(croco_2002 @ Dec 20 2023, 08:25 AM)
The implementation date (i.e., registration date) starts from 1 January 2023 and the imposition of Sales Tax on LVG starts on 1 April 2023.After 1st April only start need to pay.
*
2023 or 2024?
tvcat
post Dec 20 2023, 08:44 AM

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Is this sales tax also applicable to whom purchase from oversea online platform for own use?

If yes then the poor will getting poorer. Good job.

Edit:
No.10 in the FAQ
https://mysst.customs.gov.my/assets/documen...206.11.2023.pdf

Only seller that sold RM500K in the past 12 month need to register. So this should not apply most of the time if one buy from oversea online platform.



This post has been edited by tvcat: Dec 20 2023, 09:12 AM
croco_2002
post Dec 20 2023, 08:45 AM

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might be 2024.That statement I copy paste from news portal.

 

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