Sales Tax on Low Value Goods in Malaysia Effective 1 April 2023

Stephanie Melhem
March 10, 2023

Effective 1 April 2023, Malaysia will be extending Sales Tax to sales of imported goods with a sale value of RM500 or less. Malaysia defines low value goods as “goods or class of goods from outside Malaysia that are sold in the online marketplace at a price of not exceeding RM500 and brought into Malaysia via air, sea or land modes.” The sales tax is charged on the sale value of all low value goods, excluding transportation and insurance costs, as well as any tax or duties, chargeable and payable on the sale.

Any seller with the total sale value of low value goods brought into Malaysia in 12 months who exceeds RM500,000, is liable to be registered as a registered seller.

The guide on low value goods in Malaysia can be found here.

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Stephanie Melhem

Stephanie Melhem is a Junior Regulatory Counsel at Sovos Compliance. Within Sovos’ Regulatory Analysis function, Stephanie specializes in research and analysis of global VAT and GST. Stephanie received a B.S. with distinction in Applied Legal Studies from Suffolk University and a J.D. from the University of Massachusetts School of Law. Stephanie is a member of the Massachusetts Bar and New Hampshire Bar.
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