10% Sales Tax For Online Imported Goods Below RM500 Will Be Enforced Starting January 1, 2024

 

After delaying the implementation of the sales tax on low-value imported goods before, the government is now seen to be implementing it and enforcing it from 1 January 2024.

Under this new change, a 10% sales tax will be levied on goods purchased online from overseas and shipped directly to Malaysia, by traders registered with the Ministry of Finance. A sales tax of 10% will be charged on the purchase of low-value imported goods below RM500.

For information, this 10% sales tax should have been applied since April this year, but was postponed for a while.

With the introduction of this tax, it is expected to better protect local sellers, and not be affected by the price structure of overseas sellers who are not subject to local operating costs.