Low value goods to be taxed 10% in Malaysia starting April 2023

Wanted to purchase merchandise from an abroad vendor as a result of it’s cheaper than buying it regionally? It may in all probability get costlier quickly.

The Royal Malaysian Customs Department has introduced a ten% gross sales tax that can be levied on imported Low Value Goods of RM500 and beneath, whereas this straight impacts sellers and companies that import such merchandise, it may possibly in the end have an effect on the ultimate price that would be handed down to customers, native and abroad companies that meets the standards are required to register on the MyLVG web site.

The tax will be calculated on the product’s worth excluding freight and insurance coverage, there are nonetheless exemptions to sure merchandise resembling cigarettes, tobacco merchandise, smoking pipes, digital cigarettes, vapes, non-nicotine liquids for vaping and intoxicating liquor, which is smart as these would have their respective taxes.

While it’s unclear how this might finally apply to buyer purchases on e-commerce platforms resembling Lazada and Shopee, as these platforms have abroad sellers that normally goes by way of a proxy warehouse for transporting goods over, it’s time to brace ourselves for costlier abroad low value goods when it occurs on 1 April 2023.

Warren

The geeky dictator of KLGG.