The Sales Tax (Amendment) Act 2022 (“Amending Act“) was passed by both Houses and received the royal assent in October 2022. With its passing, the Amending Act brings with it a new sales tax on low value goods (“LVG“) that are being sold on online marketplaces which will come into effect on 1st April 20231.
The Sales Tax (Determination of Low Value Goods) Order 20222 read together with the Amending Act defines LVG as goods purchased online from overseas which are valued not more than RM500.00. One of the main reasoning behind the introduction of this new sales tax, we are told, is to ensure the fair treatment between low value goods manufactured in Malaysia and those that are imported from overseas manufacturers and suppliers.
Source Mondaq
