Malaysia to Implement Sales Tax on Import of Low Value Goods from January 2024

• Sales tax on low value goods in Malaysia will be effective from 1 January 2024.
• The Royal Malaysian Customs Department has issued a new guide on sales tax on low value goods.
• The guide is divided into two parts: Scope and imposition on low value goods, and Customs clearance procedures on the importation of low value goods.
• Sales tax at 10% will be applicable on all low value goods, regardless of the Harmonized System code.
• Sellers of low value goods need to configure their systems to identify these goods and discuss with importers/customs agents for accurate documentation.
• Online marketplaces need to determine who is responsible for charging sales tax on low value goods.
• There may be a surge in demand for low value goods before the effective date, so sellers need to be aware of transitional rules to avoid under or overcharging.

Source: kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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