Malaysia applies tax on imported goods bought online

Online retail companies have started collecting low-value goods (LVG) taxes on imported goods below 500 RM (108.64 USD). (Photo: nst.com.my) 

Kuala Lumpur (VNA) – Online retail companies in Malaysia have started collecting low-value goods (LVG) taxes on imported goods below 500 RM (108.64 USD).

Shoppee, one of the big e-commerce online shopping companies, has issued a notice saying that the platform started collecting the Sales Tax since January 1, 2024.

Apart from Shoppee, other platforms including Lazada and China-based online retail giant Aliexpress have also started to impose the same tax.

Sea Limited Malaysia country head Terence Siau said the intention aims to support the government's call to empower local businesses, particularly the micro, small, and medium enterprises (MSME).

He acknowledged that Shopee has fully implemented the sales tax on imported low-value goods, serving as a catalyst for domestic MSME growth, reflecting a shared commitment to strengthening the local business landscape through proactive collaboration and alignment with regulatory measures.

Malaysia’s Department of Customs on December 16, 2023 announced that the country will start charging a 10% sales tax on LVG sold online from Jan 1, 2024.

The department defines the LVG as all goods – excluding cigarettes, tobacco products, intoxicating liquors, electronic cigarettes, and preparation of a kind used for smoking – which are sold at a price not exceeding 500 RM, and are brought into Malaysia by land, sea or air./.