Online Shopping Tax: Malaysia is a step closer to impose 10% tax on imported goods worth under RM500

Your Taobao, Lazada and Shopee eCommerce orders that are shipped from overseas may soon be slapped with a new tax. This comes as the Dewan Rakyat (Lower House of Parliament) has passed the Sales Tax (Amendment) Bill 2022 with a majority voice vote.

With the amendment to the Sales Tax Act 2018, low value goods sold online that are priced under RM500 will be imposed a tax with a flat rate of 10%. This is applicable for goods imported from overseas regardless if the seller is inside or outside Malaysia.

Deputy Finance Minister Shahar Abdullah said the government is expected to collect RM200 million a year from this tax implementation and it will level the playing field between online…