Overseas online purchases below RM500 will be subject to an additional 10% sales tax from 1 April 2023.
It is understood that the Malaysian Customs Board will impose a 10% sales tax on overseas online purchases below RM500 from Labuan, Langkawi, Tioman and Bangkoe from 1 April 2023.
However, it is important to note that the government will only tax the goods, while shipping costs will be exempted. For example, if the price of an item is RM500 and the shipping cost is RM20, the government will only impose a 10% sales tax on RM500 and the shipping cost of RM20 will not be taxed.
The purpose of this measure is to create a fair business environment. Currently, all domestic goods are subject to 10% sales tax while goods purchased online from overseas are exempted, which is very unfair to local businesses.
Currently the government has already imposed a tax on overseas online purchases over RM500, so this tax system will remain unchanged. This means that no matter how much money you buy online from overseas, you will be taxed from April 1.
