Low Value Goods Sales Tax Delayed
The Royal Malaysian Customs Department (RMCD) announced the postponement of the imposition of the sales tax on low value goods (LVG). Although implemented since January 1, the sales tax was not set to be imposed until April 1. The sales tax was supposed to add a flat 10 percent sales tax on imported goods purchased online that are below RM500 (US$113.17), excluding shipping fees. LVG sellers with sales exceeding RM500,000 (US$113,173.40) within a twelve-month period are required to acquire a Registered Seller (RS) status with the Customs department. Certain goods were set to be exempted from the tax, including tobacco products and liquor. RMCD has not announced a new date for the imposition of the sales tax on LVG.