KUALA LUMPUR: Online retail companies have started collecting low-value goods (LVG) taxes on imported goods below RM500.
One of those companies, Shoppee issued a notice about the matter.
Sea Limited Malaysia country head Terence Siau said this is in line with the company's intention to support the government's call to empower local businesses, particularly the micro, small, and medium enterprises (MSME).
"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," he said today.
A check by New Straits Times on the Shoppee's mobile apps showed a notice saying that the platform started collecting the Sales Tax since yesterday (Jan 1).
Apart from Shoppee, other platforms including Lazada and China-based online retail giant Aliexpress also have also started to impose the same tax.
Previously, Bernama reported that Malaysia will start charging a 10 per cent sales tax on low value goods (LVG) sold online from Jan 1, 2024, announced the Customs department.
Malaysia was supposed to impose the 10 per cent LVG tax on goods sold below RM500 online effective April 1, 2023, under the 2022 Budget 2022, but it was postponed indefinitely by the Customs department in March last year.
In the frequently asked questions (FAQ) on the LVG sales tax published on its website on Nov 6, 2023, the department said the imposition of sales tax on LVG would start on Jan 1, 2024, although the sales tax legislation on LVG had come into force from Jan 1, 2023.
The Customs department defines 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 RM500, and are brought into Malaysia by land, sea or air. - NST
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.