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Malaysia – To impose sales tax on low-value imports

By November 1, 2022No Comments

The Malaysian government recently passed its Sales Tax Bill 2022, which confirms that from 1 January 2023 the Import Sales Tax exemption on goods bought from outside the country will be removed.

Currently, this threshold is set at RM500 (approx. £100) and allows importers to purchase goods free of sales tax from non-resident companies up to this amount. However, this will not be the case from 1 January 2023 and instead non-resident providers will either have an obligation to register for Malaysian sales tax to charge this to the consumer at the current rate of 10% directly, or the consumer will have an obligation to pay the tax at clearance of the goods themselves.

The Malaysian government has not yet released details on whether there will be a Sales Tax threshold applied to these types of transactions for non-resident businesses, and if there will be a simplified registration process for non-resident businesses.

The above information was kindly provided by Fiscal Solutions (UK),; contact: [email protected].