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Replacement for Sales Tax (Determination of Low Value Goods) Order 2023 Gazetted

29 December 2023

The imposition of sales tax on low value goods at the rate of 10% will commence on 1 January 2024 after being deferred twice.
 
The Sales Tax (Determination of Low Value Goods) Order 2023 [P.U.(A) 403/2023] (“Replacement Order”) was gazetted on 29 December 2023. The Replacement Order will come into operation on 1 January 2024 and revoke the Sales Tax (Determination of Low Value Goods) Order 2022 [P.U.(A) 411/2022].
 
The Replacement Order provides that for the purposes of charging sales tax, low value goods shall be all goods which are sold at a price not exceeding RM500.00 and brought into Malaysia by land, sea or air except for the following: 
  • Cigarettes;
  • Tobacco products;
  • Intoxicating liquors;
  • Smoking pipes (including pipe bowls);
  • Electronic cigarettes and similar personal electric vaporising devices; and
  • Preparation of a kind used for smoking through electronic cigarettes and electric vaporising device, in form of liquid or gel, whether or not containing nicotine. 
Our main articles relating to sales tax on low value goods can be accessed here, here and here.
 
Alert by Victoria Low (Associate) of the Tax Practice of Skrine.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.

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