Subsidiary legislation for Low Value Goods Gazetted
02 January 2024
The imposition of sales tax on low value goods imported into Malaysia commenced on 1 January 2024.
In addition to the
Sales Tax (Determination of Low Value Goods) Order 2023 [P.U.(A) 403/2023] which was gazetted on 28 December 2023,
1 the following subsidiary legislation were gazetted on 29 December 2023 and took effect from
1 January 2024:
The Rate of Tax Order specifies that the rate of tax to be charged on low value goods is 10 per cent. The Rate of Tax Order revokes the
Sales Tax (Rate of Tax for Low Value Goods) Order 2023 [P.U.(A) 410/2022] which also fixed the rate of tax for low value goods at 10 per cent and was supposed to come into operation on 1 January 2023 before the imposition of sales tax on low value goods was deferred.
The Amendment Regulations amend the
Sales Tax (Low Value Goods) Regulations 2022 [P.U.(A) 408/2022] (“
Principal Regulations”) as follows:
- by inserting a new regulation 6A into the Principal Regulations to set out the procedures relating to the issuance of credit note and debit note in relation to low value goods; and
- by replacing regulation 7 of the Principal Regulations to state that the return to be filed by a registered seller of low value goods for each taxable period under section 26 of the Sales Tax Act 2018 shall be in the form and manner determined by the Director General of Customs and Excise. The previous regulation 7 had in addition also provided that the return may be furnished through electronic service.
Alert by Kok Chee Kheong (Partner) of the Corporate Practice of Skrine.
1 Our Alert on this subsidiary legislation can be accessed
here.
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.