Amendment Act · As enacted · 4 parts
Sales Tax (Amendment) Act 2022
Feedback & supportAmends the Sales Tax Act 2018Official textFrom Laws of Malaysia Online, unchanged
This Act may be cited as the Sales Tax (Amendment)
Act 2022.
This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different parts or different provisions of this Act.
Notwithstanding subsection (2), the Minister may, by notification in the Gazette, appoint the effective date for the charging and levying of sales tax on low value goods under this Act.
SALES TAX (AMENDMENT) ACT 2022
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s 2New Part IIIa
The Sales Tax Act 2018 [Act 806], which is referred to as the “principal Act” in this Act, is amended by inserting after
Part III the following part:
“Part IIIa
IMPOSITION OF SALES TAX ON LOW VALUE GOODS
Interpretation 11a. For the purposes of this Part and any regulations made under this Act in relation to this Part—
“low value goods” means any prescribed goods or class of goods outside Malaysia which are sold at a price not more than a prescribed amount and brought into Malaysia in the manner as prescribed;
“seller” means a person, whether in or outside Malaysia, who sells low value goods on an online marketplace or operates an online marketplace for the sales and purchase of low value goods;
“registered seller” means any seller who is registered under section 13.
Application 11b. (1) The provisions of this Act, except as otherwise provided in this Part and subject to the modifications in the
Schedule, shall apply to low value goods.
Parts VIII, IX, IXa and XIII, and sections 3, 14,
15, 16, 23, 32, 35, 36, 37, 40, 41a, 43, 44, 45, 46, 47, 57a,
76 and 96 shall not apply to low value goods.
Territorial and extra-territorial application 11c. (1) This Part shall apply both within and outside Malaysia.
Sales Tax (Amendment)
Notwithstanding subsection (1), this Part shall apply to any person, whatever his nationality or citizenship, beyond the geographical limits of Malaysia and the territorial waters of Malaysia, if the person—
is a seller; or
is registered under section 13 as a registered seller.
Display of information on package
s 11d
Every registered seller shall furnish to the Director General prescribed particulars which shall be displayed on the package of low value goods in the manner as may be prescribed.”.
s 3Amendment of section 19
Section 19 of the principal Act is amended by inserting after subsection (4) the following subsection:
“(5) The Director General may, on the application of a registered manufacturer, cancel the registration of the registered manufacturer if the registered manufacturer has been exempted from registration pursuant to subsection 20(1).”.
s 4New of section 57a
The principal Act is amended by inserting after section 57
the following section:
“Deficiency in quantity of taxable goods in a special area 57a. (1) If it appears to the Director General at any time that in a special area there is a deficiency in the quantity of taxable goods which in normal circumstances ought to be found therein, any person being or holding himself out to be the owner, agent or person in possession of, or beneficially interested in, or having any control of, or power of disposition over, the goods shall—
in the absence of proof to the contrary, be presumed to have illegally transported such goods to Malaysia;
and
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be liable to pay the sales tax leviable on the date when the quantity of the goods were found to be deficient as if the goods were imported into Malaysia.
Notwithstanding subsection (1), if it is shown to the satisfaction of the Director General that such deficiency has been caused by any unavoidable leakage, breakage or other accident, the Director General may remit the whole or part of the sales tax leviable on the goods found deficient.”.
s 5Amendment of section 91
Section 91 of the principal Act is amended in paragraph (a)
by inserting after the words “being an employee of a taxable person” the words “, an employee under section 89”.
s 6Amendment of section 106
Section 106 of the principal Act is amended in subsection (2)—
in paragraph (a), by substituting for the words “registration of manufacturers” the words “registration of manufacturers and sellers”;
in paragraph (c), by substituting for the words “taxable goods” the words “the taxable goods and low value goods”; and
by inserting after paragraph (k) the following paragraph:
“(ka) all matters relating to low value goods;”.
s 7New sections 106a and 106b
The principal Act is amended by inserting after section 106
the following sections:
“Power to extend period 106a. Where, by this Act, a period is specified within which an act or thing is to be done by a person, and the Minister is satisfied that the act or thing could not be completed in that period due to the occurrence of public emergency or public health crisis, the Minister may, upon such terms and conditions as the Minister thinks fit, extend the period for the completion of the act or thing before the expiration of the period.
Sales Tax (Amendment)
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Power to modify terms and conditions 106b. (1) Where terms and conditions are imposed pursuant to this Act, the Minister may, on the advice of the
Director General, from time to time modify the terms and conditions for the purpose of carrying out the objects of this
Act.
Before modifying the terms and conditions, notice must be given to the person bound by the terms and conditions stating—
the terms and conditions as modified; and
the date the terms and conditions as modified take effect.
The modified terms and conditions shall not take effect in less than fourteen days from the date the notice is issued under subsection (2).
For the purposes of this section, “modify” means add to, delete or vary.”.
s 8New schedule
The principal Act is amended by inserting after section 109
the following schedule:
“Schedule
[Section 11b]
MODIFICATIONS TO THE PROVISIONS OF THE SALES TAX ACT 2018
WHICH APPLY TO LOW VALUE GOODS
Provisions of this Act
Modifications
Section 2
In the definition of “taxable person”, substitute for the words “a registered manufacturer or a manufacturer”
the words “a registered seller or a seller”.
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Provisions of this Act
Modifications
Section 8
Substitute for section 8 the following section:
s 8“Imposition and scope of sales tax
Sales tax shall be charged on low value goods sold by a taxable person.
The Minister may, by order published in the
Gazette, determine low value goods based on the following criteria:
goods or class of goods;
the price of goods; and
the manner in which the goods are brought into Malaysia.
Any order made under subsection (2) shall be laid before the Dewan Rakyat.
This Act shall be construed as one with the Customs Act 1967 and the Excise Act 1976 with regard to the goods brought into Malaysia including goods in transit and the movement of goods under customs control or excise control.
Where there is any inconsistency between the provisions of the Customs Act 1967 or the Excise Act 1976 and the provisions of this Act, the provisions of this Act shall prevail.”.
Section 9
Substitute for section 9 the following section:
s 9“Determination of sale value of low value goods
The sale value of low value goods on which sales tax is payable shall be the price of low value goods not including any tax, fee or other charges imposed on the low value goods.”.
s 1Section 10
In subsection (1)—
substitute for the words “the taxable goods sold, used or disposed of or imported” the words “the low value goods sold”; and
substitute for the words “the sale value of the taxable goods” the words “the sale value of the low value goods”.
s 2
Delete subsections (4), (5) and (6).
Sales Tax (Amendment)
Provisions of this Act
Modifications
Section 11
Substitute for section 11 the following section:
“Sales tax due 11.
The sales tax chargeable under section 8 shall be due at the time when the low value goods are sold by the taxable person.”.