Sales Tax Act 2018: Amendment of Section 11A

"Section 11A – Interpretation" is read as follows:- Section 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.

Finance (No. 2) Bill 2023

The proposed amendment to Section 11A of the Finance (No. 2) Bill 2023 involves a change in the definition of the term "seller."

The amendment substitutes the phrase "low-value goods on an online marketplace" with the words "low-value goods on an online platform."

This change signifies a broader scope, moving from the term "online marketplace" to the more inclusive term "online platform."

The modification may reflect an effort to adapt the legislation to the evolving nature of digital commerce.

The impact on businesses could be twofold.

First, businesses operating on various types of online platforms, not limited to traditional marketplaces, might fall under the scope of this regulation.

Second, it implies a need for businesses to review and adjust their tax-related practices and compliance measures to align with the amended definition.