Goods bought overseas have to pay GST if exceed RM400

Nanyang Siang Pau, October 15, 2014

Kuala Lumpur, Oct 14 – Malaysians who like to shop abroad please take note that with the implementation of Goods and Services Tax (GST) next year, the goods they brought in will have to pay 6% GST if the value excess RM400.
According to the 2014 GST Relief Order gazette yesterday, if the value of goods brought into the country excess RM400, GST will be imposed.

For instance, goods valued at RM500 brought in from Taiwan, after deduct RM400 the balance of RM100 will have to pay GST.

Besides, according to the relief order, the duty free goods bought in Pulau Langkawi, Pulau Tioman and Pulau Labuan when brought into other areas in Peninsula and East Malaysia, the exemption limit is RM500.

Customs Director-General Dato’ Khazali told Nanyang Siang Pau that foreigners enter the country and Malaysians returned from abroad will have to fill in declaration form. Custom officers at the customs check-point will ask the travelers the value of goods they brought along. After a rough estimate, they will be allowed to pass through.

“But never under estimate the wisdom of the customs officer, just like if you are coming back from London, as a Malaysian, how could you not buy anything? Even if you return from China, I’m sure you must have bought lots of things.

“Another example, if you buy Dunhill shirt, the value is around RM300, all these we know well, it is not difficult.”

On the question whether the traveler will have to open up all luggages for customs check, he said of course they have to.

According to the Relief Order, the existing tax exemption on one liter liquor, one carton cigarette (225 gram) will still be exempted under the GST.

Other GST exempted items include three shirts; one pair of shoes, food item not more than RM75, a set of electrical appliance like the electric shaver, gifts and presents, if the value exceeds RM400 or RM500, then tax is applicable.

According to the 2014 GST Relief Order, good items brought in after two-day one-night shopping trip in overseas will have to pay GST.

Goods brought in by tourist who spent 24 hours in Pulau Labuan will be exempted from paying GST, while the duration in Pulau Langkawi and Pulau Tioman will have to be over 48 hours.

It seems that Malaysians who like to spend their weekend in Singapore or Southern Thailand for shopping spree will end up paying for extra tax.

Original Source: 400元内享减免 海外购物须缴消费税