As announced by the Malaysian Ministry of Finance on 13 October 2023 during the Budget 2024 speech, the Sales and Service Tax (SST) rate will be increased from 6% to 8% effectively on 1 March 2024. With this, Shopee Malaysia will revise the SST rate on its platform.
In the chart below, the SST is applied to the transaction fee, marketplace commission fee, other applicable marketing programme service fee(s), Seller Wallet high frequency withdrawal fee (if applicable), Shopee Marketing Packages, and Paid Ads credits. While this affects Shopee sellers heavily, this will also impact the price of items on their online stores.
Besides Shopee, Google will increase up to 8% SST rate for its services starting 1 March 2024. TaoBao users in Malaysia will also have to pay a 10% SST sales tax when purchasing items from the platform. We can expect out online platforms such as Netflix, Disney Hotstar, Steam, PlayStation Plus and others to follow suit.
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