Malaysia will impose e-Invoicing requirements on foreign online commerce platforms as part of efforts to strengthen oversight of their operations, reports The Edge.
Speaking during the winding-up session of the Budget 2027 debate in the Dewan Rakyat today, domestic trade and cost of living minister Datuk Armizan Mohd Ali stated that the ministry of finance will implement this measure as part of immediate measures to keep tabs on popular platforms like Pinduoduo, Temu and AliExpress.
These platforms have expansive catalogues that include a wide range of automotive-related products such as accessories, parts and even lubricants, some of which are sold at low prices. In light of this, local retailers have raised concerns about foreign competition amid differences in regulatory, taxation and compliance requirements that create an uneven playing field.
At present, foreign e-commerce platforms are subject to a 10% low-value goods tax, which was implemented by the Royal Malaysian Customs Department (JKDM) on January 1, 2024. The tax applies to all non-prohibited, tangible goods priced at RM500 or less that are sold online and imported into Malaysia via land, sea or air.
In addition to the e-Invoicing requirement, foreign e-commerce platforms and their related vendors will be required to establish offices in Malaysia to facilitate monitoring. This ensures that foreign e-commerce platforms comply with Malaysian taxation and customs requirements. The government also plans to table a bill to regulate foreign platforms operating in Malaysia during the first parliamentary sitting in 2027.
The proposed legislation would include a consultation mechanism that requires platforms to engage with sellers and the ministry before changes are implemented to ensure greater transparency and fairness. Consumer protection, dispute resolution, alignment with international best practices for cross-border trade as well as the responsibilities of online marketplace operators, sellers and consumers will also be covered by the bill.
