Key Legal Requirements Applicable to B2B E-Commerce in Malaysia B2B

• Sale of Goods Act 1957 – although not specifically applicable to e-commerce businesses only, this legislation applies to all transactions relating to the sale and purchase of goods between buyers and sellers, and sets out, inter alia, provisions relating to formation of contract, the effects of contracts, and the performance of contracts, etc.;
• Contracts Act 1950 – although not specifically applicable to e-commerce businesses only, this legislation sets out the legal framework for the formation, enforceability, and nullification of contracts in Malaysia;
• Electronic Commerce Act 2006 – this legislation provides for the recognition of the validity and legal effect of contracts in situations where electronic messages were used in their formation;
• Sales Tax Act 2018 – (specifically, the Sales Tax (Amendment) Act 2022) introduces sales tax at a rate of 10% on low value goods (“LVG”) (i.e., goods with a sales value of not more than RM500) brought into Malaysia by land, sea or air, which mainly impacts e-commerce businesses and affects LVG sold via online marketplaces.  Further, foreign and local sellers of LVG whose total sales exceed RM500,000 within 12 months are required to register as “registered sellers” under the Sales Tax Act 2018; and
• Services Tax Act 2018 – foreign online service providers are required to register under the statute, which imposes service tax at the rate of 8% on digital services (i.e., any service that is delivered or subscribed for over the internet or other electronic network and which cannot be obtained without the use of information technology and where the delivery of the service is essentially automated) provided by a foreign service provider to any consumer in Malaysia.

B2B   

• EDI
• B2B

• RM500 B2B
• RM500,000 RMCD“”
• 10%

• RMCD
• 8%

• MDTCLWRT Approval
• B2B
• WRT

• B2B

• B2B dropshipping