Implementation of Sales and Service Tax (SST) on Platform Fees Effective 1 March 2024

In line with Malaysia's 2024 budget announcement, the Ministry of Finance confirmed that the Sales and Service Tax (SST) rate for prescribed taxable services will rise from 6% to 8%, effective from 1 March 2024. This increase affects various services, including e-commerce platform fees, unless explicitly exempted.

Shopee’s SST Revision

Shopee, a leading e-commerce platform in Southeast Asia, will revise the SST rate for platform fees from 6% to 8% starting 1 March 2024, in response to the government's updated tax rate. Sellers should note that SST will apply to various platform-related fees, such as transaction fees, marketplace and mall commission fees, marketing program service fees, Seller Wallet high-frequency withdrawal fees (if applicable), Shopee Marketing Packages, and Paid Ads credits. The new 8% SST will be added as a surcharge for services like Paid Ads and Marketing Packages. Shopee has provided a detailed breakdown of the fee adjustments, which sellers can refer to.

Managing fees across multiple e-commerce platforms like Shopee, Lazada, and TikTok can be complex, especially with the new SST rate. Failure to accurately account for these fees can lead to unexpected reductions in profit margins. This is especially crucial during high-demand periods like Ramadan.

Without proper financial tracking, sellers may overlook the impact of additional fees, leading to unforeseen losses. Therefore, accurate fee calculations and profit estimation are essential for maintaining profitability.

BigSeller is a comprehensive e-commerce management tool that helps sellers track their financials across platforms like Shopee, Lazada, and TikTok. BigSeller automatically calculates estimated profits, factoring in all fee. If an order results in zero or negative profit, BigSeller alerts sellers during the packing stage, enabling timely intervention to prevent losses.

By offering real-time insights into profit margins, BigSeller empowers sellers to make data-driven decisions, optimize pricing, and improve business strategies. Sellers can manage their operations more efficiently, ensuring that all fees are accounted for and that profits are maximized. Whether you sell on Shopee, Lazada, or TikTok, BigSeller ensures that you stay on top of fee changes and maintain control over your financials.
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