1. Must I have a business entity in an overseas country that I would like to sell to?
No, you do not need to have a business entity in the overseas country before selling into that country through ZALORA platforms. However, you may wish to seek professional advice on how best to structure your business.
2. Must I register for indirect tax in an overseas country I am selling to?
Every country has its own indirect tax rules and registration requirements. You should seek professional advice on whether you have a liability to register for indirect tax in the overseas country.
Note also that in Singapore and Malaysia, the governments have announced rules to impose GST/SST on low value goods imported via air and potential registration requirements for non-Singapore/non-Malaysian entities in Singapore/Malaysia respectively.
Details on Singapore GST on low value goods changes effective 1 Jan 2023, can be found here. For Malaysia, details on the proposed law have yet to be released by the Malaysian Government.
3. Am I required to file indirect tax returns in the overseas country that I am selling to?
You are generally required to file an indirect tax return if you are registered for indirect tax in that country. You should seek professional advice on whether you have a liability to register for indirect tax in the overseas country.
4. How can I obtain a tax invoice from ZALORA?
ZALORA issues tax invoice on a monthly basis after the end of the month, i.e., the tax invoice for commission and related fees incurred for January will be billed in February. This tax invoice will be emailed to the contact you have provided to us when the Seller Account was created. If there are any changes to the email address, please update it here.
5. Is indirect tax applicable on co-funding?
No. ZALORA does not charge GST/VAT/SST on pure co-funding.
6. Who are the local contracting and billing entities for non-Malaysia Sellers?
For Malaysian sellers selling on any ZALORA platform, Jade EServices Malaysia Sdn Bhd replaced local ZALORA entities as the new ZALORA contracting and billing entity since 1 May 2021.