Online shopping is no longer cheap? Starting January 2024, the Royal Malaysian Customs Department (RMCD) will impose a 10% sales tax on low value overseas goods! What is Low-Value Goods Sales Tax (LVG) and how does 10% work? Take a look at these frequently asked questions that we have prepared for you!
- All items priced below RM500 (excluding tobacco and alcohol)
- Purchased from overseas
- Goods brought into Malaysia whether by land, sea or air
1 January 2024
The sales tax is charged on the price of LVG, not including any tax, duty or other charges such as shipping fee or insurance.
- Sellers selling low value goods
- Whether in Malaysia or overseas
- Whether selling goods through online platforms or online marketplaces
- Whether the goods are brought into Malaysia by land, sea or air
- Sales exceeding RM 500,000 within a 12-month period.
If the LVG sold only through online marketplace (OMP), the OMP operator will be responsible for collecting the 10% sales tax.
- Log on to https://lvg.customs.gov.my/index.php/auth/login
(If you don’t have an account yet, you can register through “Applicant Registration”) - Click on “Add Person Details”.
- Fill in the employer/director/company appointee information
- Upload relevant documents
- Submit Application
Registered Seller (RS) needs to file a LVG sales tax return by filling in LVG-02 form at https://lvg.customs.gov.my
Once every 3 months.
Ringgit Malaysia (MYR)
Only online purchases of overseas goods will be subject to 10% sales tax, low value goods purchased in physical stores will not be subject to LVG.
Subscription of monthly journal is a digital services, which is given exemption.
(201706002678 & AF 002133)