Introduction

The legislations related to the implementation of sales tax on Low Value Goods (LVG) have come into operation on 1 JANUARY 2023. Through this implementation sales tax will apply to LVG (all goods valued at RM500 or below from abroad), sold online by seller and delivered to consumers in Malaysia via land, sea or air mode.

Sellers from Malaysia or outside Malaysia who sell LVG are required to be registered and charge sales tax with a flat rate of 10%. However the effective date for charging and levying sales tax on LVG will be effective from 1 JANUARY 2024.