Sales Tax on imported Low Value Goods

Imported LVG are any goods or class of goods with a price not exceeding RM500, sold online by the seller and delivered to customers in Malaysia (e.g. by air, sea or land, including duty-free areas and free zones), and which are subject to service tax at 10 percent. VAT on LVG is not levied on transportation costs or insurance costs for transporting the goods from abroad to Malaysia. 

  

Any seller (i.e. overseas or in Malaysia) in an online marketplace, as well as operators of an online marketplace, whose total turnover of LVG in 12 months exceeds RM500,000 must be registered as a registered seller. A seller may apply for registration effective January 1, 2023; the application must be submitted via MyLVG using form LVG-01.