- Sales Tax on Low Value Goods (LVG) will commence on 1 January 2024.
- The RMCD has released an updated LVG Guide and FAQ.
- Sales tax will be charged on LVG sold online and delivered to consumers in Malaysia.
- LVG refers to goods sold at a price not exceeding MYR 500, excluding certain items.
- Sellers with a total sale value of LVG exceeding MYR 500,000 in a rolling 12-month period must register for Sales Tax on LVG.
- The sales tax rate on LVG is 10%.
- Updates to the LVG Guide include changes to the determination of registration threshold, accounting for sales tax, definition of a seller, import clearance procedures, issuance of credit notes/debit notes, and application of discounts and monetary vouchers.
- The effective date for the imposition of Sales Tax on LVG is expected to be officially gazetted soon.
- Businesses need to assess their readiness to comply with the tax by 1 January 2024.
Source: www2.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
