- Malaysian Sales Tax at a rate of 10% is now levied on low value goods (LVG) as of 1 January 2024
- The tax was originally proposed to start on 1 January 2023 but was postponed and deferred indefinitely
- The key features of Sales Tax on LVG include goods with a sales value of MYR 500 or less, excluding certain items like cigarettes and tobacco products
- Sellers of LVG on online platforms are considered under the tax
- Tax is charged at a rate of 10% on the sales value of LVG
- Registration threshold is total sales value exceeding MYR 500,000 within a 12 month period
- Sales Tax return must be submitted every three months by registered sellers
- Customs importation mechanism requires LVG Registration Number information during importation
- No Sales Tax will be levied if tax has already been charged and paid by the registered seller
- Transitional provisions apply to LVG purchased before 1 January 2024
Source: bdo.global
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.
