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Sales Tax on Low Value Goods (LVG)

Rising Global Consultants

Low Value Goods

Starting January 1, 2024, goods purchased online and shipped to Malaysia from around the world, valued at 500 MYR or less (referred to as low-value goods/LVG), will be subject to a 10% sales and service tax (SST) at the time of purchase.

This regulation applies only to e-commerce platforms that meet the following minimum criteria:

(1) The total sales of low-value goods (LVG) entering Malaysia in the past 12 months exceed 500,000 MYR,

(2) And are registered with the Malaysian Customs authorities.

If the e-commerce platform does not meet these minimum criteria or is not registered with the Malaysian Customs authorities, the import sales and service tax (SST) exemption for low-value goods will continue to apply (consistent with the current Malaysian customs clearance policy).

Common LVG issues

The sales tax rate for LVG is 10%.

Sellers from Malaysia or outside Malaysia who sell LVG on online platforms or operate online marketplaces for LVG must register if the total sales of LVG brought into Malaysia within 12 months exceed RM500,000.

  • Sellers of low-value goods
  • whether in Malaysia or overseas
  • hether through online platforms or online marketplaces
  • Regardless of whether the goods are brought into Malaysia by land, sea, or air.
  • Sales exceed RM 500,000 within 12 months.

If a seller only sells LVG on an e-commerce platform (OMP), the platform will be responsible for collecting the 10% sales tax.

  1. Login https://lvg.customs.gov.my/index.php/auth/login
    (If you do not have an account yet, you can register first through Applicant Registration)
  2. Click “Add Person Details”
  3. Fill in the details of the employer/director/company appointee.
  4. Upload the relevant documents.
  5. Submit the application

Submit once every 3 months.

Only online purchases of overseas goods are subject to a 10% sales tax; low-value goods purchased from physical stores are not subject to LVG.

Subscription to electronic services is exempt.

Welcome to Contact Us

Phone Number: +60 3-8682 1802 | E-mail:  officer@rising.com.my