Sales Tax on Low Value Goods (“LVG”) – Starting 1 January 2024

The Royal Malaysian Customs Department (“RMCD”) has announced on its website that the Sales Tax on LVG, which had been deferred previously, will be effective from 1 January 2024.

RMCD has also issued a new Guide on Sales Tax on LVG (“the LVG Guide”) dated 3 November 2023, which sets out the key points on the mechanism of the LVG. In line with this and pending the ‘Appointment of Effective Date for Charging and Levying of Sales Tax on LVG’, we have prepared a summary of the salient points for sellers and buyers of goods from overseas, as well as importers and Customs agents, to consider.

Please click on the above header link for the salient points and a copy of the LVG Guide.

Our highlights are intended to provide a general overview of the key proposed tax changes and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions.

Petaling Jaya Office

Soh Lian Seng
Partner - Head of Tax and Tax Dispute Resolution
lsoh@kpmg.com.my
+ 603 7721 7019

Ng Sue Lynn
Partner - Head of Indirect Tax
suelynnng@kpmg.com.my
+ 603 7721 7271

Tai Lai Kok
Partner - Head of Corporate Tax
ltai1@kpmg.com.my
+ 603 7721 7020

Bob Kee
Partner - Head of Transfer Pricing
bkee@kpmg.com.my
+ 603 7721 7029

Long Yen Ping
Partner - Head of Global Mobility Services  yenpinglong@kpmg.com.my
+ 603 7721 7018

Outstation Offices

Penang

Evelyn Lee
Partner - Penang Tax
evewflee@kpmg.com.my
+603 7721 2399

Ipoh

Crystal Chuah Yoke Chin
Associate Director - Ipoh Tax
ycchuah@kpmg.com.my
+603 7721 2714

Kuching & Miri

Regina Lau
Partner - Kuching & Miri Tax
reglau@kpmg.com.my
+603 7721 2188

Kota Kinabalu

Titus Tseu
Executive Director - Kota Kinabalu Tax
titustseu@kpmg.com.my
+603 7721 2822

Johor

Ng Fie Lih
Partner - Johor Tax
flng@kpmg.com.my
+603 7721 2514