Malaysia: Legislation and online portal for sales tax on “low value goods”
Official portal for low value goods allows online submission of the application for registration
Legislation and online portal
The Ministry of Finance—prior to the implementation of sales tax on “low value goods”—has issued multiple pieces of legislation that state:
- Every registered seller must clearly display the information of the consignment note (with the sales tax registration number) by patching or affixing the information on the package of low value goods.
- Sales tax on low value goods will be charged on all goods that are sold at a price not exceeding RM500 and are brought into Malaysia by land, sea, or air.
- The total sale value of low value goods for registration purposes is RM500,000.
- The rate of sales tax for low value goods is 10%.
- An amendment has been made to item 24 Schedule A of the Sales Tax (Persons Exempted from Payment of Tax) Order 2018 to cover goods imported using air courier service including postal service and exclude additional goods (e.g., smoking pipes, electronic cigarettes, etc.), with a total cost, insurance, and freight value not exceeding RM500 per consignment.
In addition, the Royal Malaysian Customs Department has launched the official portal for low value goods (MyLVG) allowing online submission of the application for registration.
Background
The RMCD announced in November 2022 a postponement of the implementation of sales tax on “low value goods” to 1 April 2023 (initially proposed to be effective 1 January 2023). Read TaxNewsFlash
Read a January 2023 report prepared by the KPMG member firm in Malaysia
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