The implementation date for the tax had originally been left up in the air until the latest announcement on Jan 6. — AFP Relaxnews
KUALA LUMPUR: The 10% sales tax on low-value goods (LVG) will be in effect from April 1, according to the Royal Malaysian Customs Department.
Goods imported from overseas that are priced under RM500 will be subject to the tax.
Online shoppers should note that the tax will apply only to the actual value of the goods regardless of shipping fees.
The LVG tax was announced on Aug 1 last year, following a proposed amendment to the Sales Tax Act 2018 to tax LVG sales through the Sales Tax (Amendment) Bill 2022.
The date of implementation for the tax had originally been left up in the air until the latest announcement on Jan 6.
According to a statement on its website, LVG sellers are responsible for acquiring ‘Registered Seller’ (RS) status with the Customs Department.
Registration will be required for both Malaysian citizens and foreigners who deal in low-value goods brought into the country via land, sea or air, and exceeds RM500,000 in total sales value within 12 months, the government agency added.
More information about registrations can be found on the Customs Department website.
