Sales Tax Low Value Goods

Background

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.

RMCD Announcement

According to a statement on RMCD 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.

Key Summary :

1. RMCD Announcement on LVG (Low Value Goods) 1/2023

The Royal Malaysian Customs Department (RMCD) has issued an Announcement on LVG (Low Value Goods) 1/2023 (Announcement) dated 6 January 2023.

The Announcement states the following: -

a. The legislation related to sales tax on LVG have come into force on 1 January 2023.

b. The effective date for charging and levying sales tax on LVG will be from 1 April 2023.

c. In accordance with the legislations related to sales tax on LVG:-

i) any person whether in Malaysia or a foreigner;

ii) who sell LVG;

iii) brought into Malaysia by land, sea or air mode; and

vi) the total sales value of LVG into Malaysia exceeds RM500,000 within 12 months,

is responsible for being registered as a Registered Seller (RS).

d. Applicants can start applying to be registered from 1 January 2023.

e. More information regarding registration can be accessed via https://lvg.customs.gov.my

f. Any queries or feedback regarding Sales Tax on LVG can be emailed to mylvg@customs.gov.my

PS : Online shoppers should note that the tax will apply only to the actual value of the goods regardless of shipping fees.

Visit Us

• Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

• Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

• Website www.ktp.com.my

• Instagram https://bit.ly/3jZuZuI

• Linkedin https://bit.ly/3sapf4l

• Telegram http://bit.ly/3ptmlpn

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

• Website www.thks.com.my

• Facebook https://bit.ly/3nQ98rs

KTP Lifestyle

An internal community for our colleagues on work and leisure.

• Tiktok http://bit.ly/3u9LR6Q

• Youtube http://bit.ly/3ppmjyE

• Facebook http://bit.ly/3ateoMz

• Instagram https://bit.ly/3jZpKLo

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

• Instagram https://bit.ly/3u2PxHg

• Facebook http://bit.ly/3rPxz9o

#Ktp #Thks