Low Value Goods (LVG) Notice

Low Value Goods (LVG) Notice

Starting January 1, 2024, the government has implemented a 10% tax on Low Value Goods (LVG) purchased online from overseas, with a value below RM500. LVG encompasses goods transported via sea, air, or land, excluding tobacco products, electronic cigarettes, and alcohol. This tax applies to goods entering Malaysia, including specific regions such as Penang, Langkawi, Tioman Island, Banting Island, and free zones.
To identify platforms subject to LVG, one needs to inspect goods entering Malaysia through customs with a value below RM500, as they are obligated to pay the 10% LVG. The calculation of LVG is based solely on the product price and does not factor in shipping or insurance fees.
Should you have any specific inquiries or require further clarification, please feel free to ask!
For Example: On January 1, 2024, a purchase was made from an overseas online platform, with the goods priced at RM480 and an additional shipping cost of RM20, bringing the total to RM500. Although the platform indicates the product price as RM480 on the receipt, a 10% sales tax, amounting to RM48 LVG, is applicable based on the regulatory changes. Upon confirming the order, the platform will recalculate the total cost, factoring in the sales tax and shipping fees. Consequently, the revised amount to be paid is RM548, comprising the product cost (RM480), sales tax (RM48), and shipping fee (RM20). The 10% sales tax (RM48 LVG) will be collected during the order confirmation process in adherence to the updated tax policy. Should you have any queries or require further clarification, feel free to inquire!