10% tax will be charged from April 2023 when shopping overseas online for under RM500.
Beginning in April, the Malaysian government will begin collecting a new sales tax, which will require Malaysian shoppers to pay 10% more when purchasing goods imported from abroad (that are priced less than RM500).
The Malaysian government will levy a 10% sales tax on “low-value goods” (goods priced less than RM500) sold online and delivered from overseas to customers in Malaysia (including duty-free islands Labuan, Langkawi, Tioman, and Pangkor, as well as special areas such as free zones) by air, sea, or land.
From April 1, 2023, you must pay this new tax. From April 1, 2023, the new 10% sales tax applies only to overseas low-valued goods (priced less than RM500) purchased online. This tax will not be levied on delivery or insurance costs for bringing an item from another country into Malaysia.
The LVG sales tax will be charged when the order confirmation is issued by the online shopping platform. Even if the goods are delivered after April 1, 2023, you do not have to pay the 10% LVG sales tax if you purchased the LVG online before April 1, 2023.
The new sales tax does not apply to alcoholic beverages or cigarettes. All LVG purchased online will be subject to a 10% sales tax.
The following items are exempt from sales tax: cigarettes, tobacco products, smoking pipes (including pipe bowls), electronic cigarettes and similar personal electric vaporising devices, non-nicotine liquid or gel preparations used for smoking via e-cigarettes or vaping devices, intoxicating liquor.
If you are a seller, you must register with Customs and assist in the collection of the new tax.
