Common Questions about Low-Value Goods (LVG) Sales Tax

Common Questions about Low-Value Goods (LVG) Sales Tax
Implemented since January 2024

1. What are Low-Value Goods (LVG)?
Goods priced below RM500
Whether imported by land, sea, or air into Malaysia from abroad.

2. When does the LVG Sales Tax take effect?
The regulations for LVG officially took effect on 01.01.2023, and the sales tax will be levied starting from 01.01.2024.

3. What is the sales tax rate for LVG?
10%

4. What charges are subject to the 10% sales tax?
Only the price of the goods is subject to the sales tax; other charges such as transportation and insurance are not included.

5. Who needs to register as a registered seller (RS)?
Merchants selling low-value goods, whether in Malaysia or overseas
Whether selling goods through online platforms or online markets
With sales exceeding RM 500,000 within 12 months

6. If a merchant sells LVG through an e-commerce platform, does it need to register as an RS?
If a merchant sells LVG only on an online marketplace platform (OMP), the platform will be responsible for collecting the 10% sales tax.
Examples of e-commerce platforms: Lazada, Shopee

7. How to submit LVG reports?
RS can fill out the LVG-02 form on the Customs Department website and submit the LVG sales tax report.

8. How often should LVG reports be submitted?
Every 3 months.

9. What currency should be used when submitting reports and payments?
Malaysian Ringgit (MYR)

All terms are subject to LHDN's approval