Low value goods (LVG) sales tax is being implemented on 1 January 2024. Registered seller is required to charge a 10% LVG sales tax on goods brought into Malaysia. We have summarized an easy reference for your goods understanding on mechanism of LVG sales tax.
| Who should registered? | Local/overseas seller who generate turnover (from LVG) more than RM500K in 12 months (past/future) from online platform |
| LVG (Low Value Goods) | Selling price <RM500 per unit |
| Sales tax rate | 10% on selling price (exclude delivery fee, custom duty, excise duty, insurance etc) |
| Taxable period | Submit LVG-02 (once in 3 months) in conjunction to business/company year end |
| Due date for submission | Subsequent month of taxable period (Eg. Taxable period 01 Jan 24 to 31 Mar 24, due date 30 April 2024） |
| Penalty rate | First 30days from due date – 10% Next 30days from due date – 10% + 15% = 25% Next 60days from due date – 10% + 15% + 15% = 40% |
For further information, please do not hesitate to contact us. We can assist you further on your queries.
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