In this course · 4 of 6
Course 4
SST and imported goods
6 lessons · 6 min
- 1Do Online Sellers in Malaysia Have to Charge SST on Goods They Resell?
- 2When Must Home-Based Makers Register for Sales Tax in Malaysia?
- 3What Sales Tax Rates Apply to Goods in Malaysia From 1 July 2025?
- 4What Is LVG Tax on Imported Goods Sold Online in Malaysia?
- 5Who Must Register for LVG Sales Tax in Malaysia: Seller or Platform?
- 6Do Foreign Digital Service Providers Charge Service Tax in Malaysia?
The short answer
Low Value Goods (LVG) tax is a 10% sales tax on imported goods priced at RM500 or less per item that are sold online and brought into Malaysia by air, sea or land. It started on 1 January 2024 (Ministry of Finance). Cigarettes, tobacco products and intoxicating liquors are excluded.
The Royal Malaysian Customs Department defines low value goods as goods sold at a price not exceeding RM500 and brought into Malaysia by land, sea or air. The sales tax rate on LVG is 10%, and the Ministry of Finance announced that it took effect on 1 January 2024. Cigarettes, tobacco products and intoxicating liquors are excluded.
Who collects it. The seller or the online marketplace operator, if registered, adds the tax at checkout and pays it to Customs, so the buyer does not normally pay at the border. A seller can be inside or outside Malaysia.
What it means for the buyer. The price shown at checkout can include the 10% tax.
What it means for a Malaysian reseller. A reseller who imports stock for its own warehouse is dealing with normal import rules, not the LVG scheme.
Purpose. The Ministry of Finance said the measure equalises treatment of local and imported goods sold online.
Customs' MyLVG portal carries the guide and registration system.
Legal basis and sources
The law
- Sales Tax Act 2018, s.13 (low value goods)
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
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