Updates: Sales Tax on Imports of Low-Value Goods (“LVG”)

The Royal Malaysian Customs Department (RMCD), also known as Customs, has released Announcement LVG 1/2023 on 6 January 2023 to confirm that:

• the legislation related to Sales Tax on Low-Value Goods (“LVG”) will take effect from 1 January 2023; and

• the imposition of Sales Tax on imports of LVG will be effective from 1 April 2023.

Following the legislation related to Sales Tax on LVG:

1. any person, whether in Malaysia or a foreigner;

2. who sell Low-Value Goods (LVG);

3. brought into Malaysia by land, sea or air mode and

4. the total sales value of LVG in Malaysia exceeds RM500,000 within 12 months

is responsible for being registered as a Registered Seller (RS).

Applicants can start applying to be registered from 1 January 2023 via the