The Ministry of Finance (MoF) recently clarified the implementation of sales tax on imported low-value goods (LVG) in Malaysia. Therefore, this article provides the information you need.
You will learn the following:
Understanding Malaysia's New Sales Tax Regulation
Staying abreast of regulatory changes as businesses evolve globally becomes pivotal for seamless operations. In this regard, a recent update on tax regulations in Malaysia, effective from January 1, 2024, brings forth crucial modifications that demand attention from businesses involved in importing Low-Value Goods (LVGs).
Therefore, the salient features of the new tax regulations revolve around the revamped Sales Service Tax (SST) regime applicable to LVGs valued at MYR500 and below.
10% SST at Point of Purchase: LVGs sold through Online Marketplaces and shipped from abroad into Malaysia will incur a 10% SST at the time of purchase.
Who is Affected: This tax applies to any seller importing LVGs into Malaysia, inclusive of duty-free areas and accessible trade zones, by air, sea, or land, provided their annual sales value exceeds RM500,000.
Registration Requirement: Sellers meeting the aforementioned criteria are obligated to register with the Royal Malaysian Customs Department (RMCD) for the collection of the LVG sales tax. The registration process can be completed on the official RMCD website: mylvg.customs.gov.my.
Tax Calculation Basis: The LVG sales tax will be calculated solely on the product price, excluding delivery charges and insurance.
The imperative nature of comprehending and adhering to these amendments cannot be overstated. Timely compliance with the updated tax regulations is crucial to prevent disruptions in import and distribution processes within Malaysia.
How Luwjistik Helps
In response to these regulatory changes, Luwjistik, a cutting-edge logistics platform, emerges as a pivotal support system for businesses navigating customs clearance and coping with the sales tax on imported low-value goods in Malaysia.
Luwjistik offers several features that assist businesses in effectively managing their logistics and compliance needs, including:
Node Calculator
Luwjistik's node calculator is a crucial tool for estimating shipping expenses, taxes, and duties related to shipments in Malaysia. Businesses can proactively plan budgets, strategically allocate funds, and anticipate costs throughout the supply chain and customs clearance process using this intuitive tool.
Email Notification
For smooth customs clearance in Malaysia, providing your email for shipment updates is essential. Our system offers real-time notifications, including crucial customs details, empowering proactive solutions for issues.
If you have any inquiries or require further assistance, contact our support team at [email protected]. Our team stands ready to guide you through these changes and provide comprehensive support every step of the way.