The Ministry of Finance announced in Budget 2022 that Low Value goods (LVG) not exceeding RM500 from abroad sold online by seller and delivered to consumers in Malaysia is subject to sales tax with effect from 1 January 2023.
This is to ensure level playing field and fair treatment between all LVG
purchased from overseas or locally. Therefore, any person who sells LVG through an online marketplace or operates online marketplace should make this guide as a reference
In the context of LVG, who is the seller? “Seller” means a person, whether inside or outside Malaysia, who: i. sells LVG on an online platform; or ii. operates an online marketplace for the sale and purchase of LVG.