Implementation Of Sales Tax On Low Value Goods (LVG)

Implementation Of Sales Tax On Low Value Goods (LVG)

1. What is meant by Low Value Goods (LVG)? 

All goods (excluding cigarettes; tobacco products; intoxicating liquors; smoking pipes (including pipe bowls); electronic cigarettes and similar personal electric vaporizing devices; and preparation of a kind used for smoking through electronic cigarette and electric vaporizing device, in forms of liquid of gel, whether or not containing nicotine) which are sold at a price not exceeding MYR500 and are brought into Malaysia by land, sea or air.

2. When is the sales tax implementation date on LVG? 

The sales tax legislation on LVG has come into force from 1 January 2023. However, the imposition of sales tax on LVG will only start on 1 January 2024.

3. How is the sale value for LVG determined? And what is the sales tax rate on LVG? 

The sales tax is charged on the sale value of LVG not including any tax, duty, fee or other charges such as transportation, insurance or other costs. The sales tax rate on LVG is 10%. 

To know more, refer here



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