Introduction To Low Value Goods Tax

As the new year unfolds, Malaysia has ushered in a paradigm shift with the imposition of the sales tax on imported low-value goods, following the introduction of a new tax regime to regulate the importation and sale of low-value goods last year. Following a series of deferrals from 1^st January 2023 to 1^st April 2023, which aims to allow the MADANI Government to engage and facilitate consultation with industry players and key stakeholders, the Royal Malaysian Customs Department ("RMCD") announced that the imposition of the Low Value Goods Tax ("LVGT") will be effective 1^st January 2024. This change has been met with both anticipation and apprehension, as consumers, businesses, sellers, navigate through the impacts of this new sales tax on the e-commerce landscape.