Importing into Malaysia

Malaysia charges a 10% sales tax on low value goods, which are goods sold online at RM500 or less and brought into Malaysia by land, sea or air, and registered sellers collect it at checkout. Separately, an air courier consignment with a CIF value of RM500 or less is exempt from import duty and sales tax on imports. Above that, or by road, the parcel pays import duty and, unless the seller already charged the low value goods tax, sales tax on imports.

Rules as of 30 October 2026.

What does a parcel to Malaysia pay?#

A parcel to Malaysia meets two separate tests. The low value goods (LVG) test looks at each item's sale price and decides whether the seller charges 10% at checkout. The de minimis test looks at the consignment's CIF value and transport mode, and decides whether the Royal Malaysian Customs Department (RMCD) charges import duty and import sales tax.

The de minimis exemption comes from Item 94 of the Customs Duties (Exemption) Order 2017 and Item 24 of Schedule A to the Sales Tax (Persons Exempted from Payment of Tax) Order 2018, and it still applies alongside the LVG tax. It covers consignments sent by air courier, so goods imported by road don't get it.

De minimis thresholds in Southeast Asia and Australasia

border.bot live data from each country's official publications, updated 2026-10-11

The Malaysia country page has the live figures, and the de minimis guide explains the difference between duty and tax thresholds.

How does the low value goods tax work?#

Malaysia's LVG tax is a 10% sales tax on goods sold online at RM500 or less and brought into Malaysia from abroad. The law came into force on 1 January 2023 and the tax has been charged since 1 January 2024, on the sale value without any tax, duty, fees, transport, insurance or other costs.

A few product groups are outside the LVG definition, so sellers don't charge LVG tax on them and they follow the normal import rules: cigarettes, tobacco products, intoxicating liquors, smoking pipes and pipe bowls, electronic cigarettes and similar vaporizing devices, and the liquids or gels used in them, with or without nicotine.

A seller, in the LVG rules, is anyone inside or outside Malaysia who sells low value goods on an online platform, and that includes the operator of an online marketplace. An online platform covers marketplaces run through a website, internet portal or gateway.

When does a seller have to register?#

A seller has to register with RMCD once the total sale value of its low value goods brought into Malaysia exceeds RM500,000 in 12 months. Registration is made through the MyLVG portal, and a registered seller (RS) receives an LVG registration number that must travel with every shipment so customs can see the tax was paid.

Registered sellers file an LVG-02 return every three months for each taxable period, through the same portal, and declare and pay in ringgit. They may issue credit or debit notes for a change in the tax rate or a financial adjustment. Records of LVG transactions must be kept for seven years, and a seller based abroad may keep them outside Malaysia as long as they stay accessible.

A seller whose LVG sales stay at or below RM500,000 doesn't have to register or charge the tax, and its parcels are treated under the normal import rules: free under the de minimis by air courier at RM500 CIF or less, taxed at import otherwise.

What goes on the paperwork?#

The LVG registration number links a parcel to the tax already paid. The importer or customs agent enters it in the import declaration: the Customs Form No. 1 (K1), the electronic pre-alert system (e-PAM) or the CN22 or CN23. On the K1 it goes in the "SST/LVG" field; on a CN22 or CN23, in the exporter or consignor box.

Agents can use transaction type "LG" and SST exemption type "LG" on the K1 for goods in the LVG scope, and customs can ask for supporting documents that prove the tax was charged.

Put the number on the commercial invoice too; the commercial invoice generator makes one from your order details.

What do import duty and sales tax on imports cost?#

Import duty depends on the goods' tariff code and origin. Sales tax on imports follows Malaysia's general sales tax: since 1 July 2025, goods in the Sales Tax (Rate of Sales Tax) Order 2025 pay 5% or a specific rate, goods in the Sales Tax (Goods Exempted From Sales Tax) Order 2025 are exempt, and the rest pay 10%.

Both orders were amended again in 2026, so check the current versions on the MySST portal before relying on a rate for a particular product. Sales tax on imports is paid on the K1 when the goods are released from customs control.

Here's how the two tests combine on two orders from a registered seller, sent by air courier to Kuala Lumpur:

Delivery doesn't attract LVG tax in either case, because the tax is on the sale value alone. The landed cost calculator works out duty for a Malaysian address.

Which goods are restricted?#

Malaysia's import prohibitions and restrictions are set by the Customs (Prohibition of Imports) Order 2023, P.U. (A) 117/2023, as amended. Before shipping, the importer or agent has to check whether the goods are in a prohibited or restricted category under the order and meet its conditions, such as a permit or license from the relevant agency.

Low value goods follow the same import procedures as any other import. Prohibited goods may need permits or approvals from the relevant agency before they arrive, and parcels can be screened, inspected or examined before release. border.bot Restrict flags restricted products by destination.

Tips for sellers shipping to Malaysia#

Malaysia's system works when the registration number and the values on the paperwork match what was charged at checkout. The common problems are missing LVG numbers, consignments that combine past RM500 CIF, and prices near RM500 that exchange rates or freight push over the line at import.

• Track your LVG sales against RM500,000 and register on MyLVG before you pass it
• Put your LVG registration number on every invoice, label and data feed, not just the first shipment
• Set up LVG-02 returns every three months, paid in ringgit
• Keep LVG records for seven years
• Ship by air courier where you can, because road imports don't get the de minimis

The RM500 de minimis is a CIF test on the consignment while the LVG test is the item's sale price, so a RM480 item can still pay import duty once freight takes the consignment past RM500.

For how this compares with Singapore's seller-collected GST, see the Singapore overseas vendor GST guide.

Common questions#

What is the LVG tax in Malaysia?#

A 10% sales tax on goods sold online at RM500 or less and brought into Malaysia from abroad, charged by registered sellers since 1 January 2024. It's calculated on the sale value without shipping, insurance or other charges.

Who has to register for LVG tax?#

Sellers, including online marketplace operators, whose total sale value of low value goods brought into Malaysia exceeds RM500,000 in 12 months. They register through the MyLVG portal.

Is there a de minimis value in Malaysia?#

Yes. A consignment sent by air courier with a CIF value of RM500 or less is exempt from import duty and sales tax on imports. Goods imported by road don't get the exemption.

Sources#

• MyLVG: Sales tax on low value goods (opens in a new tab), Royal Malaysian Customs Department, accessed 30 October 2026
• MyLVG frequently asked questions (opens in a new tab), Royal Malaysian Customs Department, accessed 30 October 2026
• MyLVG legislation and guides (opens in a new tab), Royal Malaysian Customs Department, accessed 30 October 2026 (guide as of 1 August 2024)
• FAQ Transition of Sales Tax Rate Changes 2025 (opens in a new tab), Royal Malaysian Customs Department (MySST), last updated 19 July 2026
• SST Orders (opens in a new tab), Royal Malaysian Customs Department (MySST), last updated 19 July 2026
• Prohibition of Imports (opens in a new tab), Royal Malaysian Customs Department, last updated 4 March 2026