On January 1st, 2023, the Malaysian Government changed the sales tax regulations on low-value goods (LVG).
IMPORTANT: If you are shipping to Malaysia, two types of taxes are incurred for trading cards.
1. Sales tax SST 10%
2. Duty tax or excise tax 10%
Please make sure that you check the customs and tax policy for your shipping destination.
What were the changes?
Starting from January 1, 2023, sales tax laws for Low Value Goods (LVG) have come into effect. This means that all goods valued at RM500 or less, sold online and delivered to consumers in Malaysia, will be subject to sales tax, whether shipped by land, sea, or air.
Both Malaysian and international sellers who sell LVG must register and charge a 10% sales tax. However, this sales tax will only start being applied from January 1, 2024.
What does this mean for my ZenMarket orders?
Due to the tax changes mentioned, ZenMarket will now be required to collect a 10% tax on all LVG goods bound for Malaysia with a value of RM500 or below from abroad. (approx. 17,000 yen at the time of writing).
As of February 2023, this will be completed automatically so you do not need to worry about filling out any additional forms or completing any additional paperwork, much like the IOSS system for parcels bound for Europe.
Also Read: AUTOMATIC VAT PAYMENTS FOR EUROPEAN PARCELS
IMPORTANT: The rule change applies to the value of the products, not the value of the parcel. In other words, products with a declared value of RM500 or less will be pre-collected with LVG sales tax.
However, if your total product value is more than RM500, the customs duties and sales tax will be charged directly by the local Malaysian customs.
To make it simple,
Items below or equal to 500 RM: Mandatory Pre-Charge
Items above 500 RM: Unable to prepay. LVG and customs duties are processed and charged by Malaysian customs.
For more information, please visit the official site here: https://mylvg.customs.gov.my/Home
Other things to look out for
The above guide generally applies to parcels and goods that are to be sent to individuals who are not registered to collect or pay sales tax on their own. Businesses in Malaysia that are registered to collect and pay LVG sales tax may have slightly different arrangements. ZenMarket urges these customers to contact their local taxation office for what to do if they have any concerns.
We will make sure to keep you up-to-date on this information and how it will affect your ZenMarket orders as the new information becomes available to us.
We thank you for your understanding in this matter.