The 10% on Your Overseas Online Order: How Malaysia's Low Value Goods Tax Works, and Why RM500 Is Not About Postage
Since 1 January 2024 anything you buy online from overseas priced at RM500 or less carries a flat 10% sales tax, charged by the seller at checkout rather than by Customs at the border. The threshold is drawn on the price of the goods alone: Customs states plainly that transportation, insurance and other charges are excluded, so a RM480 item with RM40 shipping is still low value goods. Only sellers whose Malaysian low value goods sales exceed RM500,000 in 12 months have to register, which is why some checkouts show the tax and others do not. Cigarettes, tobacco, liquor, smoking pipes, e-cigarettes and vape liquids are outside the regime entirely.
