Effective March 7, 2024, the Postal Service™ is revising the Individual Country Listing for Malaysia in Mailing Standards of the United States Postal Service, International Mail Manual (IMM®) to add an observation regarding sales tax on low-value goods.
This revision is based on a formal request that Pos Malaysia (the designated postal operator of Malaysia) made through the Universal Postal Union via International Bureau Circular 17, dated January 22, 2024.
Mailing Standards of the United States Postal Service, International Mail Manual (IMM)
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Individual Country Listings
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Malaysia
Country Conditions for Mailing
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Observations
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[Add a new entry to read as follows:]
3. As of January 1, 2024, Malaysia applies a sales tax to items containing low-value goods (LVG), which are defined as a class of goods as follows:
n That originate outside Malaysia.
n That are sold in online marketplaces at a price not exceeding 500 Malaysian ringgit (MYR).
n That arrive in Malaysia for delivery to the buyer.
The sales tax is based on the sale value of the LVG and is charged and levied at the rate of 10 percent and does not include the following charges:
n Fees charged to the customer for transportation and insurance associated with transporting the goods originating outside Malaysia to the delivery destination in Malaysia.
n Any tax or duty that is chargeable and payable on the sale of the LVG.
Malaysian customs legislation requires all LVG suppliers — i.e., online sellers or online marketplaces — that are not based in Malaysia to register as LVG sellers under section 13 of the Sales Tax Act 2018 (LVG) if they meet the following requirements:
n Have a registered business address in Malaysia.
n Have a physical subsidiary in Malaysia that is licensed under section 13 of the Sales Tax Act 2018.
n Have total sales of LVG in Malaysia exceeding 500,000 MYR within 12 months.
Once a supplier is registered, Malaysia Customs suggests that the supplier sending an item containing LVG to Malaysia avoid double taxation by providing its Malaysian tax identification number (TIN) as follows:
n On the customs declaration form in the sender’s customs reference field or on the associated address label if the customs form does not contain that field.
n On the invoice or commercial document affixed to the exterior of the parcel or item.
Failure to comply with this requirement to provide the TIN in one of these ways might cause delays in customs clearance and might result in double taxation (with the addressee being required to pay the sales tax for the delivery of the item).
More information on LVG and registration requirements is available on the website of Royal Malaysia Customs at mysst.customs.gov.my and at mylvg.customs.gov.my. More information regarding the sales tax for LVG is available on the Pos Malaysia website at pos.com.my. Email questions regarding the sales tax for LVG to Royal Malaysia Customs at mylvg@customs.gov.my.
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Although effective March 7, 2024, the Postal Service will incorporate this revision into the next edition of the online IMM, which is available via Postal Explorer® at pe.usps.com.
— Product Classification,
Product Solutions, 3-7-24
