How to Calculate Duties and Taxes on Imports to Malaysia
Malaysia: online goods to RM500 carry 10% low-value goods sales tax at checkout. Above RM500 CIF, or by road, duty and sales tax on imports apply. No VAT.
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Key facts
- Sales tax standard rate
- 10%
- Duty de minimis
- MYR 500
- Tax de minimis
- MYR 500
- Currency
- Malaysian ringgit (MYR)
- Customs authority
- Royal Malaysian Customs Department
- Tax authority
- Royal Malaysian Customs Department
- Checked
- 5 November 2026
Importing into Malaysia
Malaysia has a sales tax, not VAT. Registered online sellers charge a flat 10% on goods sold at RM500 or less, and goods above RM500 CIF pay import duty and sales tax on imports, normally at 10%, 5% or a specific rate. Road shipments get no RM500 relief.
De minimis thresholds
| Threshold | Amount | In US dollars | In force from |
|---|---|---|---|
| Duty | MYR 500 | about USD 124 | Not confirmed |
| Tax | MYR 500 | about USD 124 | Not confirmed |
Duty: De minimis under Item 94, Part I of the Customs Duties (Exemption) Order 2017: CIF value of RM500 or less, for air courier and postal shipments. It does not apply to road imports. Cigarettes, tobacco and intoxicating liquors are excluded. Tax: The de minimis also covers border sales tax under Item 24, Schedule A of the 2018 Order. But goods sold at up to RM500 carry 10% low-value goods sales tax charged by registered sellers from 1 January 2024, so most online purchases are taxed at checkout. US dollar amounts are approximate, at exchange rates on 5 November 2026. The legal thresholds are the local amounts.
What duty and tax are charged on
- Valuation basis: CIF
- Tax base: Not confirmed
- Sales tax standard rate: 10%. Malaysia has a sales tax, not VAT. From 1 July 2025, goods listed in the Sales Tax (Rate of Tax) Order 2025 pay 5% or specific rates, others pay 10%, and essential goods are exempt. The flat rate on low-value goods is 10%.
- Reduced rates: 5%
Low-value parcels
Low-value goods (LVG) tax: local and foreign online sellers with more than RM500,000 of LVG brought into Malaysia in 12 months register and charge 10% sales tax on goods sold at up to RM500.
Recent rule changes
What we could not confirm
We left these out rather than guess.
- taxBase: null. The base for sales tax on ordinary imports was not read.
- A search excerpt said de minimis does not apply to sea either; the MyLVG FAQ read directly only mentions road. Treat sea as unconfirmed.
- CIF is confirmed for the de minimis test. General valuation was not read separately.
- The exclusion of e-cigarettes from the low-value goods scheme comes from the MyLVG FAQ, which failed on a certificate error and was opened once in a browser pane. A person should confirm it.
Two RM500 rules work side by side
The de minimis is a border relief: air courier and postal shipments with a CIF value of RM500 or less are free of import duty and sales tax on imports. It doesn't cover road. A search excerpt also ruled out sea, but the official FAQ we read mentions only road, so treat sea as unconfirmed. Cigarettes, tobacco and intoxicating liquor are excluded.
The low-value goods (LVG) tax works at the point of sale. Local and foreign online sellers with more than RM500,000 of LVG brought into Malaysia in 12 months register through MyLVG, and charge 10%. It started on 1 January 2024.
So a parcel can be free at the border and still have tax on the invoice. The Royal Malaysian Customs Department handles both customs and sales tax.
How the calculation works
LVG tax: sale value × 10%, where sale value leaves out tax, duty, transport and insurance.
Ordinary imports: customs value × duty rate, then sales tax on imports at the rate for the HS code. Since 1 July 2025 the Sales Tax (Rate of Tax) Order 2025 lists goods at 5% or specific rates, others pay 10%, and essential goods are exempt. We didn't read the base for sales tax on ordinary imports. Our example assumes CIF plus duty.
Which rule applies to your shipment?
- Check the mode: road shipments are declared on a K1, whatever their value.
- Check the seller: if it's registered and the item sold at RM500 or less, 10% LVG tax goes on the invoice, and it isn't charged again at import if the LVG Registration Number is on the K1.
- By air or post at RM500 CIF or less, with no LVG tax: nothing at the border.
- Above RM500 CIF: use the HS code classifier, take the duty rate, then the sales tax rate for that HS code.
- Show proof of any LVG tax already charged, to avoid paying twice.
Tax on the invoice, by road and above RM500
A RM300 keyboard from a registered online seller, shipped by air.
| Line | How | Amount |
|---|---|---|
| Price | RM300.00 | |
| LVG tax, on the invoice | 10% of RM300.00 | RM30.00 |
Shipping isn't in the base.
A RM299 tableware set shipped across the land border by an unregistered seller: the de minimis doesn't apply, so it's declared on a K1.
| Line | How | Amount |
|---|---|---|
| Value | RM299.00 | |
| Duty | Assumed | Nil |
| You pay | Assumed 10% sales tax on RM299.00 | RM29.90 |
An RM2,000 CIF air fryer by courier, over RM500.
| Line | How | Amount |
|---|---|---|
| CIF value | RM2,000.00 | |
| Duty | Assumed 10% of RM2,000.00 | RM200.00 |
| Sales tax | 10% of RM2,200.00, assuming the base is CIF plus duty | RM220.00 |
| Total | Duty + sales tax | RM420.00 |
Misreadings of the RM500 rules
- Calling Malaysia a VAT or GST country: it has a sales tax system.
- Saying nothing is due under RM500: most online purchases pay 10% at checkout.
- Forgetting the LVG number on the K1: without it, the buyer can face sales tax on imports on top of what the seller charged.
- Assuming sales tax on imports is always 10%: the HS code can give 5%, a specific rate, or an exemption.
Rules for sellers
A foreign seller has to act once LVG sales into Malaysia pass RM500,000 in 12 months.
Sellers register and charge the flat 10%. The sale value test is on goods value, so a mixed cart needs separate handling: for line items where the CIF value is above RM500, sales tax on imports runs at the HS code's rate, and importers or customs agents need supporting documents to show LVG tax already charged. Cigarettes, tobacco products, intoxicating liquors, smoking pipes and electronic cigarettes and their preparations are outside LVG.
The MyLVG guide we used is dated 1 August 2024. Check the portal for later wording. Consider all this guidance rather than tax advice.
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When RM500 doesn't settle it
What if a RM450 item costs over RM500 with freight?
The seller's LVG test uses the sale value, so RM450 is in. The border's de minimis test uses CIF, so freight counts. Show the LVG proof so you aren't charged twice.
Does an unregistered seller pay anything?
An unregistered seller under RM500,000 doesn't charge LVG tax, and a low-value air or postal parcel then clears free under the de minimis.
Why does my road shipment get charged at RM299?
Because the MyLVG FAQ says the de minimis doesn't apply to road. Goods go on a K1, and import duty and sales tax apply if due.
Sources
- Sales tax on imported low-value goods sold online (Ministry of Finance), checked 5 November 2026
- MyLVG FAQ (Royal Malaysian Customs), checked 5 November 2026
- FAQ: transition of sales tax rate changes 2025 (Royal Malaysian Customs), checked 5 November 2026
- Euro foreign exchange reference rates, 5 November 2026 (European Central Bank), checked 5 November 2026
- Sales Tax 2018 Guide: Sales Tax on Low Value Goods, as of 1 August 2024 (Royal Malaysian Customs), checked 5 November 2026