Shipping parcels from China to Malaysia: is there tax under MYR 500?
Answer
Air courier or postal goods through designated airports with a CIF value under MYR 500 are free of import duty and import sales tax. But since 1 January 2024, low value goods (LVG) sold for MYR 500 or less carry 10% sales tax collected at the point of sale by a registered seller or platform (registration is required above MYR 500,000 in annual sales). Land and sea shipments have no MYR 500 exemption.
- Applies to
- Postal or courier parcels sent from China to individuals in Malaysia.
Rules at a glance
| Case | Import duty | Sales tax | Status | Source |
|---|---|---|---|---|
| Air courier/post, CIF under MYR 500 | None | None at import | In force | Royal Malaysian Customs LVG guide (1 August 2024) |
| Sold for MYR 500 or less (LVG) | — | Seller or platform collects 10% at sale | In force (from 1 January 2024) | Same; LVG FAQ |
| Land and sea | Per tariff | As required | In force (no exemption) | Same |
| Over MYR 500 | Per Customs Duties Order 2022 | Collected at import | In force | Same |
What you can do yourself
- Selling on a marketplace: the platform usually collects the 10% sales tax for you.
- Selling to Malaysia from your own site: as annual sales near MYR 500,000, register for LVG sales tax.
- Parcels sent by land or sea have no MYR 500 exemption; work out the tax separately.
When to use a licensed professional
- To register for LVG sales tax, or if you can't work out the annual sales threshold, talk to a Malaysian tax agent.
- If goods are held, or need a formal entry, talk to a Malaysian licensed customs agent.
Check before you pay, and warning signs
- If someone offers LVG registration, check their qualifications and which returns the annual fee covers.
- "Land shipping is tax-free too" or "split the orders and you won't need to register" are warning signs.
Unknowns
- Any extra special duty on Chinese goods: none found this time.
- Any change in the last 12 months: none found this time.
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