Malaysia allows for 2 types of seller registration:

Sales Tax Registration: Sales Tax (ST) is the Malaysian equivalent of VAT and sellers can be registered to pay it or not.
Low Value Goods (LVG): If a good qualifies for LVG, it is a flat tax rate that is distinct from other rates. Sellers who are registered in the LVG scheme receive an LVG Tax Number and this needs to be reflected in the seller's settings and displayed on LVG invoices.

For a Malaysian transaction, the service first assesses if the goods qualify for LVG. This is indicated by the "special_tax_scheme": "LVG" field in the transaction's response.

If the good does not qualify for LVG, it is classed as a high value Good (HVG) and taxed at another rate.

Settings

OSC Settings

Malaysia requires a specific taxability driver in Vertex O Series (Cloud) (OSC). To request its creation, contact support.

Marketplace Settings

You must define Malaysia as both a region and country in your Marketplace settings.

Seller Settings

You must define Malaysia as both a region and country in your sellers' settings.

You can configure the seller's country setting to reflect the following scenarios:

Scenario	`special_tax_registration`	`is_seller_registered`
A seller who is registered to participate in LVG but not in ST	`LVG-ONLY`	`true`
A seller who is registered to participate in both.	`LVG`	`true`
A seller who is registered for ST but not LVG.	None	`true`

LVG Registration for Sellers (Region Settings)

To indicate that a seller is registered for LVG, use the special_tax_registration setting in the Seller's settings. This setting can have one of the following values:

LVG-Only: Use this if the seller is registered only for LVG but not for ST.
LVG: Use this if the seller is registered for both LVG and ST.

If the seller is a participant in the LVG scheme but not the ST scheme, they set this to "special-tax-registration": "LVG-ONLY", in the seller's regional settings for Malaysia.

For example:

"settings": {
 "regions": {
	"MY": {
	 "taxation": {
		"physical": {
			"is_seller_located_within_region": false,
			"special_tax_registration": "LVG-ONLY",
   }
  }
 }
}

If they are registered for both LVG and ST, they specify LVG. For example:

"settings": {
 "regions": {
	"MY": {
	 "taxation": {
		"physical": {
			"is_seller_located_within_region": false,
			"special_tax_registration": "LVG",
   }
  }
 }
}

Seller Registration (Country Setting)

All sellers who are registered in Malaysia for LVG or ST or both must be configured as such. This is indicated by the "is-seller-registered": true, setting in the seller's country settings.

For example:

"settings": {
 "countries": {
	"MY": {
	"taxation": {
		"physical": {
		 "is_physical_tax_enabled": true,
		 "is_seller_registered": true,
    }

LVG Tax Number

You also need to capture the seller's LVG number in their settings so it can be displayed on the invoices. Use the countries.MY.taxation.physical.seller_tax_number settings to do so.

For example:

"settings": {
 "countries": {
	"MY": {
	 "taxation": {
    "seller_tax_number": "wqeadfcasdAsdas"
		"physical": {
			"is_physical_tax_enabled": true,
			"is_seller_registered": true

API Integration

Example Request

This example Store Transaction request shows a virtual seller selling an LVG, who is registered for the LVG scheme but not ST:

{
	"transaction": {
		"currency_code": "USD",
		"ship_to_address": {
			"country_code": "MY"
		},
		"transaction_lines": [
			{
				"seller_code": "seller-1",
				"custom_id": "custom1",
				"description": "Low Value Engagement Ring",
				"product_class": "P",
				"quantity": 1,
				"ship_from_address": {
					"country_code": "IE"
				},
				"unit_price": 10
			}
		],
		"sellers": [
			{
				"seller_code": "seller-1",
				"business_name": "Seller One Ltd.",
				"country": "MY",
				"postal_address_line1": "Suite 12-01, Level 12, Tower 2, KLCC",
				"postal_address_line2": "Jalan Ampang, 50088 Kuala Lumpur",
				"postal_address_line3": "Wilayah Persekutuan Kuala Lumpur",
				"settings": {
					"countries": {
						"MY": {
							"taxation": {
                "seller_tax_number": "wqeadfcasdAsdas"
								"physical": {
									"is_physical_tax_enabled": true,
									"is_seller_registered": true,
								}
							}
						}
					},
					"regions": {
						"MY": {
							"taxation": {
                "seller_tax_number": "wqeadfcasdAsdas"
								"physical": {
									"is_seller_located_within_region": false,
									"special_tax_registration": "LVG-ONLY",
									"use_marketplace_as_intermediary": false
								}
							}
						}
					}
				}
			}
		]
	}
}

Example Response

This example Store Transaction response shows a good that qualifies for LVG, as indicated by the "special_tax_scheme": "LVG" line:


	"transaction": {
		"ship_to_address": {
			"country_code": "MY",
			"tax_region": "MY"
		},
		"amount": 10.00,
		"required_fields": {
			"tax_required_fields": [],
			"storage_required_fields": []
		},
		"marketplace_code": "market_j2bed8gq",
		"tax_country_codes": "MY",
		"key": "P5Y-44QAABYvz8RIDwKgBBJhz51FmeVvzF1pAGQ",
		"tax_amount": 1.00,
		"update_date": "2024-06-24",
		"invoice_timestamp": "2024-06-24T11:43:47Z",
		"tax_liability_owner_codes": "seller-1",
		"create_timestamp": "2024-06-24T11:43:47Z",
		"transaction_lines": [
			{
				"description": "Low Value Engagement Ring",
				"reverse_charge": false,
				"amount": 10.00,
				"tax_engine_additional_parameters": [
					{
						"param": "FLEX.output.Partition",
						"value": "Taxamo Marketplace QA1"
					}
				],
				"tax_rule_applied": "physical-tax",
				"unit_price": 10.00,
				"taxes": [
					{
						"tax_type": "SALES",
						"imposition_type": "International Sales Tax",
						"tax_jurisdiction_code": "78321",
						"tax_amount": 1.0,
						"tax_calculation_rule_id": "v316444812",
						"tax_base_amount": 10,
						"tax_jurisdiction_type": "COUNTRY",
						"rate": 10,
						"tax_authority_name": "MALAYSIA",
						"rate_type": "Mixed",
						"tax_authority_id": "78321",
						"tax_name": "Sales Tax",
						"imposition": "Sales Tax",
						"amount_fraction_taxable": 1
					}
				],
				"tax_amount": 1.00,
				"tax_liability_rule": "physical-shipment-into-MY-lvg-seller-registered-for-lvg",
				"seller_tax_number": "1729",
				"tax_region": "MY",
				"invoice_place": "Suite 12-01, Level 12, Tower 2, KLCC, Jalan Ampang, 50088 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur",
				"tax_exempt": false,
				"additional_currencies": {
					"consignment": {
						"currency_code": "MYR",
						"fx_date": "2024-06-23T11:43:47Z",
						"fx_rate": 4.512900000000,
						"fx_source": "source_malaysia_buy_tt"
					},
					"tax": {
						"currency_code": "MYR",
						"fx_date": "2024-06-23T11:43:47Z",
						"fx_rate": 4.512900000000,
						"fx_source": "source_malaysia_buy_tt"
					},
					"invoice": {
						"amount": 45.13,
						"currency_code": "MYR",
						"fx_date": "2024-06-23T11:43:47Z",
						"fx_rate": 4.512900000000,
						"fx_source": "source_malaysia_buy_tt",
						"total_amount": 49.64,
						"tax_amount": 4.51
					}
				},
				"tax_country_code": "MY",
				"special_tax_scheme": "LVG",
				"line_key": "6zSNtI3M17foGrHu",
				"custom_id": "custom1",
				"tax_address_kind": "ship_to_address",
				"ship_from_address": {
					"country_code": "IE",
					"tax_region": "EU"
				},
				"tax_engine": "oseries",
				"invoice_status": "R",
				"kind": "b2c",
				"tax_number_service": "self-declaration",
				"product_class": "P",
				"tax_liability_owner_code": "seller-1",
				"custom_rules_applied": [
					"malaysia-lvig-qualifying-condition"
				],
				"line_num": 1,
				"is_seller_permanent": false,
				"quantity": 1.000000000000,
				"invoice_capable": false,
				"total_amount": 11.00,
				"seller_code": "seller-1",
				"tax_entity_name": "Malaysia",
				"tax_supported": true
			}
		],
		"discounts": [],
		"refunded_tax_amount": 0,
		"product_classes": "P",
		"billing_address": {
			"country_code": "MY",
			"tax_region": "MY"
		},
		"status": "N",
		"sellers": [
			{
				"postal_address_line2": "Jalan Ampang, 50088 Kuala Lumpur",
				"business_name": "Seller One Ltd.",
				"settings": {
					"countries": {
						"MY": {
							"taxation": {
								"physical": {
									"is_seller_registered": true,
									"is_physical_tax_enabled": true,
									"seller_tax_number": "1729"
								}
							}
						}
					},
					"regions": {
						"MY": {
							"taxation": {
								"physical": {
									"use_marketplace_as_intermediary": false,
									"special_tax_registration": "LVG-ONLY",
									"is_seller_located_within_region": false
								}
							}
						}
					}
				},
				"seller_code": "seller-1",
				"country": "MY",
				"postal_address_line3": "Wilayah Persekutuan Kuala Lumpur",
				"postal_address_line1": "Suite 12-01, Level 12, Tower 2, KLCC"
			}
		],
		"refunded_total_amount": 0,
		"update_timestamp": "2024-06-24T11:43:47Z",
		"tax_timestamp": "2024-06-24T11:43:47Z",
		"total_amount": 11.00,
		"currency_code": "USD"
	}
}

Invoices

Invoices for transactions that include LVGs display this on the invoices alongside the LVG Tax Number. This is the case for Malaysian invoices that qualify for LVG and are configured correctly.

Audit Report

The following default values have been added for Malaysia to the Audit Report:

Field	Default Value
Period	Quarter
FX Source	RHB (`source_malaysia_buy_tt`)
FX Date Type	Previous Day

In addition, goods that are LVGs are denoted as such by the presence of LVG in the Special Tax Scheme column.