Do Online Sellers in Malaysia Have to Charge SST on Goods They Resell?

Malaysia's SST has two parts.

Sales tax is charged on taxable goods manufactured in Malaysia and on goods imported into Malaysia. The Royal Malaysian Customs Department's registration rule is framed around manufacturers of taxable goods, who must register once their taxable sales exceed RM500,000 in a 12-month period. Imported goods are taxed when released from Customs control. A shop that buys goods from a local supplier and resells them does not charge a separate sales tax to the customer, although tax may already be in the purchase price.

Service tax is charged on services listed in the Service Tax Act 2018, such as accommodation, food and beverage, logistics, professional services and others, once the provider passes the threshold for its group. Selling physical goods is not itself a listed service.

Cases that need a closer look

• You make the goods yourself, for example baked items or printed products.
• You provide taxable services in addition to selling goods.
• You import goods in your own name.
• You sell imported low value goods (see the low value goods lesson).

The Customs MySST portal lists taxable goods and services and has a registration guide. A seller who is unsure should ask Customs.