In this course · 3 of 6
Course 4
SST and imported goods
6 lessons · 6 min
- 1Do Online Sellers in Malaysia Have to Charge SST on Goods They Resell?
- 2When Must Home-Based Makers Register for Sales Tax in Malaysia?
- 3What Sales Tax Rates Apply to Goods in Malaysia From 1 July 2025?
- 4What Is LVG Tax on Imported Goods Sold Online in Malaysia?
- 5Who Must Register for LVG Sales Tax in Malaysia: Seller or Platform?
- 6Do Foreign Digital Service Providers Charge Service Tax in Malaysia?
The short answer
From 1 July 2025, Malaysian sales tax is 5% or a specific rate for goods in the Sales Tax (Rate of Tax) Order 2025, nil for goods exempted in the Sales Tax (Goods Exempted from Tax) Order 2025, and 10% for all other taxable goods (Royal Malaysian Customs Department).
The Royal Malaysian Customs Department's MySST FAQ on the 2025 rate transition sets out three rate groups.
- Goods listed in the Sales Tax (Rate of Tax) Order 2025. These are taxed at 5% or at the specific rate shown in the Order.
- Goods listed in the Sales Tax (Goods Exempted from Tax) Order 2025. These are exempt from sales tax.
- All other taxable goods. These are taxed at 10%.
The new rates took effect on 1 July 2025.
How the tax is collected. Imported goods are subject to the applicable rate when released from Customs control, with tax declared through Customs Form K1. Registered manufacturers charge tax on their goods.
What it means for a seller. The price a retailer pays for taxable goods can include sales tax. A seller who imports stock should add sales tax and duty to the cost of goods. A seller reselling goods bought locally normally does not charge a separate line for sales tax.
Low value goods sold online have their own scheme.
Legal basis and sources
The law
- Sales Tax Act 2018
- Sales Tax (Rate of Tax) Order 2025
- Sales Tax (Goods Exempted from Tax) Order 2025
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
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