Importing and Exporting for a Malaysian Online Store: Duty, Tax

Importing stock. Duty depends on the tariff classification of the goods under the customs duties orders. Sales tax is charged at release from Customs control at the rate for the goods (5%, a specific rate, or 10%), and declared through Customs Form K1. Duty and sales tax become part of the cost of goods.

Low value goods. Goods priced at RM500 or less per item that are sold online and brought in can fall under the 10% LVG scheme instead, as described in the low value goods (LVG) lesson.

Exporting. Goods leaving Malaysia need the right Customs declaration, and some goods are subject to export controls or licences. Check Customs' guidance for the product and destination market, including the buyer country's own import rules and taxes.

Income tax. Business income from overseas customers is generally treated as derived from Malaysia where the business is run here. The e-commerce guideline discusses this in detail.

E-invoicing. The Inland Revenue Board (LHDN) FAQ says that for foreign income, the supplier issues an e-invoice by the end of the month following the month the income is received. Sellers below the RM3 million exemption are not required to follow this.

Marketplace cross-border programmes may handle some steps, so read the programme terms.