Malaysia does not provide any sales tax exemption for goods imported through foreign online platforms.
Only items listed under the Sales Tax Order 2025 are eligible for exemption, regardless of whether they are imported or sourced locally, Finance Minister II Datuk Seri Amir Hamzah Azizan told the Dewan Rakyat during ministerial question time on Tuesday.
He said Malaysia currently imposes a 10% sales tax on low-value goods — imported items worth RM500 or less sold online — which took effect on Jan 1, 2024 to create a level playing field between foreign and local sellers. Such sales generated tax of RM476 million in 2024.
Bakri Member of Parliament Tan Hong Pin had asked about collection of sales and service tax and other taxes from online transactions involving overseas sellers, the amounts collected in 2021 to 2025, and whether there are exemptions for any imported goods via foreign portals.
Malaysia also collects service tax on foreign digital services, requiring platforms such as Netflix, Apple, Microsoft and Google to register with the Royal Malaysian Customs Department and remit tax on services consumed in Malaysia.
Revenue from taxing such services has risen to RM1.62 billion in 2024 from a little over RM802 million in 2021, according to data provided by Amir Hamzah.
Source: theedgemalaysia