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Duty and Taxation
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Overview
Taxation

Buyandship established a network of self-operating (US, JP, CA and UK) and dedicated (KR, CN, AU, IT, TW, TH and ID) warehouses for users to enjoy fast and efficient delivery services. When it comes to shopping online overseas, we know one of the top concerns is getting taxed by the Royal Malaysian Customs Department (Jabatan Kastam Diraja Malaysia). To get a better understanding of the general rule, you can find a brief introduction of the taxation for Malaysia below.

Please note that the information provided below may be subject to change depending on government policies. If there are any discrepancies or differences among the information of taxation and duty, the information provided by the Malaysian Customs or other government authorities shall prevail.

All prices listed on our website are in Malaysian Ringgit (RM).

“Sales Tax” and “Sales and Services Tax”

According to the Royal Malaysian Customs Department (RMC), the “Sales Tax” and the ‘Sales and Services Tax” (SST) are imposed on goods imported into Malaysia. You have to pay the import duty imposed by the Customs.

Sales Tax on Low-Value Goods

The Sales Tax is imposed on all low-value goods imported into Malaysia starting from January 1st, 2024.

When the value of the shipment does not exceed RM 500, the sales tax rate is 10%. The sale value is the price of the shipment, which does not include any tax, duty, fee or other charges such as transportation, insurance or other costs.

Sales and Services Tax (SST) on High-Value Goods

The Sales and Services Tax (SST) is imposed on all goods with the value of the shipment which is more than RM 500. The tax rate varies from 5% to 10% of the CIF value depending on the type of goods being imported but may be subject to change. The actual SST charges depend on the type of goods rendered.

You have to pay the import duty imposed by the Customs.

How does the SST calculate?

In general, the SST of the shipment consists of Sales Tax and Service Tax. It is calculated based on the Cost, Insurance and Freight (CIF) which is the total cost of the imported goods (your shipment value), cost of shipping services and cost of insurance. However, you are required to pay other import duty charges which are imposed by the Customs if necessary.

SST = CIF value x the corresponding tax rate of your goods

How do I pay the tax?

Our courier partner will handle the process on your behalf and will inform you beforehand on the estimated custom tax and duty required to pay to the Malaysian Customs. You have to settle the tax and duty fees and our courier partner who will then continue processing your shipment.

You shall pay the tax and duty fee, as well as the processing fee (if any) to our courier partners directly. Please note that Buyandship is not responsible for any Customs payments.

How is the value of the goods counted when I consolidate multiple shipments into an order?

The value of “the goods” is counted based on the total CIF value of a shipment order containing multiple shipments, instead of the single shipment of the consolidated shipment order.

If you ship two goods with a total CIF value of over RM500 and each of them costs less than RM500, the shipment order containing multiple shipments will be regarded as the goods over RM500.

Apart from SST and other taxes / duties, is there any fee that I need to pay?

Our courier partners might charge a processing fee of each shipment order which needs to pay the tax. The processing fee may vary in cases and couriers.

Do I need to pay the processing fee if my shipment is tax-free?
No, you do not need to pay the fee if your shipment has a SST relief. Our courier partner will only charge the processing fee if any for those shipments requiring a tax payment.
Additional Information
Tax rates of items

Here, we have listed some tax rates of items which are commonly shipped by our users for your reference.

5% SST

  • Food Supplements (+15% import duty)
  • Computers

10% SST

  • Audio Visual
  • Books
  • Sneakers & Footwear
  • Clothes
  • Handbags
  • Toys & Collectibles
  • Kitchenware
  • Home Appliance (+20% import duty)

Q: Want to know more about SST?
A: Please refer to the information provided by the Malaysian Customs. You may also check the reference below.