Malaysia — Goods and services tax (GST)
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Malaysia's general VAT rate is 6%, with other rates including 0% that can apply to certain transactions. The Goods and services tax (GST) is administered by the Royal Malaysian Customs Department (RMCD) (http://www.customs.gov.my) in Kuala Lumpur.
Visitors to Malaysia can qualify for a VAT refund on all purchases made for export - learn more about Malaysia VAT refunds here.
Malaysia exempts fresh foods, education, healthcare and medicines from the 6% VAT rate. Te VAT replaced the Sales and Services Taxes in 2015.
Consumption Taxes in Malaysia
Malaysia has multiple consumption taxes, which apply in different situations depending on what purchase is being made. These taxes include the following:
1 April 2015
Malaysia GST rates for 2018
- Zero-rated (0%) and exempt
Malaysia GST return periods
Businesses in Malaysia that are required to collect tax from consumers must file regular tax returns with the Royal Malaysian Customs Department (RMCD) in Kuala Lumpur. Malaysia's GST return periods are:
Monthly if annual sales turnover is MYR5 million or more
Quarterly if annual sales turnover is less than MYR5 million
Annual taxable turnover exceeds MYR500,000
Recovery of GST by non-established businesses
Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. In Malaysia, taxation of a non-established business is: No (unless the non-established business is registered for GST in Malaysia)
Malaysia VAT Refunds
Malaysia has a VAT refund program that allows tourists and others to receive a refund of any Malaysia VAT paid on goods purchased in Malaysia that are being exported from the country.
The minimum purchase amount needed to claim a VAT refund is €300.00 Euros (which would yield a VAT refund of about €18). SalesTaxHandbook has detailed information about Malaysia's VAT refund program:Learn More About Malaysia VAT Refunds
Malaysia Tax Sources & Citations
- EN: Malaysia Value Added Tax
- RU: НДС Малайзия
- CN: 马来西亚 增值税
- Malaysia Royal Malaysian Customs Department (RMCD) (http://www.customs.gov.my)
- Ernst & Young global VAT tax study, Malaysia (updated 2018)
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