Malaysia — Getting a Goods and services tax (GST) Refund
|General VAT Rate||Min. Refund Threshold||Local Currency|
Fully Digital VAT Refund
The VAT refund process in Malaysia isn't digital, and requires paperwork.
Refund Kiosk Availability
There are no VAT refund kiosks currently available in Malaysia.
Cash VAT Refund
In Malaysia, VAT refunds cannot be provided in cash.
Credit Card VAT Refund
In Malaysia, VAT refunds cannot be processed as a credit card refund.
Malaysia's main 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, and applies to most purchases of goods within Malaysia. A VAT refund may be available to visitors who qualify for VAT-free purchases in Malaysia.
Who qualifies for a Malaysia VAT Refund?
The VAT tax is meant to tax consumption of good within Malaysia, not goods exported to a foreign country. Therefore, Malaysia allows tourists and others who purchase goods within Malaysia for export to receive a refund of any VAT taxes paid.
In order to qualify to request a VAT refund in Malaysia, you must make at least €300.00 Euros worth of qualifying purchases.
How is my Malaysia VAT Refund Calculated?
Your total gross purchase amounts will be summed and rounded half-up to the nearest 0.10 Ringgit. From this total, the total amount of VAT refund will be calculated, based on the 6% standard VAT rate in Malaysia. For example:
€100 euros spent (incl. 6% VAT) = €94.00 base price + €6.00 VAT paid
In this example, you would receive an approximate tax refund amount of €6 on a total of €100 in purchases. As you can see, VAT refunds can be quite significant in Malaysia, especially if you're doing alot of shopping!
Malaysia VAT Refund Application Process
1.) Make Tax-Free Qualifying Purchases
When you make a qualifying purchase in Malaysia, you will receive a Tax Free Form from the vendor that records the purchases you made and the amount you paid. You will receive a separate Tax Free Form for each purchase.
The Tax Free Form may be a government form, or it may be associated with a particular sales tax refund processing company (like Global Blue or Premier Tax Free, shown here). Note that processing companies will collect a percentage of your VAT refund as a fee!
Malaysia does not require you to save the original purchase receipt, so the Tax Free Form is sufficient for applying for a VAT refund.
2.) Validate Your Tax-Free Forms
Your Tax-Free Forms must be export validated in order to be accepted for a tax refund. Validation confirms that the products have been exported from Malaysia, and will often be done in the airport as you leave the country.
You may be required to show your foreign passport, a plane ticket, and/or other proof that the goods you are buying VAT-free will be exported to a qualifying country. In Malaysia, export validation for VAT-free purchases is carried out by Malaysia's Customs department, who will provide a customs stamp to your Tax-Free Forms fo verify that the goods have been exported.
Private companies specializing in duty-free shopping (such as Global Blue, Premier Tax Free, etc.) are also allowed to validate tax-free purchases in Malaysia. These companies may have locations at or near Malaysia's major international airports.
3.) Receive Your VAT Tax Refund
Once you have validated your Tax Free Forms, you're ready to receive your VAT refund. If you used a refund processing company, you will be able to receive your refund by submitting the validated forms to a company refund desk at the airport, or via mail (most companies make pre-paid envelopes available for this purpose). If you did not use a processing company, follow the instructions on your tax free form to receive your refund.
- EN: Malaysia VAT Refund
- RU: Малайзия Возврат НДС
- CN: 马来西亚增值税退税
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