How to Export to Malaysia in 2026: Duty, 5% or 10% Sales Tax, LVG and FTAs
Malaysia charges import duty on the CIF value, then excise duty on some goods, then sales tax of 5% or 10% on the CIF value plus duty and excise. Since the sales and service tax (SST) expansion of 1 July 2025, more goods are taxable, while staple foods, books, school materials, medical products and key building materials stay exempt. Sellers of low-value goods of RM500 or less to Malaysian consumers through online platforms register and charge 10% sales tax once their sales reach RM500,000 a year. Malaysia has 19 trade agreements in force, from ASEAN agreements, RCEP and the CPTPP to bilateral agreements with Japan, India, Australia, Türkiye and, since 1 October 2025, the UAE.
Checked against official sources: 2026-10
At a glance
Duty and sales tax: how the import cost is calculated
Malaysia calculates duties and taxes on the CIF value, the cost of the goods plus freight and insurance. Import duty is charged first, at the rate for the tariff code, which for most goods ranges from 0% to 30%; excise duty, on goods such as alcohol, tobacco and vehicles, is charged on the CIF value plus import duty; and sales tax is charged on the CIF value plus import duty plus excise duty, so each tax builds on the previous one.
Sales tax is 5% or 10% depending on the tariff classification, with specific rates for some petroleum products. Example with an illustrative 5% duty and 10% sales tax: CIF value RM10,000, duty RM500, sales tax 10% of RM10,500 = RM1,050, so RM1,550 in total.
The July 2025 SST expansion
From 1 July 2025, Malaysia extended sales tax to goods that were previously exempt, such as imported fruits, some seafood, essential oils, premium fabrics, antique artwork and racing bicycles, at 5% or 10% by category. Staple foods, books, school materials, medical products and key building materials remain exempt. Check the current rate for your tariff code before quoting a delivered price, as rates follow the HS classification.
Low-value goods sold online
Since 1 January 2024, local and foreign sellers that sell low-value goods, items of RM500 or less, to Malaysian consumers through online platforms must register and charge 10% sales tax once their annual sales of such goods reach RM500,000. The tax is collected at the time of sale rather than at the border.
Trade agreements and proof of origin
According to the Ministry of Investment, Trade and Industry (MITI), Malaysia has 19 trade agreements in force: bilateral agreements with Japan (2006), Pakistan (2008), New Zealand (2010), India (2011), Chile (2012), Australia (2013), Türkiye (2015) and the UAE (1 October 2025); the regional ATIGA (AFTA), ASEAN-China, ASEAN-Korea, ASEAN-Japan, ASEAN-Australia-New Zealand, ASEAN-India and ASEAN-Hong Kong agreements, RCEP (18 March 2022) and the CPTPP (29 November 2022); and two partial scope agreements (TPS-OIC and D-8). To claim a preferential rate, the importer needs the proof of origin required by the agreement used, such as Form D, E, AK or RCEP, or an origin declaration.
Step by step
- Find the Malaysian tariff code of each product and compare the MFN and preferential rates under each agreement you can use.
- Check whether the product needs an import permit or certification from the authority concerned.
- Agree the Incoterms rule and the Malaysian importer; for DDP, arrange an importer in Malaysia.
- Prepare the commercial invoice, packing list, transport document and proof of origin.
- Estimate duty on the CIF value and 5% or 10% sales tax on the value plus duty and excise.
Documents you usually need
- Commercial invoice
- Packing list
- Bill of lading or air waybill
- Certificate of origin or origin declaration under the agreement used
- Permits or certificates for regulated goods
Common problems and how to avoid them
What to do: Malaysian sales tax is charged on the CIF value plus import duty and any excise duty.
What to do: Check the tariff code after the 1 July 2025 SST expansion; many items now pay 5% or 10%.
What to do: Sellers above RM500,000 a year in such sales must register and charge 10% LVG sales tax.
What to do: Send the certificate of origin or origin declaration required by the agreement with the shipping documents.
Sources
- Malaysia's Free Trade Agreements Ministry of Investment, Trade and Industry (MITI), Malaysia
- Malaysian Tax Booklet: Sales tax (including low value goods) PwC Malaysia
- Malaysia expands SST from July 1: what businesses should know ASEAN Briefing (Dezan Shira & Associates)
- Customs duties and taxes in Malaysia DHL Malaysia
Rules change often. This note is practical guidance based on the sources above, not legal advice. Confirm current requirements with the authority, your importer or a licensed customs broker before you ship.
Port codes by country
Trade notes
Common questions
How are import taxes calculated in Malaysia?
Import duty is charged on the CIF value, excise duty on the CIF value plus duty, and sales tax of 5% or 10% on the CIF value plus duty plus excise.
What is the sales tax rate on imports to Malaysia?
5% or 10% depending on the tariff classification, with specific rates for some petroleum products; essential goods such as staple foods are exempt.
What changed in Malaysia's SST on 1 July 2025?
Sales tax was extended to more goods, such as imported fruits, some seafood, essential oils and premium fabrics, at 5% or 10%; staple foods, books, school materials, medical products and key building materials remain exempt.
Is there tax on small online purchases shipped to Malaysia?
Yes. Since 1 January 2024, registered sellers charge 10% sales tax on low-value goods of RM500 or less sold online to Malaysian consumers.
Which free trade agreements does Malaysia have?
19 are in force, including ATIGA, ACFTA, AKFTA, RCEP, the CPTPP and bilateral agreements with Japan, India, Australia, New Zealand, Chile, Pakistan, Türkiye and the UAE.
More free tools
Triplicate is free and keeps getting better. Found it useful? Support Triplicate ♥
Prefer no ads? Pro removes all ads · $1/month