Shipping guide

Malaysia import duty and SST: how is it worked out?

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Short answer

There is no single import tax rate. The product’s HS code, origin and applicable exemptions determine the duty and sales-tax treatment. LVG sales tax is a separate regime for qualifying online goods; paying it does not automatically remove import duty. Send the product details, invoice and origin to VSPEED for a shipment-specific check. Customs determines the final assessment.

For importers who want to estimate landed cost before shipping, not just the freight.

Published by VSPEED · Updated

It starts with the HS code and origin

Every product has an HS code — an international classification that decides its import duty rate. The country of origin matters too, because trade agreements can lower or remove duty for goods made in certain countries. So the honest answer to 'how much tax will I pay' is always: tell me the exact product and where it is made. A guess at the HS code can be the difference between zero duty and a double-digit rate.

Import duty, then SST

Import duty and import sales tax are different charges. The applicable rate, taxable value and any exemption must be checked for the exact product and origin. CIF includes the goods, insurance and freight. A zero duty rate does not by itself settle the sales-tax question. The quotation should separate freight charges from the tax treatment and identify any DDP arrangement.

Online purchases and Form D

Qualifying online goods sold at RM500 or below are subject to 10% LVG sales tax collected by registered sellers. This does not replace import duty. Air-courier de minimis uses a CIF threshold and should not be applied to road freight. Keep proof of LVG tax paid for the import declaration. ASEAN preferential duty also requires the applicable origin rules and valid evidence, not just shipment from an ASEAN country.

Official references

FAQ

What is the import tax rate in Malaysia?

There is no single rate. Send the product specifications, HS code if known, invoice and origin; VSPEED checks the applicable duty, sales tax and exemptions, subject to Customs assessment.

Do I pay tax on cheap online orders?

Qualifying online purchases can carry LVG sales tax. Whether import duty or import sales tax also applies depends on the goods, transport mode, value and declaration evidence. Keep the seller’s tax invoice.

Can I reduce import duty legally?

Preferential duty may apply when goods meet the relevant trade agreement’s origin rules and supporting-document requirements. Ask the supplier for valid origin evidence, such as Form D where applicable, before shipment.

Is the tax charged on the goods value only?

Not always. Import assessment can include freight and insurance, while LVG sales value and import CIF are different bases. Check the applicable regime for this shipment.

Related

Plan your shipment with VSPEED

Send the product details, invoice or packing list, origin and destination. Include any existing permits or certificates so the team can check the next step.

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