Public Ruling 1/2026

The Director General of Customs has issued the Public Ruling 1/2026 – Determination of Foreign Currency Exchange Rates for Service Tax Invoices and Sales Tax Invoices dated 31 March 2026 (only available in Malay language).  Outlined below are the salient points of the Public Ruling:-  

• Where Service Tax registered persons or Sales Tax registered manufacturers issue invoices in foreign currency, the foreign currency amount must also be stated in MYR using the selling foreign exchange rate applicable in Malaysia at the time the taxable service is provided or the goods are sold.

• The foreign exchange selling rate shall be based on the rate published by the following bodies:-

a) The Central Bank of Malaysia or Bank Negara Malaysia (“BNM”);

b) Any commercial bank in Malaysia or any bank registered under BNM;

c) International news agencies such as Bloomberg, Reuters, Oanda; or 

d) Foreign central banks such as European Central Bank, Federal Reserve Bank of New York. 

• The same source must be used consistently in business reporting and accounting for at least one year from the end of the accounting period.

• Any application to use a different exchange rate source other than those stated above must be submitted in writing to the Service Tax or Sales Tax Policy Branch, Royal Malaysian Customs Department Headquarters for the approval of the Director General of Customs.

• For imported goods i.e. Customs Duty, Excise Duty and Sales Tax calculation purposes, the foreign exchange selling rate shall be based on the rate set by the Director General of Customs at the time of importation.

• As for imported taxable services, the conversion to MYR must be the foreign exchange selling rate used in Malaysia at the time the service occurs.

Please click on the above header link for a copy of the Public Ruling.