Malaysia: Sales tax exemption

Updated information with regards to the sales tax exemption

Updated information with regards to the sales tax exemption

The Malaysian authorities updated information with regards to the sales tax exemption.

Effective 6 August 2021, amendments pertain to the following (among other measures):

Goods exempted

  • Substituted HS Code 0403.90.90 60 with 0403.90.90 90
  • Included HS Code 2202.99.10 00


  • Expanded to cover goods transported from a licensed warehouse under section 65 of the Customs Act 1967, a licensed manufacturing warehouse under section 65A of the Customs Act 1967 or a free zone established under the Free Zone Act 1990
  • Emphasized that the goods would be used directly and solely for the manufacture of milk products falling under the respective HS Codes
  • Included ‘Any other conditions as the Director General may deem fit to impose’

Certificate to be signed by

  • Replaced with ‘The manufacturer approved by the Director General’

In addition, the following service tax guides were updated as of 4 August 2021:

  • General guide on service tax
  • Guide on Group C (night clubs, dance halls, cabarets, health and wellness centres, massage parlours, public houses and beer houses); Group D (private club); Group E (golf club and golf driving range)
  • Guide on transmission and distribution of electricity services
  • Guide on management services

Read an August 2021 report prepared by the KPMG member firm in Malaysia


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