Malaysian Sales Tax Update Effective from 1 July 2025

Published: 21 July 2025

The Ministry of Finance Malaysia and Royal Malaysian Customs Department (RMCD) have recently introduced important updates to the Sales Tax regime, which will take effect from 1 July 2025. These latest amendments reflect the government's commitment to address cost-of-living concerns, promote business clarity, and simplify compliance.

Here are the key Sales Tax updates businesses must note:

1. New Sales Tax Rates and Effective Date

Effective from 1 July 2025, the updated Sales Tax rates are as follows:

Category of Goods	Applicable Sales Tax Rate	Reference
Specific goods as listed	5% / Specific rate (petroleum products)	Sales Tax (Rate of Sales Tax) Order 2025 Sales Tax (Rate of Sales Tax) (Amendment) Order 2025
Goods specifically exempted	0%	Sales Tax (Goods Exempted from Tax) Order 2025
All other goods not specifically listed	10% (standard rate)	Sales Tax (Rate of Sales Tax) Order 2025

Businesses should carefully refer to the Sales Tax Orders as mentioned in the Reference to determine their obligations.

2. Imported Fruits Exempted from Sales Tax

To alleviate the burden of rising living costs, selected imported fruits are now exempted from Sales Tax from 1 July 2025 onwards. Specifically, the following imported fruits will no longer attract Sales Tax:

• Apples
• Oranges
• Mandarin Oranges
• Dates

This exemption is aimed at ensuring the affordability of commonly consumed fruits in Malaysia.

3. Continued Sales Tax Exemptions for Essential Daily Goods

In line with the government's objective to mitigate the impact on essential consumption items, Sales Tax will remain exempt on the following goods upon importation:

• Rice
• Noodles
• Chicken
• Beef
• Vegetables
• Eggs

This decision is part of ongoing efforts to manage inflationary pressures and ensure affordability.

4. Sales Tax Registration Requirements for Manufacturers

The Sales Tax registration thresholds and rules remain unchanged, as follows:

• Mandatory registration applies to manufacturers whose annual sales value of taxable goods exceeds RM 500,000 within 12 months.
• Voluntary registration remains an option for manufacturers whose annual sales value is below RM 500,000.

Manufacturers must ensure compliance by registering through the MySST Portal under Section 12 and Section 14 of the Sales Tax Act 2018, respectively.

5. Sales Tax Exemptions for Registered Manufacturers

Registered manufacturers continue to enjoy exemptions from Sales Tax on:

• Raw materials, components, and packaging materials directly used in manufacturing (subject to its specific exemption conditions).
• Machinery and equipment essential to their manufacturing processes (subject to specific RMCD approval and guidelines).

Manufacturers can submit exemption applications online through the MySST Portal, making the process seamless and transparent.

6. Resources and Assistance

For further information and clarification, businesses are encouraged to refer to official publications and communications from RMCD and the Ministry of Finance Malaysia.

Businesses requiring direct assistance can contact:

Royal Malaysian Customs Department SST Call Centre:

• 03-8323 7406 / 03-8323 7407 / 03-8323 7409 / 03-8323 7412
• 03-8323 7414 / 03-8323 7415 / 03-8323 7416 / 03-8323 7417
• Hotline: 1-300-888-500

Disclaimer:

The information provided in this article is based on official Malaysian government publications, specifically the Ministry of Finance Malaysia and Royal Malaysian Customs Department documents. It is intended to provide an overview of recent updates to Sales Tax regulations as at 1 July 2025. Businesses are advised to directly consult RMCD or licensed tax professionals for specific applications and compliance obligations.