Sales and Service Tax (SST) on Imports in Malaysia
Quick Answer :
SST — Sales and Service Tax — is a government tax charged on goods imported into Malaysia. RMCD collects it at the point of customs clearance, before your cargo leaves the port. Every importer pays SST on top of import duty, and your licensed customs agent handles the calculation and payment through the K1 declaration process.
Understanding SST for imports saves you from surprise costs and helps you plan your landed price correctly before your shipment even leaves the origin country.
What Is the SST Rate for Imports in Malaysia?
Malaysia applies two main SST rates on imported goods. Most standard goods attract 10% SST. Essential and near-essential goods — such as certain food products, construction materials, and petroleum oils — attract 5% SST.
From July 2025, RMCD expanded the SST scope significantly. Over 4,800 additional goods and services entered the taxable list. Items like certain imported fruits, premium seafood, cosmetics, and smartphones now fall under the 5% bracket. In 2026, RMCD enforces full penalties on businesses that fail to declare correctly — the transitional period ended on 31 December 2025.
Your correct SST rate depends entirely on your goods’ HS code. One wrong HS code can mean you pay the wrong SST rate — and RMCD audits flag this quickly at Port Klang.
You can also read: What Is K2 form in Malaysia Customs Clearance for exports
How Do You Calculate Sales and Service Tax (SST) on an Import Shipment?
Malaysia uses the CIF method to calculate both import duty and SST. CIF stands for Cost, Insurance, and Freight — the total value of your goods including the product price, insurance, and shipping cost to Malaysia.
The calculation works in two steps. First, your agent calculates import duty: CIF value multiplied by the import duty rate. Second, SST is calculated on top — you multiply the combined total of CIF value plus import duty by the SST rate.
Here is a real example. A Selangor furniture company imports machinery parts from China via Westport Port Klang. The CIF value is RM50,000. Import duty at 5% adds RM2,500. SST at 10% applies on the combined RM52,500 — giving an SST charge of RM5,250. Total taxes before clearance: RM7,750. Knowing this number before the shipment arrives lets the company plan cash flow properly.
You can also read: How to Calculate CIF Value for Malaysian Customs
Which Imports Are Exempt From SST?
Not every shipment attracts SST. RMCD maintains a specific exemption list under the Sales Tax (Goods Exempted From Tax) Order. Raw materials imported by licensed manufacturers for use in production are commonly exempt. Machinery and equipment for manufacturing purposes can also qualify for exemption under Schedule C.
Free Trade Zones, Licensed Manufacturing Warehouses (LMW), and bonded warehouses operate outside the standard SST framework. Goods entering these areas do not attract SST until they move into Malaysia’s domestic market for consumption.
One practical point most importers miss — if your business qualifies for SST exemption, your exemption certificate must be approved and ready before your cargo arrives at port. Applying after arrival means your agent pays full SST upfront and you claim a refund later. That refund process is slow and ties up your cash unnecessarily.
You can also read: Top 10 Freight Forwarding Companies In Malaysia
FAQ
Is SST the same as import duty in Malaysia?
No. Import duty and SST are two separate charges. Import duty is a customs tariff based on your goods’ HS code and CIF value. SST is a sales tax applied on top of the duty-inclusive value. Your customs agent pays both together during K1 declaration, but they are calculated and recorded separately by RMCD.
Do I pay sales and service tax if my goods are duty-free?
Yes — in most cases. Duty-free does not mean SST-free. Many goods carry 0% import duty but still attract 5% or 10% SST at the border. Your agent confirms the correct SST rate using your HS code before submission. Always check both duty rate and SST rate separately when calculating your landed cost.
Can I claim back SST paid on imports?
SST on imports is generally not reclaimable the way GST input tax credits worked. However, if your business holds a valid SST exemption certificate under Schedule C, you should not have paid SST in the first place. If SST was paid incorrectly, you can apply to RMCD for a refund — but the process takes time. Get the exemption right before shipment, not after.
Need Help Calculating SST on Imports in Malaysia ?
Sales and Service Tax (SST) on imports is straightforward once you know your HS code and CIF value — but getting those two things wrong costs real money. TNS Log Services is a licensed customs agent and freight forwarder operating daily at Port Klang Westport and Northport since 2014. Visit tnslog.com or WhatsApp us for a fast quote and accurate duty calculation before your next shipment arrives.
Not Sure How Much SST You Will Pay?
Get a Free SST Calculation Before Your Shipment Arrives
SST and import duty can add up fast if you use the wrong HS code or underestimate your CIF value. TNS Log Services calculates your exact SST and duty before your cargo reaches Port Klang — so there are no surprises at customs.
