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GST Malaysia Ecommerce

Malaysia government has implemented the GST Tax with tax rate 6%, effective from 1st April 2015. Are you running an ecommerce website or providing services online? GST was implemented and replaced the Sales Tax (10%) and Service Tax (6%).

We believe that all Online Businesses should understand and be aware of the implementation of GST Malaysia.

What is Goods And Services Tax (GST)?

GST is defined as Goods And Services Tax, it is a form of consumption tax, which means, tax was paid when you purchase on goods and services.

Types of Supply

  1. Standard Rated Supply – 6%

Standard Rated supplies are taxable supplies of goods and services which are subject to GST at standard rate. A taxable person who is registered under GST has to collect GST on the supply and is eligible to claim input tax credit on his business inputs in making taxable supplies.

  1. Zero Rated Supply – 0%

Zero Rated supplies are taxable supplies of goods and services which are subject to GST at 0%, which means businesses, do not collect any GST but are entitled to claim credit on inputs used for the business.

  1. Exempt Supply – N/A

Exempt supplies are supplies of goods or services which are not subject to GST. In this context, businesses do not collect any GST on their supplies and are not entitled to claim credit on his business inputs.

What is considered GST chargeable?

GST is only chargeable on any goods and services if it is

  1. A Taxable Supply

A taxable supply means a supply of goods or services fall under category of Standard Rated Supply or Zero Rated Supply. Standard-rated supply is subject to a tax rate of 6%. For Zero-rated supply will be 0% tax rate.

  1. Made in Malaysia

Any supply of Goods and Services MADE IN MALAYSIA are chargeable GST. Services are considered made in Malaysia, if the provider of the services belongs to Malaysia.

  1. Made by Taxable Person

A Taxable Person is a person who is required to be registered under the GST Act. A taxable person is a person who makes taxable supplies in Malaysia and his annual turnover exceeds RM500,000. A person can be defined as an individual, sole proprietor, partnership, corporation, Federal Government, State Government, statutory body, local or public authority, society, club, trade union, co-operative, trustee and any other body, organization, association or group of persons whether corporate or unincorporated.

  1. Made in the course or furtherance of any business

Who is required to register under GST?

You are required to register your company under GST if your annual sales turnover has exceeded RM500,000.

List of Tax Agent

Click here to find out the tax agent list

Click here to download the GST Ecommerce Guide below.


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