Overview

Effective 1 January 2024, Malaysia imposed a flat 10 percent sales tax on every product that enters the country from overseas sellers on Amazon. The levy is added at checkout for items shipped to Malaysian addresses, and it directly influences how cross‑border merchants price, list, and ship to this market.

Key Points

• 10 % import sales tax — All purchases delivered from outside Malaysia are automatically charged a 10 % tax, e.g., a US‑based seller shipping a RM 200 handbag will see the buyer’s invoice rise to RM 220.
• Start date — The rule became enforceable on 1 January 2024, so any order placed on or after that day triggers the tax calculation.
• Import Facilitation Duty (IFD) — Shipments with a declared value above 500 MYR (≈ US $107) attract an extra duty; a seller shipping a RM 600 electronics kit may face an additional 5 % IFD on top of the sales tax.
• Geographic scope – The tax applies only to goods that cross Malaysia’s border; orders fulfilled from a local warehouse are exempt.
• Marketplace collection — Amazon, as the facilitating platform, is responsible for collecting the tax from the buyer and remitting it to Malaysian authorities, relieving sellers from direct registration.
• Pricing impact — Because the tax is visible to the consumer at checkout, sellers must consider whether to absorb part of the cost, raise list prices, or adjust shipping methods to stay competitive.

How the Tax Works

1. Buyer adds an overseas‑origin item to cart — When a Malaysian shopper selects a product listed as shipped from outside the country, Amazon’s checkout engine flags the transaction for tax calculation. For example, a customer adding a RM 150 kitchen gadget from a Singapore seller triggers the tax module.
2. System applies 10 % sales tax — Amazon automatically adds a 10 % charge to the order subtotal. In the previous example, the final price displayed becomes RM 165 before any shipping fees.
3. Customs assesses Import Facilitation Duty (if applicable) — If the declared customs value exceeds RM 500, the customs system appends an IFD, often a percentage of the excess amount. A RM 800 smartwatch would therefore carry both the 10 % sales tax (RM 80) and an IFD (e.g., 5 % of RM 300 = RM 15).