Zero Rated Goods

ZERO RATED GOODS - EXPORT

1. All export of goods are zero rated i.e. GST is charged at 0% - Exporter does not collect GST on exports but can claim input tax on expenses incurred on the exported supply.

2. Goods are considered exported when:-
i)  they have been cleared by Customs on their route out of Malaysia by land or through a sea port or airport or
ii) they have been loaded onto a vessel or an aircraft which is about to depart from a seaport or airport in Malaysia

3. The exporter must have valid documentation to proof that the goods have been exported.
Eg.  Export declaration form (K2), Sales invoice, debit note/credit note, shipping note, bill of lading, insurance note, payment documents, other documents relating to export


ZERO RATED GOODS - LOCAL

1. Live animals, seafood, animal meat, bird eggs, vegetables, fruits

2. Student text books, reference books, workbooks, religious text, dictionaries, encyclopedias, newspapers, children picture, drawing and colouring books, exercise books

3. Goods supplied to designated areas (Labuan, Langkawi, Tioman)

4. Goods consumed on board airplanes and ships

5. Retail goods on board airplane and ships

6. Untreated water for domestic consumption

7. First 300 units of electricity for domestic consumption

8. Medicine under National Essential Medicine List issued by Ministry of Health