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[Buyer Basics] Is Sales & Service Tax (SST) charged on my Shipping Fee?

English | Bahasa Malaysia

 

Sales & Service Tax (SST) is the tax charged and levied on taxable services. Effective 1 March 2024, as announced by the Royal Malaysian Customs Department (RMCD), a mandatory 6% SST will be imposed on logistics services, which include the delivery, distribution, and transportation of goods, documents, or parcels via e-commerce platforms (Shipping Fee).

 

What does this mean?

 

As directed by RMCD, Shopee will impose the mandatory SST rate of 6% on Shipping Fee starting 1 March 2024 onwards. Based on the examples provided in the guideline issued by the RMCD, the tax base for charging SST will be the Shipping Fee amount after any Shipping Discount.

 

In the event the effective date is deferred, Shopee will continue to apply service tax (if applicable) based on current laws.

 

Here’s a breakdown of the calculation of 6% SST charge on your Shipping Fee.

 

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