The Royal Malaysian Customs Department (JKDM) has issued General Ruling No. 1/2026, providing critical clarification on Sales Tax refund eligibility for exported goods. Effective from 5 January 2026, this ruling is highly relevant for all export-oriented businesses.
Refunds Still Allowed (Provided There Is No Value Addition)
The following activities carried out before export remain eligible for sales tax refunds:
- Labelling: Attaching labels only
- Packaging: Basic packaging
- Repackaging: Changing packaging format
Activities That Disqualify Refund Eligibility
Sales tax refunds will not be granted if the goods undergo any of the following before export:
- Any value-added processing
- Manufacturing activities
- Any other form of processing or treatment
**Last Updated on 27.01.2026
(201706002678 & AF 002133)