The Royal Malaysian Customs Department (RMCD) issued Sales Tax Policy No. 2/2022 (“STP 2/2022,” currently available in the Bahasa Malaysia language only) on 24 August 2022, indicating that a sales tax exemption is available in relation to drop shipment arrangements under certain conditions where goods purchased by a local (i.e., Malaysian) trader from a registered manufacturer are exported directly to the local trader’s customers overseas by the registered manufacturer.
Source Deloitte
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