(Tax Update) Customs Revised Guide on Logistics, Food and Beverages Services

01Guide on Logistics Services

The Royal Malaysian Customs Department has updated its guide on logistics services, making changes to the business-to-business (B2B) tax exemptions and detailing which logistics services are taxable. According to the new Service Tax Policy No. 4/2024 :

B2B Exemptions : The requirements for exemptions have been simplified, now allowing exemptions for services within the same category of taxable services rather than needing to be exactly the same service.

Taxable Logistics Services :

• Item 1(a): Includes various logistics services like supply chain management, warehousing, freight forwarding, and services related to ports, airports, shipping, aviation, and cold chain facilities.
• Item 1(c): Covers services for delivering goods, documents, or packages through e-commerce.
• Item 1(d): Refers to licensed courier services.
• Item 2: Involves services for releasing goods from customs control.

Tax Exceptions : Logistics services provided in special or designated areas are generally not taxable, except those services that involve releasing goods from customs control.

New Exemptions :

• Door-to-Door Deliveries: Services that involve direct delivery from one country to another or within Malaysia without intermediaries are exempt if they use a single airway bill or similar documentation and a single billing invoice.

Transit and Ocean Freight Services: Services that involve transferring goods through Malaysia by land, sea, or air, and ocean freight services between different regions of Malaysia are also covered under these new guidelines.

02Guide on Food and Beverages Industry

The Royal Malaysian Customs Department has updated its Guide on Food and Beverages. This new guide, dated 16 April 2024, replaces the previous version from 26 June 2023. It includes updates on changes to the service tax rates under specific conditions as outlined in Service Tax Policy No. 3/2024 and its amendment.

Additionally, it incorporates changes from the Service Tax (Amendment) Regulations 2024.

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