- Malaysia’s Customs issued Public Ruling 2/2026 on May 18, 2026, clarifying what “used” means for sales tax drawback claims.
- Sales tax drawback can apply to taxable goods imported or bought locally and later exported, if Regulation 17 conditions are met.
- Goods are considered “used” if any activity is performed on them after importation or purchase, including value-added or manufacturing processes.
- Labeling, packaging, and re-packaging are excluded, as long as they do not add value to the goods.
Source: kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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