Key Takeaways
- Most logistics and delivery services in Malaysia are taxed at 6% under the Service Tax Act 2018 (logistics remains at 6% even after the 8% rate for many other services).
- RM500,000 annual taxable turnover triggers service-tax registration for anyone providing taxable services (including logistics). If you’re just using couriers, you don’t register, your courier charges you SST.
- Domestic deliveries are taxable, while transshipment, transit, and genuine door-to-door (DTD) international movements can be exempt if RMCD’s conditions are met
- Businesses that use couriers should check invoices for 6% SST, as this cost is usually passed on.
- RMCD’s 6 June 2025 Logistic Services Guide is the latest reference.
The answer is yes, most logistics and courier service in Malaysia are subject to a 6% Service Tax (SST) under the Service Tax Act 2018.
The Royal Malaysian Customs Department (RMCD) clarified this in its Updated Service Tax Guide on Logistic Services (June 2025), with some exemptions for cross-border and door-to-door services.
So if you ever wondered why your courier bill suddenly looks a little fatter? That extra 6% isn’t a mystery fee from Ninja Van or J&T, it’s service tax.
Today, we will explain which delivery services are taxable, when exemptions apply, and what Malaysian businesses (especially SMEs using couriers daily) should do to stay compliant in 2025.
Who Needs to Register for Service Tax?
If you’re running a courier or logistics company, the rule is clear: once your annual taxable turnover hits RM500,000, you must register for SST.
But if you’re a retailer, online seller, or SME using delivery services, this doesn’t apply to you.
You don’t register, you just pay the 6% SST included in your courier’s invoice.
Here’s what providers must do once registered:
- Charge 6% on invoices (RM10 delivery becomes RM10.60).
- File service tax returns (usually every 2 months).
- Keep clean records (invoices, airway bills, consignment notes).
Example
- A courier aggregator in Klang Valley earning RM700,000 → must register and charge SST.
- An e-commerce toy shop earning RM400,000 in product sales → does not register. It only pays the 6% on courier fees from providers.
Source: Royal Malaysian Customs Department – Updated Service Tax Guide on Logistic Services (June 2025, Malay version)
Which Delivery Services Are Taxable?
Not every parcel is treated the same under Service Tax. Here’s the simple breakdown:
Taxable (6% applies)
If it’s happening within Malaysia (such as state to state), you will see the 6% SST on the bill:
- Domestic courier services: Pos Laju, J&T, Ninja Van, DHL, City-Link
- E-commerce last-mile delivery: The “checkout to doorstep” runs your customers love.
- Support services tied to delivery: Warehousing, cargo handling, and local distribution linked to parcels.
Example: A shop in Johor Bahru ships toys to a customer in KL using J&T. That delivery fee will carry 6% SST if the provider is registered.
Exempt (no 6%)
Some movements escape the tax net, especially when they involve international shipping or very specific conditions:
- Cross-border deliveries: Sending a parcel from Malaysia to Singapore, or from China into Malaysia.
- Transshipment: Goods landing in Port Klang but only passing through on the way to another country, without being released locally.
- Door-to-door (DTD) services, but only if:
- One provider handles the entire journey (first mile to last mile).
- The customer gets one invoice covering all services (transport, customs clearance, handling).
- A single airway bill or consignment note is issued for the parcel.
Example: A logistics company in Malaysia manages the full shipment of furniture from Guangzhou straight to a customer in Penang under one invoice. That’s exempt as DTD.
Source: The Star, reporting on the gazetted Service Tax (Rate of Tax) Amendment Order 2024.
How Will This Affect Business Delivery Costs?
The 6% SST may look small, but it adds up once it multiplies across hundreds of parcels. Here’s a quick snapshot:
| Delivery Fee (Before Tax) | With 6% SST | Extra Cost Per Parcel |
| RM8 | RM8.48 | RM0.48 |
| RM12 | RM12.72 | RM0.72 |
| RM15 | RM15.90 | RM0.90 |
To put it in context, if you ship 500 parcels a month at an average of RM10 each, that’s an extra RM300 in SST charges every month, RM3,600 a year.
Read more: How Much Does Parcel Delivery Cost in Malaysia?
What Should Businesses Do Now?
If delivery or courier services are part of your business operations, the service tax rules may sound worrying, but they’re manageable with the right steps.
Here’s what you can do right now:
- Check your courier invoices
Look for the 6% SST line. If it’s there, it means your courier is already registered and charging service tax. This helps you budget correctly. - Use standard delivery tracking
Keep customers updated on parcel movement, reduce disputes, and make sure your records align with courier logs. - Negotiate bulk rates
Aggregators like ParcelDaily can help soften the cost impact by comparing shipping cost across different major courier providers in Malaysia.
“Many businesses pass part of the cost to customers, but smart packaging and route planning can soften the impact.” – ParcelDaily Team
Can Businesses Claim This as a Business Expense?
Here’s the simple truth:
- SST is not reclaimable like GST or VAT. Once you pay it, it’s part of the cost.
- But, the SST you pay on courier invoices can be recorded as a business expense.
- That means when you file your corporate income tax, courier charges (including the 6% SST) help reduce your taxable income.
Source: MySST
Tips to Manage the Extra 6%
For SMEs, that extra 6% don’t have to eat the cost or your margins, there are a few ways to handle it:
- Bundle shipping into product pricing: Offer “free shipping” above RM100 orders by absorbing SST into higher-value sales.
- Compare couriers via aggregators: Platforms like ParcelDaily let you compare courier shipping prices.
- Negotiate bulk rates: If you ship more than 300 parcels a month, ask for discounts that can offset the tax.
- Optimise packaging: Smaller, lighter parcels = cheaper base delivery fee = smaller SST charge.
“Every ringgit saved on shipping protects business margins, and customers still get competitive delivery rates.”
Making Sense of SST on Delivery Services
Understanding SST for delivery services isn’t just about tax jargon, it’s about what’s happening to your bottom line.
For many SMEs, that extra 6% on courier bills feels like a surprise price bump.
The good news? Knowing how it works gives you leverage, you can budget, negotiate, or bundle your logistics cost without getting stuck off guard.
ParcelDaily stands out because it’s built for businesses like yours, flexible, transparent, and focused on making logistics simple. Whether you ship one parcel or thousands, we offer:
- Competitive rates across multiple couriers under one dashboard.
- Free pickup and Cash on Delivery remittance within 24 hours.
- Seamless integrations with Shopify, WooCommerce, and Excel-based bulk uploads.
- Real-time tracking, clear invoices, and support that speaks your language.
So, when your courier invoice shows the 6% SST, you’ll know, it’s not a surprise markup. It’s just how delivery costs now work in Malaysia.
Use that to your advantage, pick smarter couriers, adjust your pricing, and reduce surprises.
Disclaimer: This article is for general information only and is not tax advice. Refer to RMCD/LHDN guidance or a qualified advisor for your specific facts.
Frequently Asked Questions About Service Tax on Delivery Services
What Is The Service Tax Rate For Delivery Services?
It’s 6%, confirmed by RMCD’s Service Tax Guide (June 2025).
Why Do I See 8% In The News?
That’s for most other services (digital, professional). Logistics, F&B, communication and telecommunication services remain at 6%.
Are International Deliveries Taxable?
No, cross-border, transit, and certain door-to-door services are exempt if they meet RMCD’s conditions.
Is Food Delivery Taxed?
No. Food and beverage deliveries ( GrabFood, Foodpanda) are excluded from logistics service tax.
Can I Claim The 6% Sst Back?
No, SST isn’t reclaimable like GST. But courier charges (including SST) are deductible as a business expense for income tax.
How Does ParcelDaily’s Standard Delivery Tracking Help My Business?
It builds customer trust, reduces “where’s my parcel?” disputes, and gives you a paper trail that matches courier invoices for compliance.
