Collect tax in Malaysia

In Malaysia, Stripe only supports collecting the Service Tax on digital services. In Stripe, these are referred to as “digital products.” To collect this tax on Stripe, you must be a remote seller without a physical presence in the country.

When to register for tax collection

See Thresholds to get insights about your potential tax registration obligations in Malaysia. Stripe also notifies you with email and Dashboard alerts when you need to register to collect tax. Learn more about how the monitoring tool works.

Remote sellers providing digital goods or electronically supplied services (digital products) to Malaysian customers must register for Service Tax purposes if the total value of digital goods and services provided to customers in Malaysia within a period of 12 months exceeds 500,000 MYR.

Threshold: 500,000 MYR

Time frame: 12 months

Included transactions: Sales of digital goods and services

Register to collect tax

You must be a remote seller with no physical presence in Malaysia to collect this tax on Stripe.

Find more information on how to register for Service Tax as a remote seller in Malaysia on the government website.

After you’ve registered to collect tax in Malaysia, go to Registrations to add your registrations to Stripe in the Dashboard. This turns on tax calculation and collection in Stripe for your transactions in Malaysia.

Learn more about how to add your registration in the Dashboard.

How we calculate taxes

We only support calculations for digital products (non-physical items or services that are delivered, given, or rendered electronically) in Malaysia. Stripe doesn’t calculate tax for products that don’t use a digital product tax code.

View the list of supported digital product tax codes. To calculate taxes in Malaysia, make sure that you assign a tax code to each of your products.

Report and file your taxes

Stripe provides reports of your completed tax transactions. Go to Registrations to access these reports. Learn more about the different types of reports.

You’re responsible for filing and remitting your taxes to Malaysia. Stripe doesn’t file taxes on your behalf.