The Royal Malaysian Customs Department has issued Ketetapan Umum Bil. 3/2026, effective 28 July 2026, replacing the earlier Ketetapan Umum Bil. 1/2026 dated 31 March 2026. The ruling explains how businesses should handle foreign currency amounts when issuing tax invoices.

Registered service tax providers and registered sales tax manufacturers are required to include a full set of details on every tax invoice, such as the invoice number, date, business name and address, description of the service or goods, any discount given, and the tax amount charged. One of these required details is that if the invoice amount is stated in a currency other than ringgit, the ringgit equivalent must also be shown.

This is where the new ruling comes in. It clarifies that the exchange rate used must be the rate that applied at the time the service was provided or the goods were sold, not the rate on the day the invoice is issued or the day payment is received.

Businesses can use exchange rates published by Bank Negara Malaysia, any commercial bank or bank registered under Bank Negara Malaysia, international agencies such as Bloomberg, Reuters or Oanda, or foreign central banks such as the European Central Bank or the New York Federal Reserve.

Whichever source is chosen must be used consistently for at least one year from the end of the accounting period. Businesses wishing to use a different rate source must apply in writing to Customs headquarters for approval.

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