SST Malaysia — Sales Tax 5/10% and Service Tax 8%
What the Sales and Service Tax rates are and how to show the rate on each invoice line.
Malaysia has no VAT or GST. Since 1 September 2018 indirect tax is Sales and Service Tax (SST), administered by the Royal Malaysian Customs Department. Sales Tax applies at 5% or 10% to manufactured and imported goods. Service Tax applies to prescribed taxable services at 8% since 1 March 2024, with 6% kept for some services such as food and beverage, telecommunications, parking and logistics. The scope of Service Tax was widened from 1 July 2025. Registration is generally required once taxable turnover passes RM500,000 in 12 months, with different thresholds for some sectors.
- Sales Tax: 5% or 10% on taxable goods, with exemptions and other rates by order.
- Service Tax: 8% for most prescribed services since 1 March 2024.
- Service Tax 6%: kept for some services, for example food and beverage and telecommunications.
- Registration threshold: generally RM500,000, with sector-specific thresholds.
How it works
Decide which tax applies. Sales Tax concerns taxable goods that are manufactured in or imported into Malaysia. Service Tax concerns services listed as taxable. One business can be liable for both.
Check the registration threshold. The general threshold is RM500,000 of taxable turnover in 12 months. Some sectors have other thresholds, including the services added from 1 July 2025. Confirm yours on the MySST portal and with Customs guides.
Apply the correct rate per invoice line. For services use the rate that applies to that service, which is 8% or 6%. Goods lines use the Sales Tax rate for that product.
Show the tax separately on the invoice. If you are SST-registered, put your SST registration number on it. On an e-invoice, MyInvois asks for a tax type and rate per line.
File your SST return. Registered persons file returns on a two-month cycle through MySST. Check the deadline for each taxable period on the Customs website.
Legal framework
- Sales Tax Act 2018 (Act 806).
- Service Tax Act 2018 (Act 807).
- Royal Malaysian Customs Department — SST guides and MySST portal.
- Sales Tax and Service Tax rate orders and amendment regulations (2024 and 2025).
Frequently asked questions
When did Service Tax move from 6% to 8%?
On 1 March 2024. The standard rate for most taxable services became 8%. Some services, such as food and beverage, telecommunications, parking and logistics, stayed at 6%. Confirm the rate of your service in the current Customs guide.
Is SST the same as VAT?
No. SST is a single-stage tax. Sales Tax is charged on goods at manufacture or import, and Service Tax on prescribed services. There is no general input tax credit as under VAT.
What is the SST registration threshold?
Generally RM500,000 of taxable turnover in 12 months. Some sectors have different thresholds, for example for services added in 2025. Check the Customs guide for your activity.
Are exports subject to SST?
Exports of goods are generally not taxed under Sales Tax, subject to documentation. Service Tax on services supplied to overseas customers depends on the type of service. Ask Customs or your adviser for your case.
Does 4invoices calculate SST or file SST returns?
No. 4invoices does not choose the SST category, does not check registration, does not file returns and does not connect to Customs. You enter the tax rate on each line, for example 8%, and the invoice totals are calculated from it. You can download the PDF, and the trial is free for 6 months without a card.