SST in Malaysia (Sales & Service Tax) Explained

Sales Tax vs Service Tax

Malaysia replaced GST with SST, which is really two taxes. Sales Tax is a single-stage tax on goods (charged at manufacture or import) at 5% or 10%, with 10% the default for standard, non-essential goods and 0% for essentials. Service Tax applies to prescribed taxable services at 8% for most services, and 6% for categories such as food and beverage, telecommunications, parking and logistics.

SST is administered by the Royal Malaysian Customs Department (RMCD) through the MySST portal. Because the scope and rates were revised in 2025, it is worth confirming whether your specific goods or services are taxable and at which rate.

Registration and the SST-02 return

Registration is generally required once turnover from taxable goods or services exceeds RM500,000 over a rolling 12-month period, with a higher RM1,500,000 threshold for food-and-beverage service tax and certain other categories. Registered businesses report and pay SST on the SST-02 return, usually every two months.

MyInvois e-invoicing

Separately from SST, Malaysia is rolling out mandatory e-invoicing through MyInvois, operated by the Inland Revenue Board (IRBM/LHDN). It uses a continuous-transaction-control model: invoices are validated by the system, which returns a unique identifier and a QR code. The rollout is phased by business size, so check your applicable start date.

How Tallium helps

Tallium applies the correct Sales or Service Tax rate on your transactions, keeps your books in step, and builds an SST-02-ready summary — and is designed to work with MyInvois e-invoicing requirements. Always confirm current rates, thresholds and your MyInvois timing with RMCD, IRBM/LHDN or a qualified tax professional.