Sales and Services Tax (SST) in Malaysia
- Sales and Service Tax (SST) is Malaysia's primary consumption tax, levied on the sale of goods and services. Reintroduced on September 1, 2018, it replaced the Goods and Services Tax (GST) to simplify the tax system.
• Sales Tax: Charged at 5% or 10% on taxable goods manufactured locally or imported.
• Service Tax: Applied at 6% or 8% on specific services provided by businesses.
The tax burden falls on consumers, while businesses are responsible for collection and remittance. Learn more about SST's 2024 rates, exemptions, and compliance requirements!
Who Pays SST in Malaysia?
- The Sales and Services Tax (SST) in Malaysia is borne by consumers at the point of purchase. Businesses act as intermediaries, collecting the tax on behalf of the government and remitting it accordingly.
SST Rates in Malaysia
Malaysia’s SST rates differ based on goods and services:
Sales Tax:
• 5%: Applied to items like petroleum oils, construction materials, and select foodstuffs.
• 10%: Standard rate for most taxable and imported goods, typically non-essential or luxury items.
Service Tax:
• 8%: Effective March 1, 2024, for most services, excluding key categories.
• 6%: For food & beverage, telecommunication, parking, and logistics services.
Zero-rated supplies: Goods taxed at 0% SST, differing from exempted goods, which are non-taxable.
SST Registration Requirements in Malaysia
Businesses offering taxable goods or services must register for Sales and Services Tax (SST) if they meet these criteria:
Sales Tax Registration:
• Engaged in manufacturing taxable goods.
• Annual taxable sales exceed RM500,000 over the last 12 months.
Service Tax Registration:
• Providing taxable services.
• Annual revenue surpasses RM500,000, with specific thresholds for some services.
Registration Deadline: The last day of the month after exceeding the threshold.
Sales Tax Exemptions
Exports, perishable goods, educational materials, bicycles, and pharmaceutical products are exempt, promoting affordability and healthy living.
How to Register for Sales and Services Tax (SST) in Malaysia
Registering for Sales Tax and Service Tax involves separate processes, but both can be done online via the MySST portal.
Steps for SST Registration:
1. Visit the MySST Portal.
2. Complete the registration form with accurate details.
3. Upon submission, you’ll receive immediate approval with your registration number.
4. Review the effective date of registration and compliance responsibilities.
5. An approval confirmation letter will be sent to your registered email.
Ensure compliance by registering promptly!
SST Registration Requirements in Malaysia
Businesses must register for Sales and Services Tax (SST) if they meet the following conditions:
Sales Tax Registration:
• Involves manufacturing taxable goods.
• Annual taxable sales exceed RM500,000 in the past 12 months.
Service Tax Registration:
• Applies to businesses providing taxable services.
• Annual revenue surpasses RM500,000, with specific thresholds for certain services.
Ensure compliance by monitoring your sales closely and registering promptly upon meeting the threshold.
SST Penalties
Here’s a concise version of the penalties for Sales and Services Tax (SST) violations in Malaysia:
Non-Submission of SST Returns:
• Fine up to RM50,000, up to 3 years imprisonment, or both.
Non-Payment of SST:
• Fine up to RM50,000, up to 3 years imprisonment, or both.
Late Payment Penalties:
• 1-30 days: 10%,
• 31-60 days: 15%,
• 61-90 days: 15%,
• 91+ days: up to 40%.
Ensure timely filing and payments to avoid penalties.