Malaysia’s SST is not one tax but two: Sales Tax on goods and Service Tax on prescribed services, both run by Customs (RMCD). It has been widening: service tax rose to 8% in 2024, and 2025 pulled more services into the net. Here is the plain-English picture, and what to check for your business.
SST is a Customs tax, not an LHDN tax
This trips people up. Income tax and e-Invoicing are run by LHDN. SST is run by RMCD, the Royal Malaysian Customs Department, through the MySST portal. You register, file and pay SST with Customs, separately from anything you do with LHDN.
The two taxes
| Tax | On what | Rate | Charged |
|---|---|---|---|
| Sales Tax | Taxable goods | 5% or 10% | Once, by the manufacturer or at import (single-stage) |
| Service Tax | Prescribed services | 8% (some stay at 6%) | By the registered provider, when supplied |
Unlike the old GST, SST is single-stage: there is no input credit to offset. What you charge is what you remit, minus any exemption.
Who has to register
The general threshold is RM500,000 of taxable turnover in twelve months, tested separately for goods and for services. Some service categories carry a different or nil threshold, so the safest move is to check your specific activity. The registration reference lays out the tests.
What changed
- 1 March 2024: the standard Service Tax rate rose from 6% to 8%. Food and beverage, telecommunications, parking and logistics stayed at 6%. The taxable-services list widened too.
- 2025: a further expansion of Service Tax scope brought more categories in, with staggered start dates. If your service was previously untaxed, confirm whether it is now prescribed.
- Related Customs charges, Low-Value Goods tax and High-Value Goods tax, sit alongside SST with their own codes.
What to do
- Check your scope against the current prescribed lists, especially if you provide services.
- Register on MySST if you have crossed the threshold, and set your registration number and filing frequency in your accounting system.
- Charge the right rate and code on every line. The SST tax code also flows onto your e-Invoices, so it needs to be right for both. (See our e-Invoice rollout piece.)
- File the SST-02 every taxable period, even a nil one, by the last day of the following month.
Look it up
We keep a plain-language reference for each part of SST:
- SST overview: the whole picture
- Sales Tax vs Service Tax: rates and the tax type codes
- Exemptions: the Schedule A/B/C reliefs and special areas
- Filing the SST-02: the return and how to prepare the figures
- Sources & what changed: official links and the recent changes