Sales and Service Tax (SST) Services

Worry about SST compliance?
Not anymore.

SST was re-introduced on 1 September 2018 in Malaysia, replacing the Goods and Services Tax (“GST”). Both sales tax and service tax are final taxes with no credit mechanism. While exemptions do exist, SST is typically a business cost.

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Sales Tax Service Tax
Scope

Sales tax is a single-stage tax charged on:

  1. taxable goods manufactured by a registered manufacturer in Malaysia, and
  2. taxable goods imported by any person into Malaysia.

Service Tax is a single-stage tax charged on taxable services provided by a registered person in carrying on his business in Malaysia.

W.e.f. 1 January 2019, service tax is charged on any taxable services imported into Malaysia by any person who carries on business in Malaysia (B2B). Any person importing a taxable service into Malaysia for the purposes of business is required to file a return and pay the service tax in respect of the service imported.

W.e.f. 1 January 2020, service tax is charged on any onli.ne digital service provided by a foreign registered person ("FSP") to any consumer in Malaysia (B2C). A foreign service provider is liable to register for Service Tax if the total annual value of digital services provided to consumers in Malaysia has exceeded RM500,000.

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Tax Rates 5%, 10% (in general) or specific rate 6% (in general) or specific rate
Registration Threshold Any person who manufactures taxable goods with a value exceeding RM500,000 over a 12-month period.

Any person who provides taxable services with a value exceeding RM500,000 over a 12-month period.

However, certain services have a different threshold, for example the registration threshold for food and beverage operator is RM1.5 million.
Accounting Basis

Accrual basis

  • At the time when the goods are sold, disposed or first used

Payment basis

  • At the time when the payments are received from customers
Taxable Period Every 2 calendar months Every 2 calendar months
Filing & Payment Within 1 month after the end of each taxable period. Within 1 month after the end of each taxable period.

Our services include:

  • SST registration and de-registration
  • Preparation and filing of SST returns (bi-monthly)
  • Review of SST returns
  • Compliance reviews (“Health Checks”)
  • Managing custom audits
  • Managing customs ruling applications
  • Guidance on SST regulations
  • Implication review – to assess if local and/or cross-border business activities and/or specific transactions are subject to SST