What is SST in Malaysia?
Last updated: October 2026. Last checked: 19 October 2026. SST is Malaysia's Sales and Service Tax, administered by the Royal Malaysian Customs Department through the MySST portal (opens in a new tab). Sales tax is a single-stage tax on taxable goods manufactured in Malaysia by registered manufacturers, and it is also charged on taxable goods imported into Malaysia.
Service tax is charged on taxable services provided in Malaysia by registered persons. What's new in 2026: from 1 January 2026 the service tax rate on rental or leasing services is 6%, fixed by the Service Tax (Rate of Tax) (Amendment) Order 2026 (P.U.(A) 125, gazetted 13 March 2026).
Health examination management services have been taxable since 1 May 2026. Both are set out in Customs' service tax policies (opens in a new tab) (Policy No. 2/2025 Amendment No. 5 and Policy No. 1/2026). This page is general information, not tax advice. For your own situation, speak to a licensed tax agent or contact Customs directly.
What is the difference between sales tax and service tax?
Sales tax applies to goods and is paid by the registered manufacturer or the importer; service tax applies to services and is charged by the registered service provider.
A business can be liable for one, both or neither, depending on what it makes, imports or sells. Both are registered, filed and paid through the same MySST portal on a two-month return cycle.
| Sales tax | Service tax | |
|---|---|---|
| Charged on | Taxable goods manufactured in Malaysia, and taxable goods imported | Taxable services provided in Malaysia |
| Who registers | Manufacturers of taxable goods (including sub-contract manufacturers) | Providers of taxable services |
| Rates | 10% by default; 5% or specific rates for listed goods; exempt goods listed in an order | 8% standard; 6% for listed services; RM25 per credit or charge card |
| Main threshold | Sales value of taxable goods above RM500,000 in 12 months | Taxable services above RM500,000 in 12 months for most groups |
| Returns | Every two months, through MySST | Every two months, through MySST |
What are the current SST rates in Malaysia?
Service tax is 8% for all taxable services except the services Customs lists at 6%, according to the Customs service tax FAQ (opens in a new tab). The 8% rate has applied since 1 March 2024, when it rose from 6%.
Sales tax is 10% unless the goods are listed at 5% or a specific rate in the Sales Tax (Rate of Tax) Order 2025, or exempted under the Sales Tax (Goods Exempted from Tax) Order 2025, in force since 1 July 2025 (sales tax rate FAQ (opens in a new tab)).
| Service | Rate | Since |
|---|---|---|
| All taxable services not listed below (including advertising and professional services) | 8% | 1 March 2024 |
| Food and beverage, logistics, telecommunications, parking | 6% | Kept at 6% when the standard rate rose |
| Construction work, private healthcare, education (in scope since the 2025 expansion) | 6% | 2025 expansion |
| Rental or leasing | 6% (8% from 1 July 2025 to 31 December 2025) | 1 January 2026 |
| Beauty treatment | 8% | 2025 expansion |
| Credit card or charge card | RM25 per card | Specific rate |
Exemptions narrow these rates further. For example, Customs states that Malaysian citizens are exempt from service tax on private healthcare, and MSME tenants that meet the conditions can be exempt from service tax on rental. Check the FAQ for your service group before you price.
What changed in the July 2025 SST expansion?
From 1 July 2025 Customs broadened the SST base: new sales tax rates took effect, and service tax was extended to rental or leasing, construction work, financial services, private healthcare, education and beauty treatment. Each new group has its own threshold and exemptions, set out in the service tax scope expansion FAQ (opens in a new tab).
| Service | Rate | Registration threshold |
|---|---|---|
| Rental or leasing (Group K) | 6% from 1 January 2026 | See the current Group K guide (note below) |
| Construction work (Group L) | 6% | Above RM1,500,000 in 12 months |
| Private healthcare, traditional and complementary medicine, allied health | 6% | RM1,500,000 in 12 months |
| Education | 6% | Fees above RM60,000 per student per academic year |
| Financial services | As set by Customs for each service | Above RM500,000 in 12 months |
| Beauty treatment | 8% | RM500,000 in 12 months |
Rental has moved most since launch. The rate fell to 6% on 1 January 2026, and MSME tenants that register on Customs' MyPMK system can be exempt where annual sales are below RM1.5 million, under Service Tax Policy No. 2/2025 (Amendment No. 5).
Customs' published sources show different rental registration thresholds, so confirm yours with Customs before you rely on a figure.
Who must register for SST, and at what threshold?
You must register once your taxable turnover exceeds the threshold for your goods or service group over 12 months.
Customs' registration guide (opens in a new tab) sets RM500,000 for manufacturers of taxable goods and for most service groups, RM1,500,000 for food and beverage, and no threshold for credit or charge card providers and customs agents, who are liable from the day they start.
Turnover is measured two ways, and liability starts at whichever comes first. The historical method adds the current month to the previous 11 months. The future method adds the current month to the next 11 months. Businesses below the threshold can apply to register voluntarily, subject to conditions set by the Director General.
How do you register for SST in Malaysia?
You register online on the MySST portal, as a sales tax manufacturer, a service tax provider or both. These steps follow Customs' registration pages as they read on 19 October 2026.
- Confirm that your goods or services are taxable and find your service group in Customs' list of taxable services and thresholds.
- Work out your taxable turnover with both the historical and the future method.
- Apply online: sales tax registration (opens in a new tab) for manufacturers, or service tax registration (opens in a new tab) for service providers.
- Once Customs approves, charge SST from the effective date of registration stated in your approval, and show it on your invoices.
- File a return every two months through MySST, even when no tax is due.
How do you check if a business is SST-registered?
Use the Customs SST registration status search (opens in a new tab), which Customs links from MySST. It is the official way to confirm that a supplier who charges you SST is actually registered.
Customs runs a separate exemption-status search on the same system for businesses that claim an exemption. If a supplier's number does not show up, ask them for their registration approval before you pay the tax portion of the invoice.
How do SST filing and payment work?
Returns are filed electronically through MySST once every two months, by the last day of the month after the taxable period ends, according to Customs' filing guide (opens in a new tab). A return is required even if no tax is payable. Your taxable periods depend on whether your financial year ends in an odd or an even month.
Payment is made online through MySST (or MyTTx, MySToDS or MyLVG), or manually by cheque or bank draft to the Customs Processing Centre (paying SST (opens in a new tab)). An online payment counts only once the funds reach the Director General of Customs' account.
Penalties for late payment and errors
Late payment is penalised at 10% of the tax for the first 30 days, then a further 15% for each of the next two 30-day periods, to a maximum of 40% after 90 days (Customs penalties (opens in a new tab)).
An incorrect or incomplete return can bring a fine of up to RM50,000, up to three years' imprisonment, or both. Records must be kept for seven years.
Does SST apply to advertising and digital marketing?
Yes. Advertising services are a taxable service under Group I of the First Schedule to the Service Tax Regulations 2018 (opens in a new tab), with a RM500,000 threshold, so a registered agency charges 8% on its advertising fees.
Running ads and paying SST on digital services? See how SST applies to marketing, and how our performance marketing service plans budgets with tax included.
To add SST to a Meta, Google or TikTok budget, use the SST digital ads calculator.
SST and e-invoicing
SST-registered suppliers also enter their SST registration number on every e-invoice, so see the e-invoice Malaysia guide too. Baca dalam Bahasa Melayu: panduan SST Malaysia.