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Sales & Service Tax (SST)

What is sales tax?

Service tax are charged by registered manufacturers of taxable goods and on the importation of taxable goods into Malaysia.

• General rate: goods are subject to sales tax at a rate of 10%
• Specific rate: some goods are taxed at the reduced rate of 5%

What is service tax?

The rate for service tax is 6% for all taxable services. Services that are imported or exported are exempted from service tax.

Which businesses must apply for sales & service tax registration in Malaysia?

1. SALES TAX

• Taxable goods manufacturers are required / liable to be registered when SALES VALUE OF TAXABLE GOODS has exceeded RM500,000 for 12 months period.
• Manufacturers who carry out sub-contract work on taxable goods where the VALUE of work performed exceeds RM500,000 for 12 months period.
• Exempted Goods from Sales Tax
• Books, magazines, newspapers, and journals
• Cereals
• Coffee and tea
• Fertilizers
• Goods manufactured for export
• Insecticides and disinfectants
• Live animals, fish and seafood, and eggs
• Meat and edible meat offal
• Pharmaceutical products
• Spices
• Wood pulp and waste of paper

2. SERVICE TAX

• List of Type of Taxable Services and Threshold
• Any person with total amount of taxable services provided in 12 months exceed threshold below is liable to register.