Sales & Service Tax (SST)

December 9, 2022


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?

  • 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


  • 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.
Taxable Service Threshold
Group A: Accommodation RM500,000.00
Group B: Food & Beverages RM1,500,000.00
Group C: Night Club, Dance Halls, Health Centres, Massage Parlours, Public Houses, Beer House RM500,000.00
Group D: Private Clubs RM500,000.00
Group E: Gold Club & Golf Driving Range RM500,000.00
Group F: Betting & Gaming RM500,000.00
Group G: Professionals RM500,000.00
Group H: Credit Card/ Charge Card RM500,000.00
Group I: Other Service Providers RM500,000.00

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