SST (Sales and Service Tax) is Malaysia's consumption tax, made up of two separate taxes: sales tax, charged once at the manufacturer or importer level on taxable goods, and service tax, charged on prescribed taxable services such as F&B, professional services and telecommunications. It is administered by the Royal Malaysian Customs Department.
- Two distinct taxes: sales tax on goods and service tax on services
- Sales tax is single-stage, unlike a multi-stage GST
- Businesses must register once turnover exceeds the prescribed threshold for their category
- Administered by the Royal Malaysian Customs Department (RMCD)
Who this applies to: Business owners, finance teams and consumers wanting to understand Malaysia's indirect tax system.
On this page
Bahasa Malaysia: Cukai Jualan dan Perkhidmatan · English: Sales and Service Tax · 中文: 销售与服务税
SST, or Sales and Service Tax, is Malaysia’s current consumption tax regime, reintroduced in September 2018 to replace the Goods and Services Tax (GST). It is actually two separate taxes administered together: sales tax, levied once at the manufacturer or importer stage on taxable goods, and service tax, levied on the provision of prescribed taxable services.
In practice
Unlike a multi-stage GST, sales tax under SST is charged only once in the supply chain, so it does not appear as a line item at every transaction. Service tax, by contrast, applies to specific categories of services — including food and beverage outlets above a revenue threshold, telecommunications, professional services, and other prescribed categories — and the list of taxable services and rates has been expanded over time. Businesses providing taxable goods or services must register with the Royal Malaysian Customs Department once their turnover crosses the threshold set for their category, charge SST on qualifying supplies, and file periodic returns.
Related terms
Sources
- Royal Malaysian Customs Department — MySST — Royal Malaysian Customs Department