Since the reintroduction of SST in 2018, many business owners are still unclear about how it works, who it applies to, and what compliance really means. This guide will walk you through the essentials of SST 2.0 in Malaysia.
The Sales and Services Tax (SST) replaced the Goods and Services Tax (GST) in September 2018. It’s made up of two parts:
- Sales Tax – Charged on taxable goods manufactured in or imported into Malaysia.
- Service Tax – Charged on specific taxable services such as hotels, restaurants, telecoms, insurance, and professional services.
Unlike GST, SST is not a multi-stage tax—it’s applied at a single stage in the supply chain.
Who Needs to Register for SST?
Businesses must register for SST if:
- Sales Tax: Annual turnover exceeds RM500,000 (for manufacturers and importers).
- Service Tax: Annual turnover for taxable services exceeds RM500,000.
Check the list of taxable goods and services on the MySST website to confirm your obligations.