Malaysia Tax: Sales and Service Tax (SST)

The Goods and Service Tax (GST) is replaced by the Sales in Service Tax (SST) on the 1st of September 2018. The Sales and Service Tax (SST) in Malaysia consists of two components such as the sales tax and the other one, the service tax.

The sales tax, a single stage sales tax is charged by the registered manufacturers of taxable goods and on any imported taxable goods to Malaysia. The goods are subject to sales tax of 10%, however the sales tax varies from 5% to 10% depending on the classification of the goods.

On the other hand, service tax is the tax charged on taxable services by a taxable person operating business in Malaysia. In general rule, the service tax is charged at the rate of 6%

Not all businesses in Malaysia are required to register for Sales and Service Tax. Businesses are only required to register for SST if they exceed RM500,000 annual registration turnover threshold. The threshold for operators of restaurants, cafes, bars, canteens or any food and beverage business, are subject to a RM 1,500,000 threshold. To register for SST, you can click on this link.

Once you have registered the Sales and Service Tax, you will get your SST registration number. You are required to enter the Sales and Service Tax registration number when creating your organization in Deskera Books.

In the compliance section when creating a new company, you’re required to enter your business registration number, the sales tax registration number or service tax registration number, indicate if your company is eligible for exemption and lastly select the exemption reason. Save the record of the company details.