Malaysia’s Sales and Service Tax (SST) is an indirect tax system that applies separately to goods and services. It was reintroduced on 1 September 2018, replacing the former 6% Goods and Services Tax (GST). The Royal Malaysian Customs Department (RMCD) is responsible for its administration.
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Sales tax
Sales tax is a single-stage tax applied to taxable goods that are manufactured in, or imported into, Malaysia. Rates include:
- 10% standard rate: applies to most taxable goods;
- 5% reduced rate: applies to selected goods such as petroleum oils, construction materials, and certain foodstuffs;
- 0% exempt: includes goods like exported products, essential food, books, and pharmaceutical items.
Service tax
Service tax is levied on taxable services provided by registered businesses operating within Malaysia. Rates vary based on the service category:
- 8% standard rate: applies to services such as hotels, insurance, entertainment, and consultancy;
- 6% reduced rate: applies to food and beverage, telecommunications, parking, and logistics services.
Sales and Service Tax (SST) rates
| Rate | Type | Examples of Goods & Services |
|---|---|---|
| 10% | Sales Tax | Most manufactured and imported goods |
| 5% | Sales Tax | Petroleum oils, construction materials, certain foodstuffs |
| 8% | Service Tax | Hotels, insurance, entertainment, consultancy services |
| 6% | Service Tax | Food & beverage, telecommunications, parking, logistics |
| 0% | Exempt | Exported goods, essential food, books, pharmaceutical products |
For more information, visit the Royal Malaysian Customs Department (RMCD).