What is SST in Malaysia?

SST stands for Sales and Service Tax, the two-part consumption tax that replaced GST in 2018. Sales tax applies to taxable goods (at manufacture or import) at 5% or 10%; service tax applies to prescribed taxable services at 6% or 8%.

What are the SST rates?

Sales tax is 5% or 10% depending on the goods. Service tax is 6% for certain essentials (such as food & beverage, telecommunications, parking and logistics) and 8% for most other taxable services.

What is the SST registration threshold?

The general threshold is RM500,000 of taxable turnover in any rolling 12-month period (past or projected). Some service categories added in July 2025 have higher thresholds — for example RM1 million for rental/leasing and financial services, and RM1.5 million for construction.

How often is SST filed?

SST returns (SST-02) are generally filed every two months (the taxable period) through the MySST portal, with payment due by the last day of the following month. Keep accurate records of taxable sales and services to file correctly.

SST in Malaysia (2026): sales & service tax for SMEs

Last reviewed: 14 June 2026

SST — Sales and Service Tax — is Malaysia’s consumption tax. After a major scope expansion in July 2025 and full enforcement from January 2026, more businesses are now in scope. Here are the rates, the registration threshold, what changed, and how filing works.

Sales tax vs service tax

Sales tax — charged on taxable goods at the manufacturing or import stage, at 5% or 10% depending on the product.
Service tax — charged on prescribed taxable services at 6% for certain essentials (food & beverage, telecommunications, parking, logistics) and 8% for most other taxable services.

Who must register

The general registration threshold is RM500,000 of taxable turnover in any rolling 12-month period — looking back at the past year or forward at the projected year. Some categories added in 2025 carry higher thresholds (for example RM1 million for rental/leasing and financial services, and RM1.5 million for construction). Registration is done through the MySST portal.

The 2025 scope expansion

From 1 July 2025, the service tax net widened to bring in rental and leasing, construction, financial services, private healthcare for non-citizens and private education for foreign students, among others — thousands of goods and services that were not previously taxed. Full enforcement began on 1 January 2026, so businesses that became eligible should register and charge SST or risk backdated liabilities and penalties.

Filing & records

Registered businesses file the SST-02 return — generally every two months — through MySST, and pay by the deadline for that period. The key to painless filing is clean records: a chart of accounts with SST accounts set up, and every sale and purchase categorised correctly. AccountMi ships with an SST-ready, MFRS-aligned chart of accounts so your tax accounts are in place from day one.

Frequently asked questions

What is SST in Malaysia?: SST stands for Sales and Service Tax, the two-part consumption tax that replaced GST in 2018. Sales tax applies to taxable goods (at manufacture or import) at 5% or 10%; service tax applies to prescribed taxable services at 6% or 8%.
What are the SST rates?: Sales tax is 5% or 10% depending on the goods. Service tax is 6% for certain essentials (such as food & beverage, telecommunications, parking and logistics) and 8% for most other taxable services.
What is the SST registration threshold?: The general threshold is RM500,000 of taxable turnover in any rolling 12-month period (past or projected). Some service categories added in July 2025 have higher thresholds — for example RM1 million for rental/leasing and financial services, and RM1.5 million for construction.
What changed in 2025?: From 1 July 2025 the service tax net expanded significantly to include rental and leasing, construction, financial services, private healthcare (for non-citizens) and private education (for foreign students), among others. Full enforcement of the expanded scope began on 1 January 2026.
How often is SST filed?: SST returns (SST-02) are generally filed every two months (the taxable period) through the MySST portal, with payment due by the last day of the following month. Keep accurate records of taxable sales and services to file correctly.

General information, not tax advice, reflecting rules as understood in June 2026. SST rules and thresholds change — verify the current position on the official RMCD / MySST channels before acting.

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AccountMi gives you an MFRS-aligned, SST-ready chart of accounts, plus invoicing, bank reconciliation and reports — cloud accounting for Malaysian SMEs.

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