Add sales tax or service tax to a price, or take SST out of a tax-inclusive amount. Pick 10% or 5% sales tax, 8% or 6% service tax, or enter your own rate. Every figure is in ringgit, to the sen.
Sales tax is charged once, by the registered manufacturer or at import. Service tax is charged by the registered provider on the taxable service. You never charge both on the same amount.
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SST is a single-stage tax, so the maths is one multiplication. Multiply the taxable value by the rate to get the tax. To take SST out of an inclusive amount, multiply it by rate / (100 + rate). At 8%, that is 8/108 of the total.
For service tax, the price charged for the taxable service. For sales tax, the sale value of the goods, or the customs value plus duties at import. Take it from the invoice or customs declaration.
Example: RM100,000 consulting invoiceSet by the Rate of Tax Orders. Service tax is 8% unless the service is on the 6% list; sales tax is 10% unless the goods are on the 5% list.
Example: 8% for professional servicesA price that already contains SST, such as a total on a receipt. Divide by 1 plus the rate to get the value before tax.
Example: RM108,000 / 1.08 = RM100,000| Consulting fee before tax | RM100,000.00 |
| Service tax rate | 8% |
| Service tax charged | RM8,000.00 |
| Invoice total | RM108,000.00 |
The rate you charge depends on what you sell. These are the rates and registration thresholds in force after the scope expansion of 1 July 2025.
| Item | Rate | How it works |
|---|---|---|
| Sales tax, standard goods | 10% | Charged by registered manufacturers and at import. Essential goods stay exempt |
| Sales tax, specific goods | 5% | Goods listed in the 5% schedule, widened from 1 July 2025 |
| Service tax, standard | 8% | Most taxable services since 1 March 2024, including professional, IT and digital services |
| Service tax, reduced | 6% | Food and beverage, telecommunications, parking and logistics |
| Construction services (from 1 July 2025) | 6% | Registration once taxable value passes RM1.5 million in 12 months. Residential building work is left out |
| Private healthcare for non-citizens (from 1 July 2025) | 6% | Malaysian citizens stay exempt. Threshold RM1.5 million |
| Private education (from 1 July 2025) | 6% | Applies to fees above the set limits, mostly for non-citizens. No registration threshold |
| Rental or leasing (from 1 July 2025) | 8% | Threshold RM1 million |
| Fee-based financial services (from 1 July 2025) | 8% | Fees and commissions only, not interest. Threshold RM1 million |
| Registration threshold, manufacturers and most services | RM500,000 | Taxable sales or services over any 12 months. Food and beverage is RM1.5 million |
| SST-02 return | 2 months | Due the last day of the month after each taxable period |
Based on the Sales Tax Act 2018, the Service Tax Act 2018, the Rate of Tax Orders as amended in 2024 and 2025, and Royal Malaysian Customs Department service tax policies. Check mysst.customs.gov.my for the latest guides before you file.
Get a one-page summary of the taxable value, rate, SST and invoice total.
Most SST problems come from charging the wrong rate or missing a threshold, not from the arithmetic. A few habits keep the return clean.
Tie the SST in your sales ledger to the general ledger and the SST-02 before the due date. Finance teams that automate this check with Bluecopa catch missed invoices before they reach the return.
Tag each billing item as 8%, 6% or not taxable in your billing system, so a rate change is a master data update, not a manual hunt.
Track taxable value month by month against your threshold. Registration is due by the last day of the month after you cross it.
Some services bought by registered providers for their own taxable services can be exempt. Keep the customer's registration details on file to support it.
Service tax is due when you receive payment, or 12 months after the invoice if unpaid. Track receipts, not only invoices, at period end.
Late payment carries a penalty of 10% for the first 30 days, rising to 25% and then 40%. Set the payment date in your close calendar.
Multiply the price before tax by the rate. An RM100,000 taxable service at 8% carries RM8,000 of service tax, so the customer pays RM108,000. For goods, use 10% or 5% sales tax instead.
Both. Since 1 March 2024 the standard rate is 8%. Food and beverage, telecommunications, parking and logistics stayed at 6%, and construction, private healthcare and education added in July 2025 are also at 6%.
Divide the inclusive amount by 1 plus the rate. At 8%, RM108,000 / 1.08 = RM100,000 before tax, and the SST is RM8,000, which is 8/108 of the total.
Sales tax at 5% or 10% now covers more goods, while essentials stay exempt. Service tax was extended to rental and leasing, construction, fee-based financial services, private healthcare for non-citizens and private education. The rental and financial services threshold was later raised to RM1 million.
When taxable sales or services pass the threshold in any 12 months: RM500,000 for manufacturers and most services, RM1.5 million for food and beverage, construction and private healthcare, and RM1 million for rental and fee-based financial services.
The SST-02 covers two months and is due, with payment, by the last day of the month after the period ends. For a January to February period, file and pay by 31 March, even if no tax is due.