A Guide for Malaysian Businesses: SST Registration
- Chow Ping
- 2 days ago
- 4 min read
If you're running a business in Malaysia and your revenue is growing (well done, you!), there's a tax you need to know about: SST.
Sales and Service Tax.
It replaced the old GST system back in 2018, and if your business hits certain revenue thresholds, registering for it isn't optional.
It's mandatory.
Skip it, and you're looking at fines up to RM50,000, possible jail time, or both.
Today we're walking through everything you need to know: what SST actually is, whether your business needs to register, how the rates work, what gets exempted, and the exact steps to register online.
Let'’s gooo!
What is SST in Malaysia?
SST is Malaysia's consumption tax on goods and services.
It has two parts: Sales Tax and Service Tax.
Sales Tax applies to:
Products made in Malaysia
Products imported into Malaysia
Service Tax applies to:
Certain services provided by Malaysian businesses
The key difference from the old GST? SST only hits once in the supply chain — either when something is made/imported, or when a service is delivered.
With GST, tax was added at every stage. With SST, it's simpler: one charge, one collection point.
Check out this video:
Many business owners get blindsided by SST!
Many directors review their accounts only once a year.
SST registration is required at RM 500,000 on a rolling basis. Say you hit RM 500,000 sales in October. But you only check your numbers in December.
Those months when you didn’t collect SST? That money you didn't collect comes straight from your pocket!
It’s like giving your customers an 8% discount.
Your accountant (not tax agent) must track sales monthly. Once you approach RM 500,000, you must register immediately.
Yes, we did say 8%. Which brings us to our next point…
SST Rates in Malaysia
SST rates aren't uniform. Often it's 8%, but not always. The rates vary based on what you're selling or offering.
For Sales Tax:
5%Â on certain items (some construction materials, petroleum products, specific imports)
10%Â on most other taxable goods (the standard rate)
For Service Tax:
6%Â on food and drinks, telecom services, parking, logistics, and some newer categories like construction
8%Â on most other services (this went up from 6% in 2024)
SST registration: Who needs to do it?
Anybody whose revenue has topped RM500,000 in the last year.
Remember, SST is calculated on a rolling basis.
Example:
Nov 2025 to Oct 2026.
Mar 2888 to Feb 2889.
Etc.
There are exceptions.
Some industries have higher thresholds:
Food and beverage businesses: RM1.5 million
Rental services: RM1 million
Healthcare and construction: RM1.5 million
What's Exempt from SST?
Malaysia protects basic necessities through exemptions.
Exempt goods include:
Staple foods: rice, chicken, beef, veggies, eggs
Books, school materials, medicine
Basic construction supplies
Common local fish varieties
Products made for export
Recently added: certain imported fruits like apples, oranges, and dates now get a pass too.
Exempt services include:
Business-to-business logistics
Services in Free Trade Zones (Port Klang, Pasir Gudang, etc.)
Shipping between Peninsular Malaysia and East Malaysia
Standard courier and e-commerce deliveries
Residential property upkeep
Special zones:
Three islands are completely SST-free:
Langkawi
Labuan
Tioman
Operate there? You dodge SST entirely.
For the complete list, visit the official portal.
How to Register for SST
Registration happens online through the MySST portal.
One thing to know upfront: Sales Tax and Service Tax have separate registrations. If you need both, you'll go through the process twice.
Before You Begin
Check your eligibility:Â Are you over the threshold? Do you handle taxable goods or services?
Get your documents ready:
Business registration papers
Bank statements
Details about what you sell or offer
Contact information
The Registration Process
Step 1: Go to MySST
Head to www.mysst.customs.gov.my
Step 2: Complete the form
Fill in the registration form accurately. Take your time — mistakes cause delays.
Step 3: Submit
Send it through the system for review.
Step 4: Get approved
If everything checks out, you'll receive an approval letter right away.
Step 5: Receive your number
You'll get an SST registration number. Keep this — you need it for every invoice you issue.
Step 6: Review your details
The system shows your registration start date and your obligations going forward.
Step 7: Check your email
A confirmation gets sent to your registered address for records.
Done. You're registered.
Full credit to Life Ledger JWYX for this very helpful video:
SST Penalties
So what happens if you mistakenly do not pay your SST the way the Malaysian government requires?
For not registering or filing
If you skip registration when required or don't submit returns:
Fine: up to RM50,000
Prison: up to 3 years
Or both
That's criminal liability.
For paying late
Miss your payment deadline?
Example: Owe RM10,000 and pay 40 days late? You're now paying RM11,500.
Wait three months? Could be RM14,000.
Pay on time. Always.
Grace period note
If you're adjusting to recent rule changes, there's a penalty-free window until December 31, 2025.
After that? The full penalties apply.
We agree, it’s a lot of work. Not to mention a pain to keep track of the numbers. Fortunately, there’s an alternative.
You can focus on your business while we at Douglas Loh & Associates worry about the work and the boring numbers.
Want to stop worrying about SST deadlines and compliance? We’ve got you.