The Malaysia Sales and Service Tax (SST) applies to the sale and provision of goods and services at varying rates. The SST rate has been revised from 6% to 8%, with effective from 1 March 2024.
SST threshold:
All businesses (except exempted goods) | Sales > RM500,000 |
Food and beverage sector | Sales > RM1,500,000 |
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Revised SST rates:
Sales tax @ 5% | ·       Petroleum oils ·       Construction materials ·       Timepieces ·       Cod liver oil ·       Telecommunications ·       Foodstuffs ·       IT ·       Printing materials ·       Hardware |
Service tax @ 6% | ·       Domestic flight ·       Restaurants ·       Electricity ·       Telecoms ·       Digital supplies |
Service tax @ 8% | ·       Hotel and accommodation industry ·       Credit card and charge card processing ·       Entertainment and leisure industry ·       Maintenance or repair services ·       Professional services ·       Other services industry |
Sales tax @ 10% | Standard sales tax rate on taxable goods and imported taxable goods. Generally applied to luxury items. |
Zero-rated | Any zero-rated supplies (e.g. raw food, sugar, water and utilities) |