What is the SST rate in Malaysia?

Service Tax is 8% (6% for F&B, telecoms, logistics, construction, healthcare, and education); Sales Tax on goods is 5% or 10%. Malaysia has no VAT or GST.

What is the SST registration threshold?

Generally RM 500,000 of taxable services over 12 months, including foreign digital-services providers; higher thresholds apply to some expanded categories.

Is SaaS taxable in Malaysia?

Yes. Digital services, including SaaS, supplied to Malaysian consumers are taxed at 8% once the provider crosses the RM 500,000 threshold.

What must a non-resident digital seller do?

Register with RMCD as a Foreign Registered Person under the digital-services regime after exceeding RM 500,000 in 12 months, then charge and remit 8% service tax.

When are Malaysian SST returns due?

Foreign digital returns are quarterly; domestic SST-02 returns are bimonthly, each due the last day of the following month.

What is the penalty for late Malaysian SST?

10% for the first 30 days, plus 15% for the second and 15% for the third — up to 40% of the tax due.

Malaysia SST Guide for 2026: Sales & Service Tax Rates, Registration & Filing

Malaysia uses a Sales and Service Tax (SST), not VAT — sales tax at 5–10% and service tax at 8%. This guide explains registration thresholds, taxable scope, and how SST differs from the former GST.

Last updated15 July 2026

Key Takeaways

Malaysia doesn't levy VAT or GST — it runs a two-tier Sales and Service Tax (SST): Sales Tax on goods at 5% or 10%, and Service Tax on taxable services at 8% (6% for food and beverage, telecommunications, logistics, and several other sectors). A manufacturer registers for sales tax once annual taxable turnover exceeds RM500,000, and a service provider registers for service tax at the same threshold for its category. SaaS and other digital services to Malaysian consumers are taxable at 8% once the RM500,000 threshold is met; the SST base expanded on 1 July 2025 to cover financial services, leasing, construction, and private healthcare.

Taxability Snapshot

SaaS

Taxable (8%)

Digital Goods

Taxable

Sales Tax Rates

Malaysia does not levy a VAT or GST. It runs a two-tier Sales and Service Tax (SST): Sales Tax on goods at 5% or 10%, and Service Tax on taxable services at 8%, with a 6% band kept for food and beverage, telecommunications, logistics, parking, construction, healthcare, and education. The Royal Malaysian Customs Department (RMCD) administers SST through the MySST portal [1].

Rate	Applies to
Service Tax 8%	Most taxable services, including foreign digital services
Service Tax 6%	F&B, telecoms, logistics, parking, construction, healthcare, education
Sales Tax 10%	Standard-rate goods
Sales Tax 5%	Lower-band goods

For more detail, see our APAC tax guides.

Malaysia SST Calculator

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Malaysia · SST

Sales tax 10%Sales tax on taxable goods not listed at a lower rate or exempt.Service tax 8%Service tax on most taxable services, including rental and leasing.Reduced service tax 6%Service tax on food and beverage, logistics, telecoms, parking, private healthcare, construction and education.Reduced sales tax 5%Sales tax on goods listed at 5% in the 2025 sales tax rate order.

Rates as of August 2026. Source: RMCD MySST: Sales tax rate changes 2025 (opens in a new tab); RMCD MySST: Service tax FAQ (opens in a new tab); RMCD MySST: Service tax scope expansion 2025 (opens in a new tab).

Malaysia · Sales tax

10%

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Sales tax applies to goods at manufacture or import; service tax applies to listed taxable services.

This is an estimate. Whether a sale is taxable, and at which rate, depends on what you sell, who you sell to and where it's supplied. If you intend to rely on these rates, please use the Kintsugi platform.

Registration & nexus threshold

Malaysia uses SST registration thresholds, not US-style economic nexus, and SST is a single-stage tax rather than a VAT. A manufacturer of taxable goods registers for sales tax once annual taxable turnover exceeds RM500,000, and a provider of taxable services registers for service tax at the threshold for its service category, generally RM500,000 [1][3]. Foreign digital service providers register under the Service Tax on Digital Services regime once digital-service sales to Malaysia exceed RM500,000 in any 12 months, then charge 8% [2][4]. Registration steps are in the How to Register section.

Filing frequency & deadlines

Foreign Registered Persons file quarterly, with the return and payment due by the last day of the month following each quarter. Domestic SST filers file bimonthly on Form SST-02, due the last day of the month following the taxable period [1][2].

Exemptions

Non-taxable services and goods outside the taxable schedules fall outside SST, and the 6% band applies to specified sectors. SaaS and other digital services supplied to Malaysian consumers are taxable at 8% once the RM 500,000 threshold is met. The SST base expanded on 1 July 2025 to cover financial services, leasing, construction, and private healthcare and education, with penalties enforced from 1 January 2026 [1][2].

Penalties

Late payment of service tax is penalised at 10% for the first 30 days, a further 15% for the second 30 days, and another 15% for the third — up to 40% of the tax due. Operating without registration carries additional fines under the Service Tax Act 2018 [1].

Sources

Verified July 2026 against Royal Malaysian Customs Department guidance.

Frequently asked questions

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