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

Canonical: https://trykintsugi.com/sales-tax-guides/apac/malaysia
Published: July 15, 2026

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.

- **SaaS:** Taxable (8%)
- **Digital Goods:** Taxable

## 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 July 1, 2025 to cover financial services, leasing, construction, and private healthcare.

## Taxability Snapshot

## 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](/sales-tax-guides/apac).

#### 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 penalized 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

- [1] [Royal Malaysian Customs Department — Understanding SST (sales tax and service tax)](https://mysst.customs.gov.my/About)

- [2] [Royal Malaysian Customs Department — Guide on Digital Services by Foreign Service Provider (8%, RM500,000 threshold)](https://mysst.customs.gov.my/)

- [3] [Royal Malaysian Customs Department — Registering your business (MySST)](https://mysst.customs.gov.my/)

- [4] [Royal Malaysian Customs Department — Service Tax on Digital Services (MySToDS)](https://mystods.customs.gov.my/about-mystods)

Verified July 2026 against Royal Malaysian Customs Department guidance.

#### Frequently asked questions

### 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.