Sales and Service Tax (SST) in Malaysia
The Ministry of Finance (MoF) announced that Sales and Service Tax (SST) which administered by the Royal Malaysian Customs Department (RMCD) will come into effect in Malaysia on 1 September 2018.
The move of scrapping the 6% GST has paved the way for the re-introduction of SST 2.0, which will come into effect in 1 September 2018. Before the 6% GST (that was implemented in 2015), Malaysia levied a Sales Tax and a Service Tax. Governed by the Sales Tax Act 2018 and the Service Tax Act 2018, the Sales Tax was a federal consumption tax imposed on a wide variety of goods while the Service Tax was levied on customers who consumed certain taxable services. Special designated areas that include Langkawi Island, Tioman Island and Labuan Island are exempted from the Service Tax. This page will help you to understand what SST is and how it will affect us.
Increase in Service Tax rate
Effective from 1 March 2024, the service tax rate is to be increased from 6% to 8% for all taxable services, except for food & beverage services, telecommunication services, parking services and logistics services (new taxable services).