SST + E-Invoicing Malaysia 2026

Malaysia has two SST components. Service tax: 8% standard (raised from 6% on 1 Mar 2024), with F&B and telecommunications remaining at 6%. Scope expanded on 1 Jul 2025 to include leasing, construction, private healthcare (non-citizens only), and beauty services. Sales tax: 5% on basic goods, 10% on standard goods. Low-value goods (imports under RM500) also at 10%.

Service tax registration is mandatory when annual taxable turnover exceeds RM500,000 (RM1.5m for F&B). Sales tax threshold is RM500,000 annually. Registration via mysst.customs.gov.my portal. Once registered, you must charge SST, submit quarterly/bi-monthly returns (SST-02), and settle tax within 30 days of taxable period end. Voluntary registration possible below threshold.

MyInvois is LHDN's e-invoicing platform. Rollout: Phase 1 (1 Aug 2024) for businesses with turnover >RM100m. Phase 2 (1 Jan 2025) RM25-100m. Phase 3 (1 Jul 2025) RM5-25m. Phase 4 (1 Jan 2026) RM1-5m. Phase 5 deferred to 1 Jul 2026 for RM150k-RM1m. Businesses under RM150k annual turnover are exempt. Non-compliance penalty: RM200-20,000 per invoice under Section 120 Income Tax Act 1967.

Depends on what you sell. If you provide SST-taxable services (digital services, consulting, design, marketing) and annual turnover > RM500,000, yes — register and charge 8%. If selling physical goods: sales tax at 5%/10% if manufacturing in MY above threshold. Pure dropshipping or reselling imported goods may trigger low-value goods (LVG) 10% tax if imports <RM500. Check mysst.customs.gov.my for your specific category.

Key exemptions: B2B same-group services (with approval), financial services (banking, insurance — but not advisory), government services, education, public healthcare, exported services (foreign recipients). Small businesses below RM500,000 annual turnover also exempt from registration. F&B + telco still at 6% reduced rate. Always verify via Customs Guide specific to your industry.