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Home›Business›SST + E-Invoicing

SST + E-Invoicing Malaysia 2026

Complete guide to Sales & Service Tax (SST) + MyInvois e-invoicing rollout in Malaysia. Sourced from Royal Malaysian Customs (mysst.customs.gov.my) + LHDN MyInvois portal.

Service Tax (Standard)

8%

Raised from 6% in Mar 2024

Service Tax (F&B/Telco)

6%

Reduced rate maintained

Sales Tax

5%/10%

Basic / standard goods

Service Tax by Category

Service tax rate depends on category. Scope expanded significantly in March 2024 and again in July 2025.

Service CategoryRate
F&B / restaurants / catering6%
Telecommunications6%
Professional services (legal, accounting, consulting)8%
Logistics (from 2024)8%
Brokerage / agency8%
Karaoke / entertainment8%
Leasing (from Jul 2025)8%
Construction services (from Jul 2025)8%
Private healthcare (non-citizens, from Jul 2025)6%
Beauty / aesthetic (from Jul 2025)8%

MyInvois E-Invoicing Rollout

LHDN's mandatory e-invoicing applies in phases based on annual turnover. Once your phase starts, ALL invoices must be submitted via MyInvois or compatible systems.

PhaseEffective DateApplies to
Phase 11 Aug 2024Annual turnover > RM100 million
Phase 21 Jan 2025RM25m – RM100m
Phase 31 Jul 2025RM5m – RM25m
Phase 41 Jan 2026RM1m – RM5m
Phase 5 (deferred)1 Jul 2026RM150k – RM1m
Exempt—< RM150,000 annual turnover

⚠️ Penalty for non-compliance: RM200 to RM20,000 per non-compliant invoice under Section 120 ITA 1967.

📋 SST Registration Thresholds

  • Service tax: Mandatory if annual taxable turnover > RM500,000 (RM1,500,000 for F&B)
  • Sales tax: Mandatory for manufacturers with annual sales > RM500,000
  • Registration portal: mysst.customs.gov.my
  • Return filing: SST-02 bi-monthly (quarterly for smaller businesses), payment due 30 days after period end

Related Business Guides

🏢 Company Registration

SSM fees + Sdn Bhd vs Enterprise

📊 Corporate Tax Rates

SME 15-17-24%, non-SME 24%

Frequently Asked Questions

What is the SST rate in 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%.
When do I need to register for SST in Malaysia?
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.
What is MyInvois e-invoicing and when does it apply?
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.
Do I need to charge SST on my online business?
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.
Which services are exempt from service tax?
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.

Data Sources

SST rates from Royal Malaysian Customs (mysst.customs.gov.my). E-invoicing timeline from LHDN MyInvois. LHDN has revised Phase 3/4 dates multiple times in 2024-2025 — always verify current thresholds. Last reviewed: January 2026.

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