SST Rates in Malaysia (2026)
Malaysia's Sales and Service Tax (SST) system has different rates depending on the type of goods or services. Understanding which rate applies helps businesses and consumers calculate the correct tax amount.
SST Rate Reference
| Tax Type | Rate | Applies To |
|---|---|---|
| Service Tax | 8% | Most taxable services (from 1 Mar 2024) |
| Service Tax (F&B / Telco) | 6% | Food & beverage, telecommunications |
| Sales Tax | 10% | Most manufactured/imported goods |
| Sales Tax (Selected) | 5% | Non-alcoholic beverages, petroleum, selected food |
Frequently Asked Questions
What is SST in Malaysia?
SST (Sales and Service Tax) replaced GST in Malaysia on 1 September 2018. It has two components: Sales Tax (applied on manufactured/imported goods) and Service Tax (applied on taxable services provided by registered businesses).
What is the service tax rate in Malaysia?
The standard service tax rate was increased from 6% to 8% effective 1 March 2024 (Budget 2024). However, F&B and telecommunications services remain at 6%. The tax applies to services provided by businesses exceeding RM500,000 in annual taxable turnover.
What is the sales tax rate in Malaysia?
Sales tax is levied at 10% for most taxable goods and 5% for certain goods including non-alcoholic beverages, petroleum oils, and selected food preparations. Some goods are zero-rated or exempt from sales tax.
How do I calculate SST on a price?
To add SST: Multiply the price by (1 + SST rate). For 8% service tax: RM100 × 1.08 = RM108. To extract SST from a tax-inclusive price: Divide by (1 + SST rate) to get the base price, then subtract. For RM108 ÷ 1.08 = RM100 base, RM8 tax.
Do all businesses charge SST?
No. Only businesses registered for SST are required to charge it. Service tax registration is mandatory for businesses providing taxable services with annual taxable turnover exceeding RM500,000. Consumers should check invoices to verify SST charges.