SST explained
SST is Malaysia's Sales and Service Tax — two separate taxes. Sales tax applies to goods; service tax applies to selected services.
Updated 30 June 2026 · Ministry of Finance / RMCD (Kastam)
The rates (from 1 July 2025)
Sales tax: 5% or 10% on taxable goods. Many essential goods are exempt or stay at the lower rate; non-essential and luxury goods sit at 10%.
Service tax: 8% on most taxable services, with 6% for food & beverage, telecommunications, parking and logistics.
The July 2025 expansion
From 1 July 2025, the government revised sales tax on some goods and widened the service tax to cover new categories — including leasing/rental, construction, financial services, private healthcare and education (for foreigners), and beauty services.
SST vs GST
SST replaced the Goods and Services Tax (GST) in 2018. Unlike GST, SST is a single-stage tax (charged once, not at every step), so not every business charges it — only registered manufacturers and service providers above the registration threshold.
Common questions
What is the SST rate in Malaysia?
Sales tax is 5% or 10% on goods; service tax is 8% on most services (6% for food & beverage, telecoms, parking and logistics). Effective 1 July 2025.
What is the difference between sales tax and service tax?
Sales tax is charged on the manufacture or import of taxable goods; service tax is charged on selected services provided by registered businesses.
What changed in the July 2025 SST expansion?
Sales tax on some goods was revised, and service tax was extended to new services such as leasing, construction, financial services, private healthcare and education for foreigners, and beauty services.
Is SST the same as GST?
No. SST (Sales & Service Tax) replaced GST in 2018. SST is a single-stage tax applied by registered businesses, not at every stage of the supply chain.
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