Malaysia SST Registration 2026: RM500,000 Threshold, SST Rates & MyInvois e-Invoicing Guide

TL;DR: Businesses supplying taxable goods or services in Malaysia must register for SST once annual turnover exceeds RM500,000. Sales tax is charged at 5% or 10% depending on the goods; service tax is 8% for most services (6% for specific categories). Voluntary registration is permitted. MyInvois e-invoicing is now mandatory for large taxpayers.

Last updated: July 2026

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What Is Malaysia SST and Who Must Register?

Malaysia's Sales and Services Tax (SST) is a two-tier indirect tax administered by the Royal Malaysian Customs Department (RMCD). Sales Tax applies to the manufacture and importation of taxable goods; Service Tax applies to prescribed taxable services. Businesses that meet the registration threshold — or choose to register voluntarily — must charge, collect, and remit SST to RMCD.

SST replaced the Goods and Services Tax (GST) on 1 September 2018 when the Sales Tax Act 2018 and the Service Tax Act 2018 came into force. Unlike GST, SST is a single-stage tax: Sales Tax is levied once at the manufacturer or importer level, while Service Tax is levied at the point the taxable service is provided.

Key legislation:

• Sales Tax Act 2018
• Service Tax Act 2018
• Sales Tax Regulations 2018
• Service Tax Regulations 2018
• Service Tax (Amendment) Act 2023 (Royal Assent received 2023; effective 1 March 2024)

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Malaysia SST Registration Threshold 2026

The mandatory SST registration threshold is RM500,000 of taxable turnover in any 12-month period. This applies to both Sales Tax (manufacturers of taxable goods) and Service Tax (providers of taxable services). Businesses below this threshold may still register voluntarily under the provisions described below.

Mandatory Registration

Under the Sales Tax Act 2018 and the Service Tax Act 2018, a business must apply for SST registration when its taxable turnover for any 12-consecutive-month period has exceeded RM500,000, or when it is projected to exceed RM500,000 within the next 12 months.

Registration must be completed before the business starts making taxable supplies beyond the threshold. Applications are submitted through the MySSTportal (https://mysst.customs.gov.my).

Voluntary Registration

Voluntary registration is permitted under Malaysian SST law. Section 13 of the Sales Tax Act 2018 expressly allows a person who does not meet the mandatory threshold to apply for voluntary registration as a registered manufacturer. The Service Tax Act 2018 contains equivalent provisions for service providers. Voluntary registration can benefit businesses that supply to GST-registered or SST-registered customers, since it allows them to issue tax invoices and strengthens their credibility in B2B supply chains.

Special Threshold: Food and Drink Establishments

Operators of food and drink establishments (restaurants, cafes, and similar food service businesses) that are subject to Service Tax have a higher prescribed threshold of RM1,500,000 in annual taxable turnover before mandatory Service Tax registration applies. This higher threshold applies specifically to this sub-category of taxable service providers under the Service Tax Regulations 2018 — it does not apply to food manufacturers (who fall under Sales Tax) or to other service providers more broadly.

Category	Mandatory Registration Threshold
Manufacturers of taxable goods (Sales Tax)	RM500,000 per 12 months
Providers of taxable services (Service Tax)	RM500,000 per 12 months
Operators of food & drink establishments (Service Tax)	RM1,500,000 per 12 months
Voluntary registration (Sales Tax — s.13 STA 2018)	No threshold required
Voluntary registration (Service Tax)	No threshold required

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SST Rates in Malaysia 2026

Malaysia operates two separate rate schedules — one for Sales Tax on goods and one for Service Tax on services. The Service Tax rate increased from 6% to 8% with effect from 1 March 2024 under the Service Tax (Amendment) Act 2023.

Sales Tax Rates

Sales Tax is levied at the manufacturer or importer level on goods listed in the Sales Tax (Goods Exempted from Sales Tax) Order and related subsidiary legislation:

Sales Tax Rate	Goods Category
10%	General taxable goods (default rate)
5%	Certain goods including petroleum products and specific items listed in the Sales Tax (Rates of Tax) Order
0% / Exempt	Goods listed in the exemption schedules (e.g., basic foodstuffs, medicines)

Service Tax Rates (Effective 1 March 2024)

The Service Tax (Amendment) Act 2023 increased the headline Service Tax rate:

Service Tax Rate	Applicable Services
8%	Most prescribed taxable services (default rate from 1 March 2024)
6%	Specific services: telecommunications, parking, logistics/delivery, and certain other prescribed services retained at 6%
0% / Exempt	Services listed as exempted or zero-rated under the Regulations

Important: The rate change from 6% to 8% was enacted by the Service Tax (Amendment) Act 2023 — not a 2024 Act. The Act received Royal Assent in late 2023 and took legal effect on 1 March 2024. Always reference the 2023 Act when citing the legislative basis for the current 8% rate.

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SST Filing, Payment, and Penalties

Registered businesses must file SST returns and remit tax on a bi-monthly (every two months) cycle. The return — known as the SST-02 form — and payment are due by the last day of the month following the end of the taxable period.

Filing Deadlines

Taxable Period	SST-02 Due Date
January – February	31 March
March – April	31 May
May – June	31 July
July – August	30 September
September – October	30 November
November – December	31 January (following year)

Penalties for Late Payment

Penalties for late payment of Sales Tax are governed by Section 43 of the Sales Tax Act 2018 (not Section 26, which deals with other matters). Section 43 imposes a penalty that increases in stages the longer the tax remains unpaid. Equivalent penalty provisions apply under the Service Tax Act 2018. Businesses should consult the RMCD directly or engage a licensed customs agent for the current penalty schedule, as RMCD may update administrative guidelines.

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MyInvois e-Invoicing: What Malaysia Businesses Need to Know

MyInvois is Malaysia's national e-invoicing platform, operated by the Inland Revenue Board of Malaysia (LHDN/IRB). It is separate from the MySSTportal but intersects with SST compliance because invoices submitted through MyInvois must include the correct SST registration number and tax amounts where applicable.

Mandatory Rollout Timeline

LHDN has implemented a phased mandatory e-invoicing rollout:

Phase	Applicable Taxpayers	Effective Date
Phase 1	Taxpayers with annual turnover exceeding RM100 million	1 August 2024
Phase 2	Taxpayers with annual turnover exceeding RM25 million	1 January 2025
Phase 3	All remaining businesses	1 July 2025

Businesses below the Phase 3 threshold should verify with LHDN whether any updated timeline applies for 2026, as LHDN has the authority to revise rollout dates.

How MyInvois Works

MyInvois requires businesses to submit invoices electronically in a standardised format (either XML or JSON) to LHDN's validation engine before or at the point of issuance to the buyer. LHDN validates the invoice and returns a unique document reference number (UUID) along with a QR code. The validated e-invoice is then shared with the buyer.

Businesses can connect to MyInvois via:

1. MyInvois Portal — LHDN's free web portal for manual submission (suitable for low-volume businesses)
2. API integration — Direct system-to-system connection for high-volume businesses
3. Accounting software with built-in MyInvois integration — The most practical route for growing businesses

KARR provides direct MyInvois API integration, allowing businesses to generate, validate, and submit e-invoices to LHDN without leaving the accounting platform. KARR's invoicing module automatically attaches the SST registration number, tax rate, and tax amount fields required for MyInvois validation — reducing manual errors in SST-inclusive invoices.

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How to Register for SST in Malaysia: Step-by-Step

SST registration in Malaysia is done entirely online through the MySSTportal. The process typically takes a few working days if all documents are in order.

Step 1: Determine your registration obligation Calculate your taxable turnover for the past 12 months. If it exceeds RM500,000 (or RM1,500,000 for food and drink establishment operators), mandatory registration applies. If below the threshold, assess whether voluntary registration benefits your business.

Step 2: Gather required documents

• Business registration certificate (SSM)
• Identity documents of directors/partners/proprietors
• Latest audited accounts or management accounts
• Bank account details
• Details of taxable goods manufactured or taxable services provided

Step 3: Submit via MySSTportal Create an account at https://mysst.customs.gov.my, complete the SST-01 application form, and upload supporting documents.

Step 4: Receive SST registration number Upon approval, RMCD issues an SST registration certificate with your unique registration number. This number must appear on all tax invoices.

Step 5: Set up your accounting system Configure your accounting software to apply the correct SST rate (10%/5% for sales tax; 8%/6% for service tax), generate SST-compliant tax invoices, and track output and input tax for your bi-monthly SST-02 filing.

KARR tip: KARR's Malaysia configuration automatically sets up SST tax codes aligned with RMCD's rate schedule and generates SST-02 summary reports directly from your transaction data — saving time at the end of each bi-monthly filing period.

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SST vs GST: Key Differences Malaysian Businesses Should Understand

Feature	SST (Current)	GST (2015–2018)
Structure	Two separate taxes (Sales + Service)	Single unified tax
Stage of collection	Single stage	Multi-stage (all supply chain levels)
Input tax credit	Not available (Sales Tax)	Available across supply chain
Standard rate	10% / 5% (Sales); 8% / 6% (Service)	6% (single rate)
Registration threshold	RM500,000	RM500,000
Voluntary registration	Permitted	Permitted
Administering authority	RMCD	RMCD

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Managing SST Compliance with KARR

For Malaysian business owners who are not tax specialists, SST compliance involves multiple moving parts: tracking taxable vs exempt sales, applying the right rates, generating compliant tax invoices, reconciling monthly bank transactions, and filing the SST-02 every two months. Manual spreadsheet management creates a high risk of rate errors — particularly following the 1 March 2024 rate change.

KARR is cloud accounting software built for non-accountant business owners. Its "What Happened?" guided wizard lets you record transactions by describing what occurred in plain language, with KARR automatically applying the correct SST treatment. Specific capabilities relevant to Malaysian SST compliance include:

• SST tax code configuration for both Sales Tax (5%/10%) and Service Tax (6%/8%) rates
• MyInvois e-invoice submission via direct API integration with LHDN
• SST-02 period reports that aggregate output tax by taxable period for filing
• Bank feed auto-categorization using AI to classify transactions and flag unreconciled SST amounts
• Receipt OCR to capture purchase invoices and track any allowable deductions
• Multi-currency support for businesses with cross-border transactions
• Offline-first PWA architecture — works without internet, syncs when reconnected

KARR is priced at Free ($0), Pro ($12/month), and Business ($29/month), making it accessible for SMEs at any stage of growth.

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Frequently Asked Questions

FAQ

Q: What is the SST registration threshold in Malaysia for 2026? A: The mandatory SST registration threshold is RM500,000 in taxable turnover over any 12-month period for most businesses. Operators of food and drink establishments have a higher Service Tax threshold of RM1,500,000. Businesses below these thresholds may still register voluntarily.

Q: Is voluntary SST registration allowed in Malaysia? A: Yes. Voluntary registration is expressly permitted under Section 13 of the Sales Tax Act 2018 for manufacturers, and equivalent provisions exist under the Service Tax Act 2018 for service providers. Voluntary registration can be advantageous for businesses supplying to other registered businesses.

Q: What is the current service tax rate in Malaysia? A: The standard Service Tax rate is 8% for most prescribed taxable services, effective 1 March 2024, as enacted by the Service Tax (Amendment) Act 2023. Certain specific services — including telecommunications, parking, and logistics/delivery — retain a 6% rate.

Q: What law changed the service tax rate from 6% to 8%? A: The Service Tax (Amendment) Act 2023. Despite taking effect on 1 March 2024, the correct name of the legislation is the 2023 Act, which received Royal Assent in late 2023.

Q: How often do I need to file SST returns in Malaysia? A: SST returns (SST-02 form) are filed bi-monthly — once every two months. The return and payment are due by the last day of the month following the end of the two-month taxable period.

Q: What is MyInvois and is it mandatory? A: MyInvois is LHDN's (Inland Revenue Board's) national e-invoicing platform. Mandatory adoption was phased in from August 2024. Businesses with annual turnover above RM100 million were required from 1 August 2024; those above RM25 million from 1 January 2025; and all remaining businesses from 1 July 2025. Businesses should verify current requirements with LHDN.

Q: Does SST apply to exported goods and services? A: Exported goods are generally exempt from Sales Tax under the Sales Tax Act 2018. For services, exported services may also be exempt, but businesses should verify the specific treatment with RMCD or a licensed customs agent, as the exemption conditions depend on where the service is consumed.

Q: What is the penalty provision for late SST payment? A: Late payment penalties for Sales Tax are imposed under Section 43 of the Sales Tax Act 2018. Penalties are tiered and increase the longer the amount remains outstanding. Equivalent provisions apply under the Service Tax Act 2018. Contact RMCD directly for the current penalty schedule.

Q: Can accounting software handle SST filing automatically? A: Accounting software like KARR can automate SST tax code application, generate the data needed for SST-02 returns, and submit e-invoices via MyInvois API integration. However, the SST-02 return itself must still be filed through RMCD's MySSTportal — software generates the figures and supporting reports, which you then use to complete the filing.