SST stands for Sales and Service Tax, which is a consumption tax system that was implemented in Malaysia on September 1, 2018. It replaced the previous Goods and Services Tax (GST) system.
SST comprises two separate taxes:
- Sales Tax: A single-stage tax levied on manufacturers and importers of taxable goods.
- Service Tax: A tax imposed on taxable services provided by businesses.
The current standard rate for sales tax in Malaysia under the Sales and Service Tax (SST) system is 10%, while the standard rate for service tax is 8%. However, certain goods like food, household utilities, and reading materials are exempt from sales tax while some goods such as petroleum products, vehicles, and construction materials are subject to different rates ranging from 5% to 15%.
Whereas service tax applies to various services like accommodation, food and beverage, transportation, professional services, and more.
For more details, read our article on Malaysia Sales and Service Tax (SST)