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Compliance & Governance

Sales and Service Tax (SST)

Also known as: SST

Sales and Service Tax (SST) is Malaysia's consumption tax, comprising a sales tax on certain goods and a service tax on certain services.

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SST is the indirect tax system administered by the Royal Malaysian Customs Department. It has two components: a sales tax charged on taxable goods, typically at the manufacturing or import stage, and a service tax charged on prescribed taxable services. Which goods and services are taxable, and the applicable rates, are defined by the relevant regulations.

For procurement, SST affects the total cost of a purchase and how invoices and records must be prepared. Buyers should confirm whether a supplier is registered for SST, whether the goods or services are taxable, and that tax is shown correctly on invoices so filings and audits are clean. Because rates and scope can change, always verify the current position with official Customs guidance rather than relying on fixed figures.

Frequently asked questions

What is SST in Malaysia?
SST is Malaysia's Sales and Service Tax — a sales tax on certain goods plus a service tax on certain services, administered by the Royal Malaysian Customs Department.
Why does SST matter in procurement?
It affects the total cost of a purchase and how invoices and records are prepared, so buyers should check supplier SST registration and that tax is applied and shown correctly.

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