Sales and Service Tax (SST)

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.