This guide provides an overview of SST in Malaysia, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Malaysia.
Malaysia scrapped its GST in 2018 and replaced it with SST, making it one of the few countries to reverse GST.
Failure to comply is an offence under the Income Tax Act 1967. The penalty can be a fine between RM 200 and RM 20,000, or up to 6 months’ imprisonment, or both.
Input tax credits do not exist under SST, but businesses can deduct SST paid on raw materials or components only if those items qualify for exemption, drawback, or refund schemes, and proper documents (customs forms, exemption certificates, invoices) are maintained.
Yes. Refunds may be available if the goods are subsequently exported, destroyed under supervision, or fall under SST drawback rules. Supporting customs documents must be submitted.
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