SST Calculator Malaysia 2026

What Is SST in Malaysia?

SST (Sales and Service Tax) is Malaysia's two-track consumption tax that replaced the Goods and Services Tax (GST) on September 1, 2018. Unlike a single VAT-style GST, SST has two separate components administered by the Royal Malaysian Customs Department: Sales Tax on manufactured and imported goods (5% or 10%), and Service Tax on prescribed taxable services (6% or 8%). The Service Tax rate increased from 6% to 8% on March 1, 2024, with several previously-exempt service categories newly brought into the regime — see customs.gov.my for the latest list.

SST is "single-stage" — sales tax applies once at the manufacturer/import level, and service tax applies once at the service provider level. There is no input-tax credit mechanism like GST/VAT, so businesses cannot claim back SST paid on inputs. This makes SST simpler administratively but produces some "tax cascading" where SST embedded in inputs is hidden inside final consumer prices.

Sales Tax Rates and Coverage

Sales tax applies to taxable goods manufactured in Malaysia or imported. The standard rate is 10% on most goods, with a reduced 5% rate on certain essential foods, medicines, and construction materials. Many basic foods (rice, sugar, cooking oil, fresh produce) and medical equipment are exempt entirely. Manufacturers with annual turnover exceeding RM 500,000 must register for sales tax. See the Sales Tax (Goods Exempted from Tax) Order 2022 and the Sales Tax (Rates of Tax) Order 2022 for the complete schedule.

Imported goods are charged sales tax at the customs entry point. Sales tax is calculated on the CIF (Cost, Insurance, Freight) value plus customs duty plus excise duty, then sales tax rate. This is why imported products often cost meaningfully more than the same items manufactured locally.

Service Tax 8% Expansion (March 2024)

On March 1, 2024, the Malaysian government increased the standard Service Tax rate from 6% to 8% on most prescribed taxable services. The 6% rate was retained for: telecommunications, food and beverage (restaurants, cafes), parking, and logistics services. The 8% rate now covers professional services (legal, accounting, consultancy), advertising, IT and digital services, gaming and betting (where legal under syariah-compliance constraints), insurance, and financial services. New 2024 additions to the SST regime include: digital services from foreign providers, brokerage and management services, and karaoke/gaming centres.

Service providers with annual turnover above RM 500,000 must register for Service Tax — though some categories have lower thresholds (e.g., parking RM 250,000). For Malaysian payroll and income tax tools, see the Malaysia income tax calculator or PCB calculator. For broader EU/UK/US VAT calculations, see country-specific calculators in those hubs.

Add SST vs Remove SST — When Each Is Useful

Add SST (calculate gross from net): used when you have a quoted net price and need to compute the final invoice amount including SST. Formula: Gross = Net × (1 + SST/100). Remove SST (extract net from gross): used when you have an inclusive price and need to back out the SST component, e.g., for accounting or when a supplier quotes "RM 1,080 inclusive of 8% SST" and you need to record the RM 1,000 net cost separately. Formula: Net = Gross / (1 + SST/100); SST = Gross − Net.

Last updated May 2026. Sources: customs.gov.my (Royal Malaysian Customs), mysst.customs.gov.my.