MALAYSIA
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Malaysia
VAT in
Malaysia operates the Sales and Service Tax (SST) — a two-part regime that is not a VAT. Non-resident digital service providers must register with no minimum threshold from their first ringgit of income. Whether managing Service Tax registration, bi-monthly SST returns, or myInvois e-invoicing compliance, GlobalTrade Business provides complete Malaysian tax compliance support.
Bi-monthly
FILING FREQUENCY
Quarterly for non-resident digital service providers; returns due last day of following month
500000.0
REGISTRATION THRESHOLD
Annual taxable turnover; MYR 0 threshold for non-resident digital service providers (B2C) — register from first ringgit
OVERVIEW
Introduction to SST in Malaysia
Malaysia abolished its 6% GST in September 2018 and reintroduced the Sales and Service Tax (SST). SST is a two-part regime: Sales Tax applies to manufactured or imported goods at 10% (general) or 5% (concessional); Service Tax applies to specified services at 8% (standard, raised from 6% on 1 March 2024) or 6% (concessional for telecoms, logistics, hospitality). SST does not provide a cross-credit mechanism — tax paid on inputs cannot generally be recovered. Non-resident digital service providers must register from their first ringgit of B2C income — no MYR 500,000 threshold exemption.
💡 Key facts for non-Malaysian businesses
Non-Malaysian businesses are not legally required to appoint a formal fiscal representative for SST. Registration is directly via the RMCD's MySST Portal with no application fee. However, engaging a local compliance advisor is strongly recommended given RMCD's active audit posture. Non-resident digital service providers (SaaS, streaming, e-books, online games) must register immediately upon their first ringgit of B2C income.
VAT REGISTRATION
SST Registration in Malaysia
Manufacturers and importers register for Sales Tax once annual taxable sales reach MYR 500,000. Service providers register for Service Tax once annual service income exceeds MYR 500,000. Non-resident digital service providers must register from their very first ringgit of B2C income — the MYR 500,000 threshold does not apply. Registration is via the RMCD's MySST Portal (customs.gov.my), typically approved within 1–3 weeks.
VAT RATES
Malaysian SST Rates
Malaysia applies separate Sales Tax and Service Tax rates depending on the type of goods or services.
When do you need to register?
You need a Malaysian SST registration number if you:
✓ Key facts for non-Malaysian businesses
✓ Supply digital services (SaaS, streaming, e-books, online games) to Malaysian consumers — register immediately from first ringgit
✓ Manufacture or import taxable goods with annual sales >MYR 500,000
✓ Provide specified services (professional, hospitality, telecoms) with annual income >MYR 500,000
✓ Import goods into Malaysia for supply to Malaysian customers
⏱ Processing Time
1–3 weeks
Standard MySST Portal registration timeline
📞 Tax Authority
RMCD
Royal Malaysian Customs Department (Jabatan Kastam Diraja Malaysia)
VAT Number Format
SST Registration Number
Separate Sales Tax and Service Tax registration numbers via MySST Portal
Fiscal Rep Required
Not required
Direct MySST Portal registration; local compliance advisor strongly recommended
Registration process
1
Assess your SST obligations
We review whether Sales Tax, Service Tax, or both apply, and confirm whether the non-resident digital service MYR 0 threshold triggers immediate registration.
2
Gather required documents
Proof of business incorporation, description of goods or services supplied to Malaysian consumers, expected annual Malaysian turnover.
3
Register via RMCD MySST Portal
Application submitted via customs.gov.my MySST Portal. We handle all RMCD correspondence in English and Malay.
4
Receive your SST Registration Number
Typically 1–3 weeks. Your Sales Tax and/or Service Tax registration number is active. Bi-monthly returns must be filed via MySST Portal from the first taxable period.
Failure to register for SST carries a penalty of up to MYR 30,000 and/or up to six months' imprisonment. RMCD has a six-year audit lookback period and has intensified enforcement, particularly targeting non-resident digital service providers and marketplace operators.
RETURNS & DEADLINES
Malaysian SST Returns
Standard registered businesses file bi-monthly SST returns via the MySST Portal, with returns and payment due on the last day of the month following each two-month taxable period. Non-resident digital service providers file quarterly returns, with payment due within 30 days of quarter-end. SST has no input credit recovery mechanism — tax is an embedded cost.
⏱ Processing Time
Last day of next month
Bi-monthly SST return deadline
Quarterly
30 days after quarter-end
Non-resident digital service providers only
Annual (CA12)
N/A
No standalone annual SST return required
Frequency determination
Standard bi-monthly filing: returns and payment due on the last day of the following month.
Non-resident digital service providers: quarterly filing — due 30 days after quarter-end.
No annual summary return required for SST.
E-invoicing in Malaysia (myInvois)
Malaysia launched the myInvois e-invoicing system on 1 August 2024 in a phased rollout:
Phase 1 (August 2024): Large businesses (turnover >MYR 100M)
Phase 2 (January 2025): Medium businesses (MYR 25M–100M)
Phase 3 (July 2025): Businesses with turnover MYR 500K–25M
myInvois requires digital signatures and QR codes.
REVERSE CHARGE
Malaysian Reverse Charge (Service Tax)
When a Malaysian business receives services from a non-resident foreign service provider, a reverse charge mechanism applies under the Service Tax Act 2018: the Malaysian recipient accounts for Service Tax at 8% (or 6% concessional) on the service fee paid. This applies to B2B cross-border services only — for B2C digital services, non-resident providers must register and collect Service Tax directly.
INTRASTS & ESL
Malaysia Reporting — No Intrastat
Malaysia is not an EU member state. There are no Intrastat or EC Sales List obligations. Malaysia's equivalent trade statistics are captured through customs import and export declarations submitted to the RMCD and Department of Statistics Malaysia (DOSM).
📦 Intrastat Arrivals Threshold
All dutiable goods
K1 form via Dagang Net
🚚 Intrastat Dispatches Threshold
All controlled goods
K2 form via Dagang Net
📊 ESL Frequency
Bi-monthly
Last day of following month
📅 Intrastat Deadline
Last day
Of the following month
How GlobalTrade Business Can Help
Your complete Malaysia SST partner
From first registration to ongoing returns — we manage the full compliance lifecycle so you can focus on your business.
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