Sales tax is charged by registered manufacturers of taxable goods and on the importation of taxable goods into Malaysia. As a general rule, goods are subject to sales tax at a rate of 10%, however some goods are taxed at the reduced rate of 5%, specific rates and others are specifically exempt.
What is subject to sales tax in Malaysia?
Sales tax is charged on taxable goods that are manufactured in, or imported into, Malaysia. Manufactured goods exported would not be subject to sales tax. The rates of tax will be 5%, 10%, a specific rate, or exempt. Goods are taxable unless specifically listed as being exempt from sales tax.
How does sales and service tax work in Malaysia?
The SST has two elements: a service tax that is charged and levied on taxable services provided by any taxable person in Malaysia in the course and furtherance of business, and a single stage sales tax levied on imported and locally manufactured goods, either at the time of importation or at the time the goods are sold …
How is SST calculated in Malaysia?
Malaysia SST Calculator online. To calculate SST value, simply + in the total value of good (RM) x SST rate (5%), and you’ll get the total amount of value (RM) after tax.
What is Malaysia sales and service tax?
SST in Malaysia was introduced to replace GST in 2018. The current tax rate for sales tax is 5% and 10%, while the service tax rate is 6%. If your company is already GST-registered, the MySST system will automatically register your company for SST.
How do I apply for sales tax exemption in Malaysia?
Application to Obtain Sales Tax Exemption
Every manufacturer entitled to receive the exemption must make an application to the Customs Director General at the Sales Tax office at the district where he is operating. Each application must be made using form CJ (Admin) 2 as in Attachment 1.
How much is the import tax in Malaysia?
Malaysian customs imposes a standard goods and service tax (GST) on imported goods at 6 percent. Malaysia customs apply a tariff on exported goods between 0 to 10 percent, following ad valorem rates.
Who has to pay SST in Malaysia?
Who Pays SST(Sales and Service Tax) in Malaysia? The businesses that perform their activities in Malaysia and internationally will have to pay SST if they exceed a particular annual income threshold. The current threshold is set at an amount of RM500,000.
Is SST claimable Malaysia?
What is SST Rate in Malaysia? The goods are charged with SST throughout the process or chain of B2B. This kind of tax isn’t deductible by the taxpayer.
When should I charge SST Malaysia?
The taxable period of SST is a period of 2 calendar months. Hence, SST returns must be filed every 2 months even if there is no tax to be paid. The SST payment should be done within 30 days from the end of the taxable period.