Malaysia GST / SST Calculator
Calculate Malaysian SST (Sales and Service Tax). Malaysia abolished GST in 2018 — this calculator covers the current SST system and explains the differences.
Malaysia GST and SST — Complete Guide to Malaysian Consumption Tax
Malaysia's consumption tax history has two distinct chapters. The Goods and Services Tax (GST) was introduced at 6% in April 2015 and abolished by the Pakatan Harapan government in June 2018 — replaced by the Sales and Service Tax (SST). Despite the switch back to SST, the term "GST calculator Malaysia" continues to generate significant search volume, which is why this page covers both systems.
The current system — SST — consists of two separate taxes: Sales Tax on manufactured or imported goods (rates of 5% or 10%), and Service Tax on specified services (raised from 6% to 8% in March 2024). Unlike GST, SST is not a full value-added tax — it does not allow businesses to claim credits on inputs, making it a simpler but potentially more distortionary system.
How to Use This Malaysia Tax Calculator
- Select the applicable tax rate from the dropdown: 8% Service Tax, 6% (legacy reference), 10% Sales Tax on standard goods, or 5% Sales Tax on selected goods.
- Choose Add Tax (before tax → total) or Remove Tax (total → before tax).
- Enter the amount in Malaysian Ringgit (RM).
- Click Calculate for instant results.
- Click Copy to copy any figure to clipboard.
Worked Examples
SST +
Adding 8% Service Tax: RM100.00 (before tax) × 1.08 = RM108.00 (with tax). Service Tax = RM8.00.
SST −
Removing 8% Service Tax: RM108.00 (with tax) ÷ 1.08 = RM100.00 (before tax). Tax = RM8.00.
Malaysia Consumption Tax Rate History
| Date | Rate | Note |
|---|---|---|
| Pre-2015 | SST 10% / 6% | Original SST system — Sales Tax 10%, Service Tax 6% |
| Apr 2015 | GST 6% | GST introduced, replacing SST — Najib Razak government |
| Jun 2018 | GST 0% | GST zeroed pending abolition — Mahathir government elected |
| Sep 2018 | SST reinstated | SST reintroduced: Sales Tax 5%/10%, Service Tax 6% |
| Mar 2024 | Service Tax 8% | Service Tax raised from 6% to 8% — Madani Budget |
| 2025 | SST 8% / 5% / 10% | Current rates — no GST reintroduction announced |
SST Registration Thresholds in Malaysia (2025)
Sales Tax: Malaysian manufacturers with annual taxable turnover exceeding RM500,000 must register with the Royal Malaysian Customs Department (RMCD). Importers are liable for Sales Tax regardless of turnover. Service Tax: businesses providing taxable services with annual revenue exceeding RM500,000 must register for Service Tax.
Unlike the previous GST system, SST does not allow input tax credits — businesses cannot recover SST paid on their purchases. This makes SST simpler to administer but embeds tax costs into business supply chains. Registration, returns, and payment are managed through the MySST portal of the Royal Malaysian Customs Department.
Filing SST Returns in Malaysia
SST-registered businesses file bi-monthly (every two months) SST returns through the MySST online portal of the Royal Malaysian Customs Department (RMCD). The return and payment are due by the last day of the month following the taxable period. Late submissions incur penalties.
Unlike GST which had a single return, businesses registered for both Sales Tax and Service Tax must submit separate returns for each. Digital services provided by overseas providers to Malaysian consumers are subject to Service Tax at 8% under the Digital Service Tax rules, and overseas providers must register if their annual revenue from Malaysian consumers exceeds RM500,000.
Frequently Asked Questions — Malaysia GST and SST
- Does Malaysia have GST?
- No. Malaysia abolished GST in 2018. The Goods and Services Tax (GST) was introduced at 6% in April 2015 and replaced by the Sales and Service Tax (SST) in September 2018 when the Pakatan Harapan government came to power. There has been no announcement to reintroduce GST as of 2025.
- What is the current tax rate in Malaysia?
- Malaysia currently has a two-part SST system: Service Tax at 8% (raised from 6% in March 2024) applies to services including hotels, restaurants, professional services, telcos, and digital services. Sales Tax at 10% applies to most manufactured and imported goods, while a reduced 5% rate applies to selected goods including petroleum products and certain food items.
- Why did Malaysia switch from GST back to SST?
- The switch was primarily political. GST was a campaign promise of the opposition Pakatan Harapan coalition led by former PM Mahathir Mohamad, who argued that GST increased the cost of living. After winning the 2018 election, the government zeroed the GST rate within weeks and formally reintroduced SST by September 2018. The government also cited the need to simplify tax administration for small businesses.
- What is the difference between Malaysia's GST and SST?
- GST was a value-added tax — businesses could claim back input tax credits on their purchases, meaning the tax only accumulated on the final consumer's purchase. SST is a single-stage tax at the manufacturer/importer level (Sales Tax) or service provider level (Service Tax) with no input credit mechanism. SST is simpler but creates tax-on-tax cascading effects in some supply chains.
- Do foreign businesses need to register for Malaysian Service Tax?
- Yes. Foreign businesses providing digital services (streaming, software, apps, online advertising, online platform services) to Malaysian consumers must register for Service Tax if their annual revenue from Malaysian consumers exceeds RM500,000. This applies from January 2020. The applicable rate is 8% (as of March 2024). Registration is through the RMCD's MySST portal.
- What services are subject to the 8% Service Tax?
- Service Tax at 8% applies to: accommodation (hotels, resorts, hostels), food and beverage services (restaurants, cafes, catering), professional and consultancy services (legal, accounting, engineering, IT), telecommunications, insurance and takaful, financial services, rental of goods, advertising, and digital services provided by foreign providers.
- Is there a chance Malaysia will reintroduce GST?
- It has been discussed. Several economists and the IMF have recommended Malaysia reintroduce a VAT-type system to broaden the tax base and reduce dependence on oil revenue (Petronas dividends). The current Madani government's 2024 Budget instead raised Service Tax from 6% to 8% as a compromise measure. As of 2025, there is no firm plan to reintroduce GST.