Malaysia SST Rates 2026: 8% and 6% Service Tax, Sales Tax and the 2025 Expansion
Last verified: 5 November 2026. Short answer: Service tax in Malaysia is 8% from 1 March 2024, except food and beverage, parking, logistics and telecommunications at 6%, and a fixed RM25 a year on each credit or charge card [MySST]. From 1 July 2025, the scope was expanded to rental or leasing (6% from 1 January 2026), construction (6%), financial services (8%), private healthcare (6%) and education (6%). Sales tax on goods is generally 5% or 10%.
Talreon is not an official government site. We are an independent publisher and are not affiliated with the Royal Malaysian Customs Department (JKDM). This page explains the process in our own words; the agency's own website and notices are the final word. Educational information only; not financial, tax, legal, or investment advice.
Malaysia's Sales and Service Tax (SST) has two separate parts. Sales tax is charged once, on taxable goods manufactured in or imported into Malaysia. Service tax is charged on prescribed taxable services provided by registered businesses. Both are run by the Royal Malaysian Customs Department (Jabatan Kastam Diraja Malaysia, JKDM) through the MySST portal. This guide sets out the current rates, what changed in 2024 and 2025, and the basic filing rules.
Service tax rates
According to the MySST background page [MySST]:
| Period or service | Rate |
|---|---|
| 1 September 2018 to 29 February 2024 | 6% |
| From 1 March 2024 (general rate) | 8% |
| Food and beverage services | 6% |
| Parking services | 6% |
| Logistics services | 6% |
| Telecommunications services | 6% |
| Credit card or charge card (principal or supplementary) | RM25 per card, on issuance and each following year or part of a year |
The 2025 service tax expansion
From 1 July 2025, the scope of service tax was widened to new services. MySST lists the rates as follows [MySST]:
| New taxable service | Rate |
|---|---|
| Rental or leasing services | 6% (effective 1 January 2026) |
| Construction work services | 6% |
| Financial services | 8% |
| Private healthcare services | 6% |
| Education services | 6% |
Each of these categories has its own conditions, thresholds and exclusions (for example, which kinds of education or healthcare and which customers are covered). Customs publishes a separate FAQ and service-specific guides for the expansion [MySST expansion FAQ]. Read the guide for your sector before you start charging, because many supplies are excluded.
Sales tax
Sales tax is charged on taxable goods manufactured locally by a registered manufacturer, and on taxable goods imported into Malaysia. The MySST sales tax FAQ explains that rates are 5% or 10%, or a specific rate for certain goods, and some goods are exempt [MySST sales tax FAQ]. A manufacturer, or a sub-contractor doing manufacturing work, has to register once taxable sales exceed RM500,000 in 12 months [MySST].
Who must register for service tax
A business that provides taxable services in Malaysia must register when the total value of its taxable services in 12 months exceeds the threshold set for that service [MySST]. Thresholds differ by service; for example, the service tax FAQ notes that food services at cafeterias are taxable only above RM1.5 million [MySST service tax FAQ]. Imported taxable services have also been chargeable since 1 January 2019. Businesses below the threshold can, in some cases, register voluntarily.
Filing and paying: SST-02
The service tax FAQ sets out these rules [MySST service tax FAQ]:
- Registered persons file the SST-02 return every two months (a taxable period).
- The return and payment are due by the last day of the month after the end of the taxable period.
- Records must be kept for 7 years.
Late payment penalty
| Days late | Penalty on unpaid tax |
|---|---|
| First 30 days | 10% |
| 31 to 60 days | A further 15% (25% in total) |
| 61 to 90 days | A further 15% (40% in total) |
| Maximum | 40% |
The penalty schedule is from the MySST service tax FAQ [MySST service tax FAQ].
What this means for consumers
- On a restaurant bill from a registered outlet, service tax is 6%, separate from any service charge.
- Most other taxable services, such as many professional services, are at 8%.
- Each credit or charge card attracts RM25 a year, including supplementary cards.
- Not every business charges SST: only registered businesses may charge it, and the invoice should show the tax separately.
Worked examples
| Example | Calculation | Service tax |
|---|---|---|
| RM100 meal at a registered restaurant | RM100 × 6% | RM6 |
| RM1,000 taxable professional service | RM1,000 × 8% | RM80 |
| One principal and one supplementary credit card | 2 × RM25 | RM50 a year |
These examples use the published rates; whether a particular supply is taxable depends on the rules for that service.
Checking if a business is registered
The MySST portal has services for registered persons and information for the public. If you are unsure whether a business should be charging you SST, ask for a proper invoice and check with Customs on 1300 888 500 or ccc@customs.gov.my, the contacts listed on MySST.
Practical tips for small businesses
- Work out whether what you sell is a taxable service or taxable goods; the two have different rules, rates and thresholds.
- Track your taxable turnover every month on a rolling 12-month basis so you know when you cross a registration threshold.
- If your sector was added in the 2025 expansion, read the specific Customs guide for it, since exclusions are common.
- Show service tax separately on invoices once registered, and file SST-02 on time even if you have nothing to declare for the period.
- Keep invoices, contracts and records for 7 years.
SST rules change through Customs orders and budget announcements, sometimes with short notice. Before relying on any rate, including the ones on this page, check the MySST portal for the latest notices and guides for your industry. If a rule is unclear, Customs can issue advance rulings, and a tax adviser can help with complex cases.
Frequently asked questions
What is the SST rate in Malaysia in 2026?
Service tax is 8% from 1 March 2024, with 6% for F&B, parking, logistics and telecommunications. Sales tax on goods is generally 5% or 10%.
Is restaurant SST 6% or 8%?
Food and beverage services remain at 6%, according to MySST.
When did the service tax expansion start?
On 1 July 2025, covering construction, financial services, private healthcare and education. Rental or leasing services are taxed at 6% from 1 January 2026.
How often is SST filed?
Every two months on form SST-02, due by the last day of the following month.
What is the penalty for late SST payment?
10% for the first 30 days, then 15% more for each of the next two 30-day periods, up to 40%.
Related Talreon tools and guides
- Malaysia company tax rates
- e-Invoice exemption threshold
- Register a business with SSM
- All Malaysia guides
Official sources
- MySST (JKDM): Background of SST
- MySST: Service tax FAQ
- MySST: Sales tax FAQ
- MySST: FAQ on the expansion of service tax scope 2025
Figures and steps on this page were checked against the linked official pages on 5 November 2026. Read our editorial and review process and figures update log. Spotted something out of date? Email support@talreon.com with the page address.
Educational information only; not financial, tax, legal, or investment advice.