Introduction

Introduced in September 2018, SST replaced the former 6% Goods and Services Tax (GST) system. SST comprises two parts: Sales tax and Service tax. Sales tax is a single-stage tax levied on all taxable goods manufactured in and imported into Malaysia; whereas Service tax is a single-stage tax charged on any taxable services provided in Malaysia by a registered person in conducting the business. Malaysia has a few special designated areas that are exempted from service tax, namely Langkawi Island, Tioman Island and Federal Territory of Labuan.

Sales and Service Tax 2018 Model and Scope

Sales and Service Tax model are structured as below: