GST vs SST

In Malaysia, the Goods & Services Tax (GST) was replaced with the Sales & Service Tax in September 2018.

Below, we look at the difference between the two.

gst malaysia

GOODS AND SERVICES TAX (GST)

Multi-stage tax

Broad-based, levied on all goods and services including imports (unless specifically excluded)

The standard rate of tax: 6%
Certain supplies are treated as zero-rated, exempt or are subject to relief.

Mandatory registration upon reaching a threshold of RM500,000 (voluntary registration also possible).

Input tax can be offset against output tax.

Returns filed either monthly, bi-monthly or quarterly (with the option to request an alternative filing period).

sales and service tax

SALES AND SERVICE TAX (SST)

Single-stage tax

Levied on all locally manufactured/imported goods and certain prescribed services

Sales tax: 10%
Service tax: 6%

Sales Tax: A license has to be obtained if annual sales turnover exceeds RM100,000
Service Tax: A range of registration thresholds from 0 to RM3mil

No tax credit mechanism

Returns filed on a bi-monthly basis


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