Guides · Tax
SST basics for Malaysian small businesses
What Sales & Service Tax (SST) is, who has to register, how it differs from e-Invoice, and what it means for your bookkeeping — a plain-English guide for Malaysian SMEs.
What is SST?
Sales & Service Tax (SST) is Malaysia's consumption tax, administered by the Royal Malaysian Customs Department (RMCD) — not LHDN. It has two parts: Sales Tax, charged on certain goods (typically at the manufacturer or import stage), and Service Tax, charged on prescribed taxable services.
It replaced the Goods & Services Tax (GST) in 2018. Unlike GST, SST is not a broad input-output credit system — it applies at specific points, so most small businesses deal with it more simply.
Do I need to register for SST?
Registration is based on your annual taxable turnover crossing a threshold set by RMCD, and on whether what you sell is a taxable good or a prescribed taxable service. Many categories use an annual turnover threshold (commonly RM500,000), but some services have different thresholds.
Because the thresholds, rates and taxable categories are set by RMCD and change, always confirm your obligation on the official MySST portal (mysst.customs.gov.my) or with a licensed tax agent before deciding.
What SST means for your bookkeeping
If you're SST-registered, you charge the correct tax on taxable sales, keep proper records, and file the SST-02 return (usually every two months) and pay what's due. If you're not registered, you don't charge SST — but you still record the SST your suppliers charge you as part of your costs.
The practical work is the same either way: clean records, the right tax code on each transaction, and reports you can hand to your accountant. That's what bookkeeping software is for.
SST vs e-Invoice — they're different
SST is a tax administered by RMCD. e-Invoice (MyInvois) is a separate LHDN initiative about how invoices are issued and validated electronically. You may deal with both: SST decides whether and how much tax you charge; e-Invoice decides how the invoice itself is submitted and validated.
Good software handles both — the right SST tax codes on your invoices, and MyInvois e-Invoice submission when it applies to you.
Questions, answered
Who administers SST in Malaysia?+
SST is administered by the Royal Malaysian Customs Department (RMCD), not LHDN. e-Invoice / MyInvois, by contrast, is run by LHDN — they are separate systems.
What is the SST registration threshold?+
Many taxable categories use an annual turnover threshold (commonly cited as RM500,000), but it varies by category and is set by RMCD. Check the official MySST portal for the figure that applies to your business.
How often do I file SST?+
SST-registered businesses typically file the SST-02 return every two months and pay any tax due. Confirm your taxable period when you register.
Does Orbit Finance handle SST?+
Yes — Orbit Finance supports SST tax codes and RM handling, and produces the reports you need, so charging and recording tax stays straightforward.
Keep SST simple with Orbit Finance
Correct tax codes, clean records, RM reports. One-time RM 100.00, your data on your device.