Most Malaysian freelancers do not need to charge SST, because Service Tax only applies once your annual taxable turnover exceeds RM 500,000. This guide covers what a Malaysian freelancer or small service business needs to know about SST and invoicing: what SST is, when you must register, what a valid SST invoice must include, how SST invoices differ from non-SST invoices, and how to file and pay.
What Is SST in Malaysia?
Sales and Service Tax replaced GST in Malaysia on 1 September 2018. SST is a single-stage tax, unlike GST which was a multi-stage tax. Service Tax applies to taxable services provided in Malaysia. Sales Tax applies to manufactured goods sold locally and goods imported into Malaysia.
For most Malaysian freelancers and service businesses, Service Tax is the relevant tax. It currently stands at 8% following an increase from 6% in March 2024.
When Do You Need to Register for SST in Malaysia?
You must register for SST if your annual taxable turnover exceeds RM 500,000. Below this threshold, SST registration is voluntary. Most freelancers and small service businesses below the threshold do not need to charge SST.
If you are not registered, do not add SST to your invoices. Simply charge your service fee with no tax line.
If you are registered, you must charge 8% Service Tax on all taxable services and remit it to the Royal Malaysian Customs Department (RMCD) bi-monthly.
Need to generate a Malaysia SST invoice?
Toggle Tax on and select "Malaysia SST (8%)" in the tax settings. The 8% is calculated automatically and the SST Reg No field appears. Create an SST Invoice FreeWhat Must a Malaysian SST Invoice Include?
A valid SST invoice in Malaysia must include your full business name and address, your SST registration number, the invoice date and number, a description of the services provided, the amount before SST, the SST rate (8%), the SST amount, and the total amount including SST.
Subtotal: RM1,000.00
SST (8%): RM80.00
Total: RM1,080.00
SST Registration No: W10-1808-32000123
SST Invoice vs Non-SST Invoice
If you are not SST registered, your invoice does not need an SST registration number or tax line. A standard invoice with your name, the service description, the amount, and your bank details is sufficient.
If you are SST registered, every invoice for taxable services must show the SST calculation clearly. Invoices without proper SST documentation can cause compliance issues for your clients.
How to File and Pay SST
SST returns are filed bi-monthly (every two months) through the MySST portal at mysst.customs.gov.my. The return is due by the last day of the month following the end of the taxable period. Late filing incurs penalties.
Frequently Asked Questions
What is the SST rate in Malaysia 2026?
The Service Tax rate in Malaysia is 8% as of March 2024. Sales Tax rates are either 5% or 10% depending on the category of goods. Most service businesses charge the 8% Service Tax rate.
Do Malaysian freelancers need to charge SST?
Only if your annual taxable turnover exceeds RM 500,000. Below this threshold, SST registration and collection is not required. Most freelancers and small businesses are below this threshold.
What replaced GST in Malaysia?
Sales and Service Tax (SST) replaced GST on 1 September 2018. GST was a 6% multi-stage consumption tax. SST is a single-stage tax applied at the point of sale or service provision.
What is a valid SST invoice in Malaysia?
A valid SST invoice must include your business name and address, SST registration number, invoice date and number, service description, amount before SST, SST rate, SST amount, and total including SST.
How do I register for SST in Malaysia?
Register through the MySST portal at mysst.customs.gov.my. Registration is mandatory if your annual taxable turnover exceeds RM 500,000 and voluntary below that threshold.