Malaysia VAT Calculator
How Much Is SST in Malaysia?
The standard sales tax (SST) rate in Malaysia is 10% in 2026. Other rates: 5% — Selected goods listed in the Sales Tax (Rates of Tax) Order, including certain foodstuffs, building materials and some discretionary items added in July 2025; 8% — Most taxable services, including professional, financial (fee-based), IT and digital services and imported digital services; 6% — Food and beverage, telecommunications, parking, logistics, construction, and rental or leasing services (from 1 Jan 2026); 0% — Basic foodstuffs, medicines, books and other goods on the exemption list; certain raw materials and agricultural inputs. Locally the tax is called Sales and Service Tax (SST): Sales Tax and Service Tax. Standard VAT/GST rates worldwide range from around 5% to 27%.
How to calculate Malaysia SST
To add 10% SST to a net (tax-exclusive) price, multiply it by 1.1. To remove SST from a gross (tax-inclusive) price, divide it by 1.1.
- Add SST: MYR 100 net × 1.1 = MYR 110 gross (that is MYR 10 of SST)
- Remove SST: MYR 110 gross ÷ 1.1 = MYR 100 net (that is MYR 10 of SST)
Use the Malaysia SST calculator above for any amount, or compare Malaysia with every other country in our SST rates by country table.
Malaysia VAT Rates Overview
Every VAT rate currently in force in Malaysia
Current VAT Rates (2026)
| Rate type | Rate | Applies to |
|---|---|---|
| Sales tax (general rate) | 10% | Most taxable goods manufactured in or imported into Malaysia, including non-essential and discretionary goods |
| Sales tax (reduced rate) | 5% | Selected goods listed in the Sales Tax (Rates of Tax) Order, including certain foodstuffs, building materials and some discretionary items added in July 2025 |
| Sales tax (specific rates) | Fixed amounts | Certain petroleum products taxed at specific rates per litre |
| Service tax (general rate) | 8% | Most taxable services, including professional, financial (fee-based), IT and digital services and imported digital services |
| Service tax (reduced rate) | 6% | Food and beverage, telecommunications, parking, logistics, construction, and rental or leasing services (from 1 Jan 2026) |
| Exempt / zero-rated sales tax | 0% | Basic foodstuffs, medicines, books and other goods on the exemption list; certain raw materials and agricultural inputs |
VAT History and Local Rules in Malaysia
How the rates got here, and country-specific points to watch
Key VAT milestones
- 2026: Service tax on rental and leasing cut from 8% to 6% and SME exemption threshold raised to RM1.5 million from 1 January
- 2025: From 1 July, sales tax extended to more non-essential goods and service tax extended to rental, construction, financial, private healthcare and education services
- 2024: General service tax rate raised from 6% to 8% on 1 March 2024, with key sectors kept at 6%
- 2018: GST (6%) abolished on 1 June and SST reintroduced on 1 September 2018
- 2015: 6% Goods and Services Tax introduced on 1 April 2015, replacing the old SST
Is the VAT rate the same everywhere in Malaysia?
SST generally does not apply in the designated duty-free areas of Langkawi, Labuan and Tioman, and special areas such as free zones and licensed warehouses have relief. Elsewhere the same rates apply across Peninsular Malaysia, Sabah and Sarawak.
Good to know
Malaysia does not have a VAT. SST is two separate single-stage taxes: sales tax is charged once at manufacturer or import level on goods, and service tax is charged on a defined list of services. There is no input tax credit chain as in a VAT or GST system, which is why most consumer prices do not show a single uniform tax rate.
The July 2025 expansion brought rental and leasing, construction, fee-based financial services, private healthcare for non-citizens and high-fee private education into service tax, with a grace period on penalties to 31 December 2025.
Zero-Rated and Exempt Supplies in Malaysia
The difference matters: zero-rating keeps input-VAT recovery, exemption does not
Zero-rated supplies (0%)
VAT is charged at 0%, but the seller can still recover input VAT on related costs:
- Exports of goods (no sales tax charged on exported goods)
- Critical raw materials and agricultural inputs (animal feed, fertilisers, pesticides) used by registered manufacturers
VAT-exempt supplies
No VAT is charged, and the seller generally cannot recover input VAT on related costs:
- Basic foodstuffs such as rice, fresh vegetables, fresh fish and meat
- Medicines and medical equipment on the exemption list
- Books and newspapers
- Services not listed as taxable in the Service Tax Regulations
- Construction contracts signed before 1 July 2025 (until 30 June 2027)
Malaysia VAT Registration & Compliance
Key facts for businesses registering for and reporting VAT in Malaysia.
| Local name | Sales and Service Tax (SST): Sales Tax and Service Tax |
|---|---|
| VAT number format | SST registration number, e.g. W10-1808-32000001 |
| Registration threshold | Sales tax: manufacturers with taxable sales above RM500,000 a year. Service tax: generally RM500,000 of taxable services a year, with higher thresholds for some categories (e.g. RM1 million for rental/leasing and financial services, RM1.5 million for construction and private healthcare) |
| Non-resident businesses | Foreign providers of digital services to Malaysian consumers must register once their digital services to Malaysia exceed RM500,000 a year |
| Filing frequency | Bi-monthly (every two months) SST-02 return for both sales tax and service tax |
| Filing and payment deadline | Last day of the month following the end of each two-month taxable period |
| E-invoicing / reporting | Income-tax e-invoicing (MyInvois) is mandatory for businesses with turnover above RM5 million; businesses with turnover of RM3 million to RM5 million are due from 1 Jan 2027, and turnover below RM3 million is exempt from 1 Sept 2026 |
| Tax authority | Royal Malaysian Customs Department (JKDM) |
Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with Royal Malaysian Customs Department (JKDM) before relying on them.
Cross-Border Sales and Refunds in Malaysia
Selling into the country from abroad, and getting VAT back
Cross-border rules
Digital services and e-commerce: Foreign digital service providers selling to Malaysian consumers must register and charge 8% service tax once their Malaysian digital sales exceed RM500,000 a year; imported taxable services acquired by businesses are subject to service tax on a reverse-charge basis.
Tourist VAT refunds: No tourist refund scheme under SST; the GST-era tourist refund ended when GST was abolished in 2018, and tax-free shopping is instead offered in duty-free islands such as Langkawi and Labuan.
For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.
Compare VAT Rates
VAT rates in neighboring and similar economies
Nearby Countries
🇦🇺 Australia
Standard Rate: 10%
🇳🇿 New Zealand
Standard Rate: 15%
🇯🇵 Japan
Standard Rate: 10%
🇰🇷 South Korea
Standard Rate: 10%
Frequently Asked Questions
Common questions about VAT in Malaysia
What is the current VAT rate in Malaysia?
The standard VAT rate in Malaysia is 10% in 2026. Other rates in force: 5% (sales tax (reduced rate)), Fixed amounts (sales tax (specific rates)), 8% (service tax (general rate)), 6% (service tax (reduced rate)), 0% (exempt / zero-rated sales tax). See the rates table above for exactly what each rate covers.
How do I calculate VAT in Malaysia?
To add 10% VAT, multiply the net price by 1.1. To remove it from a VAT-inclusive price, divide by 1.1; the difference is the VAT. The calculator at the top of this page does both.
Does Malaysia have VAT or GST?
No. Malaysia abolished its 6% GST in 2018 and replaced it with the Sales and Service Tax (SST). Sales tax of 5% or 10% applies to goods at manufacturing or import level, and service tax of 6% or 8% applies to listed services.
What is the service tax rate in Malaysia in 2026?
The general service tax rate is 8%. A reduced 6% rate applies to food and beverage, telecommunications, parking, logistics, construction and, from 1 January 2026, rental and leasing services.
What changed in SST from 1 July 2025?
Sales tax was extended to more non-essential goods at 5% or 10%, and service tax was extended to rental and leasing, construction, financial services, private healthcare and private education. Basic foods and essentials remain exempt.
Who needs to register for VAT in Malaysia?
Registration threshold: Sales tax: manufacturers with taxable sales above RM500,000 a year. Service tax: generally RM500,000 of taxable services a year, with higher thresholds for some categories (e.g. RM1 million for rental/leasing and financial services, RM1.5 million for construction and private healthcare). Foreign businesses: Foreign providers of digital services to Malaysian consumers must register once their digital services to Malaysia exceed RM500,000 a year.
Sources
Official and professional references used for this page
Last reviewed on 27 September 2026.