SST vs GST in Malaysia: 2026 SST rates, 0% goods and why GST is not back

This guide is based on the MySST portal of the Royal Malaysian Customs Department (JKDM), gazetted tax orders, Ministry of Finance (MOF) Budget documents and the Hansard of Parliament. We checked them all on 24 Oct 2026. It is written for consumers who want to understand the tax on their receipts and bills, not as a business compliance guide.

SST and GST in one table

Table sources: JKDM's MySST portal (Understanding SST) and MOF's Fiscal Outlook 2024 (13 Oct 2023), which assessed GST as more transparent for consumers because the tax is visible in the final price.

Why a single-stage tax can cascade: MOF's example

The Fiscal Outlook 2024 gives an example with an illustrative 5% rate and a 10% profit margin at each stage. Under both systems, the consumer pays the same price: RM127.05.

Under sales tax, the consumer bears RM6.05 in tax, including the profit margin added on top of the tax, but the government collects only RM5.00. Under GST, the government collects the full RM6.05. This is the cascading effect often mentioned when SST and GST are compared.

A short history: GST in 2015, a 0% rate in June 2018, SST again in September 2018

• 1 Apr 2015: GST started at 6%, replacing the old sales tax and service tax (MOF Economic Report 2015/16).
• 1 Jun 2018: all standard-rated supplies were charged GST at 0% (MOF press statement, 16 May 2018).
• 1 Sep 2018: the Goods and Services Tax Act 2014 was repealed by Act 805, brought into force by P.U. (B) 510. SST was reintroduced on the same day.
• 1 Mar 2024: the general service tax rate rose from 6% to 8% (MySST portal).
• 1 Jul 2025: sales tax rates were revised and the scope of service tax was widened.

Some MOF documents say GST was abolished in May or June 2018. Legally, the 0% rate started on 1 Jun 2018 and the GST Act was repealed on 1 Sep 2018.

Sales tax rates since 1 Jul 2025: 10%, 5%, specific rates or 0%

The Sales Tax (Rate of Sales Tax) Order 2025 [P.U. (A) 170/2025], in force from 1 Jul 2025, sets a base rate of 10% for taxable goods. Goods in the First Schedule are taxed at 5%, and goods in the Second Schedule, such as petroleum products, carry specific rates. Goods in the exemption order are not subject to sales tax.

According to MOF (9 Jun 2025), everyday essentials stay at 0%. They include chicken, beef, mutton, fish, prawns, squid, vegetables, local fruit, rice, flour, sugar, salt, white bread, noodles, instant noodles, milk, cooking oil, medicines and books. MOF stated on 27 Jun 2025 that rice, chicken, beef, vegetables and eggs are exempt whether produced locally or imported.

• Fruit: fruit grown in Malaysia is not subject to sales tax because it is not a manufactured good. Imported fruit is taxed, except apples, oranges, mandarin oranges and dates, which are exempt from 1 Jul 2025 (MOF, 27 Jun 2025).
• Goods moved to 5% or 10%: goods now at 5% include king crab, salmon, cod, truffle mushrooms, imported fruit and silk fabric. Racing bicycles and antique hand-painted artworks are taxed at 10% (JKDM document, 9 Jun 2025).
• Gold and silver: personal jewellery such as rings, bracelets, necklaces and pendants is not subject to sales tax. Gold or silver household ornaments are taxed at 5% (JKDM clarification via Sebenarnya.my, 30 Jun 2025).
• Buying from overseas: since 1 Jan 2024, low value goods, meaning goods priced at no more than RM500 and brought into Malaysia by land, sea or air, are subject to 10% sales tax. Cigarettes, tobacco products, intoxicating liquor, smoking pipes, electronic cigarettes and their liquids or gels are not treated as low value goods.

To check the rate for a product, JKDM advises you to find its tariff code. If the code is in the exemption order, the rate is 0%; in the First Schedule, 5%; in the Second Schedule, a specific rate; otherwise, 10%.

Service tax rates: 8% for most services, 6% for a set list

The general service tax rate has been 8% since 1 Mar 2024. The 6% rate applies to food and beverages, telecommunications, parking and logistics. From 1 Jul 2025, 6% also applies to healthcare, traditional and complementary medicine, allied health, construction work and education. Rental or leasing has been taxed at 6% since 1 Jan 2026.

Most service providers must register and charge the tax once their taxable services exceed RM500,000 in 12 months. For restaurants, cafes, canteens, caterers and food courts, the threshold is RM1.5 million (MySST service tax FAQ).

Credit and charge cards carry a service tax of RM25 for each principal and supplementary card, when the card is activated and every 12 months after that.

What you pay on everyday bills

Restaurants and eateries

Only registered food and beverage operators may charge the 6% service tax, including on takeaway food. Service charges and voluntary tips are not subject to service tax (JKDM Food and Beverages Guide, 19 Apr 2024).

Example: food and drinks worth RM100.00 at a registered restaurant. The service tax is RM100.00 × 6% = RM6.00. If the restaurant adds a 10% service charge (RM10.00), that charge is not taxed, so the bill is RM100.00 + RM6.00 + RM10.00 = RM116.00. A restaurant that is not registered cannot add service tax at all.

Phone, internet and digital subscriptions

Postpaid phone and internet bills carry 6% service tax: a RM100.00 bill before tax becomes RM106.00. According to JKDM's Telecommunication Services Guide (27 Feb 2024), prepaid top-ups by Malaysian citizens are exempt, so a RM30 top-up is not taxed.

Digital services from registered foreign providers, such as apps, online games, music and video subscriptions, e-books and cloud storage, have carried 8% service tax since 1 Mar 2024 [P.U. (A) 67/2024]. Example: a RM50.00 subscription before tax becomes RM50.00 + (RM50.00 × 8%) = RM54.00.

Home electricity bills

For domestic users, the 8% service tax applies only to usage above 600 kWh in a billing cycle (at least 28 days). According to JKDM Service Tax Policy No. 6/2026 (1 Oct 2026), the Minister of Finance approved a full exemption for domestic users consuming 800 kWh or less, from 17 Sep to 31 Dec 2026.

Example: a home that uses 750 kWh in a billing cycle between 17 Sep and 31 Dec 2026 pays no service tax. Outside that period, the 8% tax applies only to the charge for the 150 kWh above 600 kWh. If the charge for those 150 kWh is RM75.00, the tax is RM75.00 × 8% = RM6.00.

Delivery of goods

Goods delivery charges, including deliveries through e-commerce platforms, are logistics services taxed at 6% by registered providers. Delivery of food or drinks prepared by food and beverage providers is not taxed. This applies whether the restaurant delivers it or it goes through an e-commerce platform (JKDM Logistics Guide, 6 Jun 2025).

How to check a receipt and an SST-registered business

• An invoice from a registered person must show the provider's name, address and registration number, plus the amount before tax, the tax rate and the tax amount as separate amounts (MySST portal).
• Only registered persons may issue invoices showing service tax, and only registered manufacturers may show sales tax. For service tax, the Service Tax Act 2018 makes such an invoice from an unregistered person an offence.
• Check whether a business is registered on the SST Registration Status page (sst01.customs.gov.my), using the SST registration number, business registration number or business name.
• Enquiries can go to the Customs Call Centre on 1-300-888-500 (Monday to Friday, 8.00am to 5.00pm) or ccc@customs.gov.my.
• Traders who raise prices without basis using SST as an excuse can be reported to the Ministry of Domestic Trade and Cost of Living (KPDN). The channels in KPDN's statement of 9 Jul 2025 are the e-Aduan portal, WhatsApp 012-665 4292, the 1-800-886-800 line and the Ez ADU KPDN app.

Is GST coming back: the government says SST stays

As at 24 Oct 2026, there is no decision to bring back GST. The latest official statements:

• 5 Mar 2024, Dewan Rakyat: Second Finance Minister Amir Hamzah Azizan said the government had no plans to implement GST yet, as low-income people faced cost-of-living challenges.
• 9 Dec 2025, Dewan Negara: Deputy Finance Minister Lim Hui Ying said the government had decided to keep and improve SST, and did not intend to implement GST as people's incomes were still generally low. She said reintroducing GST would need preparation of possibly up to two years.
• 18 Aug 2026: Prime Minister and Finance Minister Anwar Ibrahim said the government was ready to study proposals to combine elements of GST, but SST remains the country's tax system (press clipping on the MOF portal).
• 7 Oct 2026, Dewan Rakyat: Deputy Finance Minister Liew Chin Tong said the system stays SST, and the government will absorb good elements of GST, such as making sure there is no cascading.

The Budget 2027 documents tabled on 9 Oct 2026 do not mention GST.

SST proposals in Budget 2027 (not yet gazetted)

The following measures are proposed to take effect on 1 Jan 2027. As at 24 Oct 2026, we found no order or regulation for them in the list of orders on the MySST portal.

• Elderly care: the service tax rate would fall from 8% to 6%, and care fees of up to RM96,000 a year for each senior citizen at a registered care centre would be fully exempt.
• Sales tax refunds: for local traders or distributors who supply machinery, spare parts, equipment and inputs to manufacturers.
• Langkawi and Labuan: the value limit for new goods taken out free of import duty and sales tax would rise to RM10,000, with a minimum stay of 48 hours.

Avoid fake letters and invoices demanding SST payment

On 18 Jul 2025, JKDM confirmed that a letter demanding SST payment in the name and signature of an Assistant Director-General of Customs was fake (Sebenarnya.my). The department never issued it. JKDM also warned about fake SST invoices on 13 Mar 2025.

If you receive a letter, invoice or message asking for SST payment, check with the Customs Call Centre on 1-300-888-500 before paying. Type the address mysst.customs.gov.my yourself, and do not open links in the message. You can check a suspicious message with our Scam Message Checker.