Sales and Service Tax (SST) registration is the process by which a business registers with the Royal Malaysian Customs Department (RMCD) once its taxable turnover reaches the statutory threshold. SST has two parts: sales tax mainly covers manufacturing and imports, while service tax applies to businesses providing taxable services.
Whether registration is required depends on whether the company's taxable turnover reaches the relevant threshold, not on the size of the company or whether it wishes to register.
When must a business register for SST?
- A business providing taxable services must register for service tax once its annual turnover reaches the registration threshold for that service category
- Manufacturers of taxable goods must register for sales tax
- Thresholds can differ between service categories, with some set higher than others
The specific thresholds and list of taxable items are adjusted by the authorities from time to time, and are subject to the latest announcements on the RMCD MySST platform.
What obligations follow registration?
Once registered, a business must file a return and pay tax for each taxable period (typically two months), and must generally file a return even for a period with no taxable transactions (a "nil return"). Late registration, filing or payment can all attract penalties.
SST is closely tied to overall tax planning, and can also affect pricing and contract terms. We help businesses work out whether they have reached the registration threshold, handle the registration, and build SST filing into their day-to-day outsourced accounting, to help reduce the risk of missed or incorrect returns.
This content is for general reference only and does not constitute legal or tax advice. For your own situation, please book a consultation so that GXY's advisory team can advise on your actual circumstances. Last updated: 20 August 2026.
