---
oa_review_kit: v1
guide_slug: malaysia-sst
guide_version: malaysia-sst@2026-04-13T17:54:35.931Z
archetype: vat_gst
---

# Review kit: Malaysia Sst

Thank you for reviewing this Guide. This kit is one file with three parts: how
to use it, an interview prompt for your AI, and the Guide itself.

## How to use this kit (3 steps, about 15 minutes)

1. Open the AI you already use (ChatGPT, Claude, Gemini, anything that reads
   markdown) and paste in everything from "INTERVIEW PROMPT" below, including
   the Guide at the end.
2. Your AI interviews you like a colleague, one question at a time. Just talk:
   war stories, walk-throughs, the mistakes you catch. No writing required.
3. Your AI writes your answers up as a single markdown file. Hand it back at
   openaccountants.com/skills/malaysia-sst/handback (also linked from the Guide
   page: "Hand back your file"). What you added is published under your name
   and credential.

If your AI cannot produce the exact output format, hand back whatever you have:
a revised Guide file, a worksheet, or plain notes. We take those too, and a
person reviews them by hand. The format below is the one we can apply straight
away.

---

# INTERVIEW PROMPT (paste from here down into your AI)

You are interviewing a practising accountant about how they actually do the
work covered by the attached Guide ("Malaysia Sst", slug `malaysia-sst`).
Interview them like a colleague doing a handover. Do not lecture. Ask ONE
question at a time and wait for the answer. Chase war stories and specifics:
what kind of client, which portal step, how big the penalty was.

The rates, thresholds, and citations are our job; we refresh those from primary
sources. Capture ONLY what is NOT derivable from law:

- order of operations, and what a wrong order corrupts
- what to ask a client before computing anything
- what to assume when a fact is unknown, and how it gets flagged
- the most-missed traps, with penalty size and who falls in
- how the portal or filing channel actually behaves
- what has to reconcile before anyone signs
- when to refuse the work and hand it to a human specialist

If the accountant corrects a rate, threshold, or deadline in the Guide along
the way, record it in the FACT CORRECTIONS table, but do not steer the
interview toward numbers.

## Questions to work through

Ask these in order, one at a time. Skip any the accountant has already covered;
follow up where a story has specifics worth pinning down. Each question is
tagged with the method slot(s) it feeds.

1. [sequence] Walk me through the last VAT return you prepared, start to finish. What did you open first, and why that order?
2. [intake_questions] [evidence] A new client hands you nothing but a bank statement. What do you do before you'll classify a single line?
3. [pattern_library] Which bank-statement line gets misclassified most often in your experience? What does it look like and where should it actually go?
4. [scope_gate] Tell me about a client you refused or referred out. What about their VAT situation made you stop?
5. [trap] When you review a return someone else drafted, what mistake do you catch most often?
6. [conservative_default] When you can't tell if a sale is domestic or cross-border, what do you assume, and how do you mark it?
7. [cross_check] Before you sign, what has to reconcile with what, and how close is close enough?
8. [filing_mechanics] Walk me through filing on the actual portal. What surprises first-timers: the order of forms, what locks, what you can't undo?
9. [judgment_rule] Ever had a client on a simplified scheme where the "simplification" made things worse? How do you decide who belongs on it?
10. [trap] What's the real penalty story you tell clients, the one that actually happened?
11. [evidence] Which claims will you draft from a bank statement but never file without the underlying paper?
12. [unsettled_law] Anything in VAT right now you deliberately won't finalise because the rules are moving?

## Method slots (for tagging the write-up)

- `scope_gate` (Scope gate and refusals): when to stop and send the client to a human
- `sequence` (Order of operations): what order to do things in, and what a wrong order corrupts
- `intake_questions` (Client intake questions): what to ask a client before computing
- `evidence` (Documents and evidence): which documents to insist on, and what is draft-grade vs file-grade
- `judgment_rule` (Judgment rules): how a practitioner actually picks when the law allows two routes
- `conservative_default` (Conservative defaults): what to assume when a fact is unknowable at draft time
- `trap` (Traps and most-missed items): the mistakes everyone makes, what they cost, and who falls in
- `filing_mechanics` (Portal and filing mechanics): how submission actually works: channel, order, what locks
- `cross_check` (Cross-checks before signing): what has to reconcile with what before delivery, and how close is close enough
- `pattern_library` (Pattern library): how messy real-world data (bank lines, payout platforms) maps to tax categories
- `edge_case` (Edge-case playbook): the client situations that change the method, not just the numbers
- `unsettled_law` (Unsettled-law flags): what not to finalise right now, and why
- `handback_protocol` (Hand-back protocol): what the finished working paper contains and who reviews it

## Output format: oa-handback v1

When the interview is done, write the answers up as ONE markdown file in
exactly this shape. Fill in the reviewer's real name, credential, and email
(ask for them at the end if they have not come up). Every method block gets a
`### [method:<slot>]` heading where `<slot>` is one of the 13 slot ids
above. Keep `guide_slug` and `guide_version` exactly as given. Omit any
section the interview produced nothing for, but keep the headings that remain
exactly as shown. The `fact_key` column may be left blank when unknown.

```markdown
---
oa_handback: v1
guide_slug: malaysia-sst
guide_version: malaysia-sst@2026-04-13T17:54:35.931Z
reviewer_name: <full name>
reviewer_credential: <credential>        # free text: CPA, EA, ACCA, Steuerberater...
reviewer_email: <email>
verdict: <approve | corrections | unable>
---

## METHOD

### [method:filing_mechanics] <short title for this block>
<prose: the method block, written in second person, imperative>

### [method:intake_questions] <short title for this block>
- <question 1>
- ...

## FACT CORRECTIONS
| fact_key | current | correct | source |
|---|---|---|---|
| <fact key if known, else blank> | <value in the Guide> | <correct value> | <cite> |

## FLAGS
- [unsettled] <what not to finalise, and why>
- [refer] <situations to escalate to a human>

## NOTES
<anything that did not fit a method slot or a fact correction>
```

If for any reason you cannot produce this exact format, output the accountant's
corrections and methods as clear plain notes instead. The hand-back page
accepts plain notes and revised Guide files too; this format is an
optimization, never a gate.

---

# THE GUIDE UNDER REVIEW

<!-- guide: malaysia-sst · version: malaysia-sst@2026-04-13T17:54:35.931Z -->

---
name: malaysia-sst
description: Use this skill whenever asked to prepare, review, or classify transactions for a Malaysia Sales and Service Tax (SST) return (SST-02) for any client. Trigger on phrases like "Malaysia SST", "Sales Tax Malaysia", "Service Tax Malaysia", "SST-02", "MySST", "RMCD", or any request involving Malaysia SST. This is NOT a VAT — there is NO input tax credit. MUST be loaded alongside vat-workflow-base v0.1 or later. ALWAYS read this skill before touching any Malaysia SST work.
jurisdiction: MY
domain: vat-gst
role: tax_agent
tax_year: 2025
---

# malaysia-sst

## Section 1 — Quick reference

**Quick reference fields**

| Field | Value |
| --- | --- |
| Country | Malaysia |
| Tax type | Sales and Service Tax (SST) — NOT a VAT. No input tax credit. |
| Sales Tax rate | 10% (standard); 5% (specific goods); specific rates (petroleum) |
| Service Tax rate | 8% (standard, from 1 March 2024); 6% (retained: F&B, telecoms, parking, logistics) |
| Exempt goods | Basic foodstuffs, live animals, certain agriculture, medical devices |
| Return form | SST-02 (bimonthly for both Sales Tax and Service Tax) |
| Filing portal | https://mysst.customs.gov.my (MySST) |
| E-invoice portal | https://myinvois.hasil.gov.my (IRBM, from August 2024) |
| Authority | Royal Malaysian Customs Department (RMCD / JKDM) |
| Currency | MYR (Malaysian Ringgit) |
| Filing frequency | Bimonthly (Jan-Feb, Mar-Apr, May-Jun, Jul-Aug, Sep-Oct, Nov-Dec) |
| Deadline | Last day of month following the bimonthly period |
| Companion skill | vat-workflow-base v0.1 or later — MUST be loaded |
| Validated by | Pending — requires licensed Malaysian tax agent |

**Key SST-02 fields**

| Part | Field | Meaning |
| --- | --- | --- |
| A1/A2 | Sales Tax 10% | Taxable goods at standard rate |
| A3/A4 | Sales Tax 5% | Taxable goods at reduced rate |
| A7 | Exempt goods | Including exports |
| A9 | Total Sales Tax | A2 + A4 + A6 |
| B1/B2 | Service Tax 8% | Standard rate services |
| B3/B4 | Service Tax 6% | Retained rate services (F&B, telecoms, parking, logistics) |
| B6 | Total Service Tax | B2 + B4 |
| C5 | Net SST payable | A9 + B6 - adjustments |

- **No input tax credit** — CRITICAL: NO INPUT TAX CREDIT under SST. SST paid on inputs is a cost. Manufacturers use Schedule A/B exemptions on raw materials (exemption at purchase, not credit after payment).

**Conservative defaults**

| Ambiguity | Default |
| --- | --- |
| Unknown Sales Tax rate | 10% |
| Unknown Service Tax rate | 8% |
| Unknown whether manufacturer or trader | Trader (no Sales Tax obligation on output) |
| Unknown service classification | Not prescribed (no Service Tax) |
| Unknown SST paid on inputs | Cost (no credit) |

**Red flag thresholds**

| Threshold | Value |
| --- | --- |
| HIGH single-transaction size | RM 50,000 |
| HIGH tax-delta on a single default | RM 2,000 |

## Section 2 — Required inputs and refusal catalogue

### Required inputs

- **Minimum viable and recommended inputs** — Minimum viable — bank statement for the bimonthly period. Acceptable from: Maybank, CIMB, Public Bank, RHB, Hong Leong, AmBank, Bank Islam, Bank Rakyat, OCBC Malaysia, UOB Malaysia, or any other. Recommended — sales invoices, Schedule A/B approval letters, SST registration certificates (separate for Sales Tax and Service Tax).

### Malaysia-specific refusal catalogue

- **R-MY-1 — Free Zone / Licensed Manufacturing Warehouse** — Trigger: client in Free Zone or LMW. Message: "Free Zone and LMW operations have special SST treatment. Please escalate to a licensed tax agent."
- **R-MY-2 — Petroleum and crude oil taxation** — Trigger: client in petroleum sector with specific-rate Sales Tax. Message: "Petroleum-specific Sales Tax rates require specialist analysis. Please escalate."
- **R-MY-3 — Foreign digital service provider registration** — Trigger: foreign entity providing digital services to Malaysian consumers under Section 56C. Message: "Foreign DSP registration under Section 56C has specific obligations. Please escalate."
- **R-MY-4 — GST transitional claims** — Trigger: client has unclaimed GST input credits from pre-September 2018. Message: "GST transitional provisions have largely expired. Please escalate for assessment of any remaining claims."

## Section 3 — Supplier pattern library

### 3.1 Malaysian banks (fees — cost, no credit)

**Malaysian banks table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| MAYBANK, MALAYAN BANKING | EXCLUDE for bank charges | No SST on exempt financial services |
| CIMB, CIMB BANK | EXCLUDE for bank charges | Same |
| PUBLIC BANK, PBB | EXCLUDE for bank charges | Same |
| RHB, HONG LEONG, AMBANK | EXCLUDE for bank charges | Same |
| BANK ISLAM, BANK RAKYAT | EXCLUDE for bank charges | Same |
| OCBC MY, UOB MY, STANDARD CHARTERED MY | EXCLUDE for bank charges | Same |
| INTEREST, LOAN, REPAYMENT | EXCLUDE | Out of scope |

### 3.2 Government and statutory bodies (exclude)

**Government and statutory bodies table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| RMCD, CUSTOMS, JKDM | EXCLUDE | Tax/duty payment |
| LHDN, IRBM, INLAND REVENUE | EXCLUDE | Income tax |
| SSM, COMPANIES COMMISSION | EXCLUDE | Registration fee |
| EPF, KWSP, SOCSO, PERKESO, EIS | EXCLUDE | Employee contributions |
| LEMBAGA HASIL | EXCLUDE | Tax authority |

### 3.3 Utilities

**Utilities table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| TENAGA NASIONAL, TNB | Cost (includes 6% Service Tax) | Electricity — SST embedded, no credit |
| SYABAS, AIR SELANGOR, SAJ | Cost | Water |
| TM, TELEKOM MALAYSIA, MAXIS, DIGI, CELCOM, U MOBILE | Cost (includes 6% Service Tax) | Telecoms — retained 6% rate |
| UNIFI, TIME INTERNET | Cost (includes 6% Service Tax) | Broadband |

### 3.4 Insurance

**Insurance table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| GREAT EASTERN, AIA, PRUDENTIAL, ALLIANZ MY | Cost (Service Tax embedded) | Insurance services taxable at 8% |
| TAKAFUL, ETIQA | Cost | Same |

### 3.5 SaaS and international services

**SaaS and international services table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| GOOGLE, MICROSOFT, META, FACEBOOK | Self-account 8% via SST-02A | Imported service — Section 26 |
| AWS, AMAZON, ZOOM, SLACK | Self-account 8% via SST-02A | Same |
| CANVA, FIGMA, NOTION, OPENAI | Self-account 8% via SST-02A | Same |
| NETFLIX, SPOTIFY, DISNEY+ | Should be collected by provider (Section 56C) | Check if SST included |

### 3.6 E-commerce platforms

**E-commerce platforms table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| SHOPEE, LAZADA, GRAB | Platform fees are cost | Service Tax embedded in platform commission |
| FOODPANDA, DELIVEREAT | Cost | Same |

### 3.7 Professional services

**Professional services table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| AUDIT FIRM, ACCOUNTING, CONSULTANT | Cost (8% Service Tax embedded) | Group C prescribed service |
| LAW FIRM, LEGAL, PEGUAM | Cost (8% Service Tax embedded) | Same |
| ARCHITECT, ENGINEER, SURVEYOR | Cost (8% Service Tax embedded) | Same |

### 3.8 Payroll and exclusions

**Payroll and exclusions table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| SALARY, GAJI, WAGES | EXCLUDE | Outside SST scope |
| OWN TRANSFER, INTERNAL | EXCLUDE | Internal movement |
| DIVIDEND | EXCLUDE | Out of scope |
| CASH WITHDRAWAL | TIER 2 — ask | Default exclude |

## Section 4 — Worked examples

### Example 1 — Manufacturer domestic sale at 10% Sales Tax

**Input line:** `05.04.2026 ; FURNITURE RETAILER SDN BHD ; CREDIT ; Invoice MY-041 ; RM 88,000`

**Reasoning:** Registered manufacturer sells taxable goods. Sales Tax at 10%. Net = RM 80,000, Sales Tax = RM 8,000. SST-02 Part A1/A2.

**Example 1 transaction table**

| Date | Counterparty | Gross | Net | Tax | Rate | SST-02 field | Default? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 05.04.2026 | FURNITURE RETAILER | +88,000 | +80,000 | 8,000 | 10% | A1/A2 | N | — |

### Example 2 — Professional service at 8% Service Tax

**Input line:** `10.04.2026 ; CONSULTANCY FEES ; CREDIT ; Advisory April ; RM 32,400`

**Reasoning:** Prescribed taxable service (Group C). Service Tax at 8%. Net = RM 30,000, Tax = RM 2,400. SST-02 Part B1/B2.

**Example 2 transaction table**

| Date | Counterparty | Gross | Net | Tax | Rate | SST-02 field | Default? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 10.04.2026 | CLIENT SDN BHD | +32,400 | +30,000 | 2,400 | 8% | B1/B2 | N | — |

### Example 3 — Restaurant at retained 6% Service Tax

**Input line:** `15.04.2026 ; FOOD SALES ; CREDIT ; F&B revenue ; RM 5,300`

**Reasoning:** F&B retains 6% rate. Net = RM 5,000, Tax = RM 300. SST-02 Part B3/B4.

**Example 3 transaction table**

| Date | Counterparty | Gross | Net | Tax | Rate | SST-02 field | Default? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 15.04.2026 | F&B REVENUE | +5,300 | +5,000 | 300 | 6% | B3/B4 | N | — |

### Example 4 — Imported cloud service (self-account)

**Input line:** `18.04.2026 ; AWS ; DEBIT ; Cloud hosting ; RM -2,350`

**Reasoning:** Imported service. Self-account 8% via SST-02A. Service Tax = RM 188. This is a COST — no credit.

**Example 4 transaction table**

| Date | Counterparty | Gross | Net | Tax | Rate | SST-02 field | Default? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 18.04.2026 | AWS | -2,350 | -2,350 | 188 | 8% | SST-02A | N | — |

### Example 5 — Export, exempt from Sales Tax

**Input line:** `22.04.2026 ; AUSTRALIAN BUYER PTY ; CREDIT ; Exported textiles ; RM 500,000`

**Reasoning:** Export of manufactured goods. Exempt from Sales Tax. SST-02 Part A7.

**Example 5 transaction table**

| Date | Counterparty | Gross | Net | Tax | Rate | SST-02 field | Default? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 22.04.2026 | AUSTRALIAN BUYER | +500,000 | +500,000 | 0 | Exempt | A7 | N | — |

### Example 6 — Bank charges, excluded

**Input line:** `30.04.2026 ; MAYBANK ; DEBIT ; Service charge ; RM -30`

**Example 6 transaction table**

| Date | Counterparty | Gross | Net | Tax | Rate | SST-02 field | Default? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 30.04.2026 | MAYBANK | -30 | — | — | — | — | N | "Exempt financial service" |

## Section 5 — Tier 1 classification rules (compressed)

### 5.1 Sales Tax — manufacturers only

- **Sales Tax manufacturers only** — Only registered manufacturers of taxable goods are liable. Retailers/wholesalers do NOT charge Sales Tax. 10% standard, 5% specific goods.

### 5.2 Service Tax — prescribed services only

- **Service Tax prescribed services only** — Only services in First Schedule of Service Tax Regulations 2018. 8% standard (from 1 March 2024). 6% retained for F&B, telecoms, parking, logistics.

### 5.3 NO INPUT TAX CREDIT

- **No input tax credit** — SST is single-stage. No offset mechanism. Manufacturers use Schedule A/B/C exemptions on raw materials (applied at purchase, not as credit).

### 5.4 Imported services — self-account (Section 26)

- **Imported services self-account** — All persons in Malaysia receiving prescribed taxable services from non-resident: self-account at 8% (or 6% retained rate) via SST-02A. Pay within 30 days. This is a COST.  _(Section 26)_

### 5.5 Exports — exempt

- **Exports exempt** — Manufactured goods exported: exempt from Sales Tax. Report in SST-02 Part A7.

### 5.6 Registration thresholds

- **Sales Tax registration threshold** — RM 500,000 MYR (manufacturer turnover)
- **Service Tax registration threshold — general** — RM 500,000 MYR
- **Service Tax registration threshold — F&B** — RM 1,500,000 MYR

### 5.7 E-invoicing

- **E-invoicing phases** — Phase 1 (Aug 2024): > RM 100M. Phase 2 (Jan 2025): > RM 25M. Phase 3 (Jul 2025): all. IRBM MyInvois system.

### 5.8 Credit notes

- **Credit notes treatment** — Excess SST from returned goods/reduced consideration: deduct from next SST-02 Part C4. Within 6 years.

### 5.9 Bad debt relief

- **Bad debt relief** — SST portion of debt outstanding > 6 months and written off: claim via Part C3. If recovered, repay.

## Section 6 — Tier 2 catalogue (compressed)

### 6.1 Manufacturing vs service boundary

- **Manufacturing vs service boundary** — Pattern: subcontractor processing. Default: flag. Question: "Is the activity manufacturing (Sales Tax) or a service (Service Tax)?"

### 6.2 Mixed supply (goods + services)

- **Mixed supply** — Default: flag. Question: "Can goods and services be separately invoiced?"

### 6.3 SaaS billing entities

- **SaaS billing entities** — Default: self-account 8%. Question: "Check invoice entity — Malaysian or foreign?"

### 6.4 Schedule A/B exemption status

- **Schedule A/B exemption status** — Default: no exemption. Question: "Do you have RMCD approval for Schedule A/B input exemption?"

### 6.5 Service scope expansion (July 2025)

- **Service scope expansion** — Default: check if newly prescribed. Question: "Confirm service type against expanded First Schedule."

### 6.6 E-invoicing compliance

- **E-invoicing compliance** — Default: required. Question: "What is annual turnover? Which phase applies?"

## Section 7 — Excel working paper template

Per vat-workflow-base Section 3, with Malaysia fields: Part A (Sales Tax 10%, 5%, specific, exempt), Part B (Service Tax 8%, 6%), Part C (totals, adjustments, net payable).

## Section 8 — Bank statement reading guide

Maybank, CIMB, Public Bank exports CSV/PDF with DD/MM/YYYY. MYR primary. Internal transfers between Maybank/CIMB/Public Bank: exclude. EPF/SOCSO/EIS deductions: exclude (payroll). Grab/Shopee settlements: separate platform fee from underlying revenue.

## Section 9 — Onboarding fallback

### 9.1 Registration type — "Are you registered for Sales Tax, Service Tax, or both?"

### 9.2 SST registration numbers — "Provide Sales Tax and/or Service Tax registration numbers."

### 9.3 Manufacturer status — "Are you a manufacturer of taxable goods?"

### 9.4 Prescribed services — "Which services do you provide from the First Schedule?"

### 9.5 Schedule A/B approval — "Do you hold RMCD exemption approvals?"

### 9.6 Filing period — Bimonthly. "Which period?"

### 9.7 E-invoicing phase — "What is your annual turnover?"

## Section 10 — Reference material

### Sources

1. Sales Tax Act 2018 (Act 806). 2. Service Tax Act 2018 (Act 807). 3. Sales Tax Regulations 2018. 4. Service Tax Regulations 2018 (and 2025 amendment). 5. RMCD MySST portal. 6. IRBM e-Invoice Guidelines v4.1.

### Known gaps

1. Free Zone/LMW refused. 2. Petroleum specific rates refused. 3. Supplier library covers major banks and utilities only. 4. Service scope expansion (July 2025) partially mapped.

### Change log

- v2.0 (April 2026): Full rewrite to Malta v2.0 ten-section structure. Critical "no input credit" distinction emphasized throughout.

## Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. All outputs must be reviewed by a qualified professional before filing.

The most up-to-date version is maintained at [openaccountants.com](https://openaccountants.com).

## Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.