Malaysia SST Return Skill (SST-02) v2.0

Section 1 — Quick reference

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

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

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Section 2 — Required inputs and refusal catalogue

Required 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."

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Section 3 — Supplier pattern library

3.1 Malaysian banks (fees — cost, no credit)

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)

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

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

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

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

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

3.7 Professional services

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

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

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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.

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.

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.

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.

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.

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

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

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Section 5 — Tier 1 classification rules (compressed)

5.1 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

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

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)

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.

5.5 Exports — exempt

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

5.6 Registration thresholds

Sales Tax: RM 500,000 manufacturer turnover. Service Tax: RM 500,000 general; RM 1,500,000 F&B.

5.7 E-invoicing

Phase 1 (Aug 2024): > RM 100M. Phase 2 (Jan 2025): > RM 25M. Phase 3 (Jul 2025): all. IRBM MyInvois system.

5.8 Credit notes

Excess SST from returned goods/reduced consideration: deduct from next SST-02 Part C4. Within 6 years.

5.9 Bad debt relief

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

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Section 6 — Tier 2 catalogue (compressed)

6.1 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)

Default: flag. Question: "Can goods and services be separately invoiced?"

6.3 SaaS billing entities

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

6.4 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)

Default: check if newly prescribed. Question: "Confirm service type against expanded First Schedule."

6.6 E-invoicing compliance

Default: required. Question: "What is annual turnover? Which phase applies?"

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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).

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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.

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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?"

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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.

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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.

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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. Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.