Quick answer: A manufacturer of taxable goods must register for sales tax if its sales value exceeds RM500,000 in 12 months. A taxable service provider must register for service tax if its taxable services exceed RM500,000 in 12 months, or RM1.5 million for food and beverage operators. Some services have no threshold. Customs measures turnover using a historical method or a future method, and registration is through the MySST portal.
- Sales tax: manufacturers above RM500,000 in 12 months.
- Service tax: RM500,000 for most groups, RM1.5 million for food and beverage.
- Credit and charge card providers and forwarding agents have no threshold.
- Turnover is tested by a historical or future 12-month method.
- Service tax is 8% from 1 March 2024, with 6% for food and beverage, parking, logistics and telecommunications.
Thresholds
| Tax | Who | Threshold (12 months) |
|---|---|---|
| Sales tax | Manufacturers of taxable goods and sub-contract manufacturers | RM500,000 |
| Service tax | Most taxable service groups, including accommodation, parking, logistics and insurance | RM500,000 |
| Service tax | Food and beverage operators | RM1,500,000 |
| Service tax | Credit or charge card providers and customs agents | No threshold |
How Turnover Is Measured
| Method | Meaning |
|---|---|
| Historical | The month plus the 11 preceding months |
| Future | The month plus the 11 following months |
Service Tax Rates
| Period | Rate |
|---|---|
| 1 September 2018 to 29 February 2024 | 6% |
| From 1 March 2024 | 8%, except food and beverage, parking, logistics and telecommunications, which stay at 6% |
| Credit or charge cards | RM25 per principal or supplementary card, yearly |
Voluntary Registration and Cessation
A manufacturer below the threshold may register voluntarily for sales tax, except those exempt from registration. Service tax voluntary registration is by application, subject to conditions set by the Director General. A person who stops being liable to register submits a final return within 30 days of cessation.
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What the Source Does Not State
The MySST registration page reviewed does not state a registration deadline or a penalty for failing to register. It also does not list sales tax rates. Check the SST legislation, or call the Customs Call Centre on 1-300-888-500, before you rely on a figure not shown here.
Mistakes
Using the financial year instead of a 12-month test
The thresholds are measured over 12 months.
Assuming one threshold fits every service
Food and beverage is RM1.5 million, and some services have none.
Applying 8% to every service
Food and beverage, parking, logistics and telecommunications remain at 6%.
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Frequently Asked Questions
Quick answers.
Who must register for sales tax?
Manufacturers of taxable goods whose sales value exceeds RM500,000 in 12 months.
Who must register for service tax?
Providers of taxable services above the threshold, which is RM500,000 for most groups.
What is the threshold for food and beverage?
RM1,500,000.
Which services have no threshold?
Credit or charge card providers and customs agents.
What is the historical method?
The month plus the 11 preceding months.
What is the future method?
The month plus the 11 following months.
Can I register voluntarily?
Manufacturers below the threshold can for sales tax, except exempt activities. Service tax is by application.
What is the current service tax rate?
8% from 1 March 2024, with 6% for food and beverage, parking, logistics and telecommunications.
Where do I register?
Through the MySST portal links on Customs' registration page.
What if I stop being liable?
A final return is due within 30 days of cessation.
What is the penalty for not registering?
The Customs page reviewed does not state one. Check the SST legislation.
Can you check whether we must register?
Yes. We review your turnover and services against the thresholds.
Sources
Official sources
- Royal Malaysian Customs, MySST: Registering a business
- Royal Malaysian Customs, MySST: Filing tax returns
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with LHDN, the Royal Malaysian Customs Department and SSM, or with us, before you act. Checked November 2026.
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