Malaysia VAT / Sales Tax

Detailed vat / sales tax rates and rules for Malaysia in 2026.

VAT / Sales TaxMYR

Malaysia replaced GST with a Sales and Services Tax (SST) in September 2018. The SST has two components: a sales tax on manufactured and imported goods at 5-10% (most at 10%), and a services tax at 6-8% on prescribed taxable services. The services tax rate was increased from 6% to 8% for most services from March 2024. Essential goods, exported goods, and many basic services are exempt. The SST is a single-stage tax, unlike the multi-stage GST/VAT.

Standard Rate

Registration Threshold

RM 500,000 annual turnover for sales tax; RM 500,000 for services tax (RM 1.5 million for food & beverage operators)

Reduced Rates

6% — Services tax on taxable services including food & beverages, telecommunications, professional services, and digital services10% — Sales tax on certain goods (standard SST rate)5% — Sales tax on specific goods including certain food items and building materials

How Malaysia VAT / Sales Tax compares

Malaysia’s standard VAT / sales tax rate of 8% is the 163rd highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and Asia’s regional average of 9.6%.