SST
Category: tax
Sales and Services Tax — Malaysia's consumption tax system.
Sales and Services Tax (SST) is Malaysia's consumption tax system, reintroduced in September 2018 to replace GST. SST consists of a Sales Tax (5%-10% on goods) and a Services Tax (8% on taxable services). For cross-border e-commerce, Malaysia applies a Low Value Goods (LVG) tax of 10% on imported goods valued at MYR 500 or less sold via online platforms.
Examples
- • An overseas seller shipping MYR 300 electronics to Malaysian consumers through an online marketplace must register and collect 10% LVG tax.
- • Shopee Malaysia acts as the collecting agent for LVG tax on behalf of overseas sellers for qualifying low-value goods.
- • A seller with goods stored in a Malaysian warehouse must register for Sales Tax if annual taxable sales exceed MYR 500,000.