Malaysia SST Calculator 2026
10% standard, with reduced rates of 8% and 6% on specified categories.
Figures last reviewed
Malaysia SST at a glance
- Standard SST rate
- 10% — ranked 28 of 36 covered here
- Reduced rates
- 8%, 6% — applies to specified categories only
- Compared with the average
- -6.99 pts — average across the 36 countries covered is 16.99%
- Registration threshold
- 500,000 MYR — annual turnover above which registration becomes compulsory
- Rates verified
- 17 August 2026 — checked against the issuing tax authority
How SST works in Malaysia
SST, not a VAT. Sales tax 5% or 10% (0% on essentials); service tax 8% general, 6% for F&B, parking, logistics and telecoms.
Calculating Malaysia SST
Start from the price excluding tax
SST is charged on the net price. At 10%, a net MYR 100 becomes MYR 110.00 once SST of MYR 10.00 is added.
To work backwards, divide — never subtract
Removing SST from a gross figure means dividing by 1.1000, not subtracting 10%. Subtracting the percentage from the gross amount understates the net price, and the error grows with the rate.
Check which rate actually applies
Malaysia applies reduced rates of 8% and 6% to specified categories. SST, not a VAT. Sales tax 5% or 10% (0% on essentials); service tax 8% general, 6% for F&B, parking, logistics and telecoms. Using the standard rate on a reduced-rate supply overstates the tax.
Registration is threshold-based
Businesses with taxable turnover above MYR 500,000 a year must register and charge SST. Below it, registration is usually voluntary — worth doing when your customers can reclaim the tax.
Worked example at 10%
Adding and removing SST at 10%
| Component | Adding to a net price | Removing from a gross price |
|---|---|---|
| Starting amount | MYR 100.00 | MYR 1,000.00 |
| SST at 10% | (MYR 10.00) | (MYR 90.91) |
| Result | MYR 110.00 | MYR 909.09 |
So a net price of MYR 100.00 in Malaysia costs MYR 110.00 once SST is added. Working the other way, a gross price of MYR 1,000.00 contains MYR 90.91 of SST, leaving MYR 909.09 net.
Computed from the same 10% rate the calculator applies, so this table and the calculator cannot disagree.
Countries with a similar rate
Malaysia SST questions
What is the SST rate in Malaysia?
The standard rate is 10%. Reduced rates of 8% and 6% apply to specified categories. That places Malaysia 28 of 36 of the countries covered here, 6.99 points below the 16.99% average.
How do I remove SST from a price in Malaysia?
Divide the gross amount by 1.1000. At 10%, a gross MYR 1,000 works back to MYR 909.09 net with MYR 90.91 of SST. Subtracting 10% from the gross figure is the common mistake and gives the wrong answer.
When do I have to register for SST in Malaysia?
Once taxable turnover passes MYR 500,000 a year. Registering voluntarily below the threshold lets you reclaim input tax, which usually pays off if you sell mainly to other registered businesses and costs you if you sell to consumers.
Is Malaysia's SST the same thing as VAT?
Not exactly. SST, not a VAT. Sales tax 5% or 10% (0% on essentials); service tax 8% general, 6% for F&B, parking, logistics and telecoms. The calculator applies the headline rate, which is what most transactions use, but the underlying regime differs from a European-style VAT.
Which countries have higher and lower rates than Malaysia?
Of the countries covered here, Finland has the highest standard rate at 25.5% and United Arab Emirates the lowest at 5%. Malaysia sits at 10%.