SST Calculator Malaysia

RM
Sales Tax Amount
₹
Net Sales Value
₹
Total Amount
₹

What is SST?

SST stands for Sales and Service Tax. It's the major consumption tax levied on goods and services traded in Malaysia.

It comprises two separate taxes:

  1. Service Tax: A tax charged and levied on taxable services provided by any taxable person in Malaysia during business.
  2. Sales Tax: A single-stage tax levied on imported and locally manufactured goods, either at the time of importation or when the goods are sold or otherwise disposed of by the manufacturer.

SST Calculation Formula

The SST calculation involves determining the taxable value and rate and then applying the corresponding tax rate to the taxable value of goods or services.
If it's Sales Tax, the taxable value of goods will be multiplied by the sales tax rate (5% or 10%)
If it's a Service Tax, the value of the taxable service will be multiplied by the service tax rate (6%)
Sales Tax /Service tax = Taxable Value × Applicable Tax Rate

SST Calculation Example

Let's say a company provides consulting services to clients with a total service value of RM 20,000. The applicable Service Tax rate for consulting services is 6%.

Using the formula for SST calculation:

Service Tax=Value of Taxable Service × Service Tax Rate

Service Tax=RM 20,000×6%

Service tax =RM 1200

How to Use the SST Calculator?

  1. Select the Type of Tax to Calculate: Choose between Sales Tax or Service Tax from the dropdown menu.
  2. Choose the Tax Rate: Select the appropriate tax rate based on the product:
    • For Service Tax, the rate could be 8% or 6% depending on the nature of service.
    • For Sales Tax, it could be either 5% or 10%, depending on the nature of the goods
  3. Choose the Amount Type: Decide whether the amount you're entering is:
    • Inclusive of SST: If you're entering the final amount with taxes and want to know the total tax levied and the value before tax.
    • Exclusive of SST: If you want to calculate tax on the value of the goods, see the total amount with taxes and the total tax to be levied.
  1. Enter the Amount: Input the amount in Malaysian Ringgit (RM) 
  1. Review the Results: After entering the amount, the following fields will be automatically populated:
    • Amount: This field will display the tax applicable to the net sales value.
    • Net Sales Value: This field will show the net sale value.
    • Total Amount: This field will display the total amount inclusive of tax.

Benefits of using the Malaysia SST calculator

Benefits of using the Malaysia SST calculator include:

  • Facilitates calculations from both amounts inclusive of and exclusive of SST.
  • Ensures precise tax calculations, minimizing errors.
  • Streamlines the process, saving time for taxpayers and businesses.

Frequently Asked Questions

How is SST calculated in Malaysia?

SST in Malaysia is calculated based on taxable services provided or the sale of goods, with service tax due when payment is received and sales tax levied at the point of importation or sale.

How do I use an SST Calculator?

To use an SST Calculator, select the type of tax, choose the tax rate, specify the amount type, enter the amount, and review the results.

What is the SST rate in Malaysia?

There are four SST rates in Malaysia, with service tax at 8% or 6% and sales tax at 5% or 10% depending on the nature of the services and goods.

Who is required to register for SST in Malaysia?

For sales tax registration, businesses are required to register if their total sales value surpasses RM 500,000 over a 12-month period, or if they are involved in manufacturing taxable goods. 

Meanwhile, for service tax registration, businesses must register if the total value of taxable services provided over 12 months exceeds RM 500,000, except for operators of restaurants who must register if their sales exceed RM 1,500,000. This registration obligation applies to businesses providing taxable services across various sectors.

Is it better to use an SST calculator or calculate SST manually?

Using an SST calculator for accuracy and efficiency in calculating SST is generally better.

How do I know if a product or service is subject to SST?

To determine if a product or service is subject to SST, check if it falls under the taxable goods or services categories or under the exemption rules.

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