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Malaysia Reintroduces Sales and Service Tax (SST) Effective September 1, 2018

edited Dec 23, 2019 11:43PM in Accounting / ERP

The Malaysian government will reintroduce Sales and Service Tax (SST) starting September 1, 2018 replacing the Goods and Services Tax Act 2014. Sales and Service Tax (SST) is comprised of two legislations:Sales Tax Bill 2018 and Service Tax Bill 2018. As compared to the GST tax system, the range of taxable items and exemptions is lesser in SST. Sales Tax is a single stage tax imposed on taxable goods manufactured and imported in Malaysia. Companies (manufacturer or sub-contractor) that exceed the sales threshold of RM500,000 a year are liable to be registered under the Sales Tax Act 2018. Taxable goods should be charged at various rates of 5% and 10% based on the group of taxable goods listed in the provision. For the List of Goods Exempted from Sales Tax, refer to this

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