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Malaysia Sales and Service Tax goes live

  • Aug 31, 2018 | Richard Asquith

Malaysia Sales and Service Tax goes live

Malaysia has now passed (‘gazetted’) its implementing legislation for the new Sales and Service Tax. It becomes effective today, 1 September 2018.

Goods produced locally or imported are now taxed at a standard rate of 10%. A range of goods are subject to a reduced rate of 5%, including basic foodstuffs; petroleum oils; construction materials; IT, telecommunications and printing hardware and materials; and timepieces. Oil and petroleum are subject to quantity-based rates.

The Service Tax rate is 6%.

SST replaces GST

The new Malaysian government has introduced SST to replace the 6% GST, which was suspended on 1 June 2018.  SST has a much narrower tax base.


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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara