Building A New Malaysia | The Reintroduction of The Sales and Services Tax (SST)

New Policies |
The Reintroduction of The Sales and Services Tax (SST) | The Facts on SST

Posted on September 01, 2018


When will SST 2.0 be implemented?
The Sales and Services Tax (SST) will be reintroduced starting September 1, 2018.

 
When is SST collected?
Unlike Goods and Services Tax (GST) which a multi-level consumption tax system, SST is a single level tax system. SST is collected by the government at a single point of sale of goods and services from taxable vendors.  Taxes are not collected from the retail consumer.

 
Who is taxed SST?
Unlike GST that taxes the consumer, SST taxes the seller. The seller of goods and providers of services will be taxed SST. Unless the manufacturer/importer absorbs the SST, the paid taxes are usually built into the sale price of goods. SST is still paid by the consumer, but in another form, which is a higher retail price of goods.

Under GST, even though the government collects taxes for purchases at every level of the supply chain, only the end consumer who is actually taxed because the government refunds the registered companies who paid GST on the purchases or expenses incurred for their business activities (known as input tax credit). 


Are all businesses subjected to SST?
No, only businesses that manufacture/import SST taxable goods have to pay. The government has set a threshold based on the annual revenue of the companies to determine if the company that sells taxable goods and services need to register and pay SST.  

For example, restaurants and eateries are taxed 6% service tax, but the smaller restaurants earning less than RM1,000,000 in revenue a year are exempted from paying. Similarly, smaller manufacturers and sub-manufacturers that sells less than RM500,000 a year are not subjected to SST.


What is the SST rate?
SST is a multiple tax 
rate system.  The government has set services to be taxed at a flat rate of 6% and goods will be taxed between 5% and 10%.


Do consumers have to pay more?
It depends.  If the goods are taxed higher than the previous 6% GST, consumers will have to pay more for goods because the paid taxes will be included in the retail prices of goods. 

 

Follow news on SST @ aNewMalaysia in the News >
 

New Policies |
The Reintroduction of The Sales and Services Tax (SST) | Important Contacts

Posted on September 01, 2018

Consumer Complaints on SST Profiteering 

WhatsApp Domestic Trade Ministry 019-2794317

The Royal Malaysian Customs Department (JKDM)

Address
Headquarters
Jabatan Kastam Diraja Malaysia, 
Kompleks Kementerian Kewangan No 3,
Persiaran Perdana, Presint 2, 62596, Putrajaya.

 

Telephone

  1. Customs Call Centre Hotline:1300 888 500

  2. Headquarters: 03 8882 2100/2300

  3. SST Crisis Centre: 03-88822289/2303 /2492/2617

  4. Helpdesk Hotline on SST matters

  • 03-83237499

  • 03-83237522

 

Email: ccc@customs.gov.my.

 

Websites

New Policies |
The Reintroduction of The Sales and Services Tax (SST) | Recent News

 

October 

  • MoF: Tax exemption for locally assembled buses

  • |Read more >|Malaymail

  • Finance ministry extends SST information counter service|Read more >|SunDaily

  • Local oil palm fruits not subjected to SST: Customs DG|Read more >|SunDaily

  • Prices of goods should not be linked to SST: Customs DG|Read more >|SunDaily

  • 579 complaints on profiteering related to SST received since the implementation |Read more >|SunDaily

 

September 

  • SST on pneumatic tyres, electric motorcycles reduced to five per cent|Read more >|NST

  • Information counters on SST will open beginning Oct 2|Read more >|SunDaily

  • Strict action will be taken against telcos charging SST on prepaid cards - Gobind |Read more >|NST

  • Construction costs expected to go down by 5% due to SST exemption|Read more >|TheStar​​​

  • Cigarettes sold in restaurants, salted fish, some seafood now SST-exempt says Guan Eng|Read more >|TheStar​​

  • Cost of living shows little sign of easing, weeks after SST kicks in|Read more >|Malaymail

  • KPDNHEP gets 2,000 complaints daily after SST|Read more >|SunDaily

  • Reduce house prices or SST exemption will be revised: LGE|Read more >|SunDaily

  • 10 per cent 'quite high', Lim urges restaurant operators to reduce the service charge|Read more >|NST

  • Companies subject to tax won't be able to evade SST: Guan Eng|Read more >|SunDaily

  • Guan Eng: Govt to announce SST goods list review before 2019 Budget |Read more >|Malaymail

  • Rising prices not entirely due to SST says Guan Eng|Read more >|Malaymail

  • Stern action to be taken to curb profiteering by irresponsible businessmen after SST |Read more >|NST

  • Govt to consider listing items 'inexplicably' exempted from taxes: Finance Minister|Read more >|NST

  • SST on cameras, smartphones reduced from 10% to 5% |Read more >|TheStar

  • 94,786 companies registered for SST so far: Customs Department|Read more >|NST

  • No SST on 75pc of shops and restaurants says minister|Read more >|Malaymail

  • Rehda agrees to convince members to lower housing prices|Read more >|SunDaily

  • Perodua, Honda car prices cheaper after SST |Read more >|NST

  • Govt ready to review the list of goods under SST: Saifuddin |Read more >|SunDaily

  • Consumers can now lodge SST-related complaints via Whatsapp |Read more >|SunDaily

  • Lim: Homes should be cheaper with SST exemption on construction services|Read more >|SunDaily

  • F&B operators to enjoy two SST exemptions|Read more >|SunDaily

  • Plastic bags for rice to be exempted from SST|Read more >|SunDaily

  • Finance minister maintains 6pc service tax on mobile postpaid services|Read more >|Malaymail

  • Finance minister: Study on SST exemptions, reductions to be completed by year end|Read more >|Malaymail

  • Customs Dept issues a list of SST officers to assist traders|Read more >|SunDaily

  • Drop 6pc SST on prepaid cards now, Guan Eng tells telcos|Read more >|Malaymail

  • Premium seafood exempted from SST for now |Read more >|NST

  • Shellfish exempted from SST|Read more >|Malaymail

  • Air transport service in Sabah, Sarawak exempted from SST, says Guan Eng|Read more >|BorneoPost

  • Najib: Guan Eng 'not telling truth' about cascading SST |Read more >|NST

  • No SST on dried prawn and fish products |Read more >|NST

  • Traders absorb SST charges |Read more >|SunDaily

  • KPDNHEP will ensure SST implementation runs smoothly |Read more >|SunDaily

  • Finance Minister maintains no SST on mobile prepaid

  • |Read more >|Malaymail

  • Mixed-effect on the first day of SST |Read more >|NST

  • Duty-free islands not subjected to SST, Guan Eng confirms|Read more >|SunDaily

  • All smooth sailing as SST commences|Read more >|TheStar

  • Council to check on the impact of SST|Read more >|TheStar

Sep 01

  • Review, amendment of goods under SST by year-end, says Guan Eng|Read more >|Malaymail

  • Communications Ministry notes SST issue for prepaid reloads, says Gobind|Read more >|Malaymail

  • SST going smooth, complaints only on the price of foods |Read more >|SunDaily

  • Agriculture Ministry instructs Fama to monitor the price of food after SST implementation|Read more >|Malaymail

  • SST to be implemented gradually to avoid confusion says Chong |Read more >|NST

  • Register soon, or pay 6pc service tax from own pocket, Guan Eng tells businesses|Read more >|Malaymail

  • KPDNHEP completes action plan on SST implementation |Read more >|NST

  • SST effect on prices likely to be felt only after a week|Read more >|TheStar

  • Traders, business operators claim yet to be informed on the new price of goods after SST|Read more >|Malaymai

  • BAT: Tax increase on tobacco could lead to increase in prices|Read more >|TheStar

  • SST: Not much difference for the service sector|Read more >|NST

Aug 30 
  • Overall pricing for telco services likely to be slightly higher|Read more >|NST

  • RM25 service tax to be charged for new credit cards|Read more >|Malaymail

  • Guess what will still be taxed under SST in Malaysia’s duty-free islands?|Read more >|Malaymail

  • Customs Dept expects a smooth implementation of SST 2.0 on Sept 1|Read more >|NST

  • SST: Cigarette prices for all JTI Malaysia brands to increase|Read more >|NST

  • Slight hike in car prices after SST rollout, Sime Darby admits|Read more >|Malaymail

  • SST will not lead to significant price changes|Read more >|NST

  • Domestic trade ministry says bracing for complaints once SST implemented|Read more >|Malaymail

  • GST records will help identify tax evaders, says the finance minister|Read more >|Malaymail

  • Almost 80,000 businesses have registered for SST, finance minister says|Read more >|Malaymail

  • SST: Traders warned not to raise prices of good |Read more >|NST

  • Govt may zero-rate some items under SST in future, Guan Eng says|Read more >|Malaymail

  • Guan Eng admits ‘rush’ in SST rollout, says to finance govt operations|Read more >|Malaymail

  • Total of 5,445 consumer goods to be exempted from SST|Read more >|TheStar

  • No more Pink Tax for menstrual products|Read more >|TheStar

  • SST only imposed on eateries with turnover above RM1.5mil|Read more >|TheStar

Aug 28 
  • SST gets Agong's nod for Sept 1 kickoff|Read more >|NST

  • Govt to organise roadshow explaining benefits of SST|Read more >|SunDaily

  • Traders warned not to announce price hikes before SST list finalised|Read more >|SunDaily

  • RM26 monthly for the average Malaysian|Read more >|TheStar

  • Tax on credit cards set to raise RM255mil for govt coffers|Read more >|TheStar

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