Insights
Find out all you need to know about GST and SST and how it affects your tax processing.

Staying Compliant with Malaysia Tax Legislations

GST to SST Transition


Our Promise to You

At Sage, we aim to equip our customers with the latest information, tools and support they need to stay compliant with the changing tax legislations. With the recent Malaysia parliament changes, we are aware that the upcoming abolishment of Goods and Services Tax (GST) and reinstatement of Sales and Services Tax (SST) will impact you in your tax processing. Rest assured that we will be closely monitoring official announcements and keeping you updated on information you need to know to stay compliant.

Upgrade now to stay compliant with KASTAM GST FAQ dated 30th May

Sage UBS, POS, BSM

  • New tax codes are created (SR-0 and TX-0) to support tax changes!

Sage UBS and POS

  • Change tax codes in bulk with our newly enhanced automated tool!
  • With the same automated tool, you can now amend your selling price in bulk anytime, including deducting 6% GST from GST inclusive prices of your items!

Sage UBS customers with a valid Sage Cover plan# will get the latest product update to stay compliant.

# Note: If you are currently not on valid Sage Cover, do check out other promotional prices.

Renew at a discounted price!

Sales and Services Tax

What is GST and SST?

What is Goods and Services Tax (GST)?

This is a tax on most products and services for domestic consumption at every level in the production process. GST can be claimed as input tax for companies with revenue above RM500k. GST was implemented in April 2015 replacing SST. GST is the most commonly used form of taxation used by 160 / 190 countries globally. GST is also known as Value Added Tax (VAT) in some other countries.

What is Sales and Service Tax (SST)?

SST was originally covered by 2 separate tax laws on a wide variety of goods and services at a single level implemented in 1970s. The Sales Tax Act 1972 is a single-stage tax charged typically at the manufacturer’s level. The Service Tax Act 1975 is a single-stage tax charged at the consumer’s level except at tax free zones. The sales tax was at 10% and service tax was at 6% respectively prior to being replaced by GST in 2015.

Tax GST SST
Tax Revenue Estimate
RM45b
RM20b
Tax Base
Narrow
Broad
Transparency & Regulation
High
Low
Tax Rate(%)
0%*
6 - 10%
Tax Stages
Multi stage
Single stage
Business Input Tax Credit
Yes
No
Business Export Tax Relief
Yes
Partial
Business Implementation Cost
High
Low

*Announced to reduce tax rate from 6% to 0% from Ministry of Finance dated 15th May 2018.

Key Takeaways

compliance

Stay compliant with GST and SST updates

updates

Guidance and updates on GST and SST submission

timely

Timely and accurate submission

Key Dates and Activities

Sage is committed in helping you every step of the way to ensure you make a smooth transition in your tax processing with the abolishment of GST and reintroduction of SST.
16th May 2018 First official announcement of upcoming change in GST
31st May 2018

Sage UBS Version 9.9.3.8, Sage POS and BSM Version 9.9.2.4 released with new tax code is enabled

Currently till 1st Jun 2018 No changes to your daily operations and managing of accounts
1st Jun 2018 Amend tax rate from 6% to 0% in your accounting system
8th Jun 2018

Webinar: GST Change from 6% to 0% (Registration closed)

16th Jul 2018 Government to convene on GST abolishment
23rd Aug 2018 Seminar: Preparing Businesses on new Indirect Tax Landscape
Register Now
24th Aug 2018 Webinar: Preparing Businesses on new Indirect Tax Landscape
Register Now
1st Sep 2018 Implementation of Sales & Services Tax (SST)
30th Sep 2018 Deadline for Sage Cover Renewal Promotion

The above table content is updated as of 7th Jun 2018.

GST and SST Enablement Resources

We know you want as much information as you can get on SST and GST, so we’ve pulled together some resources for your review. We will continue to monitor further official announcements from the relevant Malaysian authorities and update with more information pertaining to GST and SST.
Updated as of 31st May 2018
Step-by-step Guides

To prepare for the 0% GST change, here are some step-by-step product guides to aid you on how you can easily create tax codes after consulting your Accountant/Auditor/Tax Agents.

Step-by-step guides Access Materials here
Sage Business Cloud Accounting
(formerly known as Sage One)

Download
Sage UBS
(Accounting, Inventory & Billing)

Download
Sage POS
Download
Sage BSM
Download
Sage 50
Download
Sage 100 Evolution
Download
Sage 300/300cloud
Download
Industry Resources

Get access to pertinent information on GST updates straight from official websites.

Royal Malaysian Customs Department (RMCD) Official FAQs

Transitional 6% to 0% GST

FAQs (English)

FAQs (Malay)

FAQs (Chinese)

Other Official Announcements from RMCD

Get latest updates from RMCD

Check your Sales and Service Tax status

GST Malaysia

GST Tax Code List

Support

We have compiled a list of frequently asked questions pertaining to Malaysia GST change to address your concerns.

Sage FAQs

Still didn't get the help you require? feel free to reach out to our Sage Partners or drop us an email below.

Sage Business Cloud Enterprise Management (formerly known as Sage X3) Enquiries

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Sage 300/300cloud Enquiries

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Other Product Enquiries

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