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.
Hear from Kamlesh Mahtani, Head of Startups and Small Businesses, Sage Asia as he shares on MalayMail about what you should know about SST.
|Tax Revenue Estimate
|Transparency & Regulation
|Tax Rate (%)
||6 - 10%
|Business Input Tax Credit
|Business Export Tax Relief
|Business Implementation Cost