What is the current SST rate in Malaysia?

Service Tax was raised to 8% from 1 March 2024 for most taxable services (consultancy, IT, advertising, professional fees, etc.). Some categories remain at 6% — food & beverage, telecommunications, parking, and a few others. Sales Tax is 5% or 10% on taxable goods, unchanged.

Do I need to register for SST as a small business?

Only if your annual taxable turnover exceeds the threshold for your category. For most service providers it's RM500,000/year. F&B is RM1.5M, accommodation RM500K, others vary. Below the threshold, registration is optional and most SMBs skip it because charging SST adds complexity without benefit if you're not required to.

What's the SST registration number format?

Service Tax numbers start with 'W' (e.g., W10-2407-31000123). Sales Tax numbers start with 'B' (e.g., B16-1234-56789012). The number includes a category code and a unique sequence — total length is 16 characters with hyphens. You get yours from RMCD via the MySST portal after registering.

Can I charge SST on an invoice if I'm not registered?

No, and it's illegal. SST can only be collected by registered businesses. If you charge SST without being registered, you're collecting tax for the government with no authority to do so. Customers can report you to RMCD. If you reach the registration threshold, register first, then start charging.

What's the difference between a tax invoice and a regular invoice?

A tax invoice is issued by an SST-registered business and includes 'Tax Invoice' as a header, the SST registration number, and a separate SST line. A regular invoice (from a non-registered business) has none of these. Both are legally valid for proof of payment, but only tax invoices let registered buyers claim input tax credits.

How long do I need to keep SST invoice records?

7 years from the date of issue. RMCD can audit any period within those 7 years. Keep both digital and printed copies if possible. Invoice DIY stores all your invoice history in your account, so as long as you have an account, your records are kept indefinitely.

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Malaysia tax compliance

SST Invoice Format Malaysia — Charging the 8% Service Tax Correctly

Malaysia's Sales and Service Tax (SST) rose to 8% in March 2024 for most service categories. If you're SST-registered, every invoice you issue must show the tax in a specific format — get it wrong and Royal Malaysian Customs (RMCD) can flag it during an audit. This guide covers exactly what an SST tax invoice must contain, the SST registration number format, and what changes if you're not registered.

Create an SST-ready invoice →Skip to the format spec

What is SST

What is SST and who must charge it?

SST is Malaysia's two-part consumption tax that replaced GST in 2018: • Sales Tax — 5% or 10% on taxable goods, charged at the manufacturer / importer level. • Service Tax — 6% historically, raised to 8% on 1 March 2024 for most taxable services (consultancy, IT, advertising, professional fees). Some categories remain at 6% (food & beverage, telecommunications, parking). You must register for SST if your annual taxable turnover exceeds RM500,000 for most service providers (some categories have lower thresholds — F&B is RM1.5M, accommodation RM500K, etc.). Once registered, you get an SST registration number and must charge the tax on every applicable invoice. Below the threshold, you cannot charge SST. Doing so is illegal — clients can report you to RMCD, and the tax money is technically yours, not the government's, until you remit it (which you can't without being registered).

Number format

SST registration number format

Once you register, RMCD issues you an SST number. The format varies slightly by tax type:

Service Tax number: Starts with 'W' (e.g., W10-2407-31000123). 'W' indicates service tax. Includes the service category code (10 = professional services, others vary) and a unique 12-digit sequence.
Sales Tax number: Starts with 'B' (e.g., B16-1234-56789012). 'B' indicates sales tax (goods). Similar 16-character format.
Where it appears: Print the SST number on every tax invoice, prominently near your company details. It's how the buyer claims back input tax (if they're also SST-registered) and how RMCD traces transactions during audits.
Verify before quoting: If a customer asks for your SST number, give the full number. If you don't have one, say so clearly — don't make one up. Buyers can verify your registration through the RMCD MySST portal.

Anatomy of a Service Tax number

W-10-2407-31000123= W10-2407-31000123

Tax type prefix

'W' for Service Tax. 'B' for Sales Tax.

Category code

Service category (10 = professional services; varies by industry).

2407

Registration period

Year + month of initial registration (YYMM format).

31000123

Unique sequence

8-digit unique identifier assigned by RMCD.

Required fields

What an SST tax invoice must show

RMCD specifies the minimum fields a tax invoice must contain. Missing any of these can invalidate the invoice for input-tax-claim purposes:

Words 'Tax Invoice': Literally these two words, in a prominent place on the document. A 'regular' invoice (without SST) does NOT use the words 'Tax Invoice' — it's reserved for SST-registered transactions.
Sequential invoice number: Each tax invoice needs a unique sequential number. Same numbering rules as regular invoices — never reuse, never skip. RMCD audits flag gaps.
Issue date: The date the tax invoice is issued — used to determine the SST taxable period (typically 2-monthly for most registered businesses).
Supplier name, address, SST number: Your full registered business name (must match SSM and MySST records), business address, and SST registration number. Stamp / logo is optional but common.
Buyer name and address: Buyer's company name and address. If the buyer is also SST-registered and wants to claim input tax, their SST number too.
Item description, quantity, unit price: Each taxable item / service: description, qty (or hours / day rate / etc.), unit price BEFORE tax. The tax breakdown happens at the totals row.
Subtotal, SST amount, total: Subtotal (sum of line totals before tax), SST 8% (or 6%, depending on service category) shown as its own line, and grand total including tax. The SST amount must equal subtotal × tax rate to the rounding rule (RMCD allows rounding to the nearest sen).
Currency: Must be MYR for domestic transactions. Foreign-currency invoices need an exchange rate disclosure for SST reporting purposes.

Step-by-step

Step-by-step: adding SST to your invoice

Confirm your SST status

Before charging anything, confirm you're actually SST-registered and have an active number. If your registration was cancelled (or never approved), don't add SST lines.

Mark the invoice as a Tax Invoice

Add the words 'Tax Invoice' to the document header. Some templates use 'Invoice / Tax Invoice' — that's fine. The key is the words must appear.

Add your SST registration number

Print it under or near your company details. 'SST Reg No: W10-2407-31000123' is the standard format.

Calculate the SST line

Subtotal × 8% (or 6% for restricted categories). Round to 2 decimal places. Example: RM 1,500.00 subtotal × 8% = RM 120.00. Grand total = RM 1,620.00.

Show SST as its own row

In the totals section: Subtotal RM 1,500.00 / SST (8%) RM 120.00 / Total RM 1,620.00. Don't bundle SST into the unit price — it must be visible separately.

Issue and keep records

Issue the tax invoice and keep a copy for 7 years (Malaysia's record retention requirement). RMCD can audit any period within those 7 years.

Side-by-side

Tax invoice vs regular invoice

If you're NOT SST-registered, you issue a regular invoice. Same general idea, key differences below. Some SMBs incorrectly label regular invoices as 'Tax Invoice' because their template defaults to it — that's misleading. Either remove the word 'Tax' or actually register for SST.

	Tax Invoice (SST-registered)	Regular Invoice (not SST-registered)
Header text	Must show 'Tax Invoice'	Just 'Invoice' (no 'Tax' word)
SST registration number	Required (W… or B…)	Not allowed — you don't have one
Tax line on invoice	Separate SST 8% (or 6%) line	No tax line at all
Who can issue	Only SST-registered businesses	Anyone — freelancers, sole proprietors, non-registered SMBs
Buyer can claim input tax?	Yes (if buyer is also SST-registered)	No — not a valid SST input tax document
RMCD record retention	7 years (mandatory)	Recommended 7 years for LHDN income tax purposes
Legal validity for payment proof	Yes	Yes

Header text

Tax Invoice (SST-registered)

Must show 'Tax Invoice'