Effective 1 July 2025, the Malaysian government has implemented a revised and expanded Sales and Service Tax (SST) structure that will affect businesses across various industries — especially importers, exporters, and service providers.
📌 Official News Sources:
Funding Societies Blog – SST Malaysia Update
Reuters – Malaysia to introduce revised sales tax
🔍 Key Changes to SST Starting July 2025
✅ Expanded Sales Tax Scope
More luxury and non-essential goods will now be subjected to 5%–10% sales tax, including:
-Imported fruits
-High-end seafood (e.g., salmon, king crab)
-Racing bicycles and other premium items
✅ New Services Now Taxable at 8%
Previously exempt services now subject to 8% service tax include:
-Commercial property rentals
-Construction services
-Private healthcare and education
-Financial services
-Beauty & wellness services
✅ Service Tax Rate Increase
The general service tax rate increases from 6% to 8%, except for essential services like F&B, telco, and public healthcare, which remain at 6%.
✅ Transitional Rules Until Dec 2025
-No penalties for late registration or reporting until 31 December 2025, as long as efforts are made to comply.
-Invoices issued before 1 July for services/goods delivered after the date can still use the old rate.
💡 How This Affects Your Business
1. For Importers and Product Owners
If you import or sell regulated items, high-end products, or specialized machinery, you must now review:
-HS code classifications
-Applicable SST rates at import stage
Failure to comply may lead to customs delays, penalties, or higher operating costs.
2. For Service Providers & Consultants
Consultancy fees, equipment rentals, or logistics services may now fall under taxable categories.
Your invoices, accounting system, and service contracts may need urgent updates.
3. For AnsarComp Clients
Many of our clients are involved in import-export and regulatory services. AnsarComp is ready to:
-Assess SST applicability
-Update quotation and invoicing formats
-Guide SMEs through SST readiness and compliance
🤝 How AnsarComp Can Help
At AnsarComp, we assist businesses in regulatory compliance, import permit management, product approvals, and document control. With the new SST framework, we now offer:
✅ SST document audits
✅ Product/service SST classification
✅ System and invoice updates
✅ SST awareness training for SMEs and logistics providers
📞 Contact Us
Not sure if your products or services are now taxable under SST?
👉 Reach out to our team at www.ansarcomp.com.my today for a compliance consultation.