If you are searching for the Malaysia goods and services tax, the short answer is that it no longer exists. Malaysia introduced GST in April 2015 at 6%, then abolished it in September 2018 and went back to the older Sales and Service Tax, or SST. So when a JB hotel bill or a private clinic invoice shows a tax line in 2026, that is SST, not GST. The numbers are different too: sales tax sits at 5% or 10% on goods, and service tax is 6% or 8% on a list of services that got a lot longer on 1 July 2025. Here is what each rate actually applies to, and where it quietly lands on a Singaporean spending ringgit.
Malaysia did have a goods and services tax. It started on 1 April 2015 at a flat 6%, the same broad-based, value-added model Singapore uses. It lasted barely three years. The Pakatan Harapan government won the May 2018 election partly on a promise to scrap it, zero-rated GST from 1 June 2018, and formally replaced it with SST from 1 September 2018.
The political reason was cost of living. GST was charged on almost everything at every stage of the supply chain, so lower-income households felt it on daily spending. SST was sold as narrower and lighter. The trade-off is revenue: GST collected far more, which is why the World Bank and several economists have repeatedly nudged Malaysia to bring it back. As of June 2026 there is no confirmed plan to reinstate GST, so SST is what you deal with.
Singapore took the opposite path. Our GST has climbed to 9% as of 2024 and stays. If you want the home-side picture, see our guide to GST in Singapore and how the offsetting GST Voucher scheme works.
GST and SST are not the same tax at a different rate. They are built differently, and that changes who pays and how often.
GST is a multi-stage value-added tax. It is charged at every step from manufacturer to wholesaler to retailer, with businesses claiming back the GST they paid on inputs, so the net effect lands on the final consumer once. SST is two separate single-stage taxes. Sales tax is charged once, at the point of manufacture or import. Service tax is charged once, when a taxable service is provided. There is no input-tax credit chain, which is simpler for shoppers but can cause tax-on-tax in business supply chains.
| Feature | GST (2015 to 2018) | SST (current) |
|---|---|---|
| Status | Abolished Sep 2018 | In force |
| Type | Multi-stage value-added tax | Two single-stage taxes |
| Headline rate | 6% flat | Sales 5% or 10%; Service 6% or 8% |
| Charged at | Every supply-chain stage | Once, at manufacture/import or service point |
| Input tax credit | Yes, businesses claim back | No credit chain |
| Coverage | Broad, almost all goods and services | Listed goods and listed services only |
Sales tax is the goods side of SST. It is levied once, on the manufacturer or importer, and built into the shelf price by the time you buy. There are two main rates.
The 1 July 2025 revision is the key change. The government pulled a list of previously untaxed, mostly discretionary imports into the net while keeping staples zero-rated. After public feedback, several imported fruits were pulled back out before the start date.
Service tax is the part most travellers actually see, because it appears on hotel, dining and clinic bills. The standard rate was raised from 6% to 8% back in March 2024 for most categories, while a 6% rate was kept for items closer to essentials such as food and beverage, telecommunications and logistics.
The bigger story is scope. From 1 July 2025, Malaysia expanded service tax into six new areas: leasing or rental, construction, financial services, private healthcare, education and beauty. Beauty services were withdrawn at the final stage after cost-of-living concerns. That expansion brought roughly 4,800 additional goods and services into the SST net and is projected to raise around RM3 billion a year in extra revenue.
SST is a business registration regime, not something individuals file. A business must register and charge SST once its taxable turnover crosses the threshold over a rolling 12 months. The general threshold is RM500,000. For the newer rental or leasing and financial services categories, the threshold was set higher, at RM1 million, so smaller landlords and providers are spared.
The Royal Malaysian Customs Department ran a penalty-free grace period to 31 December 2025: no fines for late registration, late filing or documentation errors as long as a business showed it was making a reasonable effort to comply. That grace period has ended. From 1 January 2026, full enforcement applies.
| Category | Registration threshold (12-month turnover) |
|---|---|
| Standard sales or service tax | RM500,000 |
| Rental or leasing services | RM1,000,000 |
| Financial services | RM1,000,000 |
| Grace period (penalty-free) | Ended 31 Dec 2025 |
For a day trip to JB, SST is mostly invisible because sales tax is already inside the price tag. Where you do notice it is on service bills. A hotel stay, a restaurant meal or a spa session will carry a 6% or 8% service tax line, often stacked on top of a separate 10% service charge that the venue keeps. So a printed bill can show food, then 10% service charge, then SST on the lot. If you are splitting a meal, the same stacking logic applies as it does back home; our explainer on the service charge and GST split shows how to read those lines.
Two situations cost real money. First, private healthcare: if you cross the border for a procedure at a private Malaysian hospital, the 6% service tax for non-Malaysians now sits on top of the fee. Second, big-ticket imports: the discretionary goods moved to 5% or 10% in July 2025 (premium seafood, leather, alcohol, tobacco) are pricier than they were, which narrows the old bargain on luxury shopping trips.
If you are weighing JB as a place to live or invest, note the separate change from 1 January 2026: stamp duty on property transfers to non-citizens is proposed to rise from 4% to 8%, and most commercial rentals can now carry 8% service tax. Run the home-side numbers first with our income tax calculator before assuming Malaysia is automatically cheaper.
No. Malaysia abolished its goods and services tax in September 2018 after running it for about three years from April 2015. It replaced GST with the Sales and Service Tax (SST), which remains in force in 2026 with no confirmed plan to bring GST back.
Sales tax on goods is 5% or 10% depending on the item, with staples exempt. Service tax is 6% for items closer to essentials such as food, telecoms and logistics, and 8% for most other services, including financial services and commercial leasing.
Yes, indirectly. Sales tax is already built into product prices, and service tax shows up on hotel, dining and other service bills, often alongside a separate 10% service charge. Singaporeans using private healthcare in Malaysia also face a 6% service tax as non-Malaysian patients.
GST was a broad-based tax charged at every supply stage, so lower-income households felt it on everyday spending. SST is narrower, taxing only listed goods and services once each, which was politically popular but collects far less revenue, prompting calls to reinstate GST.
This is general financial information for Singapore, not personal financial advice. Figures change — verify current rates against the official sources above before acting. See our full disclaimer.