Indirect Tax Alert
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Issue No. 12/2025 | 30 June 2025
Amendments to the Expansion of SST Scope and Registration on the MySST Portal
Amendment to the scope
Following the issuance of a press release dated 9 June 2025 by the Ministry of Finance (“MOF”) which announced the effective date for the expansion of scope of sales tax and service tax ("SST") to be 1 July 2025, MOF recently issued a press release dated 27 June 2025 to state that they have reviewed the expansion of scope of SST following the feedback from the people and industry.
MOF has announced in the press release the following 3 main amendments to the SST expansion which will come into effect on 1 July 2025:
(1) Apples, oranges, mandarin oranges, and dates are to be exempted from sales tax.
(2) Higher Annual Sales Threshold to Ease Tax Burden on Small Businesses
- The value of registration threshold for Leasing or Renting Services and Financial Services has been increased from RM500,000 to RM1 million.
- The annual turnover threshold for Micro, Small, and Medium Enterprises (MSMEs) that qualify for exemption from service tax on rental or leasing services has also been increased from RM500,000 to RM1 million.
(3) Taxable services will not be expanded to include beauty services such as nail treatments (manicure and pedicure), facial treatments, and hair cutting and styling services.
Registration on the MySST portal
The Royal Malaysian Customs Department (RMCD) has announced that business entities that are expected to reach the registration threshold can apply for voluntary registration starting from 28 June 2025. The effective date of the voluntary registration will be as follows:
- 1 July 2025 for applications made in the month of June 2025
- 1 August 2025 for applications made in the month of July 2025
Existing SST registered persons can also update their SST registration in the MySST portal starting from 20 June 2025 to take into account the impact of the recent SST expansion.
PwC Comment
The above amendments provide some relief for businesses and people living in Malaysia. As for the SST registration, the SST legislations allow businesses to voluntarily register for SST even before their liability to do so arises. Early registration will bring forward businesses obligation to charge and account for service tax. It may also enable the certain businesses to leverage the “business-to-business (B2B) exemption”.
If you are unsure whether your business should voluntarily register before it is liable to be registered or if you have any questions on the amendments to the SST expansion, please do not hesitate to contact us and we would be happy to assist you.
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