Sales Tax Return — Form SST-01 (Malaysia)

A Sales Tax Return — Form SST-01 in Malaysia sets out the income, deductions, and tax position to be reported to the authority.

Sales tax in Malaysia is a single-stage tax imposed on taxable goods at the point of manufacture (for locally produced goods) or at the point of importation (for imported goods). The Sales Tax Act 2018 provides for two standard sales tax rates: 10% for most taxable goods listed in the Sales Tax (Goods Exempted From Sales Tax) Order 2018, and 5% for select goods including foodstuffs, building materials, and agricultural equipment. Petroleum products (petrol, diesel, lubricants) are taxed at a special rate of 0.3 sen per litre under the Sales Tax (Rates of Sales Tax) Order 2018, rather than an ad valorem rate.

Manufacturers with annual taxable turnover exceeding RM 500,000 must register with RMCD under Section 12 of the Sales Tax Act 2018. The registration threshold applies to the annual sales value of taxable goods; manufacturers below the threshold may voluntarily register. Upon registration, RMCD issues a sales tax licence and assigns the manufacturer a bimonthly taxable period cycle.

SST-01 is filed electronically through the MyST portal (mysst.customs.gov.my). The filing deadline is the last day of the month following the taxable period end under Section 22 of the Sales Tax Act 2018. Sales tax is due on manufactured goods when the goods are sold, disposed of, or first used by the manufacturer under Section 6 of the Sales Tax Act 2018. For imported goods, sales tax is payable at the time of importation under the customs declaration procedures.

The Sales Tax Act 2018 provides extensive exemption orders that remove many categories of goods from the sales tax net — including Schedule A goods (goods wholly exempt from sales tax), Schedule B goods (raw materials and components imported or purchased by manufacturers for use in producing taxable goods), and Schedule C goods (specific exemptions for designated industries). Licensed manufacturers must track their exemption claims carefully and confirm Schedule B raw material exemptions are used only for the approved manufacturing purpose.

The legal framework governing the Sales Tax Return — Form SST-01 (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Sales Tax Return — Form SST-01 (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Sales Tax Act 2018 (Act 806) sets the foundational requirements.

Form SST-01 is required for every licensed manufacturer and approved importer in Malaysia at the end of each 2-month taxable period.

SST-01 is required when a Malaysian manufacturer of consumer goods — electronics, furniture, beverages, cosmetics, or processed food — completes its bimonthly taxable period and must account for sales tax on all taxable goods sold during the period. The manufacturer must track sales by product category (5% vs 10% vs exempt) to correctly complete SST-01.

SST-01 is needed when an importer brings taxable goods into Malaysia for resale. Although sales tax on imports is typically collected at the point of entry by RMCD through the customs declaration process (Form K1 or K8), importers who hold approved trader status or licensed manufacturing warehouse (LMW) status may defer payment and account for it on SST-01.

SST-01 is required when a manufacturer claims a Schedule B raw material exemption adjustment. Under the Sales Tax (Persons Exempted from Payment of Tax) Order 2018, manufacturers may purchase raw materials and components free of sales tax for use in producing taxable finished goods. If exempt raw materials are used for non-approved purposes, the exemption must be reversed on SST-01 and sales tax paid.

SST-01 is needed when a manufacturer issues credit notes for returned goods, recalled products, or price adjustments to wholesale customers. The credit notes reduce the taxable sales value and the corresponding sales tax liability for the period, and must be reflected on SST-01 as deductions from gross taxable sales.

SST-01 is required when a company that was exempt from sales tax — for example, a free trade zone (FTZ) manufacturer under the Free Trade Zones Act 1990 — changes its operating status and becomes liable for domestic sales tax. The first SST-01 after losing FTZ status is a critical compliance milestone requiring review of all product classifications and exemption entitlements.

A complete Sales Tax Return (SST-01) for Malaysia must contain the following essential elements.

Manufacturer / Importer Identification: The full legal name, RMCD sales tax licence number, SSM registration number, and business address must be stated. The sales tax licence number appears on all sales invoices issued by the licensed manufacturer and must match RMCD's records for the SST-01 to be accepted.

Taxable Period: The bimonthly taxable period (start and end dates) and the filing deadline must be stated. RMCD assigns each licensee a fixed taxable period cycle; filings outside the assigned cycle are processed as out-of-sequence submissions, which may trigger a compliance review.

Taxable Goods Classification: Each category of taxable goods manufactured or imported during the period must be listed with the HS (Harmonised System) tariff code, the applicable sales tax rate (5%, 10%, or special rate), and the total sales value in RM. Manufacturers who produce both taxable and exempt goods must maintain separate records for each category under Regulation 14 of the Sales Tax Regulations 2018.

Gross Sales Value and Sales Tax: The total value of taxable goods sold or disposed of during the period, and the total sales tax chargeable, must be computed for each rate category and aggregated. The sales tax value must agree with the sales tax amounts shown on the manufacturer's sales invoices.

Exemptions Claimed: Any exemptions claimed under the Sales Tax (Goods Exempted From Sales Tax) Order 2018 or the Sales Tax (Persons Exempted from Payment of Tax) Order 2018 must be quantified and supported by copies of the relevant exemption orders or approval letters from RMCD.

Adjustments and Credit Notes: Deductions for credit notes issued for returned goods, cancelled orders, or price adjustments must be listed with the original invoice numbers and the reduced tax amounts. Only credit notes issued to registered manufacturers or approved buyers under the exemption orders can be deducted.

Net Sales Tax Payable: After deducting adjustments and exemptions, the net sales tax payable to RMCD must be stated. Payment is due by the SST-01 filing deadline via FPX on the MyST portal or by cheque. Late payment attracts a 10% surcharge under Section 23 of the Sales Tax Act 2018.

Signature: The SST-01 must be signed by the licensee, a director, or an authorised person under Section 21 of the Sales Tax Act 2018. The signatory declares that the return is true and complete.

Additional compliance elements for a Sales Tax Return — Form SST-01 (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.