Malaysia SST Registration Explained

How SST Registration Works in Malaysia

There are two registration schemes under Malaysia's SST, depending on whether your business is based in Malaysia or outside of it.

Scheme 1: Standard Service Tax Registration (for resident businesses)

This scheme applies to businesses with a physical presence or permanent establishment in Malaysia. Registration is done through the MySST portal.

• Covers both B2B and B2C taxable services

• Filing frequency: bi-monthly (every two months), due by the last day of the month following the end of the taxable period

• Currency: Malaysian Ringgit (MYR)

• Local bank account required for tax payments

Scheme 2: Service Tax on Digital Services (SToDS) for non-resident providers

This scheme applies to foreign businesses with no physical establishment in Malaysia that provide digital services to Malaysian customers. Registration is done through the MySToDS portal.

This is the relevant scheme for most Kintsugi customers.

• Covers both B2B and B2C digital service transactions

• Filing frequency: quarterly, due by the last day of the month following the end of the quarter

• Currency: Malaysian Ringgit (MYR); foreign currency amounts must be converted using a consistent and reasonable exchange rate

• No local bank account required for tax payments

• No input tax credit available under this scheme

Can these schemes coexist?

No. A business registers under one scheme only. If a non-resident provider later establishes a permanent establishment in Malaysia, it would need to cancel its SToDS registration and register under the standard SST scheme instead.

The MySToDS registration process (non-residents)

Non-resident digital service providers register directly through the MySToDS portal (mysst.customs.gov.my). Once registered, the business becomes a Foreign Registered Person (FRP) and is required to charge and remit 8% service tax on all taxable digital services provided to Malaysian customers.

What happens after registration?

Once registered as an FRP, you must:

• Charge 8% SToDS on all B2B and B2C digital service transactions to Malaysian customers

• Issue invoices showing the 8% SToDS as a separate line item

• File quarterly returns via the DST-02 return form through MySToDS

• Remit tax by the last day of the month following each quarter

Reverse charge for unregistered sellers

If a non-resident seller is not registered and has not charged SToDS on a transaction, the Malaysian business buyer is responsible for self-assessing the 8% service tax using Form SST-02A. This obligation does not apply to individual consumers.

Marketplace sellers

If you sell exclusively through a platform that qualifies as an FSP and that platform is already registered as an FRP, you may not be required to separately register, provided all your Malaysian sales are covered by the platform's registration.

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