KUALA LUMPUR — The Ministry of Finance (MOF) has announced transitional measures to ease the implementation of the expanded sales and service tax (SST) scope, following industry concerns about operational readiness.
In a statement today, the ministry said service providers will be permitted to manually submit their statements for the taxable period between July 1 and September 30, 2025.
However, businesses must still charge and collect the service tax throughout the period.
“The government acknowledges that service providers require more time to upgrade their systems for tax compliance and implementation,” the ministry said.
On the manufacturing front, MOF confirmed that all registered manufacturers must begin charging and collecting sales tax from July 1, 2025. These companies will be eligible to apply for exemptions on raw materials used in producing taxable goods.
In addition, companies that obtained sales tax exemptions from the Malaysian Investment Development Authority (MIDA) before July 1 will continue to benefit from them, subject to the original terms and validity periods.
However, manufacturers producing taxable finished goods from July 1 onwards—and meeting the prescribed threshold—must register as registered manufacturers and may apply for exemptions via the MySST portal at https://mysst.customs.gov.my.
MOF expressed hope that these measures will ease the transition for affected businesses and improve overall compliance during the SST expansion.
For further information, businesses and members of the public can contact the Royal Malaysian Customs Department Call Centre at 1-300-888-500. — July 4, 2025