The Sales and Services Tax (SST) was reintroduced in Malaysia on September 1, 2018, replacing the previous Goods and Services Tax (GST). SST is a single-stage tax system that applies to taxable goods and services. Businesses in Malaysia are required to register for SST if the value of their taxable goods and services is expected to exceed RM500,000.
SST is levied at both the consumer and manufacturer levels, with consumers paying tax on taxable services they use.
If a business was previously registered for GST, it would automatically be registered for SST if it meets the necessary criteria. However, if you wish to deregister your business for SST due to certain reasons, you can do so by submitting a request to the Customs Department.
Steps to Deregister Your Business for SST
To deregister your business for SST, you can submit an SST Deregistration request to the Royal Malaysian Customs Department. This is applicable if your business was automatically registered for SST and it either doesn’t generate any taxable services or its income is below the RM500,000 threshold. If you are closing your business, you can also submit an SST Deregistration request.
When applying for the SST Deregistration process, you will need to provide a letter of authorization to the Customs Department. The reasons for the request should include:
- Incorrect use of MSIC code.
- Your business doesn’t reach the RM500,000 threshold.
- Your business doesn’t provide taxable goods or services.
- A photograph of your retail space.
- SSM incorporation documents.
- Sample invoices with descriptions.
- Special exemptions (FZ/LMW).
- Audited financial statements.
- Management account income tax forms (Form C/P/PT/B/M).
All necessary documents should be submitted in hardcopy format to the Customs Control Station and also emailed to the following address: daftarcjcp@customs.gov.my.
Please note that the specific requirements may vary depending on the Customs Officer handling your case.