Malaysia VAT registration threshold

What this value means

REFUSAL — Malaysia has no VAT and no GST (GST repealed 1 September 2018), and its two-tax SST regime fixes no single registration threshold; a single served figure would misstate the law for most registrants. This record serves null and states the actual structure. PERIOD BASIS: rolling twelve months, run both backwards and forwards. Service Tax Act 2018 [Act 807] s.12(2): liability arises, whichever is earlier, at the end of any month where that month plus the eleven preceding exceeded the prescribed value, or where there are reasonable grounds to believe that month plus the eleven succeeding will exceed it. Sales Tax Act 2018 [Act 806] s.12(2) is in identical terms for taxable goods. Application to the Director General not later than the last day of the month following the month liability arose (both Acts, s.13(1)). THE ACTUAL THRESHOLDS: Sales tax (Act 806, manufacturers of taxable goods): RM500,000 total sale value [P.U. (A) 209/2018]. Service tax (Act 807, prescribed taxable services), per Group in column (3) of the First Schedule: NIL for credit/charge card services (Group H item 1) and Group M education; RM500,000 for accommodation (A), night-clubs and wellness (C), private clubs (D), golf (E), betting and gaming (F), professionals (G — aggregated across the Group's services), other service providers (I) and logistics (J); RM1,000,000 for insurance/takaful and other financial services (Group H items 2-4) and rental or leasing (Group K); RM1,500,000 for food and beverage (B), construction works (L) and private healthcare/traditional medicine/allied health (Group I items 14-16). NON-ESTABLISHED SUPPLIERS: a supplier with no Malaysian establishment does not register for service tax on ordinary (non-digital) services. Service tax on an 'imported taxable service' (any taxable service acquired by a person in Malaysia from a person outside Malaysia, Act 807 s.2) is accounted for by the MALAYSIAN ACQUIRER: registered persons in their s.26 return, any other business acquirer by declaration under s.26A. This reverse charge has NO threshold — it bites from the first ringgit — but attaches only to business acquisitions. For goods: a foreign manufacturer does not register, but a seller of LOW VALUE GOODS sold online into Malaysia is liable to register once such sales exceed RM500,000 [P.U. (A) 409/2022]. IMPORTED DIGITAL SERVICES: Part IXA (ss.56A-56J) of Act 807, in operation 1 January 2020 — the Foreign Registered Person regime. A 'foreign service provider' (including a platform operator transacting on behalf of others) providing digital services to Malaysian consumers is liable to register once the total value exceeds RM500,000 over the same rolling twelve-month test [P.U. (A) 269/2019 reg. 2; s.56B(2)]. 'Consumer' is anyone meeting two of: Malaysian payment facility, Malaysian IP/mobile country code, Malaysian residence. Current service tax rate: 8% on all services [P.U. (A) 213/2018 para. 3(1) as substituted by P.U. (A) 173/2025, effective 1 July 2025], with 6% for services listed in the Rate of Tax Order's First Schedule — to which rental or leasing was added from 1 January 2026 by P.U. (A) 125/2026. Traps: (1) No VAT, no GST — two separate taxes under separate Acts with separate registrants; registration for one is not registration for the other. (2) The service-tax threshold is per GROUP: Nil / 500k / 1m / 1.5m — serving RM500,000 unqualified is wrong for finance, rental, F&B, construction and healthcare. (3) The base was EXPANDED 1 July 2025 (P.U. (A) 172/2025): Groups K rental/leasing, L construction, M education added, Group H rebuilt as FINANCE — and the K and H figures were raised from 500k to 1m by P.U. (A) 201/2025 BEFORE commencement, so any source quoting RM500,000 for those is stale without ever having been right. (4) 'Nil' in column (3) is not absence of liability but absence of a turnover test — liability from commencement of business. (5) Group G professionals aggregate across the Group's services. (6) A threshold is not an exemption and not a rate — exemption orders and Customs policies relieve supplies without changing column (3), and the rate differs (8% general / 6% First-Schedule services). (7) Imported goods bear sales tax at import irrespective of any threshold. (8) The imported-taxable-service reverse charge has no threshold and reaches unregistered business acquirers via s.26A. CITATION RE-VERIFIED 11 August 2026 against the Attorney General's Chambers' own gazette PDFs, and every figure above still stands: the Service Tax Regulations 2018 First Schedule has NOT been amended since P.U. (A) 201/2025 (in operation 1 July 2025) — the only later Act 807 subsidiary instrument is the Service Tax (Rate of Tax) (Amendment) Order 2026 [P.U. (A) 125/2026], which touches the rate and not column (3) — and neither registration-threshold order on the sales tax side, P.U. (A) 209/2018 (RM500,000, manufacturers) or P.U. (A) 409/2022 (RM500,000, low value goods), has ever been amended. Group J logistics remains RM500,000 as inserted by P.U. (A) 62/2024, and the foreign-service-provider digital services test remains 'the total value of digital services exceeding five hundred thousand ringgit' [P.U. (A) 269/2019 reg. 2]. Retrieval gotcha: lom.agc.gov.my's act-view.php deep links now return a 15-byte 'Invalid request' body under an HTTP 200 for every instrument, so the portal must be queried through its search (json-subsid-2024.php) and the document read from the gazette PDF path cited here; the Royal Malaysian Customs Department serves a byte-identical copy of P.U. (A) 172/2025 at mysst.customs.gov.my/wp-content/uploads/2025/07/Peraturan-Peraturan-CP-Pindaan-2025.pdf and of P.U. (A) 201/2025 at mysst.customs.gov.my/wp-content/uploads/2025/07/5-PUA-201.2025.pdf.

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