e-Invoice and SST: how sales & service tax shows on your e-invoice
Updated 21 August 2026
Short answer
SST and e-invoicing are separate systems that meet on the document: SST is administered by RMCD, e-invoicing by LHDN, but every e-invoice must declare the correct SST treatment per line (tax type, rate, amount) and your SST registration number if you are registered. Getting the SST right is part of getting the e-invoice accepted.
Two systems, one document
People conflate them, but they are separate. SST (Sales & Service Tax) is administered by RMCD (Customs), and you file SST returns to RMCD. e-Invoicing is run by LHDN (Hasil) through MyInvois. They meet on the invoice: an e-invoice has to state, in machine-readable form, exactly how SST applies to each line. So a correct e-invoice depends on correct SST treatment.
What the e-invoice must carry
- Your SST registration number, if you are SST-registered.
- A tax type on every line (which tax applies, or that none does).
- The tax rate and tax amount per line.
- An exemption reason on any line you treat as exempt.
The tax type codes
| Code | Meaning |
|---|---|
| 01 | Sales Tax |
| 02 | Service Tax |
| 03 | Tourism Tax |
| 06 | Not Applicable (no SST on this line) |
| E | Tax exemption (reason required) |
Service tax is generally 8% (some services 6%); sales tax is 5% or 10% depending on the goods. Confirm the current rate for your category with RMCD.
"I am not SST-registered", do I still e-invoice?
Yes, if you are in scope for e-invoicing. SST registration and the e-invoice mandate are triggered separately: e-invoicing is by annual turnover phase (see the deadlines), while SST registration has its own thresholds set by RMCD. If you are not SST-registered, you still issue e-invoices, your lines simply carry tax type "Not Applicable" and no SST is charged.
Why this is louder in 2026: the SST expansion
SST was expanded on 1 July 2025, bringing rental and leasing, financial services, private healthcare, private education, construction and more into the service-tax net for the first time. 2026 is the first full enforcement year. So many businesses are newly SST-liable AND newly mandated for e-invoicing at the same time, and their e-invoices now have to declare that SST correctly. Getting it wrong shows up in machine-readable form, in near real time.
What about GST?
GST is not returning. The government has kept SST as the framework and, as of Budget 2027, is only studying whether to fold some GST-like elements into SST. Either way, e-invoicing is the reporting rail: it already carries your tax treatment line by line, so your setup does not change based on the GST debate.
File e-invoices with SST handled
Frequently asked questions
Does an e-invoice replace my SST return?
No. SST returns are filed to RMCD separately. The e-invoice declares the SST treatment of each transaction to LHDN, but it does not file or pay your SST for you.
Do I charge SST on an e-invoice?
Only if you are SST-registered and the line is taxable. The e-invoice states the tax type, rate and amount per line; if no SST applies, the line carries the "Not Applicable" tax type.
I am not SST-registered. What tax type do I use?
Tax type "Not Applicable" (code 06), with no SST charged. You still issue e-invoices if you are in scope for the e-invoice mandate; SST registration is a separate requirement.
Is GST coming back to Malaysia?
No. The government has ruled out reintroducing GST and kept SST. As of Budget 2027 it is only considering blending some GST-like elements into SST. E-invoicing already reports tax line by line regardless.
Why does an exempt line get rejected?
LHDN requires an exemption reason on any line treated as exempt (tax type E). A tax-exempt line with no reason fails validation.