Someone quotes you RM1,000. Is that before or after SST — and if it already includes tax, how much of it is tax?
Both questions come up every day, and they are not the same sum. Adding tax to a price and pulling tax back out of a price use different arithmetic, and using the wrong one is how invoices end up a few ringgit off.
The calculator below does both. Pick your rate, type the amount, and it shows the price before tax, the tax, and the total.
Sales Tax is 5% or 10%; Service Tax is 6% or 8% — which one applies depends on the class of goods or services. How to tell which is yours →
This amount is before SST.
1,000.00 × 8% = 80.00 tax → 1,000.00 + 80.00 = 1,080.00
01. Which rate applies to you
This is the part a calculator cannot decide for you, and it is why this one asks instead of assuming.
SST is not one tax. It is two, and they work differently:
| Sales Tax | Service Tax | |
|---|---|---|
| Applies to | Taxable goods | Prescribed services |
| Rate | 5% or 10% | 6% or 8% |
| Which one you get | Depends on the class of goods or services, as prescribed by RMCD | |
| Can you have both? | Yes — you register for one or both depending on what your business actually does | |
So “what is the SST rate?” has no single answer. A business selling goods may be on 5% or 10%; a business supplying prescribed services may be on 6% or 8%. The category decides.
If you are not certain which applies to your business, check the prescribed list before you invoice — not after. Getting it wrong is not a rounding error, it is a shortfall you still owe.
02. The formula, both directions
Two situations, two sums. People mix them up constantly.
Adding SST — you have a price before tax and want the invoice total:
total = price + tax
Removing SST — you have a tax-inclusive figure and want to know how much of it is tax:
tax = total − price before tax
The second one is where the common error lives. To pull 8% out of an RM1,080 total you divide by 1.08 — you do not take 8% of RM1,080. Taking 8% of the total gives RM86.40, which is RM6.40 too much, because you would be charging tax on the tax.
03. Worked examples in RM
Example 1 — adding Service Tax at 8%. You quote a job at RM2,500 before tax.
- Tax: 2,500 × 8% = RM200.00
- Invoice total: 2,500 + 200 = RM2,700.00
Example 2 — removing Service Tax at 8%. A supplier bills you RM2,700 and says it already includes SST.
- Before tax: 2,700 ÷ 1.08 = RM2,500.00
- Tax portion: 2,700 − 2,500 = RM200.00
The two examples are the same transaction read from opposite ends — which is the point. If your two figures do not reconcile like this, one of them used the wrong direction.
Example 3 — adding Sales Tax at 10%. Goods priced at RM840 before tax.
- Tax: 840 × 10% = RM84.00
- Invoice total: 840 + 84 = RM924.00
04. Four mistakes that cost real money
05. If you were looking for a GST calculator
You may have landed here after a GST calculator, and some still rank well. Worth being clear: GST and SST are not the same tax, and Malaysia runs SST. A GST calculator will not give you the right figure for a Malaysian invoice today, because the rate and the structure differ.
SST is also administered by RMCD (Kastam), not LHDN — and it is separate from e-Invoice, which is an LHDN matter. If you are working through e-Invoice requirements, that is a different process from your SST rate.
06. Where the official rates live
This calculator does arithmetic. It does not decide your category, and no calculator should claim to. The rate that applies to your goods or services, the prescribed lists, and the registration rules all come from RMCD:
- MySST portal (RMCD) — the official source for rates, taxable lists and registration.
If your business is close to the line on whether it must register at all, that is a separate question from the sum on this page — we walk through it in how to register SST in Malaysia.
SST calculator FAQ
What is the SST rate in Malaysia?
There is no single SST rate, because SST is two taxes. Sales Tax is 5% or 10% and Service Tax is 6% or 8%, and which one applies depends on the class of goods or services as prescribed by RMCD. That is why this calculator asks you to pick the rate rather than assuming one.
How do I remove SST from a price that already includes it?
Divide the tax-inclusive total by 1 plus the rate. At 8%, divide by 1.08; the answer is the price before tax, and the difference is the tax. Do not take 8% of the inclusive total — that overstates the tax, because it charges tax on the tax.
How do I add SST to a price?
Multiply the price before tax by the rate to get the tax, then add it to the price. At 8%, RM2,500 becomes RM200 tax and an RM2,700 invoice total.
Is SST the same as GST?
No. They are different taxes with different structures, and Malaysia runs SST. A GST calculator will not produce the correct figure for a Malaysian invoice today.
Who sets the SST rates?
The Royal Malaysian Customs Department (RMCD, or Kastam) sets the rates and the lists of taxable goods and prescribed services, and publishes them on the MySST portal. SST is a Customs matter, not an LHDN one, and it is separate from e-Invoice.
Does this calculator work for both Sales Tax and Service Tax?
Yes. The arithmetic is the same for both; only the rate differs. Pick 5% or 10% for Sales Tax, or 6% or 8% for Service Tax, and use the "Other" box for any rate not listed.