If your business is liable to register for SST, you may complete the Sales Tax registration or Service Tax registration respectively online on the MySST website. The due date for registration will be the last day of the month following the month in which the total sales value has exceeded or is expected to exceed the threshold.
This is an example:
29 February 2020 – Total sales value of taxable goods or services exceed the threshold
31 March 2020 – Last day to apply for registration
1 April 2020 – Effective date of registration
If your business is exempted from Sales Tax under Sales Tax (Persons Exempted from Payment of Tax) Order 2018, an application for exemption should be made through the MySST website as well.
When to file the SST return and make payment?
The taxable period of SST is a period of 2 calendar months. Hence, SST returns must be filed every 2 months even if there is no tax to be paid. The SST payment should be done within 30 days from the end of the taxable period.
The timing to account for the respective transactions is different for Sales Tax and Services Tax:
For sales tax, it is when the taxable goods are sold, disposed of or first used by the taxable person.
For service tax, it is when payment is received for the taxable services rendered. But if payment for the service is not received within 12 months from the date of invoice issuance, the tax is due on the day immediately after the expiry of the 12-month period.
Do note that the length of your first taxable period is determined based on whether your financial year-end month falls on an odd or even month.
How to file the SST return?
There are 2 ways to file the SST return:
Do it online through the CJP system.
Download the Form SST-02 from the MySST portal and mail it to the Customs Processing Centre (CPC) by post. The address is as follows: Jabatan Kastam Diraja Malaysia Pusat Pemprosesan Kastam Kompleks Kastam Kelana Jaya No.22 Jalan SS6/3, Kelana Jaya, 47301 Petaling Jaya, Selangor.
How to pay SST?
There are 2 ways to make the SST payment:
Do it online through the FPX system of the CJP system. However, there is an allowable payment limit for online transactions, i.e. RM100 million for corporate bank accounts and RM100,000 for individual bank accounts. The remaining payment can be made by issuance of cheque or bank draft which may then be mailed to the CPC.
Do it through cheque or bank draft made payable to ‘Ketua Pengarah Kastam Malaysia’ and mail it to the CPC.
What are the possible SST penalties?
Penalties will be imposed for the following offenses:
Failure or late to register for SST
The business will be expected to pay the SST out of their own pocket for SST on time as the SST can no longer be collected from the customers.
Failure to file SST returns
Upon conviction of not filing SST returns, the taxable person can be fined a maximum of RM50,000, imprisoned for a maximum of 3 years, or both.
Failure to make SST payment
Upon conviction of not making SST payment, the taxable person can be fined for a maximum of RM50,000, imprisoned for a maximum of 3 years, or both. Do note that failure to make SST payment and failure to make SST returns are 2 separate and distinct offenses.
Late payment penalty
Upon expiration of 1 month from the taxable period, 10% of charges are imposed on any outstanding SST for the first 30 days. Thereafter, for the second 30-day period, an additional 15% of charges are imposed on any outstanding SST and for the third 30-day period, an additional 15% of charges.
Evasion of tax
For the first offense, the taxable person can be fined with a minimum of 10 times and a maximum of 20 times of the Sales Tax amount, imprisoned for a maximum of 5 years, or both. For the second offense, the taxable person can be fined with a minimum of 20 times and a maximum of 40 times of the Sales Tax amount, imprisoned for a maximum of 7 years, or both.