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As part of Malaysia’s fiscal reform under Budget 2025, significant changes have been made to the Sales and Service Tax (SST) regime. The adjustments, effective from 1 July 2025, aim to increase government revenue while maintaining fairness by excluding essential goods and focusing taxation on premium items and services. This article provides a clear explanation of the SST system, its latest updates, categories affected, compliance requirements, and implications for businesses and consumers alike. ✅ What is SST? SST refers to a single-stage tax system that replaced the GST (Goods and Services Tax) in 2018. It consists of: Sales Tax – charged on manufacturers and importers at the production or import level. Service Tax – imposed on certain prescribed taxable services provided by businesses. SST is collected only once in the supply chain, unlike GST, which is multi-staged and creditable. 📅 Key Effective Dates Start Date: 1 July 2025 Transition Period: July 1 – December 31, 2025 (no penal...

With Malaysia's push toward digital tax compliance, e-Invoicing will soon become mandatory for all businesses, big or small. Spearheaded by the Lembaga Hasil Dalam Negeri (LHDN), this new system aims to improve transparency, reduce fraud, and automate tax reporting. Whether you’re a corporation or a small business owner, understanding how e-Invoicing works is crucial. 🔍 What is E-Invoicing? E-Invoicing is the process of issuing and receiving invoices electronically, using a structured digital format (like JSON or XML) that allows for automatic validation and processing by the tax authority. Unlike PDF or paper invoices, e-Invoices are machine-readable, submitted in real time, and stored digitally with built-in authentication, including QR codes and digital signatures. Once submitted through LHDN’s MyInvois system, the invoice is validated and becomes an official legal document, complete with a timestamp and unique identifier. This system removes the need for paper documentation an...