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Malaysia VAT Rates 2026

Malaysia (Malaysia) levies Value Added Tax under the name Sales and Service Tax (SST) Registration Number. The standard rate is 8%, applied to most goods and services. Reduced rates of 0% apply to essential categories including food, medicines, and cultural services.

Access rates via API

The TaxID API returns current VAT rates for all 27 EU countries. Use the /api/v1/rates/MY endpoint to get Malaysia rates programmatically. Responses are cached for 24 hours.

curl http://localhost:3000/api/v1/rates/MY
# No authentication required for rate lookups

# Response:
# { "country_code": "MY", "standard_rate": 8,
#   "reduced_rates": [0], "currency": "MYR" }

Applying the correct rate in code

For B2B intra-EU sales, validate the customer's VAT number first. A valid registration means reverse charge applies — you charge 0% and the customer self-accounts. For B2C, charge the Malaysia standard rate.

// 1. Validate the customer's Malaysia VAT number
const vatCheck = await fetch(
  'http://localhost:3000/api/v1/validate/MY/CUSTOMER_VAT',
  { headers: { Authorization: 'Bearer YOUR_API_KEY' } }
).then(r => r.json());

// 2. Fetch current Malaysia VAT rates (no auth required)
const rates = await fetch('http://localhost:3000/api/v1/rates/MY').then(r => r.json());
// → { standard_rate: 8, reduced_rates: [0] }

// 3. Apply the correct VAT treatment
if (vatCheck.valid) {
  // B2B intra-EU: reverse charge — you invoice 0%, customer self-accounts
  applyRate(0, 'reverse_charge');
} else {
  // B2C: charge the Malaysia standard rate
  applyRate(rates.standard_rate, 'standard');
}

About Malaysia VAT

Malaysia reintroduced the Sales and Service Tax (SST) in 2018 after replacing the previous GST system. Sales tax is 5–10% on goods; service tax is 8% (raised from 6% in March 2024). SST registration numbers start with B. Malaysia is a growing technology market and regional B2B hub in Southeast Asia.

The Malaysia Sales and Service Tax is administered by the national tax authority and validated through the EU VIES system. Before applying any VAT rate or zero-rate exemption to a Malaysia business customer, validate their VAT registration number first.

VAT rates in other EU countries