How to Submit SST Payment in Malaysia: Guide for Businesses

What Is SST Payment and Who Needs to Submit It?

SST is an indirect tax imposed on certain goods and services under the Sales Tax Act 2018 and Service Tax Act 2018. Businesses must collect SST from customers and remit it to the Royal Malaysian Customs Department (RMCD).

You’re legally required to file SST returns if your business falls under either of these categories:

Thresholds:

• Sales Tax: Applies only to registered manufacturers, not retailers.
• Service Tax: Required if annual taxable turnover exceeds RM500,000, though some sectors (hotels, F&B) have lower thresholds.

Quick Reference Table

Source: Royal Malaysian Customs Department – SST Guidelines

Even Zero-Rated? Still Must File.

Even if your tax due for the period is RM0, you still need to submit the SST-02 form. Failure to do so can result in penalties.

You must register for SST via MySST within 30 days of reaching the taxable threshold. 

For example, for the period July–August, you must submit and pay by the end of September.

When Is Payment Not Required?

Even if you file an SST-02 return, payment is not required if:

• You had no taxable sales or services
• All your supplies were exempt or zero-rated
• Your SST-02 shows RM0 payable

Still, filing is compulsory even when no payment is due, to stay compliant and avoid penalties.

When Is the SST Payment Deadline in Malaysia?

SST returns are filed bi-monthly and are due on the last day of the following month.

Here’s how the cycle works:

The deadline applies to both form submission and payment. 

Returns and payment are due by the last day of the month following the taxable period. Late filings/payments incur the statutory penalties.

Where Do You Submit SST Online?

All SST returns and payments are submitted through the MySST portal.

You’ll need a registered account, then select the correct Sales Tax (CJ) or Service Tax (CP) account before filing SST-02.

To access it, you’ll need:

• A registered MySST account (linked to your business SSM number)
• Login credentials: User ID and password
• Access to your CJ(P) profile:
  
  • CJ(P)1 = Sales Tax
  • CJ(P)2 = Service Tax

Once inside, you’ll be able to:

• File your SST-02 form
• Check past submissions under “My Filing History”
• Make or view payments
• Download official receipts and PDF returns

Source: Royal Malaysian Customs Department (RMCD) – MySST Portal

How Do You Submit the SST-02 Form?

The SST-02 form is filed every two months, and it only takes 10–15 minutes if your accounts are in order, so no excuses, Kastam would not buy it.

Step-by-Step Submission Guide:

1. Log in to MySST
2. Go to Submission → Select “SST-02”
3. Choose your CJ(P) profile (Sales or Service Tax)
4. Fill in the form:
   • Declare taxable sales/services. The system calculates the tax at the prescribed rate 
   • Sales Tax commonly 5% or 10% per tariff
   • Service Tax generally 8% since 1 Mar 2024 with specified services still 6%
5. Attach supporting documents (optional but encouraged):
   • Monthly sales reports
   • Internal tax breakdown (Excel or PDF)
6. Submit the form
   • You’ll receive a reference number
   • The SST-02 return will be archived under “My Filing History”

Even if no tax is due (zero-rated), you must still submit a “NIL return” for that period.

How Do You Make SST Payment After Filing SST-02?

Once SST-02 is submitted, pay before the deadline via:

1) FPX on MySST → select your bank and authorise payment.

2) Cheque/bank draft to the Customs Processing Centre (CPC). 

If your FPX amount exceeds the limit, pay by cheque at the Customs payment counter. Cash and cards are not accepted.

What Happens After Payment?

• A payment receipt (PDF) will be auto-generated in your MySST account
• You can find it under “Payment History”
• Keep this for audit and record-keeping purposes (minimum 7 years)

Source: MySST Official Portal – FAQ & User Guide

What Happens If You Miss the SST Payment Deadline?

Didn’t set that reminder on your phone? Missed your tax deadline while busy juggling sales, stock checks and end of the month sales?

Don’t panic, yet. RMCD enforces tiered late payment penalties under Section 89 of the SST Acts.

SST Late Payment Penalty Structure

Other Consequences of Missing SST Deadlines

• Compoundable Offences
   RMCD may issue compound fines on top of penalties under Section 90.
• Audits or Investigations
   Late or irregular submissions can trigger a compliance audit, even for small businesses.
• Business Licensing Risk
   Ongoing non-compliance may lead to issues with:
  
  • Customs import/export licenses
  • Company blacklisting
  • Future SST registration approval
    
• Blocked Claims & Refunds
   Late payers may face delays in SST refunds or denied offset claims.

What Can You Still Do If You’re Late?

1. Pay Immediately
   Even if you’re late, paying ASAP reduces compounding penalties.
2. Check Penalty Breakdown
   MySST portal shows your current penalty amount and timeline.
3. Contact RMCD If Justified
   If there’s a valid reason (system outage, bank rejection), contact Customs with proof and request reconsideration.
4. Keep Good Records
   Save your submission timestamps, payment receipts, and correspondence for 7 years in case of future audits.

What Are Common SST Filing Mistakes to Avoid?

Even seasoned finance teams can slip up when filing SST. These errors might seem small, but they can trigger penalties, audits, or even tax shortfall notices. Here’s what to watch for:

Submitting Under the Wrong CJ(P) Profile

Sales Tax vs Service Tax? This is a very common mistake most first-time SST filers get wrong.

• Businesses registered for both may accidentally submit under the wrong profile.
• For example, submitting your SST-02 under “Sales Tax” when you meant “Service Tax” (or vice versa) causes filing rejections and payment misallocations.

Always double-check your CJ(P) profile at login.

Using Incorrect Tax Codes or Rates

• Entering the wrong tax code (SR instead of ZR) or applying incorrect rates (10% instead of 5%) can lead to overpayment or underpayment.
• This affects your credit offsets and raises audit flags.

Always refer to RMCD’s latest SST Code Listing before each submission.

Missing Zero-Rated or Exempt Declarations

• Many forget to declare zero-rated, exempt, or non-taxable items, even though they must still be reported in SST-02.
• Omission skews your records and may affect input-output reconciliation during audits.

Include all zero-rated sales or services in your SST-02 summary.

Forgetting to Pay After Filing

It sounds silly but yet, this does happen.

• Filing SST-02 does not mean you’ve paid.
• Many users assume clicking “submit” completes everything, until a 10% penalty shows up.

Always complete the FPX payment step or bank-in process after form submission. Don’t wait until the next day.

Backdating or Missing Data

• Submitting SST-02 with incomplete data, or trying to backdate sales/service records, is non-compliant.
• RMCD may reject your filing, and persistent errors could lead to compound fines.

Always reconcile sales and service records before month-end, not during last-minute filing.

Conclusion: Submitting SST Doesn’t Have to Be Complicated

SST filing can feel tedious, and let’s be real, it is. But with a checklist, timely reminders, and the right process, staying compliant is manageable.

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