SST and e-Invoice Software for Malaysian Small Businesses (2026)
Malaysia has no GST. Compare SST and LHDN e-Invoice software for small businesses in 2026, with SST rates, thresholds and the RM3 million e-Invoice exemption.
- SST
- e-Invoice
- MyInvois
- GST
- accounting software
Malaysia does not have GST. It was replaced by the Sales and Service Tax (SST) in 2018, and SST was widened on 1 July 2025. Small businesses need software to charge and file SST if registered, and to issue LHDN e-Invoices if turnover is RM3 million or more. Bukku, Financio, SQL Account, AutoCount, Xero and QuickBooks cover both.
Does Malaysia still have GST?
No. The Goods and Services Tax Act 2014 was repealed with effect from 1 September 2018, the day the Sales Tax Act 2018 and Service Tax Act 2018 came into operation. The Budget 2027 tax measures annex (9 October 2026) contains no GST proposal. If you searched for "GST software", what you need in Malaysia today is SST and e-Invoice software.
Which software handles SST and e-Invoice in Malaysia?
These products are sold in Malaysia and say on their own sites that they support LHDN e-Invoice. Pricing changes often, so check each vendor for current prices.
| Software | Best for | Platforms | Free tier | Link |
|---|---|---|---|---|
| LHDN MyInvois Portal | Issuing a few e-Invoices by hand | Web | Yes (government portal) | myinvois.hasil.gov.my |
| Bukku | Small firms wanting invoicing and bookkeeping | Web | Yes (Launch plan) | bukku.my |
| Financio | Small firms filing SST returns | Web, mobile app | No (30-day trial) | financio.co/my |
| SQL Account | SMEs with an accountant or bookkeeper | Desktop, cloud | No (free demo) | sql.com.my |
| AutoCount | Trading and retail firms with stock | Desktop, cloud | No (free trial) | autocountsoft.com |
| Xero | Cloud accounting with bank feeds | Web, mobile app | No (30-day trial) | xero.com/my |
| QuickBooks Online | Cloud accounting, Malaysian edition | Web | Check vendor | quickbooks.intuit.com/my |
What are the SST rates in 2026?
Service tax is 8%, with 6% for food and beverage, logistics, telecommunications and parking. Sales tax is 10% by default, with 5% or a specific rate for goods listed in the Sales Tax (Rate of Tax) Order 2025.
| Tax | Rate | Since |
|---|---|---|
| Service tax (most taxable services) | 8% | 1 March 2024 |
| Service tax (F&B, logistics, telecommunications, parking) | 6% | 1 September 2018 |
| Sales tax (default) | 10% | 1 July 2025 |
| Sales tax (listed goods) | 5% or a specific rate | 1 July 2025 |
Credit and charge cards carry a flat RM25 per card instead of a percentage.
Use the SST calculator to add or remove SST from a price.
When must a business register for SST?
Most businesses register once taxable sales or services pass RM500,000 in 12 months. Food and beverage operators register at RM1.5 million.
From 1 July 2025 service tax was extended to rental or leasing, construction, financial services, private healthcare, private education and beauty services. Rates and thresholds differ by service, for example:
- Construction work: 6%, threshold RM1.5 million (residential construction is excluded).
- Private healthcare: 6%, threshold RM1.5 million.
- Private education: 6%, where fees exceed RM60,000 per student per academic year.
- Rental or leasing and beauty services: 8%.
Thresholds for rental or leasing were revised close to launch, so confirm yours in the Customs expansion FAQ before deciding not to register.
Who must issue e-Invoices?
Businesses with annual turnover or revenue of RM3 million or more. LHDN's e-Invoice Guideline version 4.8 (30 August 2026) raised the exemption from RM1 million to RM3 million.
| Phase | Annual turnover or revenue | Start |
|---|---|---|
| 1 | More than RM100 million | 1 August 2024 |
| 2 | More than RM25 million up to RM100 million | 1 January 2025 |
| 3 | More than RM5 million up to RM25 million | 1 July 2025 |
| 4 | Up to RM5 million (below RM3 million exempt) | 1 January 2026 |
Points to check:
- Group rule. The exemption does not apply if a corporate shareholder, holding company, related company or joint venture has turnover of RM3 million or more.
- New businesses. A business starting from 2026 that expects less than RM3 million starts e-Invoicing on 1 January of the second year after the year its turnover reaches RM3 million.
- Already started. LHDN's FAQ (4 September 2026) says businesses now exempt can stop issuing e-Invoices without applying, and face no e-Invoice penalties.
- Free option. LHDN's MyInvois Portal lets you issue e-Invoices without buying software. It suits low volumes; it is not an accounting system.
How do I choose?
Start from volume and who does your books.
- Under RM3 million and not SST-registered: you may not need either feature. A simple bookkeeping app, or Bukku's free plan, is enough. You can still issue e-Invoices voluntarily.
- SST-registered small firm: Financio, Bukku, Xero or QuickBooks for cloud bookkeeping; confirm SST return support with the vendor.
- Accountant-led SME, or stock-heavy trading: SQL Account or AutoCount, which many Malaysian accountants already use.
- RM3 million and above: any of the paid tools above, or the MyInvois API through your software vendor.
Where does CukaiMax fit?
It doesn't, for SST or e-Invoice. CukaiMax tracks personal tax reliefs and receipts for individual taxpayers, so it is useful to a sole proprietor's own Form B reliefs but it does not charge SST, file SST returns or issue e-Invoices.
What does Budget 2027 propose for SST and SMEs?
Budget 2027 was tabled on 9 October 2026. These are proposals until the law is passed.
- Eldercare services: service tax would fall from 8% to 6% from 1 January 2027, and fees up to RM96,000 per elder per year at registered centres would be exempt.
- SME company tax: from YA 2027, the rate on the first RM150,000 of chargeable income would fall from 15% to 14%, and on RM150,001 to RM600,000 from 17% to 16%. This applies to companies with paid-up capital up to RM2.5 million and sales up to RM50 million.
- Small-value assets: the per-asset limit for full capital allowance would rise from RM2,000 to RM3,000 from YA 2027.
More in our Budget 2027 summary.
Sources
- Royal Malaysian Customs, MySST service tax FAQ: https://mysst.customs.gov.my/faq-services-tax/
- Royal Malaysian Customs, MySST background: https://mysst.customs.gov.my/background/
- Royal Malaysian Customs, registering a business: https://mysst.customs.gov.my/registering-business/
- Royal Malaysian Customs, expansion of service tax scope 2025 FAQ: https://mysst.customs.gov.my/faq-expansion-of-service-tax-scope-2025/
- Royal Malaysian Customs, sales tax rate changes 2025 FAQ: https://mysst.customs.gov.my/faq-transition-of-sales-tax-rate-changes-2025/
- LHDN, e-Invoice Guideline v4.8 (30 August 2026): https://www.hasil.gov.my/wp-content/uploads/IRBM-e-Invoice-Guideline.pdf
- Grant Thornton Malaysia, tax alert on e-Invoice guideline and FAQ updates (8 September 2026): https://www.grantthornton.com.my/globalassets/1.-member-firms/malaysia/publications/tax-2026/tax-alert---updated-e-invoice-guidelines-and-general-faqs---30-august-4-and-7-september-2026.pdf
- LHDN, About the MyInvois Portal: https://www.hasil.gov.my/en/e-invois/portal-myinvois/mengenai-portal-myinvois/
- MOF, Budget 2027 tax measures annex: https://belanjawan.mof.gov.my/pdf/belanjawan2027/ucapan/langkah-cukai.pdf
- Allen & Gledhill, Sales Tax Act and Service Tax Act in force on 1 September 2018: https://www.allenandgledhill.com/sg/publication/articles/7550/malaysian-sales-tax-act-and-service-tax-act-in-force-on-1-september-2018
- Vendor sites checked 16 October 2026: https://bukku.my/, https://financio.co/my/, https://www.sql.com.my/, https://www.autocountsoft.com/, https://www.xero.com/my/accounting-software/e-invoicing/, https://quickbooks.intuit.com/community/other-questions-88/qbo-e-invoicing-feature-for-malaysia-180122