- SST System Overhaul: Starting July 1, 2025, Malaysia will revise its Sales and Service Tax (SST) system by expanding the taxable scope to include various services at an 8% rate, aligning with the government’s 2025 Budget strategy to enhance revenue and fiscal sustainability.
- New Compliance Obligations: Businesses in newly taxable sectors, such as non-residential construction, private healthcare for non-citizens, and selected financial services, must register for SST, update accounting systems, and apply the correct tax codes on invoices. The transitional period until December 31, 2025, allows for penalty-free adjustments.
- E-Invoicing Requirements: From September 1, 2025, e-invoices in currencies other than MYR must include a Currency Exchange Rate element. Companies must update templates to include SST codes, ensuring compliance with the revised invoicing framework to avoid submission rejections and enhance operational efficiency.
Source: RTCsuite
See also gov.my
Click on the logo to visit the website
New Currency Exchange Rate Requirement for Electronic Invoices in Malaysia
- Starting September 1, 2025, all electronic invoices issued in foreign currencies in Malaysia must include mandatory currency exchange rates to the Malaysian Ringgit (MYR) as part of new government regulations.
- Invoices lacking the required currency exchange rate information will be automatically rejected by the system, potentially disrupting business operations, revenue records, and statutory reporting for companies.
- Businesses operating in Malaysia are urged to review and update their technological infrastructure and processes promptly to ensure compliance with the new regulation, which aims to facilitate accurate currency conversions for compliance purposes.
Source docnova.ai
- See also
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
- Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
Latest Posts in "Malaysia"
- RMCD Updates 2025 Guide on Management Services: New Tax Rates and Service Classifications
- Amended Service Tax Policy: Exemptions Removed for Financial, Rental, Healthcare, and Education Services
- Malaysia 2025 Tax Updates: E-Invoicing, Dividend Rules, and MSME Support Announced
- Government Favors Enhancing SST Over Reintroducing GST for Faster Revenue and Fiscal Impact
- MoF Favors SST Over GST for Faster Implementation and Revenue Generation
