VAT/Tax Calculator
Calculate VAT, SST, GST, or Sales Tax with country-specific rates and algorithms.
Enter an amount and click Calculate.
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Calculate VAT, SST, GST, or Sales Tax with country-specific rates and algorithms.
Enter an amount and click Calculate.
Explore our full suite of free online calculators.
Multiply the net (pre-tax) price by (1 + SST rate). For 6% SST: RM 200 × 1.06 = RM 212 (sales tax inclusive). For 10% Sales Tax: RM 200 × 1.10 = RM 220. If both Sales Tax and Service Tax apply (less common): Gross = Net × (1 + Sales Tax Rate + Service Tax Rate). For example, 10% + 6% on RM 100: RM 100 × 1.16 = RM 116.
Divide the gross (tax-inclusive) price by (1 + SST rate). For RM 318 inclusive of 6% SST: RM 318 ÷ 1.06 = RM 300 pre-tax. Use the same formula for any rate. Alternatively, if you just want the tax amount: RM 318 × 6 ÷ 106 = RM 18. Do NOT simply compute 6% of RM 318 (= RM 19.08) — that overestimates the tax because 6% of the gross includes tax-on-tax, which is incorrect.
SST is a single-stage tax — Sales Tax is charged at the manufacturer/importer level, and Service Tax at the point of service delivery. GST is a multi-stage tax charged at every stage of the supply chain, with businesses claiming input tax credit on purchases. GST is more comprehensive and generates more revenue, but SST is simpler to administer. Under SST, only registered manufacturers and service providers collect tax; under GST, all businesses in the chain collect and remit tax.
Exempt from Sales Tax: basic food items (rice, flour, sugar, cooking oil), essential agricultural products, livestock, and certain pharmaceutical products. Exempt from Service Tax: healthcare services, education, public transportation, residential property rental, financial services, and telecommunications below certain thresholds. Exported goods and international services are generally zero-rated (taxed at 0%).
If you are SST-registered: (1) Identify whether the transaction involves goods (Sales Tax) or services (Service Tax), (2) Determine the applicable rate (5%, 6%, 8%, or 10% depending on the category), (3) Calculate: Invoice Amount = Value of Goods/Services + SST at the applicable rate, (4) Show the SST amount and registration number clearly on the invoice. SST returns (SST-02) are filed every two months. Penalties for late filing and payment can be significant.
The 10% service charge added by some restaurants is NOT SST — it is a discretionary charge by the establishment that goes to the restaurant (usually distributed to staff). The 6% service tax (SST) is a government tax on the bill. A common restaurant bill might show: Food RM 100 + Service Charge RM 10 (10%) = RM 110, then SST 6% on RM 110 = RM 6.60, total = RM 116.60. The SST is calculated on the total including the service charge.
Since January 2020, foreign digital service providers (Netflix, Spotify, Google, Apple, etc.) must register for and charge 6% (now 8%) service tax on digital services sold to Malaysian consumers. This means your Netflix subscription now includes SST. B2B digital services may be exempt if the business is SST-registered and provides its registration number. This was implemented to level the playing field between local and foreign digital service providers.
Effective January 2024, goods valued at RM 500 or below sold online and imported into Malaysia are subject to 10% sales tax. This applies to purchases from overseas online sellers/marketplaces. The tax is collected by the marketplace or seller at the point of sale. For example, a RM 200 dress imported via Shopee from overseas now includes RM 20 in LVG sales tax. This aims to level the competitive field between local retailers (who charge SST) and overseas online sellers.
Sales Tax rates: 5% for most manufactured goods, 10% for a specific list including certain petroleum products, motor vehicles, alcohol, and tobacco. Service Tax rates: 6% for most prescribed services, 8% for specific services including professional services (legal, accounting, consultancy), IT services, management services, and advertising. Check the Customs Department's official SST rate classification or consult a tax professional to confirm your specific product/service category.
Registration is mandatory once your annual taxable turnover exceeds RM 500,000 (for goods or services). Below this threshold, registration is optional. Voluntary registration allows you to claim input tax on your business purchases, but also requires you to charge and remit SST on your sales. If your customers are businesses that can claim input tax, registration may be beneficial. If your customers are end-consumers, registration adds price without benefit to them.
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Value Added Tax and its equivalents around the world (SST in Malaysia, GST in Singapore, VAT in the UK/EU) are a daily reality for consumers and businesses. Whether you are calculating the tax-inclusive price, figuring out the tax component of a purchase, or preparing tax filings, a reliable VAT calculator saves time and eliminates errors.
Our free VAT/SST calculator works with any tax rate and handles both adding tax to a net amount and extracting tax from a gross amount. Switch between different countries' tax rates — Malaysia SST 6%/10%, Singapore GST 9%, UK VAT 20%, EU countries with their respective rates — or enter any custom rate for your specific needs.
Adding tax to a net (pre-tax) amount is straightforward: multiply by (1 + tax rate). Extracting tax from a gross (tax-inclusive) amount is slightly more complex because the gross amount already includes the tax. The tax component of a gross amount is: Gross × Rate ÷ (100 + Rate). For example, with 6% SST, the tax component of a RM 106 total is RM 106 × 6 ÷ 106 = RM 6.00. A common mistake is calculating 6% of RM 106 (= RM 6.36), which overestimates the tax.
Formula: Add Tax: Gross = Net × (1 + Rate%); Extract Tax: Tax Amount = Gross × Rate% ÷ (100 + Rate%)
You buy a laptop priced at RM 3,000 before SST. At 6% SST: Gross price = RM 3,000 × 1.06 = RM 3,180. The SST component is RM 180. If you see a price tag of RM 3,180 inclusive of 6% SST and want to know the pre-tax price: Net = RM 3,180 ÷ 1.06 = RM 3,000. To extract just the tax: RM 3,180 - RM 3,000 = RM 180, or use the extraction formula: RM 3,180 × 6 ÷ 106 = RM 180. For a restaurant bill of RM 88.50 including 10% service tax, the pre-tax amount is RM 88.50 ÷ 1.10 = RM 80.45, and the tax is RM 8.05.
Malaysia currently uses the Sales and Services Tax (SST) system: Sales Tax at 5% or 10% on manufactured goods, and Service Tax at 6% or 8% on prescribed services. SST replaced GST (6%) in September 2018. The SST registration threshold is RM 500,000 annual turnover for manufacturers and service providers. Compared to Singapore's GST (9% since 2024), UK VAT (20% standard), Australia GST (10%), and the EU's varying VAT rates (17-27%), Malaysia's SST is relatively low but applies differently (single-stage vs multi-stage tax).