Invoice vs tax invoice: what's the difference in Malaysia?
Accounting Buddy··3 min read
Every business can issue an invoice. A "tax invoice" is an invoice that also charges tax, and only businesses registered for tax can issue one.
In Malaysia today, that tax is SST. So when a customer asks you for a tax invoice, they usually mean an invoice that shows your SST registration number and the SST you charged. If you're not SST-registered, a regular invoice is all you need, and you shouldn't charge SST on it.
Where the term "tax invoice" comes from
Malaysia had GST from 1 April 2015. Under GST, a "tax invoice" was a formal document with set details that GST-registered businesses had to issue.
GST was replaced by SST on 1 September 2018 (ACCA). Under SST, registered businesses must still issue invoices with prescribed details, in Bahasa Melayu or English (Customs SST implementation model).
The name stuck. Many customers, especially larger companies, still say "tax invoice" when they mean an SST invoice.
Side by side
Regular invoice | SST invoice ("tax invoice") | |
|---|---|---|
Who issues it | Any business | Only SST-registered businesses |
Charges SST | No | Yes, on taxable goods or services |
SST registration number | Not needed | Required |
Tax amount shown | No | Yes, shown separately |
Required details | Good practice: seller, buyer, number, date, items, total | Prescribed by Customs |
Language | Any | Bahasa Melayu or English |
The full list of required SST invoice details is on the MySST portal. Check it before you change your invoice template.
Where e-invoice fits
E-invoice is a separate rule, run by LHDN rather than Customs. It's about how an invoice is issued and validated, not whether it charges tax.
From 1 September 2026, businesses with annual revenue below RM3 million are exempt from e-invoicing, subject to conditions (HASiL media statement, 30 August 2026). If you're both SST-registered and required to e-invoice, your e-invoice still needs to carry the SST details.
Quick check for your business
Not SST-registered? Send a regular invoice. Don't add SST.
SST-registered? Use an invoice with your SST number, the tax amount and the other details Customs requires.
Customer asking for a "tax invoice" but you're not registered? Tell them you're not SST-registered, so your regular invoice is the correct document.
Duitbooks helps you create clear invoices and keep your sales records in one place. It's free, and built by Malaysians for Malaysian businesses.
