Setting up and filing SST in Cloudby

Last updated: July 10, 2026

The rules
This guide is how to do SST in Cloudby. For who must register, the rates, exemptions and the SST-02 itself (the regulatory side), see the SST compliance handbook.
Learn the concept
For where tax sits among your documents and how tax groups work as a feature, read Taxation in the reference.
Who this is for: Malaysian businesses registered (or registering) for SST with Customs (RMCD). It assumes you already know how invoices, credit and debit notes, and posting work in Cloudby.
Scope: Malaysia / SST only.
Time: set up once, then keep the Applying tax and Filing parts open as you work.

1. The idea: two taxes, charged on a line

SST is not one tax but two: Sales Tax on taxable goods and Service Tax on prescribed services. It is run by Customs (RMCD), not LHDN. In Cloudby you never calculate either by hand: you build tax groups once, then pick the right group on each document line, and Cloudby works out the tax and posts it.

Sales Taxon taxable goodscharged once, at themanufacturer or import5% or 10%Service Taxon prescribed servicescharged by the registeredprovider when supplied8% (some 6%)
SST is two separate taxes. A tax group in Cloudby carries the right one, at the right rate, for each line.

A tax group bundles one or more tax items, and each item has a rate (a percentage such as 8%, or a fixed amount) and the ledger its tax posts to. Rates are effective-dated, so when a rate changes you add a new dated rate and old documents keep resolving at the rate that applied then.

No input-tax credit. Unlike the old GST, SST is single-stage: there is nothing to offset. What you charge on a taxable sale is what you remit. That is why the job is really two things: charge the right tax, and report it.

2. Set up SST (once per organisation)

Three things make SST work: your registration details, your tax groups, and (if you e-Invoice) the right tax type codes. Do them in order.

2.1 Enter your Tax Setup

Open Accounting → Tax → Setup and record your SST registration number and your filing frequency (SST is normally a two-month taxable period). This is what tells Cloudby you are a registered person and drives the period on your tax reports.

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Accounting > Tax > Setup: the SST registration number and the filing frequency (taxable period)

2.2 Install the SST tax pack, or build the groups

You do not have to type the tax codes in from scratch. Cloudby ships a Malaysia SST starter that your partner can apply during setup: it seeds the standard tax groups (Sales Tax 5% and 10%, Service Tax, and the exemption codes) wired to the SST ledgers, and installs the customer and vendor SST / TIN / BRN / MSIC fields. If you would rather build your own, open Accounting → Tax → Taxes and add each group and its rate by hand. Either way the result is the same: a set of tax groups you can pick on a line. See Tax groups and Tax rates in the reference.

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Accounting > Tax > Taxes: the list of SST tax groups (Sales 5% / 10%, Service, exemptions) with their rates and ledgers
Check the rate before you rely on it. The shipped SST starter dates from 2018, so its Service Tax rate is 6%. The standard Service Tax rate is now 8% (since March 2024, with some categories kept at 6%). Add a new effective-dated 8% rate on the service group so current invoices charge 8% while older ones still resolve at 6%. Confirm your own rates on the MySST portal.

2.3 Wire the tax ledgers

Each tax item posts to a general-ledger account. The sale (output) side must point at a liability account (the SST you owe Customs); the starter uses dedicated Sales Tax and Service Tax payable accounts. If you built groups by hand, set the ledger on each item so the tax has somewhere to post. A group with no ledger is the most common setup error.

2.4 Set the MyInvois tax type code (if you e-Invoice)

This is the step people miss. When e-Invoicing is on, every line must carry a MyInvois tax type code, and the starter template does not set it for you. On each tax item, set the code: 01 for Sales Tax, 02 for Service Tax, 06 for not-applicable / exempt. Get this right once at setup and your e-Invoices validate; leave it blank and they will be rejected. See the e-Invoice guide for the wider e-Invoice setup.

2.5 Fill in the tax fields on customers and vendors

For e-Invoicing and for correct documents, your customers and vendors need their tax identity: registered name, SST number, TIN, BRN and MSIC code. The SST pack adds these fields; fill them in as you onboard each party. They flow onto the documents and the e-Invoice automatically.

3. Applying tax, day to day

With the groups in place, tax is a single choice on each line.

Pick the tax group on the line

On any taxable document (a Sale Invoice, Credit Note, Debit Note, Purchase Invoice or Bill), choose the tax group on each line. Cloudby calculates the tax, shows it on the document, and posts it to the ledger you wired. Set the customer or product default so the right group is chosen for you and you only change the exceptions.

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A Sale Invoice line with the tax group selected, showing the tax amount calculated and the document tax total

Tax-inclusive or tax-exclusive

Cloudby supports both. On a tax-exclusive line the tax is added on top of the amount; on a tax-inclusive line the price already contains the tax and Cloudby extracts it. Pick whichever matches how you quote your prices; the posted tax is the same either way.

Credit and debit notes

Adjustments carry tax the same way. Raise a Credit Note or Debit Note against the original, choose the same tax group, and Cloudby reverses or adds the tax and posts it. Your tax reports pick the adjustment up automatically for the period it falls in.

4. Exemptions and special cases

The rules
Which exemption applies (Schedule A/B/C, exports, special areas, intra-group) is a regulatory question. This guide is only how to record it in Cloudby. For the rules, see Exemptions in the handbook.

Cloudby applies whatever rate a tax group carries, so an exempt or zero-rated line is simply a line with a 0% tax group. The SST starter already includes the exemption codes (STE, SEE, the Schedule A/B/C codes and so on) as 0% groups, so you pick the one that names your reason rather than typing a plain zero. That keeps the exemption visible on the document and in your reports.

Exempt or zero-rated sales

Choose the exemption tax group that matches the reason (an export, a Schedule A customer, exempt goods). The line shows no tax, but the group records why, which is what you want if Customs ever asks. When e-Invoicing, attach the exemption reason so it is reported to MyInvois too.

Imported services

If you acquire a taxable service from outside Malaysia, use the imported-service group (SVI). Registered persons report it on the SST-02; non-registered persons report it on the SST-02A. Cloudby records it so it appears in your tax figures for the period.

5. Filing the SST-02

The rules
The return, the boxes and the due date are covered in Filing the SST-02 in the handbook. Here is how to get the numbers out of Cloudby.
Posted docsinvoices + notesTax Summaryoutput tax per groupSST-02 boxesmap the figuresMySST portalfile + pay (manual)
Cloudby prepares the figures (the Tax Summary report); you submit the SST-02 on the MySST portal yourself.
Cloudby prepares the figures; you file on the portal. Cloudby does not e-file the SST-02 for you. It gives you the exact numbers; you enter them on the MySST portal and pay there.

Run the Tax Summary report

Open Menu → Finance → Reports → Tax Summary and set the report to your taxable period. It lists, per tax group, the taxable value and the tax charged (output tax on your sales, and the input / purchase side for your records). These are the numbers that go on the SST-02. See Run finance reports.

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Finance > Reports > Tax Summary for a taxable period: taxable value and tax per tax group, with the period total

Map to the SST-02 and submit

Read the Tax Summary totals across to the matching boxes on the SST-02 form on MySST, submit, and pay by the due date (the last day of the month after the taxable period). Use the Tax Listing report if you need the document-by-document detail behind a figure. Keep the Tax Summary as your working paper for the period.

Reconcile before you file. Check the Tax Summary against your posted invoices and credit notes for the period, so the return matches your books. File even a nil period, on time, to avoid a penalty.

6. Scenarios and troubleshooting

Find your situation and follow it through.

My Service Tax is charging 6%, but it should be 8%.

The shipped SST starter is dated 2018, when service tax was 6%. Add a new effective-dated 8% rate on the service tax item (do not overwrite the 6% one, so older documents stay correct). New invoices from the effective date will charge 8%.

My e-Invoices are being rejected on tax.

Almost always a missing tax type code. Open each tax item and set it (01 Sales, 02 Service, 06 exempt). The starter template does not set this, so it is the first thing to check.

How do I record an exempt or zero-rated sale?

Use a 0% tax group that names the exemption (an export, a Schedule A customer, exempt goods), rather than deleting the tax. The line shows no tax but records the reason, which is what Customs expects.

The tax is not posting to the ledger.

The tax item has no ledger wired, or it points at the wrong account. Set the sale side to your SST payable (liability) account. A quick way to catch this across your setup is the Compliance checker under the org compliance area, which flags unwired tax ledgers.

I bought a service from overseas.

Use the imported-service group (SVI). If you are SST-registered it goes on your SST-02; if not, it is reported on the SST-02A. Either way, recording it in Cloudby puts it in your tax figures for the period.

A price already includes tax.

Set the line to tax-inclusive and Cloudby extracts the tax from the price. The posted tax is the same as an exclusive line; only the presentation differs.

FAQ

Does Cloudby file my SST-02 for me?
No. Cloudby produces the Tax Summary with the figures; you submit and pay on the MySST portal. There is no auto e-filing.

Do I get input-tax credit like GST?
No. SST is single-stage: there is no offset. You remit the output tax you charged, less any exemption.

The rate changed mid-year. Do I edit the old rate?
No. Add a new effective-dated rate. Cloudby keeps both, so each document uses the rate that applied on its date.

Where do the tax type codes come from?
You set them per tax item (01 Sales, 02 Service, 06 exempt). They flow onto every e-Invoice line, so they must be right before you e-Invoice.

Still stuck? Message us on WhatsApp or email hello@cloudby.co and we will walk you through it.