SST and service charge on event and venue quotes
A venue or caterer quote shows ++ beside prices, and you want to know the final bill.
The short answer
Event quotes often mix room hire, food and beverage, accommodation and services, and Malaysia's service tax treats these differently. Ask each supplier to show every line with its tax and any service charge separately, so you can compare quotes like for like and set a budget that holds.
The figures below are what the Royal Malaysian Customs Department publishes on MySST as at 10 October 2026. Rates and scope change, so check them again before you commit your budget.
What MySST publishes
| Item | What MySST states | What to do with it |
|---|---|---|
| General service tax rate | 8% from 1 March 2024 | Ask the supplier which rate it applies to each line. |
| Food and beverage | Stays at 6% (parking, logistics and telecommunications also stay at 6%) | Expect catering lines to carry a different rate from room and service lines. |
| Services added from 1 July 2025 | Rental or leasing is among them. The Service Tax (Rate of Tax) (Amendment) Order 2026 [P.U. (A) 125/2026] adds rental or leasing services to the First Schedule, deemed in force from 1 January 2026, but does not print a percentage. MySST shows 6% from that date in one place and 8% in an earlier FAQ | Ask the venue how it treats hall hire and equipment rental, which rate it uses and from what date. |
| Registration thresholds | Accommodation RM500,000 and food and beverage RM1,500,000; the 2025 rental or leasing page gives RM500,000 | Ask whether each supplier is registered for service tax, and confirm the tax shown on its invoice. |
What the ++ and the service charge mean
A price marked ++ usually means a service charge and tax will be added on top. The percentage is the supplier's to state, so ask for it in writing and ask for the full amount you will pay.
MySST's FAQs describe service charge differently by sector. The food and beverage FAQ says service charge is not subject to service tax. The accommodation FAQ says service tax is calculated on the value of the services inclusive of the service charge. Both FAQs say voluntary tips are not subject to service tax.
Because a hotel can quote rooms, meeting space and food in one package, ask it to show how it calculates tax and service charge on each line, and to state the order of calculation.
Reading a quote line by line
Ask for a quote that separates room hire, food and beverage, equipment, accommodation and any service or administration fee. Ask whether prices are inclusive or exclusive of tax, because MySST notes the displayed price may be either.
Then compare the totals, not the headline rates. A lower headline rate with a service charge and tax on top can total the same as a higher all-in price. The event RFP builder helps you ask every supplier for the same breakdown, and comparing quotations fairly shows how to score them.
Budgeting and approvals
Your finance team will want the tax and service charge visible before approval. Carry the tax-inclusive total into the event budget approval summary and track it against committed spend using budget versus committed spend.
Where to read the official guides
MySST publishes industry guides, including accommodation, food and beverages, and rental or leasing, some in Malay only. Ask your finance team to read the guide for each supplier type, or ask the supplier which guide it follows.
Confirm before you budget
Rates, thresholds and the treatment of service charge differ by service type and can change. Confirm the position with the Royal Malaysian Customs Department (MySST) or your tax adviser before you finalise a budget.
Worked example · Fictional example
A fictional quote, read line by line
Fictional organisation and figures, for illustration only.
The Persatuan Fiktif Perancang Kewangan receives a venue quote with three lines marked ++: hall hire, a banquet lunch per person and equipment. The secretary writes back asking for the same three lines with tax and service charge shown for each, the rate used, and whether a service charge applies to hall hire as well as to food.
| Line | Amount before tax and charge (RM) | Question sent |
|---|---|---|
| Hall hire, two days | 10,000 | Which tax rate applies, and from what date? Is a service charge added? |
| Banquet lunch, per person | 100 | Which rate applies to food and beverage? Is the service charge applied before or after tax? |
| Equipment rental | 3,000 | Is equipment treated as rental or leasing, and at which rate? |
Use this yourself
Quote-check table for SST and service charge
Send these questions with every venue, caterer and hotel quote, then record the answers next to each line.
| Line on the quote | Ask the supplier | Write down |
|---|---|---|
| Room or hall hire | Which tax rate applies and from what date? Is a service charge added? | Rate, date, service charge % |
| Food and beverage | Which rate applies? Is the service charge calculated before or after tax? | Rate, order of calculation |
| Accommodation | Is the room rate inclusive or exclusive of tax and service charge? | Inclusive or exclusive, total per night |
| Equipment and services | Is each item taxed, and at which rate? | Rate per item |
| Admin or other fees | What is this fee for, and is it taxed? | Amount, tax treatment |
| Whole quote | Is the supplier registered for service tax? What is the all-in total? | Registered yes or no, all-in total |
Handle it in-house, or bring in help?
Your team can usually handle this when
- You have one or two suppliers and a finance team that can read each invoice.
- Suppliers already show tax and service charge on separate lines.
- Your budget has room to adjust once final invoices arrive.
Outside planning help earns its fee when
- Several suppliers quote in different formats and you need them on one comparable basis.
- A package mixes rooms, meeting space and food and you need the breakdown.
- You need the tax and service charge built into a budget that your committee must approve.
Want quotes comparable before you decide?
An Event Blueprint includes supplier requirements that ask every supplier for the same line-by-line breakdown, so tax, service charge and totals can be compared on one page. We prepare it remotely for events anywhere in Malaysia. Send us the quotes you hold, and we will reply with the level of support that fits and what it would cover.
Questions organisers ask
What does ++ mean on a venue quote?
It usually means service charge and tax are added to the price shown. Ask the supplier to write out the percentage and the full amount.
Is service charge taxed?
MySST's FAQs describe it differently for food and beverage and for accommodation, so ask the supplier how it treats each line and check the relevant Customs guide.
Is food taxed at the same rate as hall hire?
MySST states food and beverage stays at 6% while the general rate is 8%. Ask how rental of space and equipment is treated, because MySST pages differ on rental or leasing.
Do I have to ask each supplier if it is registered?
It is a sensible question, because registration depends on thresholds. Ask, and check the tax shown on the invoice.
Related resources
Sources and check dates
- Background of Sales and Service Tax, Royal Malaysian Customs Department (MySST) (checked 2026-10-15). Service tax is 8% from 1 March 2024 except food and beverage services (and parking, logistics and telecommunications), which stay at 6%; lists services added from 1 July 2025, including rental or leasing shown at 6% effective 1 January 2026.
- Service Tax (Rate of Tax) (Amendment) Order 2026 [P.U. (A) 125/2026], Royal Malaysian Customs Department (MySST), gazette order (checked 2026-10-15). Adds item 14, provision of rental or leasing services, to the First Schedule of the Service Tax (Rate of Tax) Order 2018 [P.U. (A) 213/2018]; deemed to have come into operation on 1 January 2026; the order does not state a percentage.
- FAQ: Expansion of Service Tax Scope 2025, Royal Malaysian Customs Department (MySST) (checked 2026-10-10). States the tax rate for rental or leasing services is 8% with a RM500,000 registration threshold; does not mention venue or hall rental specifically.
- Registering Business, Royal Malaysian Customs Department (MySST) (checked 2026-10-10). Registration thresholds: accommodation RM500,000 and food and beverage RM1,500,000.
- FAQ Business, Royal Malaysian Customs Department (MySST) (checked 2026-10-10). Food and beverage FAQ: service charge is not subject to service tax. Accommodation FAQ: service tax is calculated on the value of the services inclusive of the service charge; the displayed price may be inclusive or exclusive of service tax; voluntary tips are not subject to service tax.
- Industry Guides, Royal Malaysian Customs Department (MySST) (checked 2026-10-10). Lists Customs guides for accommodation, food and beverages, rental or leasing, and consultancy, training and mentoring services; several are published in Malay only.
Content record: Written by the EventConsultant team to our editorial rules. Sources are listed on pages that rely on them.