Food and beverage preparation is taxed at 6%, not the 8% general rate. Enter a bill below to see the correct breakdown.
Service tax is fixed at 6% because that is the Group B rate for food and beverage preparation. Only charge it if your business is registered for service tax.
Bill breakdown
Total payable
RM 116.60
Service tax collected on this bill: RM 6.60
A RM100 food and drink subtotal, at a venue that applies a 10% service charge. The service charge is added first, giving RM110. Service tax of 6% is then calculated on that RM110, which is RM6.60. The guest pays RM116.60.
If you charged 8% by mistake, the same bill would come to RM118.80 — you would be over-collecting RM2.20 on every RM100 of sales.
MinimalPOS applies your service tax and service charge to every order automatically, shows them as separate lines on the receipt, and reports exactly what you collected at the end of a shift.
How this free tool helps
Work out the service tax on a Malaysian food and beverage bill. Enter the subtotal, add a service charge if your venue applies one, and see exactly how the bill breaks down. The calculator uses 6%, which is the rate for food and beverage preparation — a point a lot of online sources get wrong.
Calculating tax by hand is fine for one bill and impractical for a service. MinimalPOS applies your service tax and service charge to every order automatically, prints them as separate lines on the receipt, and reports what you collected across a shift.
Explore MinimalPOS Restaurant POS6%. When Malaysia's general service tax rose to 8% on 1 March 2024, food and beverage preparation was explicitly excluded and stayed at 6% under Group B. A restaurant charging 8% on food and drink is over-collecting.
Service charge is applied to the subtotal first, and service tax is calculated on the total including the service charge. So a RM100 bill with a 10% service charge is RM110, and 6% service tax on that is RM6.60, giving RM116.60.
No. Service tax only applies once you are registered, which depends on your rolling 12-month taxable turnover against the Group B threshold. Smaller outlets below the threshold do not charge it. Check your own registration status before switching it on in a POS.
No. Service charge is a pricing decision by the venue and is not required by law. Service tax is a government tax. They are different things, and they should appear as separate lines on the bill.
Continue planning
Looking for operating advice? Read the MinimalPOS restaurant guides.