EY launches AI-powered solution to streamline Sales Tax and Service Tax compliance in Malaysia

Anchored in the MADANI vision of harnessing artificial intelligence (AI) for growth and efficiency, Ernst & Young Tax Consultants Sdn. Bhd. has launched an innovative AI-powered solution to transform the Sales Tax and Service Tax (SST) compliance landscape in Malaysia.

The solution was developed through collaboration between the ey.ai Innovation Center in Kuala Lumpur and EY indirect tax professionals in Malaysia, integrating seamlessly with e-Invoicing data to address the pressing challenges that organizations face with SST compliance and associated reconciliations that are required. It aims to reduce manual processes, use data analytics to comb through transaction-level data to identify issues, uses AI to recommend fixes and automates the production of SST returns, enabling tax teams to focus on strategic decision-making.

“With this solution, we are empowering organizations in Malaysia to navigate the complexities of SST compliance with greater ease and confidence. This end-to-end solution not only enhances accuracy and efficiency but also prepare businesses to be audit-ready in an ever-evolving regulatory landscape,” said Farah Rosley, Malaysia Tax Managing Partner, Ernst & Young Tax Consultants Sdn. Bhd.

Designed for organizations aiming to improve their SST reporting processes, the new SST solution is available as a tax compliance service used by EY professionals, a customized offering to those that want to own the solution, and finally as a standardized software-as-a-service (SaaS) solution. This flexibility allows businesses to choose the approach that best suits their needs, so that they remain compliant with the latest regulatory requirements set by the Royal Malaysian Customs Department (RMCD).

The launch of this solution took place at the EY Tax Academy Flagship Series: 2026 Budget and Tax Conference in Kuala Lumpur on 22 October 2025. This annual event brings together key stakeholders in the tax industry, including government officials, tax professionals and business leaders, to discuss the latest developments in Malaysia’s tax landscape and the implications of the Budget 2026 proposals.

The 2026 Budget and Tax Conference will also take place in Johor Bahru, Kuching, Kota Kinabalu, Melaka, Kuantan and Penang throughout October and November 2025.

-ENDS- 

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This news release has been issued by Ernst & Young Consulting Sdn. Bhd., a member of the global EY organization.