Subscription and SaaS revenue is taxed differently in every Southeast Asian market, and the difference between getting it right and getting it wrong is the difference between a clean margin and a compliance audit. Singapore treats B2B SaaS one way. Malaysia treats it another. Indonesia has its own rules entirely. The mistake most founders make is applying a single tax treatment across the region, then discovering midway through the year that their invoices don't comply with local law—and worse, that they've been collecting the wrong amount from customers. This is a working guide to how each country taxes recurring revenue, how to structure your invoices, and how to handle cross-border sales without overpaying or breaking compliance. Singapore: B2B SaaS is GST-exempt if you get the conditions right Singapore's Goods and Services Tax (GST) is 9% as of 2024. But here's the critical exemption: B2B digital services supplied to businesses outside Singapore are exempt from GST, and domestically supplied B2B digital services can also qualify for exemption under certain conditions. The rule turns on who the customer is , not what you're selling. If you invoice a Singapore-registered company for SaaS, the service may be zero-rated or exempt depending on the customer's registration status and your own GST registration. If you invoice an overseas customer from your Singapore entity, the service is out-of-scope for GST. This is where the first error happens: founders assume all SaaS is exempt. It isn't. If your customer is a consumer, GST applies at 9%. If your customer is a small business without GST registration, GST still applies. The Invoice must state: Your GST registration number (if registered) Customer's GST registration number (if registered) The supply date (critical for recurring services—use the invoice date or service start date, consistently) Clear itemization: 'Software as a Service' or 'Cloud services' (not just 'monthly fee') The tax treatment: '0% GST – zero-rated supply to overseas business' or 'GST exempt – B2B supply' or '9% GST applied' depending on which category applies Recurring billing invoices must be issued within 5 days of the billing date, not after the service period ends. IRAS (Inland Revenue Authority of Singapore) expects monthly invoices in the month the service is supplied, not retrospectively. If you're operating as a Singapore entity and your customer is abroad, you typically don't charge GST. If your customer is a Singapore business with GST registration, you typically don't charge GST. If your customer is a Singapore consumer or unregistered small business, you do charge 9% GST. Malaysia: SST applies to most digital services, with narrow exceptions Malaysia's Service and Sales Tax (SST) replaced GST in 2018. The rate is 6% SST on services. Digital services like SaaS, cloud hosting, and software-as-a-service are not automatically exempt —a common misunderstanding. The exemption exists for specific types of services. Insurance, telecommunications (in limited cases), and certain financial services are exempt. SaaS is not on that list. If you supply software or digital services to a Malaysian customer (individual or business), you must charge 6% SST. The exception: if the customer is outside Malaysia and the service is consumed outside Malaysia, SST does not apply. This is where cross-border SaaS becomes important. If a Malaysian company subscribes to your service but uses it from their UK office, you may not charge SST. But if they consume it in Malaysia, you do. In practice, most B2B SaaS vendors in Malaysia charge 6% SST to all customers unless there's a clear case that the service is consumed outside Malaysia. When in doubt, charge it and document the reason. Your invoice must show: Your company name and SST registration number Customer name and SST registration number (if registered) Service description: 'Cloud software subscription' or 'SaaS – subscription service' Service period (start date and end date for each recurring billing cycle) Amount before SST 6% SST amount (clearly separated) Total including SST Malaysia's tax authority (MOF) now requires digital service invoices via MyInvois if you're registered for MyInvois. If you're not yet mandated, you may still issue manual invoices, but digital submission is becoming standard for SST compliance. Plan to integrate MyInvois into your invoicing system— Orin's billing module includes templates that format SST and MyInvois requirements correctly . One more detail: recurring billing in Malaysia often uses the invoice date as the service period start, not the payment date. This matters for SST reporting. A subscription renewed on the 15th of the month should be invoiced for the period 15th to 14th of the next month, not for the calendar month. Indonesia: PPN applies at 12%, no B2B exemption Indonesia's Value Added Tax is called PPN (Pajak Pertambahan Nilai). Since 2022, the standard rate is 12%. There is no exemption for B2B digita