How to Write a Quotation in Malaysia: What to Include, SST and Examples

A clear quotation (sebut harga) in Malaysia lists who you are, who the customer is, exactly what you'll deliver, the price for each item, any SST, the total, and how long the price is valid. Send it before any work starts, and get the customer's written "OK" before you begin, because a quotation the customer accepts can become a binding agreement.

This guide covers what to put on a quotation, how to show SST correctly, three worked examples in RM, and the mistakes that cause payment disputes later.

What a quotation is (and isn't)

A quotation is your price proposal. In legal terms it's usually an offer: under the Contracts Act 1950, when you signal you're willing to do something to get the other person's agreement, you've made a "proposal". When the customer accepts it, the proposal becomes a promise.

A quotation is not a payment request (that's an invoice) and not proof of payment (that's a receipt). If you're unsure which document to send when, read invoice vs quotation vs receipt.

It's also not an e-Invoice. LHDN's MyInvois system has eight document types: invoice, credit note, debit note and refund note, plus self-billed versions of each. A quotation isn't one of them, so you don't submit quotations to LHDN. If your business is within e-Invoice scope, it's the invoice you issue after the job that matters.

What to include on a quotation

Your details

1. Business or trading name, and SSM registration number if you have one
2. Address, phone, email
3. SST registration number, but only if you're registered and charging SST

Customer details

1. Customer or company name
2. Contact person and address or email

Document details

1. Quotation number (e.g. Q-2026-041). Keep it separate from your invoice numbers.
2. Issue date
3. Valid until date

What you're selling

1. A clear description of each item or service: what's included, and what's not
2. Quantity and unit (hours, pax, pieces, months)
3. Unit price and line total
4. Subtotal, discount (if any), SST (if any) and grand total in RM

Terms

1. Deposit and payment terms (e.g. "50% deposit to confirm, balance within 14 days of completion")
2. Delivery date or timeline
3. Number of revisions or site visits included, and the price of extras
4. How to accept: "Sign and return this quotation" or "Reply 'confirmed' by email"

Why the "valid until" date matters

Under section 6 of the Contracts Act 1950, a proposal lapses when the time you set for acceptance runs out. If you don't set a time, it lapses after a "reasonable time", which is open to argument. A clear date such as "Valid until 30 November 2026" protects you if material prices go up.

Section 5 also lets you revoke a proposal any time before the customer's acceptance is complete, but not afterwards. So if your cost changes, send a revised quotation before they accept.

How to show SST on a quotation

Only show service tax if you're registered under the Service Tax Act 2018 and the service is a taxable service. If you're not registered, don't add an SST line; just show the total.

The Royal Malaysian Customs Department's current service tax rates are:

• 8% for most taxable services (since 1 March 2024)
• 6% for food and beverage, logistics, telecommunications and parking services
• RM25 per credit or charge card (a fixed amount, not a percentage)

Show SST as a separate line under the subtotal so the customer sees the price before and after tax. Customs also has a rule for jobs that span a rate change: payments received before the change stay at the old rate. That's another reason to keep validity periods short.

Worked example 1: freelancer, not SST-registered

Aina is a freelance graphic designer. A café asks for a new logo.

• Logo design, 3 initial concepts, 2 rounds of revisions: 1 × RM1,200 = RM1,200
• Extra revision (only if requested): RM150 each
• Total: RM1,200 (no SST line, because Aina isn't registered)
• Terms: 50% deposit (RM600) to confirm, balance on delivery of final files
• Valid until: 14 days from the issue date

Listing the extra-revision price before the job prevents the "but I thought revisions were free" argument later.

Worked example 2: SST-registered IT company at 8%

A registered IT services company quotes a client for website maintenance:

• Website maintenance: 12 months × RM400 = RM4,800
• Hosting setup (one-off): RM500
• Subtotal: RM5,300
• Service tax 8%: RM424.00
• Total: RM5,724.00

The quotation should also say what "maintenance" covers (for example, plugin updates and 2 hours of content changes a month) and the hourly rate for anything beyond that.

Worked example 3: caterer at 6%

A registered caterer quotes for a company event:

• Buffet catering: 80 pax × RM28 = RM2,240.00
• Service tax 6% (food and beverage): RM134.40
• Total: RM2,374.40
• Terms: final headcount 5 days before the event; headcount changes after that charged at RM28 per pax

When the customer confirms, turn the accepted quotation into an invoice with the same line items. After they pay, issue a receipt.

Getting the quotation accepted properly

Under section 7 of the Contracts Act 1950, acceptance must be "absolute and unqualified". If the customer replies "OK, but at RM1,000", that isn't acceptance; it's a new offer from them. Send a revised quotation rather than starting work on a half-agreed price.

Section 8 says performing the proposal's conditions is also acceptance. So if your quotation says "pay the 50% deposit to confirm", a paid deposit counts as acceptance. Write the acceptance method on the quotation so everyone knows when the deal is on.

Common mistakes

• No validity date. The customer comes back three months later expecting the old price.
• Vague descriptions. "Website design: RM3,000" invites scope creep. List pages, revisions and what's excluded.
• Adding SST when you're not registered. You can't charge service tax unless you're registered. Remove the SST line.
• Using the wrong rate. Most taxable services are 8%, not 6%. Only F&B, logistics, telecommunications and parking are at 6%.
• Starting work without written acceptance. A WhatsApp "ok proceed" is better than nothing, but a signed quotation or a deposit is clearer.
• Reusing quotation numbers as invoice numbers. Keep separate series (Q- and INV-) so your records stay clean.

Create one in a few minutes

The KiraBoss quotation and invoice generator lets you switch between Quotation, Invoice and Receipt, add line items, turn SST on or off with your own rate, and download a PDF. Once the customer accepts, switch the same details to an invoice.

*KiraBoss guides are general information, not legal or tax advice. For SST registration questions, contact the Customs SST helpdesk or a tax adviser.*