Background

a) SALES TAX

Sales tax is a tax charged and levied:-

• on taxable goods manufactured in Malaysia by a taxable person and sold, used or disposed by him;
• on taxable goods imported into Malaysia.

Sales tax is not charged on:-

• goods listed under Proposed Sales Tax (Goods Exempted From Sales Tax) Order;
• Certain manufacturing activities are exempted by Minister of Finance through Proposed Sales Tax (Exemption from Registration) Order.

How Sales Tax Works?

Taxable Person

Taxable person is a person who manufactures taxable goods and is:-

• liable to be registered
• Reached sales threshold
  • Manufacturer -- RM 500,000.00
  • Sub-contractor -- RM 500,000.00

• registered under Sales Tax Legislation
• Mandatorily registered
• Voluntarily registered

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b) SERVICE TAX

Service tax is charged:-

• taxable services;
• provided in Malaysia
• by a registered person carrying on his business
• imported taxable services (c.i.o 1 January 2019)

Threshold:-

• Any person providing taxable services liable to be registered if the total amount of taxable services provided by him in 12 months exceed threshold.

Rate of tax dipinda kepada :-

• 6% (1 Sept 2018 - 29 Feb 2024)
• 8% (mulai 1 Mac 2024) kecuali F&B, Parking, Logistik & Telekomunikasi - 6%
• Provision of credit card or charge card services
• A specific rate of tax of

Licensing:-

Any person who carries on business of providing taxable services in any prescribed establishment is required to be licensed under the service tax act.

How Service Tax Works?