Background
a) SALES TAX
b) SERVICE TAX
Sales tax is a tax charged and levied:-
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on taxable goods manufactured in Malaysia by a taxable person and sold, used or disposed by him;
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on taxable goods imported into Malaysia.
Sales tax is not charged on:-
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goods listed under Proposed Sales Tax (Goods Exempted From Sales Tax) Order;
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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:-
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liable to be registered
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Reached sales threshold
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Manufacturer -- RM 500,000.00
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Sub-contractor -- RM 500,000.00
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registered under Sales Tax Legislation
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Mandatorily registered
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Voluntarily registered
b) SERVICE TAX
Service tax is charged:-
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taxable services;
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provided in Malaysia
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by a registered person carrying on his business
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imported taxable services (c.i.o 1 January 2019)
Threshold:-
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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 :-
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6% (1 Sept 2018 - 29 Feb 2024)
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8% (mulai 1 Mac 2024) kecuali F&B, Parking, Logistik & Telekomunikasi - 6%
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Provision of credit card or charge card services
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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?