List Of FAQs Sales & Services Tax

A : Digital service means any service that is delivered or subscribed over the internet or other electronic network and which cannot be obtained without the use of information technology and where the delivery of the service is essentially automated

A : Digital service tax is a tax charged on:-

a) any digital service;
b) provided by a foreign registered person; and
c) to any consumer.

A : Foreign registered person is any Foreign Service provider who is registered with Royal Malaysian Customs (RMC).

A : Foreign Service provider means any person who is outside Malaysia providing any digital service to a consumer and includes any person who is outside Malaysia operating an online platform for buying and selling goods or providing services (whether or not such person provides any digital services) and who makes transactions for provision of digital services on behalf of any person.

A : Consumer means any person who fulfils any two of the following:

a) makes payment for digital services using credit or debit facility provided by any financial institution or company in Malaysia;
b) acquires digital services using an internet protocol address registered in Malaysia or an international mobile phone country code assigned to Malaysia;
c) resides in Malaysia.

A : The proposed rate of tax is 6%.

A : The DST will be imposed starting from 1 January 2020

A : A Foreign Service provider is liable to be registered if his total value of digital services provided to consumer has exceeded the prescribed threshold of Ringgit Malaysia five hundred thousand.

A : Registration will be processed online.

A : The Foreign Service provider is required to apply for registration before 1 January 2020 starting from 1 October 2019.

A : Every foreign registered person who provides any digital service shall issue an invoice or a document containing prescribed particulars to the consumer in respect of the transaction either electronically or in paper form

A : The taxable period for a foreign registered person shall be a period of three months

A :
a) A foreign registered person has to declare the return every three months according to the taxable period.
b) The return has to be submitted not later than the last day of the following month after the taxable period ended.
c) The return has to be submitted regardless of whether there is any tax to be paid or not.
d) The return has to be submitted electronically.

A : Any foreign registered person shall pay to the Director General the amount of service tax due and payable electronically.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : The importer is entitled to claim exemption from paying sales tax on the CKD Pack subject to DG approval with the condition that all the exempted components shall be used directly in manufacturing the motor vehicle by the contract manufacturer (registered manufacturer). Sales tax is chargeable on the finish product that is built-up motor vehicle.

A : Valuation method for locally assembled motor vehicle is as follows:

(i) Transaction value will be accepted as sales value if the sale is between non connected persons.
(ii) Computed value valuation method is to be used if the sale is between connected person, when there is no sales and motor vehicle is disposed otherwise.

A : No. All the sales tax OMV on the commercial vehicles issued by RMCD before 1.4.2015 had been revoked.

A : The registered manufacturer / contract manufacturer who is the manufacturer/ assembler of taxable goods.

A : Under such circumstances, there is no sales involve in this transaction and computed value valuation method should be applied to determine sales value of the motor vehicle for sales tax payment purposes.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : Such schemes under GST will not be applicable under sales tax regime.

A : Noris Sdn Bhd shall charge GST at standard rate 0%.

A : VD Manufacture Sdn Bhd shall charge GST at standard rate of 0% on the part of work performed until 31 August 2018. Meanwhile, the balance of the work completed on 15 October 2018 shall be charged with sales tax at 10%.

A : Big Ticket Items under GST regime will be included in the petroleum upstream Master Exemption List (MEL) and the importer of such items that is petroleum upstream operator will be given an exemption from sales tax subject to prescribed conditions as stated in the Sales Tax (Person Exempted from Payment of Tax) Order 2018.

A : KG Sdn Bhd shall charge GST at standard rate of 0% on the value of the subcontract work performed to its customer on 18 August 2018.

A : Tank Technicals (M) Sdn Bhd shall charge sales tax 10% on the value of the work performed on 16 September 2018.

A : EM Packaging (M) Sdn Bhd shall charge GST at standard rate 0% for the value of work performed until 31 August 2018. Meanwhile, sales tax shall be charged on the value of the subcontract work performed from 1 September 2018 until 4 October 2018.

A : The operator of the canteen is liable to be registered if his sales value exceeds RM1,500,000.

A : Preparations of all types of management services and other charges related to the preparation including management or project coordination is subject to service tax as stated under Group G First Schedule of the Service Tax Regulations 2018.

A : Preparation of consultancy / design / engineering services and other services related to it is subject to service tax as stated under Group G First Schedule of the Service Tax Regulations 2018.

A : Services such as repair, testing, or research and development services is not part of the prescribed services under the Service Tax Act 2018. Therefore, the services are not subject to service tax.

A : Transportation service on delivery of goods by the manufacturer to his customer is not part of the prescribed services under the Service Tax Act 2018. Therefore, the service is not subject service tax.

A : If the customs declaration performed by an operator whose principal is in the Special Areas i.e. warehouse, the customs declaration is not subject to service tax. However, if the operator's principal is located in the PCA thus the customs declaration is subject to service tax.

A : The warehouse rental or storage charged by the warehouse operator to the manufacturer is not part of the prescribed services under the Service Tax Act 2018. Therefore, the service is not subject to service tax.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : Generally, all the services provided by the hotel operator are subject to service tax. However, the laundry services which is outsourced is not subject to service tax.

A : The entrance fee of RM100 is subject to service tax as the service is provided by the hotel operator.

A : The telecommunication services charge by hotel operator are subject to service tax.

A : Parking facilities provided to the hotel guests are not subject to service tax because it is accounted for in the guest room charges. However, letting of parking space charged separately is subject to service tax. If a discount is given, service tax will be charged on the discounted amount.

A : The complimentary room given by the hotel to travel agent is not subject to service tax.

A : The wedding package offered may consist of the wedding breakfast, buffet and meals served in a room with ancillary services provided as part of the package (including floral decorations; the service of a toastmaster; a room for the ceremony and bridal party). The calculation of service tax must be based on the total value of this package. The service tax treatment is the same for other similar packages like conferences, seminar and gatherings with ancillary services.

A : Yes, you are required to register for service tax if your value of taxable service for the period 12 months exceeds RM500,000.

A : The amount of service tax charge is RM2.40.

A : Provision of food and beverage services by hotel operator is subject to service tax at 6%.

A : The letting out of such facilities is subject to service tax.

A : ABCP is not making a taxable service but ABCHM is making a taxable service as a hotel operator.

A : XYZP provides leasing services which is not a taxable service under the First Schedule of Service Tax Regulations 2018.

A : You are required to charge service tax for the services of operating the hotel and service apartment.

A : The free night offered as a package in a promotion campaign is treated as a discount and allowable. Service tax is chargeable on the actual amount paid.

A : These services are taxable services and subject to service tax. If a discount is given for using these facilities, service tax shall be accounted on the discounted amount.

A : No, a timeshare programed sold by a timeshare provider is not subject to service tax.

A : No show charge is subject to service tax. It cannot be treated as a penalty since the provision of accommodation has been made to the customer.

A : No, the guest does not have to pay the service tax for the broken teapot.

A : No, the purchased is not subject to service tax.

A : The supply of bouquets of flowers or gifts to the hotel operator is not a taxable service. However, when it is provided by the hotel operator to his guest for a charge, such services are also subject to service tax.

A : Provision of food and beverage services provided by restaurant operator is subject to service tax if his total annual taxable turnover exceeds RM1,000,000.

A : Yes. The provision of services through any coin-operated machines, such as video game, vending machine or snack machines are subject to service tax. Service tax is to be accounted as a tax fraction of the total value of the coins/tokens removed or collected from the machine.

A : A tip given voluntarily by guests or customers to a hotel's staff as a token of appreciation for services rendered is not subject to service tax. However, if the tip is included in the customer's bill as a service charge, then service tax is chargeable. Service tax is to be calculated on the value of the services inclusive of the service charge.

A : The price displayed may be inclusive or exclusive of service tax.

A : The hotel operator should issue an invoice to the customer where a GST of 0% charged on accommodation for the period 28 August 2018 to 31 August 2018 and service tax chargeable on accommodation for the period 1 September 2018 to 7 September 2018.

A : The issuance of the privilege card is not subject to service tax on 1 September 2018.

A : The stay from 30 August 2018 to 31 August 2018 is subject to GST at 0% but the stay from 1 September 2018 to 2 September 2018 is subject to service tax at 6%.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : The sale of airtime for advertisement held in Malaysia is subject to service tax

A : The services of “search for advertiser” provided by the local advertising agency is not in the scope of the provision of advertising services in Malaysia. Therefore, it is not subject to service tax.

A : Advertising services provided within or between Designated Area (Langkawi, Tioman and Labuan) are not subject to service tax. Therefore, you are not required to account for the service tax.

A : Local advertising agency who provide advertising services in Malaysia is subject to service tax.

A : Any advertisement to be advertised in overseas is not subject to service tax.

A : Any advertisement provided for free or with consideration published in any media in Malaysia is subject to service tax.

A : The person who provides the right to use an advertising space but does not involve in providing any advertisement is considered to be not making an advertising service, therefore, it is not subject to service tax.

A : HAA should account for service tax based on the calculation as below:
Advertising Gross Value : RM100,000.00
Add: Service Tax @ 6% : RM 6,000.00
Net value : RM106,000.00
Less: Commission @ 10% : (RM10,600.00)
Amount payable RM 95,400.00
The amount of service tax to be accounted by FAD is RM6,000.00. The commission shall be deducted after the calculation of service tax.

A : The fees for this permit imposed by local authority is not subject to service tax because it is not an advertising services.

A : The advertising fees imposed by RTM is subject to service tax.

A : Yes, the advertising services provided by the local advertising agency is subject to service tax even though the media owner is situated outside of Malaysia.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : No. Regulated fees for licensing of gaming activities like number forecast, slot machines, casino, sweepstakes and lotteries are not subject to service tax.

A : The value of taxable services of the gambling operator needs to be determined as follows:
Bets /Turnover : RM 1,500,000.00
(-) Gaming tax @ 8% : RM 120,000.00
(-) Pool betting duty @ 8% : RM 110,400.00
Variable A : RM 1,269,600.00
Variable B (Cash prize) : RM 700,000.00
Net takings (A – B) : RM 569,600.00
Value of Services [(100/106) x (A – B)]: RM 537,358.49

Based on the amount of his value of taxable services of RM537,358.49, the gambling operator is liable to be registered as the value has exceeded the registration threshold.

A : Yes, the administration fee is subject to service tax as this is a charge for a taxable service.

A : No. Such contribution is not subject to service tax.

A : If a casino operator carries on other businesses such as hotels, restaurants, theme park, retail outlets and concert shows, the operation of other businesses will be registered together with the casino i.e. all the other services will be subject to service tax if the casino operator is registered.

A : No, such activity is not subject to service tax in Malaysia.

A : Gross collections : RM 1,000,000.00
Less:
Casino duty @ 25% of net wins : RM 150,000.00
Cash prize : RM 400,000.00
Value of services (100/106 x RM450, 000) : RM 424, 528.30
Service tax (6/106 x RM450, 000) :RM 25,471.70

A : No, the gambling operator is not eligible to claim a rebate on sales tax or service tax paid on his purchases in providing his taxable services

A : No. Such importation is subject to sales tax.

A : No, you are providing services on behalf of a principal to a third party and earns commission. Hence, you are not liable to be registered as the service that you provide is not a taxable service.

A : Such tickets for the numbers drawn from Jun 2018 to November 2018 are allowed to be sold during the period. However, the sales of tickets for numbers to be drawn on December 2018 onwards are subject to the Director General approval.

A : He needs to pay service tax if ABC Sdn Bhd is registered under the Service Tax Act 2018.

A : He needs to pay service tax if XYZ Sdn Bhd is registered under the Service Tax Act 2018.

A : RM
Collection from lottery sales for draw on 15.9.2018 (August and September 2018 Collection) 1,500,000.00
(-) Gaming tax @ 8% 120,000.00
(-) Betting & Sweepstakes Duties @ 10% 138,000.00
Variable A 1,242,000.00
Variable B (Cash prize) 150,000.00
Net takings (A - B) 1,092,000.00
Value of services 100/106 X (A - B) 1,030,188.68
Service tax 6/106 x (A - B) 61,811.32

A : The collections removed on 3.9.2018 are inclusive of service tax at the rate of 6%.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : Yes.

A : Yes, such massage service is subjected to service tax.

A : Yes, you can charged them service tax on your other taxable services such as corkage, towel charge or cover charge if any.

A : You are liable to register under Service Tax Act 2018 when your total taxable services exceed RM500,000. However, if your total taxable services is below threshold, you may register under Service Tax Act 2018 as a voluntary registration.

A : Provision of sale of food, drinks and tobacco products are consider as a taxable service. Therefore, the sale of water and junk foods is subject to service tax except for sale of sanitary pads.

A : No show charge is subject to service tax.

A : tips given by guest or customer to a staff as token of appreciation for services rendered is not part of consideration for the supply and is therefore not subject to service tax. However if the tips is included in the customer's bill as a mandatory service charge, then service tax is chargeable.

A : Yes, the services are subject to service tax.

A : Yes. Partial payment is subject to service tax at 6%.

A : Yes. This wedding package is subject to service tax.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : No, it is not subject to service tax.

A : These fees/charges are subject to service tax at 6% if the services are performed within Malaysia but if the service is within the DA, no tax chargeable.

A : No, it is not subject to service tax as it is not a courier service.

A : No, the branch in Langkawi (DA) which provide courier service within Langkawi is not subject to service tax provided that:
(i) The services are performed directly in connection with the goods;
(ii) The services are performed in DA and benefit the person in DA; and
(iii) The invoice is issued by the branch in DA.

A : Yes, courier service within Langkawi (DA) is subject to service tax in accordance with Section 49, STA 2018 because the principal of business is in Kuala Lumpur.

A : The courier service provider needs to calculate the threshold based on the total sales on domestic services only and exclude the international services. For more information refer to the Registration Guide.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : No. Haulage services is not a prescribed services under service tax therefore it is not subjected to service tax.

A : For the purpose of registration, the calculation of threshold only includes prescribed services. Other services that are not prescribed services will not be included in the calculation of threshold.

A : Yes. If the reimbursement relates to the services of clearing of goods from customs control, any charges related to that services is subjected to service tax. For example, the reimbursement of charges by an electronic service provider (eg. Dagang Net) is subjected to service tax because it is a part of the process in clearing goods.

A : Yes, the services supplied within SA is subjected to service tax which is in accordance with Section 55, Service Tax Act.

A : Yes, the services supplied within the DA is subjected to service tax which is in accordance with Section 49, Service Tax Act.

A : No, the services supplied within DA is not subjected to service tax which is in accordance with Section 48, Service Tax Act.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : NNo, international flights involving code sharing are not subject to service tax. It is consider as an international flight despite involving domestic routes. This flight is deemed supplied for international route based on code sharing, booking number and tickets purchased. The same treatment applies if tickets are purchased from Malaysia Airlines Berhad for the above mentioned routes.

A : The domestic flights for passengers using a helicopter is subject to service tax.

A : The provision of air passenger services (domestic only) for leisure (sight-seeing) is subject to service tax.

A : Yes, the provision of private jet (unscheduled flight) for domestic flight is subject to service tax.

A : The airline is eligible for a refund from RMCD (need to apply from RMCD) on condition that the airline can prove that the amount claimed will be refunded to the customer. The airline uses the contra mechanism in SST-02 for the refund eligible.

A : Traveling pets as cargo is not subject to service tax regardless it is a domestic flights or international flights because it is considered as transportation of goods.

A : Yes, it is subject to service tax. There is no exemption given to the government on purchase of flight ticket.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : The provision of electricity to the domestic consumer which exceeds 600kWh for a minimum period of twenty-eight days per billing cycle is subject to service tax.

A : The provision of electricity to the commercial consumer is not subject to service tax.

A : Electricity consumed = 750KWH

Value not subject to service tax = RM130.80 (600kWh x RM0.218)

Value subject to service tax = RM32.70 (150kWh x RM0.218)

Amount service tax due = RM1.96 (RM32.70 x 6%)

Amount of Mr Khalid's bill = RM 165.46 (130.8 + 32.7 + 1.96) (RM130.80 + RM32.70 + RM1.96)

A : KWTBB charges are not subject to service tax because it is not related to provision of electricity service.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : Yes, the car rental service provided by the hotel is subject to service tax because it is a prescribed services by the hotel under Group A, Schedule 1, Service Tax Regulations 2018.

A : If the deposit is not treated as a part of payment for the rental and it will be returned to the tourist it is not subjected to service tax. If it is considered as a part of payment, it is subject to service tax.

A : No, the operator cannot apportion the service tax but have to charge based on the usage regardless that the car was used outside Malaysia.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : The ITS from the vendor to client is subject to service tax.

A : The maintenance of server (hardware) is subject to service tax.

A : The branch in Labuan (DA) which provide ITS within Labuan is not subject to service tax.

A : ITS within Langkawi (DA) is not subject to service tax.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : No, it is not subject to service tax.

A : The repair service is not subject to service tax if:

(i) The services are performed directly in connection with vehicle
(ii) The services are performed in DA and benefit the person in DA; and
(iii) The invoice is issued by the branch in DA.

A : Yes, the services performed by PUSPAKOM are subject to service tax.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : PTBS provider who provide PTBS and who is licensed under the Communications and Multimedia Act 1998.

A : Prepaid services supplied by PTBS are subject to service tax.

A : Yes, Njoy installation is subject to service tax.

A : Yes, the sales are subject to service tax because with the prepaid card customer may enjoy pay-TV services.

A : Yes, the sales value of prepaid card inclusive of service tax. If the prepaid card value is RM5, service tax will be at (6/106) x RM5 = RM0.28

A : Yes, Njoy needs to issue an invoice with regards to the sale of prepaid card. However Njoy may apply not to issue invoices for the sales of prepaid card from Director General of Customs

A : The PTBS provider should account service tax when payment received from the customer even though the service has not been rendered.

A : No, free TV services supplied free of cost to any party should not be liable to service tax.

A : Yes, it is subject to service tax if the service is chargeable by the provider.

A : No, free viewing channel / streaming on extra devices is not subject to service tax.

A : Yes, the services are subject to service tax.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : Parking service that are being charged by the provider or operator are subject to service tax.

A : Any person who operates or provides parking spaces for motor vehicle with the threshold exceeding RM500,000.

A : Yes. You may apply for voluntary registration to Director General.

A : Yes. The rental of parking spaces at commercial or residential property is subject to service tax.

A : The sale of parking spaces at a commercial or residential property is not subject to service tax.

A : Bus, lorry and other related vehicle are categorised as motor vehicle.Therefore, the provision for such parking services are subject to service tax.

A : The treatment of parking service that use Touch N' Go payment is subject to service tax.

A : The treatment of parking service that use auto-pay method is subject to service tax.

A : Yes, parking service provided by the Local Authority is subject to service tax.

A : Yes. Any Local Authority or Statutory Body that operates or provides parking space service need to be registered under Service Tax Act if the service being charged and the threshold exceeds the prescribe threshold.

Girl in a jacket

A : The charge imposed by Company PY to LA is not subject to service tax. Company PY is liable to impose service tax on the provision of parking to the consumer.

A : Yes. MummyZ Ikan Bakar is required to be registered under Group B of Service Tax Regulations 2018 since the threshold already exceeds the prescribed threshold.

A : No. MummyZ Ikan Bakar is not required to be registered under service tax.

A : No, since the threshold does not exceed the prescribed threshold.

A : Since the payment already been made in February 2018 where GST still being effective, 6% GST shall be imposed.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : For the purpose of service tax, professional services which are listed in the First Schedule of the Service Tax Regulations 2018 are subjected to service tax at the rate of 6%.

A : Service tax is chargeable on the proportion of the services which have been performed, even though the project or job was put on hold or cancelled.

A : As a registered person, service tax is chargeable on the services provided based on the value of the services performed including all charges in respect of miscellaneous expenses, cost of extra work, commissions, travelling or accommodation expenses, reimbursement, charges for normal copying and stationeries etc. As a registered person, you are required to account for service tax when payment is received according to the taxable period.

Example 10:

JB & Co who is a registered person provides architectural services to client B. The services started in 1 September 2018 and completed on 31 December 2018. An invoice issued shall include the value of services and value of all other services in connection with architectural services such as commissions, miscellaneous expenses, cost of extra work, travelling and accommodation expenses, and other taxable services incurred. The date of completion of services i.e. on 31 December 2018 and payment received on 2 January 2019. Assuming the payment is received in January-February taxable period, JB & Co has to make payment and submit for service tax return before 31 March 2019.

A : Any fees as regulated under any respective law in Malaysia and being imposed by the professional bodies are not subject to service tax.

A : All professional services provided outside Malaysia is not subject to service tax except supply made in connection with goods or land or other matters situated in Malaysia.

A : Sub-consultant who is a registered person supplying professional engineering consultancy services to the prime consultant is required to charge and account for the service tax on his services.

A : Deposit received in the form of security is not subject to service tax. However, if the deposit received as part of a payment, then it is subject to service tax

A : Service tax is chargeable on the discounted or reduced amount of services provided by a registered person.

Example 11:
Legal fees = RM5,000
Discount 10% = (RM500)
Discounted amount payable = RM4,500
Service tax @ 6% = RM 270
Total amount payable = RM4,770

A : Service tax is based on payment basis. If the payment is not received from the customer within a period of 12 months from the date of the invoice issued, you are required to account and make payment on the service tax according to the taxable period after the 12 months period ends.

A : Imported services is not subject to service tax.

A : The provision of legal services to a person outside Malaysia but billing is charged and paid by a person in Malaysia is not subject to service tax provided that it is relates to land or goods situated outside Malaysia or where the subject matter relates to a country outside Malaysia.

A : The provision of legal services in Malaysia by a foreign legal practitioner is treated as imported services and not subject to service tax.

A : A provision of legal services by a registered person in the Principal Customs Area to a recipient in Designated Area or Special Area is subject to service tax.

A : Legal services provided by a registered practitioner who resides in the Designated Area or Special Area to a recipient in the Principal Customs Area is subject to service tax.

A : Legal services rendered within or between the Designated Areas or Special Area are not subjected to service tax.

A : Under The Solicitors' Accounts Rules 1990 [P.U. (A) 301/1990], a solicitor may receive or hold client's money in connection with his practice as a solicitor, agent, bailee, stakeholder or in any other capacity and includes solicitor trust money. A service tax registered legal practitioner who received payment for the provision of legal services including consultancy services on legal matter or other charges in connection to the provision of legal services shall account for service tax according to the taxable period based on the date of payment received, whether or not the payment is received directly to client's account or trust account. However, service tax shall not be chargeable on the statutory fees paid to the government or statutory body. The legal practitioner may make an adjustment on their account and SST-02 return if the client or the solicitor choose not to proceed the services or the case is aborted and the money was returned to the client.

A : If the management services provided by AA Company Berhad who hold more than 50% of shares and have the power to control his subsidiaries within the same group of companies, such services is not chargeable to service tax. However, if the accounting services is extended to BB Company Sdn Bhd who is not a member of the group of companies, the accounting services provided to his subsidiaries and other company outside the group is subject to service tax. No apportionment is allowed.

A : Director's fees chargeable under a contract for service to the companies under his own personal capacity and expertise are subject to service tax. However, on the proportion of the director's fees charged on the capacity of his post (contract of services) or under employment with the company, is not subject to service tax.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : Telecommunication services meanstransmission, emission, or reception means the transmission, emission or reception, and the transfer or assignment of the right to use capacity for the transmission, emission or reception of signals, writing, images, sounds or information of any kind by wire cable, radio, optical or other electromagnetic system or by a similar technical system by any person licensed under Communication and Multimedia Act 1998 (Act 588) that is regulated by MCMC to provide telecommunication services. It includes provision of telecommunication in the form of telephone, facsimile, tele-mail, paging or cellular phone, telex, broadband, value-added services, etc.

A : Yes. The installation of internet connection is considered as telecommunication services if it is charged by the telecommunication provider.

A : Yes. Roaming services provided by Malaysian telco (Telco) to its subscribers, whether the roaming services is provided in Malaysia or outside Malaysia is subject to service tax.

A : No. Telecommunication services by a Malaysian telecommunication provider to a telecommunication provider outside Malaysia is not subject to service tax.

A : Yes. Prepaid service is subject to service tax.

A : Yes. Over-The-Top (OTT) telecommunication services such as Whatsapp, Facebook, Telegram, if being charged are subject to service tax.

A : Yes. Outbound call is subject to service tax.

A : Yes. Reverse charge call is subject to service tax.

A : Yes. Toll-free services are subject to service tax.

A : Yes. Telecommunication services between special area (SA), from SA to the designated area (DA) and from DA to SA are subject to service tax.

A : Yes. Public phone services are subject to service tax.

A : The provision of services is not subject to service tax.

A : The provision is subject to service tax.

A : The provision is subject to service tax.

A : The provision is subject to service tax.

A : The services are subject to service tax

A : The provision is subject to service tax.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

A : Parking facilities provided to the customers for free are not subject to service tax. If there is a charge imposed, it is subject to service tax.

A : F&B by the caterer which was charged to restaurant owner is subject to service tax of 6%. Birthday celebration that is charged as a package by the restaurant owner is subject to service tax with the value of F&B included.

A : The cost of waiter services is part of the wedding package. Therefore, it is subject to service tax.

A : Deposit received in October 2018 (considering his bi-monthly taxable period is October and November) should be accounted for not later than the last day of the month following the end of each taxable period i.e. December 2018.

A : All services in the wedding package provided by F&B operator is subject to service tax.

A : F&B that is sold on-board via air, land and sea for domestic routes except Rural Air Service is subject to service tax.

A : The in-flight catering services are subject to service tax.

A : No, service charge is not subject to service tax.

A : Tips given voluntarily by a customer to a restaurant's staff is considered as token of appreciation for the services rendered by him. Tips are not subject to service tax.

A : Yes, all sales through any vending machines owned by F&B operator is subject to service tax. Service tax is to be accounted as inclusive of the sales value.

A : Coupon/ voucher purchased online and redeemed at the F&B operator is subject to service tax. The coupon/ voucher value shall be accounted for by F&B operator. The value to impose service tax is the value of actual price.

A : Yes, it is subject to service tax.

A : Yes, rental of space is considered as one of the services provided by the service provider. Hence, it is subject to service tax.

A : No, it is not subject to service tax.

A : No, it is not subject to service tax.

A : Yes, it is subject to service tax.

A : Yes, in accordance with Group B, First Schedule of the Service Tax Regulations 2018.

A : Services provided within or between Designated Areas are not subject to service tax. However, service tax shall be charged by any person whose principal place of business is located in a Designated Area on any taxable service provided by him within Malaysia. In the scenario above, services provided by the restaurant whose principle place of business situated in Langkawi, which is gazette as Designated Area, to Alor Setar, Kedah is subject to service tax.

A : Yes, they are subject to service tax.

A : The provision of any services provided by a registered F&B operator is subject to service tax when the service is provided in or within the premise or when the service is a prescribed taxable service. In this example, where the land is not within the premise of the F&B operator, the rental is not subject to service tax. Meanwhile a rental of a building or a part of the building within the premise is subject to service tax.

A : The restaurant is a prescribed service provider and liable to be registered. The rented units are a part of the building within the premise provided by the registered F&B operator is subject to service tax.

A : Fishing activities at the pond owned by the restaurant is considered as a service provided by the restaurant. Hence, it is subject to service tax.

A : Yes, the delivery services by F&B operator are subject to service tax.

A : Service tax is payable upon payment received. Therefore, deposit for reservation is subject to service tax.

A : No, the customer does not have to pay service tax for the broken tableware.

A : Yes, they are subject to service tax.

A : Food and beverages purchased and consumed on self-serviced basis at convenience stores are not subject to service tax. However, if the convenience store provides area to dine in such as tables and chairs, the food prepared or served by the staff are subject to service tax, including sales of tobacco products, alcoholic and nonalcoholic beverages.

A : Ready packed food is not subject to service tax. However, the food sold at kiosk which is prepared by staff is subject to service tax, provided the petrol station operator is a registered person.

A : Generally, service tax is chargeable for F&B served at lounges in airports. For passengers who receive complimentary meals at lounges, the service tax is deemed inclusive in the passenger ticket, e.g. Business class and First class. For walk-in customers who pay for the meals, the service tax is chargeable.

A : A vending machine operator is not a service provider. Therefore, vending machine operator is not liable to be registered.

A : Since cinemas have snack bars/ counters, a cinema can be considered as having a place which provides food and beverages. Therefore, it is liable to be registered provided the value of taxable services exceeds the prescribed threshold.


Disclaimer
This information is intended to provide a general understanding of the relevant treatment under Sales Tax and Services Tax Legislation and aims to provide a better general understanding of taxpayers' tax obligations.While RMCD has taken the initiative to ensure that all information contained in this FAQs is correct, the RMCD will not be responsible for any mistakes and inaccuracies that may be contained, or any financial loss or other incurred by individuals using the information from this FAQs.All information is current at the time of preparation and is subject to change when necessary.

Date of Update: 09/01/2019

Date of Update: 22/01/2019

Date of Update: 22/01/2019

Date of Update: 22/01/2019

Date of Update: 27/02/2019