EN 
MS 
FAQ Service Tax
Service tax is a tax charged on:-
i. any provision of taxable services;
ii. made in the course or furtherance of any business;
iii. by a taxable person; and in Malaysia.
Taxable person is a person who provides taxable services in the course or furtherance of business in Malaysia and is liable to be registered or is registered under the Service Tax Act 2018.
i. The tax rate is 8% for all taxable services except;
ii. F&B, Logistics, Telecommunications, and Parking are at a rate of 6%.
iii. RM25 for credit card / charge card.
The threshold value is determined through 2 methods:
(a)Historical method
The backward method is based on the value of taxable services for any month, combined with the value of taxable services for the 11 months preceding that month.
Example: Value of Services from July 2024 to August 2023.
(b)Future method
The forward method is based on the value of taxable services for any month, combined with the value of taxable services for the 11 months following that month.
Example: Value of Services from July 2024 to June 2025.
The provision of food services by any cafeteria is subject to service tax if the sales value of the services provided exceeds RM 1,500,000.00.
Registration is process online through by MySST system. You will be notified of registration or in the absence of a notification, you may need to apply individually online using MySST system.
You will be notified via email after the registration is completed through the MySST system.
Yes, you may apply in writing to the Director General.
Yes, you can register voluntarily provided that you are supplies taxable services
Branch registration is allowed.
Group registration is not allowed.
A written application for the cancellation of service tax can be submitted to the Customs Department (JKDM) for approval of the cancellation.
Taxable Service Provider is required to issue invoices in Bahasa Melayu or English containing prescribed particulars either in hard copy or electronically.
You are allowed to make adjustments in your service tax return for credit or debit notes.
You are required to account on payment basis
Yes, by submitting a written application for approval to the Director General of Customs.
i. Registered person has to declare service tax return (SST-02) every two months according to the taxable period. You may apply to the Director General for a specific taxable period e.g. in line with your financial year end.
ii. Service tax return has to be submitted not later than the last day of the following month after the taxable period ended.
iii. Service tax return has to be submitted regardless of whether there is any tax to be paid or not.
iv. Service tax return has to be submitted electronically or by post to Customs Processing Center (CPC)
You can make payment:
a. Electronically(FPX); or
b. By cheque and posted to Customs Processing Center (CPC).
Late payment penalty is applicable:
i. 10% – first 30 days period.
ii. 15% – second 30 days period.
iii. 15% – third 30 days period.
Maximum penalty 40% after 90 days
You should keep the proper records for 7 years. Records must be kept:
i. in Bahasa Melayu or English
ii. In Malaysia, except permitted by DG to be kept outside Malaysia
iii. In soft or hard copy
Yes. You may claim bad debts:
i. within 6 years from the date the taxable goods is sold
ii. subject to conditions determined by the DG
iii. according to a prescribed formula
Registered person is allowed to deduct service tax in his return for any cancellation and termination of services or any other reasons such as reducing premiums or discounts.
B. Designated Area:
| Designated (not deemed outside Malaysia) | Labuan, Langkawi, Tioman and Pangkor |
| Services provided between and within DA | Not subject to service tax except prescribed by Minister |
| Provisions of services |
– From PCA to DA – subject to service tax except prescribed by Minister – From DA to PCA – subject to service tax – To/from DA to SA* – no service tax |
| Special Area (not deemed outside Malaysia) | Free Zone, Licensed Warehouse, Licensed Manufacturing Warehouse and Joint Development Area (JDA) |
| Services provided between and within SA | Not subject to Service Tax except prescribed by Minister |
| Provisions of services |
– From PCA to SA – subject to service tax except prescribed by Minister – From SA to PCA – subject to service tax – To/from SA to DA – no service tax – From PCA (other than SA) to FZ or LMW – subject to service tax – From PCA (other than SA) to JDA – not subject to service tax |
The effective date of the change in the service tax rate from 6% to 8% is from 1st March 2024.
All taxable services are subject to an 8% rate except for food and beverage services, telecommunications services, parking space provision services, and logistics services, which are subject to a 6% rate. Meanwhile, credit card or charge card services are subject to a rate of RM25 per card.
The taxable service is subject to (6%) if the taxable service is fully provided before the effective date.
Taxable services provided on/after the effective date of the rate change are subject to the new rate (8%).
However, any payments received before the effective date of the rate change are subject to the old rate (6%).
i. Taxable services provided before the effective date of the rate change – subject to the old rate (6%)
ii. Taxable services provided on/after the effective date of the rate change – subject to the new rate (8%)
However, any payments received before the effective date of the rate change are subject to the old rate (6%)