Registering Business
  • Taxable goods manufacturers are required / liable to be registered when;
    • SALES VALUE OF TAXABLE GOODS has exceeded RM500,000 for 12 months period;
  • Manufacturers who carry out sub-contract work on taxable goods where the VALUE of work performed exceeds RM500,000 for 12 months period.
    • Taxable goods belong to:
      • Registered manufacturer, non-registered manufacturer and manufacturer in special area (FIZ and LMW).
  • Note: Registered Person will be known as Registered Manufacturers
  • Voluntary registration
    • Taxable goods – below threshold.
    • Persons who are exempted from registration
  • Determination of Turnover
    • Manufacturers should calculate the sales value of taxable goods for a period of 12 months using the following methods:
      • Historical Method;
        • The total value of taxable goods in that month and the 11 months immediately preceding the month;
      • Future Method;
        • The total value of taxable goods in that month and the 11 months immediately succeeding the month.
  • Exemption from Registration
    • Manufacturer of non-taxable goods*.
    • Manufacturer below threshold
    • Sub-contractor manufacturer below threshold
    • Manufacturing activities that have been exempted from registration. E.g.:
      • Tailoring
      • Installation incorporation of goods into building
      • Jeweler, optician
    • * Not eligible for voluntary registration
  • Transitional Registration
    • Manufacturer who is liable to be registered is required to register before 1st September 2018
      • Registration commencement date will be on 1st September 2018
  • Automatic Registration
    • Manufacturers who are GST Registered Persons which have been identified and fulfilled the required criteria will be registered automatically as Registered Manufacturer under Sales Tax.
    • Registered Manufacturer need to charge tax beginning 1st September 2018
  • Persons Not Registered Automatically
    • GST registered person who fulfilled the required criteria to be registered but were not registered by 1st September 2018 need to apply for registration within 30 days from the commencement date.

Eligible for Registration

  • The services provided by the service provider from Group G number 1-8 excludes the said services if provided in connection with:
  1. goods or land outside Malaysia or where the subject matter relates to a country outside Malaysia; or
  2. any statutory fees paid to the government or statutory body
  • Rate of tax is amended to :-  
    • 6% (1 Sept 2018 – 29 Feb 2024)
    • 8% (Start 1 Mac 2024) except F&B, Parking, Logistic & Telecommunications – 6%
    • Provision of credit card or charge card services
      • A specific rate of tax of RM 25 is imposed upon issuance of principal or supplementary card and every subsequent year or part thereof
  • Determination of Turnover
    • Mandatory
      • Any person providing taxable services is liable to be registered if –
        • in the case the total amount of taxable services is prescribed, the total amount of taxable services provided by him in 12 months exceed threshold and the liability to be registered is at the following time whichever is the earlier:
    • Historical Method;
      • The total value of taxable goods in that month and the 11 months immediately preceding the month;
    • Future Method;
      • The total value of taxable goods in that month and the 11 months immediately succeeding the month.
        • In the case no amount of taxable services is prescribed, the liability to be registered is on the date of the commencement of the business.
  • Voluntary registration –
    • By application;
    • Provide taxable services;
      • The total amount of taxable services provided by him in 12 months is below threshold.
    • Subject to conditions determine by DG
  • Branch Registration is allowed for Service Tax.
  • Group Registration is not applicable
  • Transitional Registration
    • Taxable Service Provider who is liable to be registered is required to register before 1st September 2018
    • Registration effective date will be on 1st September 2018
  • Automatic Registration on 1st September 2018
    • Taxable Service Provider who are GST Registered Persons which have been identified and fulfilled the required criteria will be registered automatically as Registered Person under Service Tax.
    • Registration Person need to charge tax beginning 1st September 2018
  • Persons Not Registered Automatically
    • GST registered person who fulfilled the required criteria to be registered but were not registered by 1st September 2018 need to apply for registration within 30 days from the effective date.
  • List of Type of Taxable Services and Threshold
GROUP A
SERVICE TYPE CODE TAXABLE SERVICE PROVIDER SERVICE PROVIDER TAXABLE SERVICES THRESHOLD
9901.01.0650 Accommodation Accommodation: hotel, inns, lodging house, service apartment, homestay and any other similar establishment. All services including sale of food, drinks and tobacco products RM 500,000.00
GROUP B
SERVICE TYPE CODETAXABLE SERVICE PROVIDERSERVICE PROVIDERTAXABLE SERVICESTHRESHOLD
9902.01.2651Food & Beverages1.Operator of restaurant, bar, snack bar, canteen, coffee house or any place which provides food and drinks
● eat-in or take-away
●Exclude canteen in an educational institution or operated by a religious institution or body.
2.Caterer
3.Food court operator		All services including prepared or served food or drinks; and sale of tobacco products, alcoholic and non-alcoholic beverages
RM 1,500,000.00
GROUP C
SERVICE TYPE CODE TAXABLE SERVICE PROVIDER SERVICE PROVIDER TAXABLE SERVICES THRESHOLD
9903.01.0652 Night Clubs 1. Night club, dance hall, cabaret
2. First, second or third class public house or first or second class beer house
3. Health or wellness center
4. Massage parlor or similar places
 All services including sale of food, drinks and tobacco products
RM 500,000.00
9903.01.0653 Dance Halls
9903.01.0654 Health Centres
9903.01.0655 Massage Parlours
9903.01.0656 Public Houses
9903.01.0657 Beer House
9903.07.0691 Karaoke Cente
GROUP D
SERVICE TYPE CODE TAXABLE SERVICE PROVIDER SERVICE PROVIDER TAXABLE SERVICES THRESHOLD
9904.01.1658 Private Clubs Private Clubs All services including sale of food, drinks and tobacco products
RM 500,000.00
GROUP E
SERVICE TYPE CODE TAXABLE SERVICE PROVIDER SERVICE PROVIDER TAXABLE SERVICES THRESHOLD
9905.01.1659 Gold Club & Golf Driving Range Golf club and driving range All services including sale of food, drinks and tobacco products
RM 500,000.00
GROUP F
SERVICE TYPE CODETAXABLE SERVICE PROVIDERSERVICE PROVIDERTAXABLE SERVICESTHRESHOLD
9906.01.1660Betting & GamingBetting and gaming provider involving bettings, sweepstakes, lotteries, gaming machines or games of chance.1. Betting and gaming services involving bettings, sweepstakes, lotteries, gaming machines or games of chance.
2. Conducting tournaments involving bettings, sweepstakes, lotteries, gaming machines or games of chance.
3. Conducting or allowing the conduct of a card game or any other game by the casino operator
RM 500,000.00
GROUP G
SERVICE TYPE CODETAXABLE SERVICE PROVIDERSERVICE PROVIDERTAXABLE SERVICESTHRESHOLD
9907.01.0670Advocate & solicitor, Syarie LawyerAdvocates, solicitors and syarie lawyersLegal services and other charges in connection to such services
RM 500,000.00
9907.02.0669Public AccountantPublic AccountantAccounting, auditing, book keeping, consultancy or other professional services and other charges in connection to such services
9907.03.0673Licensed/registered Surveyor, appraisers & estate agentsLicensed/registered Surveyor, appraisers & estate agentsSurveying services including valuation, appraisal, estate agency or professional consultancy services and other charges in connection to such services
9907.04.0671Professional EngineerProfessional EngineerAccounting, auditing, book keeping, consultancy or other professional services and other charges in connection to such services
9907.05.0672ArchitectArchitectArchitectural services including professional consultancy services and other charges in connection to such services
9907.06.1674ConsultantConsultancy services excluding research and development companies

Professional consultancy services and other charges in connection to such services excluding:

1. Consultancy services relating to medical and surgical treatment provided by private clinics or specialist clinics; or
2. Consultancy services in connection with goods or land outside Malaysia or where the subject matter relates to a country outside Malaysia

9907.07.1675Management

Management services excluding such services provided by:

1. The developer, joint management body or management corporation to the owners of a building held under a strata title; or
2. asset and fund managers

Management services and other charges in connection to the provision of management services including project management or project coordination
9907.08.1668Employment agencyEmployment agency

Employment services excluding:

1. Secondment of employees or supplying employees to work for another person for a period of time; or
2. Employment outside Malaysia

9907.09.1667Private Agency(Guards/Protection)Private AgencyProvision of guards or the protection or security of person, property or
business excluding such services to guard or protect the above which is situated outside Malaysia
9907.10.1676IT ProvidersInformation technology (IT) services provider

All types of IT services excluding:

1. Sale of goods in connection with the provision of IT services;
2. IT services in connection with goods or land outside Malaysia or where the subject matter relates to a country outside Malaysia.

9907.12.1690Online PlatformOnline PlatformOnline Platform
9907.13.1694Maintenace and RepairMaintenace and RepairMaintenace and Repair
GROUP H
SERVICE TYPE CODETAXABLE SERVICE PROVIDERSERVICE PROVIDERTAXABLE SERVICESTHRESHOLD
9908.01.0678Credit Card / Charge CardCredit card or charge card services provider regulated by Bank Negara MalaysiaProvision of credit card or charge card services through the issuance of a principal credit card, principal charge card, supplementary credit card or supplementary charge card, whether or not annual subscription or fee is imposed
excluding fuel card and charge card in a closed community e.g. education institution or a sports club by its students or members 		No Threshold
GROUP I
SERVICE TYPE CODETAXABLE SERVICE PROVIDERSERVICE PROVIDERTAXABLE SERVICESTHRESHOLD
9909.01.0661Insurance & TakafulInsurer or takaful operator1. General insurance or takaful B2B and general insurance or takaful B2C excluding medical
2. Excludes
a. Insuring or takaful coverage of risks relating to the transport of passengers or goods outside Malaysia
b. Insuring or takaful coverage of risks incurred on granting credit relating to the export of goods, services or investments outside Malaysia

c. Insurance contract or takaful certificate to cover risks outside Malaysia
RM 500,000.00
9909.01.0662TelecommunicationTelecommunication service providerTelecommunication and related services excluding provisions of services to another Telco provider
9909.08.1679Paid TV Broad CastingPaid TV Broad Casting service providerPaid television broadcasting services
9909.04.1664Parking Spaces OperatorParking operatorProvision of parking spaces for motor vehicles where parking charges are imposed
RM 500,000.00
9909.05.1666Automotive Repair CentreOperator of motor vehicle service or repair centre or provider of motor vehicle service or repairProvision of general servicing, engine repairs and tuning, changing, adjusting and fixing of parts,
wheel balancing, wheel alignment or body repairs including knocking, welding or repainting of motor vehicles.
9909.07.1676Hire & DriveHire-and-drive passenger motor vehicle and hire-passenger motor vehicle licensed by Land Public Transport Commission,
Commercial Vehicles Licensing Board Act 1987 and Tourism Vehicles Licensing Act 1999		Provision of hire-and-drive or hire-passenger motor vehicle services including hire of passenger motor vehicle with or without chauffeur
9909.08.1677AdvertisingAdvertisingProvisions of all advertising services excluding provision of such services for promotion outside Malaysia
9909.09.1680ElectricityTransmission and distribution of electricity providerProvision of electricity to any domestic consumer excluding for
the first 600 kWh for a minimum period of twenty-eight days per billing cycle consumed by that consumer
9909.10.1681Air TransportAirline operator licensed under section 35 of Malaysian Aviation Commission Act 2015 [Act 771]
or air service permit under section 36 of Malaysian Aviation Commission Act 2015		Domestic passenger air transport service and all services in connection with such services excluding the air transport route as specified under the Rural Air Services Agreement
9909.13.1684CleaningCleaningCleaning
9909.12.1683Brokerage or UnderwritingBrokerage or UnderwritingBrokerage or Underwriting
GROUP J
SERVICE TYPE CODETAXABLE SERVICE PROVIDERSERVICE PROVIDERTAXABLE SERVICESTHRESHOLD
9910.02.0693LogisticLogisticLogistic
RM 500,000.00
9909.06.1665CourierCourier service operatorCourier delivery services for documents or parcels not exceeding 30 kilograms each excluding such services for documents or parcels:
1. from a place outside Malaysia to a place outside Malaysia;
2. from a place within Malaysia to a place outside Malaysia; or
3. from a place outside Malaysia to a place within Malaysia and includes the
provision of courier delivery services within Malaysia that forms parts of the service
referred to in subparagraphs (ii) and (iii) where the service is provided by the same person
9910.02.0693E-Commerce logisticE-Commerce logisticE-Commerce logistic
9909.03.0663Forwarding AgentsCustoms agentServices of clearing goods from customs control
No Threshold