Understanding SST

What is Service Tax?

  • Service tax that is a tax charged and levied on taxable services provided by any taxable person in Malaysia in the course and furtherance of business.
  • Service tax imposed on imported taxable services.
  • Taxable person is any person who belongs in Malaysia and is prescribed to be a taxable person.
  • Taxable service is any service which prescribed to be a taxable service.

When is Service Tax due and payable?

  • Tax is due and payable when payment is received for taxable service provided to customer by the taxable person.
  • Service tax on imported taxable services becomes due at the time payment is made or the invoice for the service is received, whichever is earlier.

What is Sales Tax?

  • A single stage tax levied on imported and locally manufactured goods, either at the time of importation or at the time the goods are sold or otherwise disposed of by the manufacturer.

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.

Taxable Period

  • The standard taxable period for SST (both Sales and Service Tax) is bimonthly (once every two months).