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.
- 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
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 RM500, 000.
Taxable Period
- Bimonthly
SALES TAX
Sales tax is a tax charged and levied:-
- on taxable goods manufactured in Malaysia by a taxable person and sold, used or disposed by him;
- on taxable goods imported into Malaysia.
Sales tax is not charged on:-
- goods listed under Proposed Sales Tax (Goods Exempted From Sales Tax) Order;
- 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:-
liable to be registered
- Reached sales threshold
- Manufacturer -- RM 500,000.00
- Sub-contractor -- RM 500,000.00
registered under Sales Tax Legislation
- Mandatorily registered
- Voluntarily registered
SERVICE TAX
Service tax is charged:-
- taxable services;
- provided in Malaysia
- by a registered person carrying on his business
Service tax is not chargeable:-
- imported services
Threshold:-
- Any person providing taxable services liable to be registered if the total amount of taxable services provided by him in 12 months exceed RM500, 000.
Rate of tax:-
- Fixed at a rate of 6%.
- Provision of credit card or charge card services
- A specific rate of tax of RM25 is imposed upon issuance of principal or supplementary card and every subsequent year or part thereof
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?
source from https://www.mysst.customs.gov.my/
