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SST Reminder — New Taxable Services and Imported Taxable Service

By February 27, 2019 July 7th, 2020 No Comments

We would like to draw your attention to the following changes to the Service Tax Regulations.

1. NEW TAXABLE SERVICES

These new taxable services have been added to the Service Tax Regulations 2018 and comes into operations on 1 January 2019:

a.     Amusement park services (under Group I of the First Schedule of the Regulations);

b.     Brokerage and underwriting services (under Group I);

c.     Cleaning services (under Group I); and

d.     Training or coaching services (under Consultancy Services in Group G).

Businesses that have been providing the service before 1 January 2019 but were not registered under Service Tax shall apply for registration not later than 28 February 2019 if there are reasonable grounds believing that the total value of the taxable service in the month of January 2019 and the eleven months immediately succeeding the month of January 2019 will exceed the threshold of RM500,000. The effective date of registration will be 1 March 2019 and shall start charging service tax from 1 March 2019 onwards.

Businesses that had been registered under Service Tax before 1 January 2019 shall charge service tax with effect from 1 January 2019.

 

2. IMPORTED TAXABLE SERVICE

Imported Taxable Service has been added to Service Tax Act 2018 and comes into operations on 1 January 2019. Imported Taxable Service means any taxable service acquired by any person in Malaysia from any person who is outside Malaysia.

Taxable services are those that stipulated under First Schedule of Service Tax Regulations 2018 and includes professional services such as management, consultancy and IT services, and other services such as advertising and courier services.

Service tax at the rate of 6% is payable by the person in Malaysia who acquired the imported taxable service and tax is due at the time when payment is made or invoice is received, whichever is the earlier.

Registered person shall declare under Form SST-02 for the taxable period where the tax is due. Example: Your company received an invoice in February 2019 for consultancy service to be performed and your company’s taxable period is January 2019 – February 2019, your company shall make declaration in the return for the taxable period of January 2019 – February 2019 and file the return by end of March 2019. Please refer to the Guide in MySST for online declaration and payment:

http://bit.ly/2ppjy7a

Non-registered person shall declare under Form SST-02A and file not later than the last day of the month following the end of the month in which the tax is due. Example: Your company received an invoice in January 2019 for consultancy service to be performed, your company shall file Form SST-02A and make payment by end of February 2019. Please refer to Guide in MySST for online declaration and payment:

http://bit.ly/2qaerYZ