What is Service Tax, How to Register and Other FAQ
FREQUENTLY ASKED QUESTIONS (FAQ) – Service Tax
1. What is service tax? Service tax is a tax charged on:-
- any provision of taxable services;
- made in the course or furtherance of any business;
- by a taxable person; and
- in Malaysia.
Service tax is not charged on imported nor exported services.
2. Who is the taxable person?
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.
3. What is the rate of tax for service tax?
The proposed rate of tax is 6% and a specific rate for credit/charged card.
4. What are the taxable services?
a) Hotel includes:
- lodging house
- service apartment
- homestay
- Inn
- rest house
- boarding house
- Service tax charged on actual value of taxable service provided
b) Insurance and Takaful includes:
- All insurance B2B
- All B2C general insurance or
e) Clubs includes:
- Night club
- Private club
- Golf club and golf driving range
- Service tax charged on actual value of taxable service provided
f) Gaming includes:
- Casino
- Game of chance
- Sweepstakes
- Gaming machines
- Lottery
- Betting
- Service tax charged on collection, based on formula
g) All provision of telecommunication services by telco provider are subjected to Service Tax. Examples are IDD call, telex, video conference, roaming, fax, VoIP, lease line, MVNO, bandwidth service, billing and collection services, maintenance of facilities, installation, etc.
5. When do I account for service tax on gaming?
| Taxable services / supply | When service tax is due and payable |
|---|---|
| a) Provision of services involving number forecasting, lottery and a game of chance excluding Raffle | At the time when the numbers are drawn |
| b) Provision of services involvingsweepstakes | At the time when the race takes place |
| c) Provision of services by gaming machine | At the time when collection is removed from the machine or at the time when transaction is recorded by the machine (if more than one machine, then total collection removed from all the machines) |
| d) Provision of services involving casino betting | At the last day of the taxable period (calculate total collection based on games types: table game, gaming machine) |
| e) Provision of services involving betting and gaming in tournaments (horse racing, casino games, etc.) | At the time the participant pays the tournament fee / contest fee |
REGISTRATION FOR SERVICE TAX
6. How do I register for this?
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.
7. How do I know that I will be registered?
You will be informed by email. For the existing GST registrant who automatically liable to be registered under service tax, they will be informed through a letter.
8. I am currently GST registrant. Will I be receiving a service tax registration notification through Taxpayer Access Point (TAP)?
No, you will be receiving notification through your personal/business email from 1st August 2018.
9. How long does it take for my application for registration be approved if I apply individually?
Registration is auto approve within 24 hour for a GST registrant. If a verification process is required, it will take a little while longer.
10. Can I submit my service tax return according to my company’s financial year end?
Yes, you may apply in writing to the Director General.
11. Can I registered under service tax voluntarily?
Yes, you can register voluntarily provided that you are manufacturing taxable goods.
12. Can I registered my branches separately?
Branch registration is allowed.
13. Is there any facility for group registration?
Group registration is not allowed.
14. I am GST registrant. Do I need to apply to cancel my registration?
When the GST Act 2014 is repealed, you are automatically ceased to be a GST registered person. You are not required to apply for deregistration. However, you are required to submit the final GST return within 120 days from the Act being repealed.
For more details, you may look at the official source : PDF file by mysst.customs.gov.my.
For how to upgrade your AutoCount to SST and more, check on AutoCount Version 1.9.1 Release Note
