Effective 1 January 2019, Service Tax is applicable on any taxable service acquired by any person in Malaysia from any person who is outside Malaysia (“imported taxable service”). Service Tax is chargeable on imported taxable service, at the time when payment is made or invoice is received, whichever earlier.
Imported taxable service is subject to Service Tax, whether or not the recipient is registered or liable to be registered for Service Tax (“a taxable person”):-
- A taxable person shall account for Service Tax on imported taxable service in the Service Tax Return (SST-02 Form) according to the taxable period assigned to him.
- A person other than a taxable person shall account for Service Tax on imported taxable service in a declaration (SST-02A Form), not later than the last day of the month following the end of the month in which the payment has been made by him or invoice is received by him. The declaration can be made via the MySST portal from 20 February 2019.
The Royal Malaysian Customs Department (“RMCD”) has issued user manuals on the furnishing of SST-02 Form and SST-02A Form respectively as well as payment of Service Tax. Please click on the above header link for a copy of the manuals.
B2B Exemption
Effective 1 January 2019, subject to meeting conditions, certain taxable person in Group G (certain professionals) and item 8 of Group I (advertising) in the First Schedule of the Service Tax Regulations 2018 are exempted from payment of Service Tax on prescribed taxable service.
Any registered person providing taxable service to another registered person who is entitled to the above B2B exemption shall issue an invoice containing additional prescribed particulars and declare the value of taxable service exempted from Service Tax in the SST-02 Form [i.e. field 18(c)].
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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