Updated Service Tax Guides Updated Service Tax Guides Updated Service Tax Guides

The Royal Malaysian Customs Department (“RMCD”) has issued the following updated Service Tax Guides

1.     Guide on Food & Beverages (as at 27 December 2021)

2.     Guide on Motor Vehicle Service or Repair (as at 28 December 2021)

3.     Guide on Parking Services (as at 28 December 2021)

Please click on the above header link for copies of the Guides at the MySST portal.

The latest Guides above take into account changes to the Service Tax legislation as well as update some of the Service Tax treatments previously adopted by RMCD, such as:

Guide on Food & Beverages

Q&A 13 – Rental of space is not subject to Service Tax (in line with the Amendment to the Service Tax Regulations 2018 effective 9 October 2018).

Q&A 24 – Free F&B for staff by the F&B operator is not subject to Service Tax.

Q&A 26 – Food sold at the petrol station’s kiosk which is prepared by the staff is not subject to Service Tax because the entity is not a food preparation place that has the characteristics of a restaurant.

Q&A 31 – Food or beverages from self-service vending machines located in F&B establishments that are not owned or operated by a registered entity are not subject to Service Tax.

Guide on Parking Services

Q&A 11 – Company AB who has been given the rights to operate and maintain parking spaces by the Local Authority (“LA”) is liable to charge Service Tax under the category of “parking management services” (Group G) to LA. Separately, LA is liable to impose Service Tax on the provision of parking to the consumer (Group I). 

Guide on Motor Vehicle Service or Repair

Classified motor vehicles under the following classes in accordance to the Road Transport Act 1987:

“invalid carriages; motor cycles; tractors heavy; tractors light; motor cars heavy; motor cars, mobile machinery heavy; mobile machinery light; pedestrian controlled vehicles; trolley vehicles; trailers.”

As RMCD periodically issues updated Guides, it is important that businesses are kept abreast with the latest development in the Service Tax regime.

Further to our Tax Whiz on 3 January 2022, the Guideline and FAQ on the VA Programme is also now available in English language.

Please click on the above link for the Guideline and FAQ at the MyVA Portal.

Our highlights are intended to provide a general overview of the key proposed tax changes and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions.

Ng Sue Lynn Executive Director Indirect Tax Practice

Dato’ Tan Sim Kiat Advisor  Indirect Tax Practice

Yap Choon Ling Director Indirect Tax Practice

Soh Lian Seng Executive Director - Head of Tax and Head of Tax Dispute Resolution lsoh@kpmg.com.my + 603 7721 7019	Long Yen Ping Executive Director - Head of Global Mobility Services yenpinglong@kpmg.com.my + 603 7721 7018
Tai Lai Kok Executive Director - Head of Corporate Tax ltai1@kpmg.com.my + 603 7721 7020	Ng Sue Lynn Executive Director - Head of Indirect Tax suelynnng@kpmg.com.my + 603 7721 7271
Bob Kee Executive Director - Head of Transfer Pricing bkee@kpmg.com.my + 603 7721 7029

Penang Office	Kuching & Miri Office
Evelyn Lee Executive Director - Penang Tax evewflee@kpmg.com.my +604 238 2288 (ext. 312)	Regina Lau Executive Director - Kuching & Miri Tax reglau@kpmg.com.my +6082 268 308 (ext. 2188)
Kota Kinabalu Office	Johor Bahru Office
Titus Tseu Executive Director - Kota Kinabalu Tax titustseu@kpmg.com.my +6088 363 020 (ext. 2822)	Ng Fie Lih Executive Director - Johor Bahru Tax flng@kpmg.com.my +607 266 2213 (ext. 2514)
Ipoh Office
Crystal Chuah Yoke Chin Tax Manager - Ipoh Tax ycchuah@kpmg.com.my +605 253 1188 (ext. 320)