Malaysia: Tourism tax and digital platform service providers and accommodation premise operators

Tourism tax for accommodation premise operatives now applies to “innovative” accommodations

Tourism tax for accommodation premise operatives applies to “innovative” accommodations

The Royal Malaysian Customs Department in August 2021 released guidance about the tourism tax obligations of digital platform service providers and tourism tax guidance for accommodation premise operators.

As noted in the guidance, when the tourism tax is paid by individuals (tourists) to the digital platform service provider, the registered operator is not required to collect the tax from the tourists, provided that the tourists provide proof of such payment. If a tourist is unable to provide any proof of the tax payment to the digital platform service provider, then the registered operator must collect the tourism tax from the tourist and then remit the tax to the authorities.

When the digital platform service provider only provides or allows for the booking but does not handle the payment, the requirement to charge and collect the tourism tax falls on the registered operators. If there is an option for the tourist to pay in advance or to pay later, the requirement to collect the tourism tax falls on the digital platform service provider.

Regarding the tourism tax for accommodation premise operatives, the tax now applies “innovative” accommodations such as tent-type hotels, caravans, containers, boathouses, treehouses, sleeping tubes, tents, cruises and such similar accommodations.

Read an August 2021 report prepared by the KPMG member firm in Malaysia


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