Start Today SST In Malaysia || SALES in addition to SERVICE TAX

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The move of scrapping the 6% GST has paved the way for the re-introduction of SST 2.0, which will come into effect in 1 September 2018. Before the 6% GST (that was implemented in 2015), Malaysia levied a Sales Tax in addition to a Service Tax. Governed by the Sales Tax deed 2018 in addition to the Service Tax deed 2018, the Sales Tax was a federal consumption tax imposed on a wide variety of goods while the Service Tax was levied on customers who consumed certain taxable services. Special designated areas that include Langkawi Island, Tioman Island in addition to Labuan Island are exempted from the Service Tax. This page will help you to understand what SST is in addition to how it will affect us.
Transitional from GST to SST
When the GST deed 2014 is repealed, you are automatically ceased to be a GST registered person.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 However, you are required to submit the final GST return within 120 days from the deed being repealed (by 28 December 2018).

After 1 September 2018, Custom audits for GST closure purposes would be carried out on GST registered entities.

Companies have to declare SST return (SST-01) every 2 months (bi-monthly) according to the taxable period. SST return has to be submitted not later than the last daytime of the following month after the taxable period ended.

Manufacturers / Services Provider who are GST Registered Persons which have been identified in addition to fulfilled the required criteria will be registered automatically as Registered Manufacturer under Sales Tax / Registered Services Provider under Service Tax. Registered Manufacturer / Services Provider need to charge tax beginning 1 September 2018.

GST registered person who fulfilled the required criteria to be registered but were not registered by 1 September 2018 need to apply for registration through the MySST system within 30 days from the commencement date.

Registration is auto approve within 24 hour for a GST registrant. If a verification process is required, it will take longer processing time.
Malaysia Service Tax 2018
Malaysia’s Service Tax is a form of indirect tax imposed on any provision of taxable services made in the course or furtherance of any business by a taxable person in Malaysia. Service tax is not chargeable on imported services in addition to exported services.

In general, the services provider is liable to be registered under the Service Tax deed 2018 when the value of taxable services provided for a period of 12 months that exceeds a threshold of RM500,000. The SST registration threshold is RM1,500,000 for Operator of restaurant, bar, snack-bar, canteen, coffee house or any place which provides food in addition to drinks (eat-in or take-away , exclude canteen in an educational institution or operated by a religious institution or body), Caterer in addition to Food court operator.
The Service Tax rate is fixed at 6%. A specific rate of tax of RM25 is imposed upon issuance of principal or supplementary card in addition to every subsequent year or part thereof.

The following taxable services are subject to the service tax:

Hotel (include lodging house, service apartment, homestay, Inn, rest house, boarding house)
Insurance in addition to Takaful
Service of food in addition to quaff preparation (include restaurant, cafe, catering, take-away, food truck, retail outlet, hawkers in addition to etc)
Club (include Night club, private club, golf club)
Gaming (include Online Casino Brunei, game of chance, sweepstakes, gaming machines, lottery, betting)
Telecommunication
Pay-TV
Forwarding agents
Legal
Accounting
Surveying
Architectural
Valuer
Engineering
work agency
Security
Management services
Parking
Motor vehicle service or repair
Courier
Hire in addition to drive automobile
Advertising
Domestic flight except Rural Air Services
Credit or charge card
IT services
Electricity
Accounting Basis for Service Tax
Companies shall prepare their SST return in payment basis for Service Tax purposes. Service Tax required to be accounted for at the time when the payments are received or on the daytime following period of twelve months when any whole or part of the payment is not received from the date of the invoice for the taxable service provided.

Companies who provide taxable services must issue invoices containing the prescribed particulars. The invoices can be in hardcopy or electronically, Bahasa Melayu or English. Any credit notes in addition to debit notes issued shall make an adjustment in SST return.

Bad debts can be claimed by a registered person or a Ceased to be registered person. The bad debts can be claim after 6 months to 6 years from the date of service tax was paid in addition to subject to condition in addition to satisfaction of the DG. For bad debts recovered from the debtor after bad debts claimed in addition to received the service tax refund, the registered person must repay the service tax refund to DG in his return.

The businesses must keep its records in Malaysia for 7 years. It is subjected to the DG approbation for record keeping at overseas. The record can be kept in softcopy or hardcopy.