What is sales tax and Service Tax in Malaysia?
The current tax rate for sales tax is 5% and 10%, while the service tax rate is 6%. If your company is already GST-registered, the MySST system will automatically register your company for SST.
How does sales tax work in Malaysia?
Sales tax is charged by registered manufacturers of taxable goods and on the importation of taxable goods into Malaysia. … As a general rule, goods are subject to sales tax at a rate of 10%, however some goods are taxed at the reduced rate of 5%, specific rates and others are specifically exempt.
Who has to pay SST in Malaysia?
Who Pays SST(Sales and Service Tax) in Malaysia? The businesses that perform their activities in Malaysia and internationally will have to pay SST if they exceed a particular annual income threshold. The current threshold is set at an amount of RM500,000.
How does Service Tax impose in Malaysia?
Effective date and scope of taxation
Service tax is a consumption tax levied and charged on: any taxable services (including digital services) provided in Malaysia by a registered person in carrying on his business; … any digital services provided by a foreign registered person to a Malaysian consumer.
What is sales tax and Service Tax?
Central sales tax or CST is the tax levied on sale of items in inter-state trade. … Service tax is the tax payable on services that are taxable. While in most cases, the service provider is liable to pay this tax, in certain cases the recipient of the service is liable to pay tax.
Is service charge taxable in Malaysia?
Service tax is a form of indirect tax imposed by the Malaysian government on taxable persons for specified “taxable services” under the Service Tax Act 1975 [Act 151]. Service charge is essentially tips for the employees.
Who is subject to sales tax?
Sales of tangible personal property (personal property that can be picked up and moved) are typically subject to sales tax unless specifically exempted. But as you may know, in some states, certain services are also subject to sales tax. If you only sell services, your sales might be exempt.
Who needs to pay SST?
Usually, a business or service provider working under the Service Tax Act 2018 must register with the SST if the annual value of taxable services exceeds RM500,000. The SST threshold for restaurants, cafes, canteens, bars, or any other place that offers something to drink or eat to its customers is RM1,500,000.
When should I charge SST Malaysia?
The SST payment should be done within 30 days from the end of the taxable period. The timing to account for the respective transactions is different for Sales Tax and Services Tax: For sales tax, it is when the taxable goods are sold, disposed of or first used by the taxable person.