SALES & SERVICE TAX 服务税 |
BUSINESS REGISTRATION |
A)
| SALES TAX v The manufacturer of taxable goods is required / responsible to be registered when; · SALES VALUE OF TAXABLE GOODS has exceeded RM500 000 for a period of 12 months; |
v Manufacturers who do sub-contract work on taxable goods where the VALUE of the work done exceeds RM500 000 for a period of 12 months. v Taxable goods consist of: · Registered manufacturers, non-registered manufacturers and manufacturers in special areas (ZPB and GPB).
Note: The Registered Person will be known as the Registered Manufacturer.
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VOLUNTARY REGISTRATION v Taxable goods – below the threshold value. v Persons excluded from registration
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CALCULATION OF THRESHOLD VALUES v Manufacturers must calculate the sales value of taxable supply of goods for a 12-month period using the following methods: · Backward Method; § The total value of sales of taxable goods in the month in question and the previous 11 months; · Future Method; § The total value of sales of taxable goods in the month in question and 11 months ahead
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EXEMPTION FROM REGISTRATION
v Manufacturer of non-taxable goods*. v Manufacturer below the threshold value. v Sub-contractor manufacturers below the threshold value. v Manufacturing activities that are exempt from registration. Example: · Tailor · Installation of fixtures into the building · Goldsmith, optician
* Not eligible for voluntary registration |
B) SERVICE TAX
LIST OF PROPOSED TAXABLE SERVICES
NO | 1975 - MARCH 2015 | 1stSEPT2018 | |||||
ESTABLISHMENT | THRESHOLD | SERVICE PROVIDER | TAXABLE SERVICES | THRESHOLD | |||
1. |
Hotel |
>25 rooms | Accommodation: hotel, inns,lodging house, service apartment, homestay and any other similarestablishment. |
All services including sale of food,drinks tobacco products. |
and |
RM 500,000 | |
2. | Restaurant in hotel | >25 rooms | 1. Operator of restaurant, bar,snack- bar, canteen, coffee house or any place which provides foodand drinks · eat-in or take-away · exclude canteen inan educational institution oroperated by a religiousinstitution or body. 2. Caterer. 3. Food court operator. |
All services including prepared or servedfood or drinks; and sale of tobacco products, alcoholic and non-alcoholicbeverages. |
RM1,000,000 | ||
3. |
Restaurant in hotel | <25 roomsandthreshold exceedRM300,000 | |||||
4. |
Restauranthotel |
outside |
RM3,000,000 | ||||
5. |
Night club |
No threshold | 1. Night club, dance hall, cabaret 2. First, second- or third-class public house or first or second-class beer house 3. Health or wellness center 4. Massage parlour or similarplaces |
All services including sale of food,drinks tobacco products. |
and |
RM 500,000 | |
6. |
Private club |
RM300,000 |
Private club | All services including sale of food,drinks tobacco products. | and |
RM 500,000 | |
7. | Golf club and driving range |
No threshold |
Golf club and driving range | All services including sale of food,drinks tobacco products. | and |
RM 500,000 | |
8. | Private hospital(on ward and foodcharges only) |
RM300,000 |
Not taxable service | ||||
NO | 1975 - MARCH 2015 | 1stSEPT2018 | |||
ESTABLISHMENT | THRESHOLD | SERVICE PROVIDER | TAXABLE SERVICES | THRESHOLD | |
9. |
Insurance (B2Bonly) |
No threshold |
Insurer or takaful operator | 1. General insurance or takaful B2B andgeneral insurance or takaful B2Cexcluding medical insurance or takaful 2. Excludes a. Insuring or takaful coverage ofrisks relating to the transport of passengers or goods outsideMalaysia b. Insuring or takaful coverage of risksincurred on granting credit relating to the export of goods, services orinvestments outside Malaysia c. Insurance contract or takaful certificate to cover risks outsideMalaysia |
RM 500,000 |
10. |
Telecommunicationand Paid-TV |
Telecommunication and paidtelevision service provider | 1. Telecommunication and related servicesexcluding provisions of services to another telco provider. 2. Paid television broadcasting services |
RM500,000 | |
11. | Customs agent | Customs agent | Services of clearing goods from customscontrol | RM500,000 | |
12. | Advocates and solicitors |
Advocates, solicitors and syarie lawyers | Legal services and other charges inconnection to such services. |
RM500,000 | |
13. |
Public accountant |
Public accountant | Accounting, auditing, book keeping, consultancy or other professional servicesand other charges in connection to suchservices. |
RM500,000 | |
14. | Surveyors includingregistered valuers,appraisers or estateagents |
Surveyors including registeredvaluers, appraisers or estateagents |
Surveying services including valuation,appraisal, estate agency or professional consultancy services and other charges inconnection to such services. |
RM500,000 | |
15. |
Professionalengineer |
Professional engineer | Engineering consultancy or otherprofessional services and other charges inconnection to such services. |
RM500,000 | |
NO | 1975 - MARCH 2015 | 1stSEPT2018 | |||
ESTABLISHMENT | THRESHOLD | SERVICE PROVIDER | TAXABLE SERVICES | THRESHOLD | |
16. |
Architect |
Architect | Architectural services including professional consultancy services and other charges in connection to suchservices. |
RM500,000 | |
17. |
Managementservices | Management services excludingsuch services provided by: 1. the developer, jointmanagement body or management corporation tothe owners of a building heldunder a strata title; or 2. asset and fund managers |
Management services and other charges inconnection to the provision of management services including project management orproject coordination |
RM500,000 | |
18. |
Consultancy |
Consultancy services excludingresearch and development companies | Professional consultancy services and other charges in connection to such services excluding: 1. Consultancy services relating to medicaland surgical treatment provided by private clinics or specialist clinics; or 2. consultancy services in connection with goods or land outside Malaysia or wherethe subject matter relates to a countryoutside Malaysia |
RM500,000 | |
19. |
Employment agency |
RM150,000 |
Employment agency | Employment services excluding– 1. secondment of employees or supplyingemployees to work for another personfor a period of time; or 2. employment outside Malaysia |
RM500,000 |
20. |
Private agency |
Private agency | Provision of guards or the protection or security of person, property or business excluding such services to guard or protectthe above which is situated outsideMalaysia |
RM500,000 | |
21. |
Parking operator |
Parking operator | Provision of parking spaces for motorvehicles where parking charges are imposed |
RM500,000 | |
NO | 1975 - MARCH 2015 | 1stSEPT2018 | |||
ESTABLISHMENT | THRESHOLD | SERVICE PROVIDER | TAXABLE SERVICES | THRESHOLD | |
22. |
Motor vehicles service orrepair |
Operator of motor vehicle serviceor repair centre or provider ofmotor vehicle service or repair |
Provision of general servicing, enginerepairs and tuning, changing, adjusting and fixing of parts, wheel balancing, wheel alignment or body repairs includingknocking, welding or repainting of motorvehicles. |
RM500,000 | |
23. |
Courier service operator |
RM150,000 |
Courier service operator | Courier delivery services for documents or parcels not exceeding 30 kilograms eachexcluding such services for documents orparcels: (i) from a place outside Malaysia toa place outside Malaysia; (ii) from a place within Malaysia to aplace outside Malaysia; or (iii) from a place outside Malaysia toa place within Malaysia and includes the provision of courier delivery services within Malaysia that forms parts of the service referred to insubparagraphs (ii) and (iii)where the service is provided by the same person |
RM500,000 |
24. |
Hire and drive car |
RM300,000 |
Hire-and-drive passenger motor vehicle and hire-passenger motorvehicle licensed by Land PublicTransport Commission,Commercial Vehicles Licensing Board Act 1987 and TourismVehicles Licensing Act 1999 |
Provision of hire-and-drive or hire-passenger motor vehicle services including hire of passenger motor vehicle with orwithout chauffeur |
RM500,000 |
25. |
Veterinary |
Not taxable service | |||
26. |
Advertising |
Advertising | Provisions of all advertising servicesexcluding provision of such services forpromotion outside Malaysia |
RM500,000 | |
NO | 1975 - MARCH 2015 | 1stSEPT2018 | |||
ESTABLISHMENT | THRESHOLD | SERVICE PROVIDER | TAXABLE SERVICES | THRESHOLD | |
27. |
Credit card orcharge cardservices |
No threshold |
Credit card or charge cardservices provider regulated byBank Negara Malaysia | Provision of credit card or charge cardservices through the issuance of a principalcredit card, principal charge card, supplementary credit card or supplementary charge card, whether or not annualsubscription or fee is imposed excluding fuel card and charge card in a closedcommunity e.g. education institution or a sports club by itsstudents or members |
No threshold |
28. |
Betting and gaming providerinvolving bettings, sweepstakes, lotteries, gaming machines orgames of chance | 1. Betting and gaming services involving bettings, sweepstakes, lotteries, gamingmachines or games of chance. 2. Conducting tournaments involvingbettings, sweepstakes, lotteries, gamingmachines or games of chance. 3. Conducting or allowing the conduct of acard game or any other game by thecasino operator |
RM 500,000 | ||
29. |
Transmission and distribution of electricity provider | Provision of electricity to any domesticconsumer excluding for the first 600 kWh fora minimum period of twenty-eight days perbilling cycle consumed by that consumer |
RM 500,000 | ||
30. | Airline operator licensed undersection 35 of Malaysian AviationCommission Act 2015 [Act 771] or air service permit under section 36 of Malaysian AviationCommission Act 2015 |
Domestic passenger air transport serviceand all services in connection with such services excluding the air transport route as specified under the Rural Air ServicesAgreement |
RM 500,000 | ||
31. |
Information technology (IT)services provider | All types of IT services excluding: 1. sale of goods in connection with theprovision of IT services; 2. IT services in connection with goods orland outside Malaysia or where thesubject matter relates to a country outside Malaysia. |
RM 500,000 | ||
The services provided by the service provider from number 12-17 exclude the said services if provided in connectionwith:
a) goods or land outside Malaysia or where the subject matter relates to a country outside Malaysia; or
b) any statutory fees paid to the government or statutory body
What goods are exempted from sales tax? |
· Construction Materials (including bricks, cement, sand and more)
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