The SST has two elements: a service tax that is charged and levied on taxable services provided by any taxable person in Malaysia in the course and furtherance of business, and a single stage sales tax levied on imported and locally manufactured goods, either at the time of importation or at the time the goods are sold …
How is SST charged in Malaysia?
How to pay SST?
- Do it online through the FPX system of the CJP system. …
- Do it through cheque or bank draft made payable to ‘Ketua Pengarah Kastam Malaysia’ and mail it to the CPC.
Who pays SST 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.
What is subject to service tax 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 imported taxable services acquired by any person who carries on business in Malaysia; and.
What is sales and service tax Malaysia?
SST in Malaysia was introduced to replace GST in 2018. 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.
Can company claim back SST?
Previously, businesses were allowed to recover or claim the GST. However, the business can’t recover the SST that was charged on B2B supplies. This would result in creating a compounding of the tax via the goods and supply chain provided between the companies.
Is rental income subject to SST in Malaysia?
The rental of the space is not subject to service tax because it is located outside the accommodation premises. d) provision or sale of tobacco products and alcoholic and non-alcoholic beverages. 11.
How do businesses apply for SST?
Application for sales tax registration shall be made electronically in MySST portal at www.mysst.customs.gov.my. Applicants are required to fill in relevant details based on the prescribed registration form. 16. Registration kiosks are provided at the SST Division in all RMCD offices throughout Malaysia.
How do I submit a payment to SST?
A : The Payment of SST can be made via two (2) method as follows: (i) Eelectronically through the MySST system (Financial Process Exchange (FPX); OR (ii) Manually by cheque or bank draft.
How do you record SST in accounting?
Link the tax code to the account payable that you have created in your COA. After that, when you record your supplier invoice that have SST, you can easily add the tax code to your purchased items and they will be recorded to the account. In such way, you can record charges for your cost of goods and tax paid.
Is service charge subject to SST?
Service tax / government tax – is a legislated tax at rate 6% (effective From January 2011) imposed under the Service Tax Act 1975. … The service tax collected by the business is paid to the government once every two months. Service tax is not imposed on the service charge but on the cost of goods or services provided.
What is subject to SST?
The Service Tax rate is fixed at 6%, and the list of services subject to it include hotels, insurance, gaming, legal and accounting services, employment agencies, parking, couriers, advertising, and electricity.
Is SST indirect tax?
Both sales tax and service tax are final taxes with no credit mechanism. … While exemptions do exist, SST is predominantly a business cost.
Is SST direct or indirect tax?
Malaysian sales and service tax
Malaysia reintroduced its sales and service tax (SST) indirect sales tax from 1 September 2018. It replaced the 6% Goods and Services Tax (GST) consumption tax, which was suspended on 1 June 2018.
How can I check my SST Number Malaysia?
How to Check SST Registration Status for A Business in Malaysia
- Step 1: Visit https://www.mysst.customs.gov.my/, click “Registration Status”:
- Step 2: Select one of the Choices:
- Step 3: Key in your company information: