On 1st September 2018, Goods and Service Tax (GST) in Malaysia is replaced by Sales and Service Tax (SST). One important note on the difference between GST and SST is that GST only involves one Tax Act - the GST Act, whereas SST involves two Tax Act - the Sales Tax Act and Service Tax Act.
The Malaysia Royal Custom Department (MRCD) had published guidelines on Sales and Service Tax Registration which includes how each tax will be calculated for registration threshold on 27th August 2018.
This blog series will focus on how taxable service values will be calculated under the Service Tax Act 2018.
Service Tax groups
There are two different ways to calculate the taxable services. Table below is to illustrate how each groups are calculated for their taxable value.
|
Group
Type
|
Taxable Service |
Calculation of
Taxable Services
|
| A - F |
Provision of all services
|
Combined |
| G - I |
Provision does not include all services
|
Separately |
Calculation of the value of taxable services for each group type may differ by a little, the inclusion of the types of services under each group type also differ (for further detail on what each group comprises of, please refer to the custom's official guide).
Further detail on group A to F will be discussed on our next blog post - How to classify your taxable service value in Service Tax Act 2018? (Part 2)
And for detail on group G to I will be discussed on our next blog post - How to classify your taxable service value in Service Tax Act 2018? (Part 3).
You can also visit the links below to read more on SST related topics in TreezSoft:
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