12/24/21, 11:22 AM Transitioning into sales tax and service tax – clarifying the confusion | ACCA Global

Scope of Sales tax is charged and levied on all Service tax is charged on:
charge taxable goods:
(i) any provision of taxable services
(i) Manufactured in Malaysia by a provided in Malaysia by a registered
registered manufacturer and sold, used person in carrying on his business; or
or disposed of by him; or
(ii) any imported taxable services i.e.
(ii) Imported into Malaysia by any person. taxable services acquired by any person
in Malaysia in carrying on his business
  from any person who is outside Malaysia.

Tax rate 10%, 5% or exempt.  Specific rate 6%.  Specific amount of RM25 applicable
applicable to certain petroleum products. to credit cards.

Taxable goods Taxable goods are class or type of goods Taxable services (including sale of certain
/ services that are not exempt from sales tax. goods) prescribed under the Regulations.

Taxable person Any person involved in the manufacturing Any person who is prescribed to be a
of taxable goods above the registration taxable person i.e. provides taxable
threshold and not exempt from services in Malaysia above the
registration. registration threshold.

Registration Annual sales value of RM500,000. The threshold depends on the type of
threshold taxable services, ranging from nil to
RM1.5 million.  The common threshold
amount is RM500,000.

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