OVERVIEW OF
SALES & SERVICETAX(SST)
Presentation Date :31October 2018
AUDITORIUM DATO’ ABD MAJIDMAKTAB KOPERASI MALAYSIA PETALING JAYA
GST-TAX HOLIDAY- SST
GSTStarted
(1April 2015)
GST Zero Rated
(1 June 2018
-31 Aug 2018)
SST
(1September2018)
WHEN SALES TAX ISCHARGED?
Taxable goods manufactured in Malaysia by a taxable person and sold,
used or disposed by him;
On taxable goods imported into
Malaysia.
THRESHOLD-SALESTAX
Reached sales threshold
Manufacturing
RM500,000.00
Contract Manufacturing RM500,000.00
Mandatory registration Voluntary
registration
SALES TAX-EXEMPTED GOODS
•Log in to https://mysst.customs.gov.my/
•Go to legislation & guides-legislation- SST orders –Sales tax order –Sales Tax(Goods Exempted From Tax) Order 2018
•Log in to https://mysst.customs.gov.my/
•Go to legislation & guides-legislation- SST orders –Sales tax order –Sales Tax (Exemption from Registration) Order 2018
Goods listed under Sales Tax
(Goods Exempted From Tax) Order
2018
Sales Tax (Exemption From
Registration) Order 2018
SALES TAX-EXEMPTEDGOODS
Food Items
Live Animals
Medic ineConstruction
Services
Construction Materials
Most Capital Goods
Vehicle General Goods
WHAT IS MANUFACTURING ?
Manufacture defines as a conversion of materialsby manual or mechanical means into a newproduct by changing the size, shape,composition, nature or quality of such materialsand includes the assembly of parts into a pieceof machinery or other products.
However, manufacture does not include theinstallation of machinery or equipment for thepurpose of construction.
In relation to petroleum, any process ofseparation, purification, conversion, refining andblending
1.The developing and printing of photographs and the production of film slides.
2.The engraving of articles with the name of the recipient, his sports record or other circumstancesunder which the article was donated or awarded.
3.The incorporation of goods into buildings.
4.The manufacture of readymixed concrete.
5.The preparations of meals.
6.The preparation of tarred metal, tarred screenings, and hot mixed preparations of bitumen and metal for road making.
7.The production of copies of document by the photo copy or similar copying process.
8.The repacking of bulk goods into smaller packages by a person other than a registered manufacturer.
9.The repair of second hand or used goods.
10.The testing of eyesight, the prescription of suitable lenses and the fitting of suchlenses into frames.
11.The following operations when performed by a person other than a registered manufacturer—
(i)the varnishing andor polishing of finished pieces of furniture.
(ii)the fitting of glass tops and, or glass doors to pieces of furniture otherwise complete
12.The reduction of size and or changing of the shape of taxable materials without changing the nature of such materials, provided that the sizing and,or shaping is not part of the normal process in manufacture of a separate article.
13.The rendering of personal tailoring service but excluding the manufacturing of garments and other textile articles on the basis of bulk and not personalized production by a firm or company engaged in the business of manufacturing garments and other textile articles.
14.The printing of logo, knitting, crocheting or embroidering on ready made garments supplied by another person.
15.The coloring of cloth supplied by another person without changing the size or shape of the said cloth.
• 16. The manufacture of batik fabrics using traditional techniques of manual block printing, manual screen printing and, or hand drawing or painting and the articles thereof.
• 17. The installation of air conditioners in motor vehicles.
• 18. The manufacture of jewellery and goldsmithswares.
• 19. The extraction of gold from mineral ores.
• 20. The recovery of gold from jewellery and, or the refining of gold.
•SCHEDULE A -SALES TAX (EXEMPTION FROM REGISTRATION) ORDER2018
PERSON EXEMPTED FROM REGISTARATIN FROM SALES TAX
SALES TAX RATE
AD VALOREMTAX
10%Specific
(Petroleum)
TAXABLE ITEMS
Furniture
-Sofa
-Mattress
Personal Items
-Shampoo
-Toothpaste
Shower Gel
Motor Vehicle
-PassengerMotorcar
-Motorcycles>250cc
Electrical Appliances
-Washing Machine
-Television
-Radio
-Electrical Devices
-Smartphones
-ComputerDevice
-Printer
ProcessedFood
-Processed Fruits
-Fruit Juice
-Butter,jams &cheese
-Cod Liver Oil
Watches/Camera/Spectacles
Food & Drinks
-FizzyDrinks
-Chocolate
Ice Cream
Other
-Engine
oil
-Brake Fluid
BigTicket Items
-Aeroplane
-Helicopter
-Yacht
-LuxuryShip
-Ferries
-SpaceCraft
HOW SALES TAX WORKS?
Supply
Chain
Manufacturer
Wholesaler
Retailer
Consumer
Government collects TAX at
the MANUFACTURER
level only
Element of SALESTAX embedded in the PRICE paid by the
consumers
INVOICE 1
INVOICE 2
INVOICE 3
INVOICE 1
HOW SALES TAX BEING CHARGED
Manufacturer
Retailer
Consumer
INVOICE FROM WHOLESALERS OR RETAILERS
1. FURNITURE RM.1300.00
INVOICE 2
INVOICE 3
INVOICE 1
INVOICE FROM MANUFACTURERSALES TAX NO : W10-1808-21035433
1. WOODEN FURNITURE RM.1000.00(HS Code: 9403609000)
SALES TAX 10% RM. 100.00
TOTAL RM.1100.00
COST RM.1100 MARKUP RM.200
SALES TAX-EXEMPTION
FACILITIES UNDER THE SALES TAX ACT 2018Section 35 of the Sales Tax Act 2018 provides the Minister the power to exempt. The exemption can be categorised as follows:
(i) Specific exemption; or
(ii) Exemption by Order of the Minister – Goods & Person
Exempted Orders
Specific Exemption Person or class of persons may apply to the Minister to be exempted from the payment of the whole or any part of the sales tax which would have been payable by such person or class of persons. In this case, application shall be submitted to the Tax Analysis Division of the Ministry of Finance. In granting the exemption, the Minister may subject such person or class of person to such conditions as he may deem fit to impose.
SALES TAX EXEMPTIONORDERS
SCHEDULEA
-Any Ruler of States, Federal / StateGovernment
- Importer , Manufacturer
-Airline Operator
-Oil and GasOperator
-Schedule A Item 24 -Any person –import – courier RM.500
-
SCHEDULEB
Manufacturing Exempted Goods
-Manufacturer of specific industries eg for pharmaceuticals products under Chapter 30 Customs DutiesOrder
-Controlled goods under Controlof Supplies Act 1961& subject to price
control
- Exporter
SCHEDULEC
-Registered Manufacturer
-Person import / purchase on behalf registered manufacturer
-Semi-finished/ finished taxable goods for subcontract work and return after
completion of work
All Exemptions Module available ONLINE viaMySST
Person Exempted from Payment of Sales Tax
SALES TAX EXEMPTIONORDERS
ScheduleA & B create
ID first
Legislation & GuidesGo to Sales Tax
Orders
SALES TAX EXEMPTIONORDERS
ScheduleB & CLog inhere
ScheduleA &B create
ID first
SERVICE TAX 2018
Service
Provider
Tax Rate 6 %
Consumer/ Business
Mandatory registration Voluntary
registration
SCOPE OF SERVICE TAX
Supply
Chain
Manufacturer
Wholesaler
Retailer
Taxable person can be any individual, company, enterprise, partnership, club, trust body, co-operative society, association, etc.
Service tax in Malaysia is a form of indirect single stage tax imposed on specified services termed as “taxable services”.
Service tax cannot be levied on any service which is not included in the list of taxable services prescribed by the Minister under First Schedule of the Service Tax Regulations 2018
Service tax is charged on: -(i) Any provision of taxable services; (ii) (ii) Provided in Malaysia; (iii) (iii) By a registered person; and(iv) (iv) In carrying on his business
SERVICE TAX REGULATION
ScheduleA & B create
ID first
Legislation & GuidesGo to Service Tax
Regulations
SERVICE TAX :THRESHOLDTAXABLEPERSON THRESHOLD
F & B (All services including restaurant ,catering, takeaways, foodtruck & food court operator(excluding sale of tobacco products and rental)
RM 1.5million
Accommodation (All services including sale of food, drinks ,alcholicdrinks andtobacco products )
Night Club
Private Club
Golf Club and DrivingRange
General Insurance or Takaful B2B& General Insurance or Takaful B2C
Excluding Medical Insurance or TakafulTelecommunication RM 500,000
Paid-TV
Advocates andSolicitors
Public Accountant
Surveyors Including Registered Valuers, Appraisers or Estate Agents
Professional Engineer
Architect
TAXABLEPERSON THRESHOLD
Consultancy
Employment Agency
Private Agency
Management Services
Parking Operator
Motor Vehicles Service or Repair RM500,000
Courier ServiceOperator
Hire anddrive car
Advertising
Provision of electricity to any domestic consumer excluding for the first 600kWh
Betting and gaming Domestic passenger air transport service and all services in connection with
such services excluding RAS & flights within Sabah & Sarawak
0Customs Agent
Credit card or charge card services @ RM 25 per card 0
HOW SERVICE TAX BEING CHARGED
Supply
Chain
Manufacturer
Wholesaler
Retailer
Service Tax No : W10-1808-31015433
Service Tax No : W10-1808-31015433
Disbursement
SERVICE TAX FACILITY
Taxable persons are allowed to deduct service tax in the return for cancelation and termination of services or any other reason such as reducing premiums or discounts.
The deduction has to be made within one year after the payment was made, or such extended period as may be approved by the DG.
CO
NTRA
SYSTEM
SERVIC
E T
AX
FACILIT
Y
DESIGNATED AREA (DA)
NO SST WITHIN /BETWEEN:
-Pulau Langkawi
-Pulau Tioman
-Pulau Labuan
Except TelecommunicationServices
SPECIAL AREA (SA)
FREE ZONES, WAREHOUSE,
LICENSED MANUFACTURING
WAREHOUSE (LMW) & JOINT DEVELOPMENT
AREA(JDA)
NO SST
(WITHIN/
BETWEEN)
Except Telecommunication
services
REGISTRATION STATUS –MYSSTPORTAL
Step 1:
Go to https://www.mysst.customs.gov.my
REGISTRATION STATUS –MYSSTPORTAL
Step 3: If the company is not registered with
MySST system, a pop up “no record found’
message will appear
Step 2: Insert GST No. / BRN No. / Company
Name to check on the status
REGISTRATION STATUS –MYSST PORTAL
Step 4: If the company already registered in
MySST, a pop up SST Registration Status will
appear, kindly check your email for further details
Please CheckYour Email …..Content of Email:
1.MySST Username & Password2.Notice of Registration Letter3.ApprovalLetter
NEW REGISTRATION –MYSSTPORTAL
Step 1:
Go to https://www.mysst.customs.gov.my
Step 2:
Choose Sales Tax or Service Tax
NEW REGISTRATION –MYSSTPORTAL
Step 3:
Continue to register as New Registration for Sales
Tax OR Service tax
Once submitted system will
generate SST Registration No.
Registered User will be notified via
email.
WE ARE HERE TO HELP YOU
Customs Call Centre (CCC)1-300-888-500
Email: ccc@ customs.gov.my
Help Desk SST : 03-83237499 / 7522
Customs Crisis Centre:03-88822289 / 2492 / 2617
SST Contact Person:https://mysst.customs.gov.my/SSTContactPerson
Copyright: INTERNAL TAX DIVISION WPKL
END OFPRESENTATION…