SERVICE TAX 2018

GUIDE ON :
REGISTRATION

Published by:

Royal Malaysian Customs Department

Internal Tax Division
Putrajaya

27 August 2018
Publication

Date: 27 August 2018.

Copyright Notice

Copyright 2018 Royal Malaysian Customs Department.

All rights reserved. Subject to the Copyright Act, 1987 (Malaysia).

The Guide may be withdrawn, either wholly or in part, by publication of a new guide.
No part of this publication may be reproduced, stored in a retrieval system or
transmitted in any form, including on-site for commercial purposes without written
permission from the Royal Malaysian Customs Department (RMCD). In reproducing
or quoting the contents, acknowledgment of source is required.

Disclaimer

This information is intended to provide a general understanding of the relevant

treatment under Sales Tax and Services Tax Legislation and aims to provide a better
general understanding of taxpayers’ tax obligations. It is not intended to
comprehensively address all possible tax issues that may arise. While RMCD has
taken the initiative to ensure that all information contained in this Guide is correct, the
RMCD will not be responsible for any mistakes and inaccuracies that may be
contained, or any financial loss or other incurred by individuals using the information
from this Guide. All information is current at the time of preparation and is subject to
change when necessary
 CONTENTS

INTRODUCTION ........................................................................................................ 1
SERVICE TAX IN GENERAL .................................................................................... 1
SERVICE TAX REGISTRATION ............................................................................... 1
VALUE OF TAXABLE SERVICES ............................................................................ 2
REGISTRATION EFFECTIVE DATE ......................................................................... 5
REGISTRATION PROCEDURE ................................................................................ 6
TRANSITIONAL PERIOD .......................................................................................... 6
Automatic and Non- Automatic Registration ........................................................... 6
NEW REGISTRATION ............................................................................................... 8
VOLUNTARY REGISTRATION ................................................................................. 9
INTRA GROUP REGISTRATION .............................................................................. 9
NOTIFICATION OF PARTICULARS CHANGES OF REGISTERED PERSON ........ 9
RESPONSIBILITIES OF THE REGISTERED PERSON.......................................... 10
DEREGISTRATION ................................................................................................. 10
REGISTERED PERSON PUT UNDER LIQUIDATORS AND RECEIVERS ............ 11
FREQUENTLY ASKED QUESTIONS (FAQs) ........................................................ 12
FURTHER ASSISTANCE AND INFORMATION ON SST ....................................... 14
APPENDIX I ............................................................................................................. 15
GROUP A: ACCOMMODATION ........................................................................... 15
GROUP B: FOOD AND BEVERAGE .................................................................... 15
GROUP C: NIGHT-CLUBS, DANCE HALLS, HEALTH CENTRES, MASSAGE
PARLOURS, PUBLIC HOUSES AND BEER HOUSES ........................................ 16
GROUP D: PRIVATE CLUB ................................................................................. 17
GROUP E: GOLF CLUB AND GOLF DRIVING RANGE ...................................... 17
GROUP F: BETTING AND GAMING .................................................................... 17
GROUP G: PROFESSIONALS ............................................................................. 18
GROUP H: CREDIT CARD AND CHARGE CARD .............................................. 23
GROUP I: OTHER SERVICE PROVIDERS.......................................................... 24
Appendix II .............................................................................................................. 30
Flow Chart 1: For Person Who Provides Taxable Services .................................. 30

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 Guide on Service Tax Registration
As at 27 August 2018

INTRODUCTION

1. Effective from 1 September 2018, Sales Tax Act 2018 and the Service Tax Act
2018 together with its respective subsidiary legislations are introduced to replace the
Goods and Service (GST) Act 2014.

2. The service tax is charged and levied on any provision of taxable services
chargeable by taxable persons in Malaysia.

3. The Guide is prepared to assist businesses in understanding matters with

regards to service tax registration requirements and procedures under Service Tax
Act 2018.

SERVICE TAX IN GENERAL

4. Service Tax is imposed on taxable services provided in Malaysia by any taxable

person as stated in the First Schedule (Regulation 3) of Service Tax Regulations 2018.

5. Service Tax is not charged on imported and exported services.

6. The tax rate is ad valorem tax at 6% and specific tax rates of RM25 per year
per credit card or charge card.

SERVICE TAX REGISTRATION

7. Any person who provides taxable services in the course of furtherance of

business in Malaysia for a period within 12 months and exceeds the value of taxable
services is liable to be registered under the Service Tax Act 2018.

8. Taxable services are any services listed in the various group as prescribed in
the First Schedule of Service Tax Regulations 2018. These groups are shown in the
table in Appendix I.

9. Any person who provides taxable services and exceeds the prescribed value
of taxable services for a period within 12 months is required to be registered.

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10. However, there is no value of taxable services prescribed for registration of

forwarding agent and the issuance of credit card and charge card services.

11. Any person providing taxable services below the value of taxable services is
not liable to be registered, but may apply for voluntary registration.

VALUE OF TAXABLE SERVICES

12. The value of taxable services is the total value of taxable services provided
which exclude the amount of service tax.

13. The taxable service groups under this Act is divided into two categories, the
first category, A to F (Appendix I) is where the service includes the Provision of all
services. The second category G to I (Appendix I) does not include Provision of all
services.

14. In determining the value of chargeable services for registration, the liabilities in
the first category shall be combined while the value of taxable services in the second
category should be calculated separately.

15. The Calculation of Taxable Service is shown in the table below:

Table 1: Provision of Services in and Within Groups for Calculation for

Taxable Services Value.

Calculation Of
Group Taxable Service
Taxable Service
A-F Provision Of All Services Combine
Provision does not include all
G-I Separately
services

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Example:
(i) Zee Sdn Bhd provides hotel rooms in Group A and Café in Group B and
parking spaces in Group I. Calculation of Value of taxable services from
each group is as shown in the table below:

Value of Service for Total Value of Taxable

Group Service Provided
12 months (RM) Services (RM)

A Hotel rooms 700,000.00

1,200,000.00
B Café 500,000.00
I Parking spaces 200,000.00 Does not exceeds
Total 1,400,000.00

Zee Sdn Bhd should register Hotel rooms and Café as taxable service
but not to include parking space.

(ii) Yee Sdn Bhd is providing IT Services in Group G and

Telecommunication in Group I. If calculated separately, the value of the
services is below RM500, 000 thus Yee Sdn Bhd is not liable to register
until one of the services exceeds RM500,000. When one of the services
value exceeds RM500,000, Yee Sdn Bhd is then liable to register for
providing that particular service.

Value of Service for Total Value of Taxable

Group Service Provided
12 months (RM) Services (RM)
Does not exceeds
G IT Services 450,000.00
RM 500,000
Does not exceeds
I Telecommunication 200,000.00
RM 500,000
Total 700,000.00 -

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16. In order to determine the liability for a service provider registration, the value of
taxable services for a period within12 months shall be calculated by using the following
method:

(a) Historical method - Total value of taxable service in any month and the
11 months immediately preceding that month.

Diagram 1: Historical method

1 September 2017 30 July 2018 31 August 2018 1 September 2018 1 October 2018

RM390,000.00 RM120,000.00

• As at 31 August 2018, the taxable service value has exceeded

(RM390,000 + RM120,000 = RM510,000) and is thus liable to be
registered under Service Tax Act 2018.
• 1-30 September 2018 is the period of time to apply for registration.
• Effective date of registration and starting to charge service tax is 1
October 2018.

(b) Future method - The total value of taxable service in any month and the
expected value of taxable service of 11 months immediately succeeding
that month.

Diagram 2: Future method

1 October 2018 31 October 2019 31 July 2019 1-31 August 2019 1 September 2019

RM100,000 RM420,000

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• 1-31 October 2018 : The current value of taxable service is

RM100,000.00
• 1 November 2018 - 31 July 2019 : estimated value of taxable
services is RM420,000.00
• 31 July 2019 : This person expected to exceed value of taxable
services and is liable to be registered for service tax
• 1-31 August 2019 is the period of time to apply for registration.
• 1 September 2019: Effective date of registration and start charging
service tax.

REGISTRATION EFFECTIVE DATE

17. Any person is required to apply for registration no later than the last day of the
following month after being liable to register. The effective date of the registration shall
be on the first day of the following month after the month in which he made an
application for registration.

Diagram 3: Service Tax Registration Effective Date

July 2018 1 - 31 August 2018 1 September 2018

Month liable Month to apply Effective Date

to registered for registration 1 September 2018

(i) 31 July 2018 - Exceed value of taxable services and liable to be

registered

(ii) 31 August 2018 - Last date to apply for registration

(iii) 1 September 2018 - Effective date of registration

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REGISTRATION PROCEDURE

18. Applications for service tax registration shall be made online via MySST portal
at www.mysst.customs.gov.my. Applicants are required to complete the information
and details required in the registration form prescribed in the Service Tax Regulations
2018. Registration kiosks are provided at the SST Division in all RMCD offices
throughout Malaysia.

19. After registration application has been approved, an approval letter will be
generated by the system, stating the service tax registration number, the effective date
of registration and other relevant details with appendix of registered person’s
responsibilities. This approval letter will be sent to the email address given by
applicants during registration.

TRANSITIONAL PERIOD

Automatic and Non- Automatic Registration

20. During the transition of the tax system, identified by MSI Code and registered
threshold under the (Goods and Services) GST Act 2014, manufacturers will be
automatically registered by the Director General of Customs (DG) subject to the
prescribed criteria and must impose service tax from 1 September 2018.

21. Automatically registered persons may check their Service Tax registration
status in the MySST portal at [email protected].

22. Within the period from 1 August 2018 to 31 August 2018, the GST registrant
will be automatically registered as the Service Tax registration. The effective date
of the service tax registration is 1 September 2018.

23. For persons liable to be registered under the Service Tax Act 2018 which did
not receive emails or not automatically registered should apply for a new registration
electronically through the MySST Portal beginning August 2018.

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24. Details of registration and effective date are explained by the scenarios in the
diagram below:

Diagram 4: Automatic and Non- Automatic Registration

Effective Date

1.8.2018 1.9.2018 1.10.2018

1 2 3 4 5 6

8.8.2018 15.8.2018 24.8.2018 28.8.2018 11.9.2018 20.9.2018

Scenario No.1:
Company Ali is a GST registrant. The company has been automatically registered
under Service Tax Act 2018 on 8 August 2018 and received an email as a registered
person. The effective date of registration is on 1 September 2018. Company Ali does
not need to apply for a new registration.

Scenario No.2:
Company Eng is a GST registrant, but does not receive the emailed registration letter
although the company is liable to register under Service Tax Act 2018 for exceeding
the value of taxable services. On August 15, 2018, the company applied for
registration under Service Tax Act 2018 and the effective date of registration is on 1
September 2018. Registration is mandatory registration.

Scenario No.3:
Muthu Company is not a GST registrant and does not receive any registration letter.
His Company sales value has not reached the value of taxable services value. Muthu
Company is not liable to be registered but has applied for registration on 24 August

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2018. Muthu Company will be registered and the effective date of registration is on
1 September 2018. Registration is a voluntary registration

Scenario No.4:
Zamri Company is not registered under GST and did not received any registration
letter although the company is liable to register under Service Tax Act 2018. The
sales value of the company has reached its value of taxable services value in June
2018. Zamri Company needs to apply for a new registration. On 28 August 2018,
Zamri Company applied for registration and the effective date of registration is on 1
September 2018. Registration is mandatory registration

Scenario No.5:
Rokiah Company is a GST registrant but is not automatically registered under
Service Tax Act 2018. The company's sales value has reached the value of taxable
services and the company is liable to register under Service Tax Act 2018. On 11
September 2018, Rokiah Company has applied for registration. The registration date
is on 1 October 2018. Registration is mandatory registration.
Scenario No.6:
Tan Company is not registered under GST but the company is liable to register under
Service Tax Act 2018. Tan Company needs to apply for a new registration. On 20
September 2018, Tan Company applied for registration. The effective date of
registration is on 1 October 2018. Registration is mandatory registration.

NEW REGISTRATION

25. Under the Service Tax Act 2018, any eligible person who are liable to be
registered are required to apply for registration not later than the last day of the
following month in which he is liable to be registered.

26. GST registrant whose total annual sales of taxable goods exceeds RM500,000
is considered liable to be registered under the Service Tax Act on August 2018.
Therefore this person could register in August 2018 or not later than 30 September

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2018 and given the effective date on 1st September 2018 or 1st October 2018 for those
applying in September 2018.

27. The effective date of Service Tax registration is the first day of the month
following the month the application is made.

28. Liable person must register all his service premise address(s) and can only
perform his service activity at the premise(s) registered with RMCD.

VOLUNTARY REGISTRATION

29. Any person who provides taxable service with a total service value of 12 months
is below the prescribed value of taxable service are allowed to register under voluntary
registration.

INTRA GROUP REGISTRATION

30. Any member of an Intra Group providing allocated taxable service for Intra
Group Facilities under First Schedule of The Service Tax Regulations 2018, wholly to
and within the members of the group only, shall not be a taxable service and are not
required to register.

31. However as and when the company started to provide any of the taxable
service to a company outside the group, the Intra Group Facilities on that service are
void and the service should be treated as taxable services from that date and the
company are required to be registered if the value of that service exceeds the value
of taxable services in accordance with Section 13 of the Act.

NOTIFICATION OF PARTICULARS CHANGES OF REGISTERED PERSON

32. Registered Person is required to notify RMCD Controlling Station in writing of

any amendments to the particulars below.
(i) Change in the name of the business;
(ii) Change in the address of any place of business;

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(iii) Change of members in the partnership;

(iv) Change in the status of the business;
(v) Change or addition in providing taxable services;
(vi) Opening of any new place of business or closing of any place of business
at which business is no longer carried on.

33. Registered person may change other registered particulars on the system.

34. Registered person who ceased to provide taxable service or ceased to be

registered must inform RMCD in writing of the occurrence within 30 days of the date
of cessation.

RESPONSIBILITIES OF THE REGISTERED PERSON

35. Responsibilities of the registered person includes:

(i) Charge service tax on their taxable service
(ii) Issue invoices in the national language or English language.
(iii) Submit SST-02 returns and payment.
(iv) Keep adequate records for a period of seven (7) years from the latest date
to which the records relates.

DEREGISTRATION

36. A registered person may apply to cancel his registration if he is no longer liable
to register.

37. Registration of any person may also be cancelled by the DG if it is found that
the person concerned is not liable or ineligible to register.

38. Registered person may apply to be deregistered under the following

circumstances when he:

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(i) Ceases to provide taxable service; or

(ii) Total sales value for the period of the next twelve months do not exceed
the value of taxable services for the purpose of registration.

39. A registered person is required to notify RMCD within 30 days from the date of
occurrence if he ceases business or ceases providing taxable services.

40. A registered person who has notified RMCD of his requirement to deregister is
still responsible as a registered person to impose service tax and submit SST-02 return
until the approved date of cancellation of service tax registration.

REGISTERED PERSON PUT UNDER LIQUIDATORS AND RECEIVERS

41. Liquidator to a winding up registered person need to :

(i) Give notice to the DG within 14 days in writing after the winding up
resolution;
(ii) Set aside any service tax payable by the person to the RCMD; and
(iii) Pay RCMD the amount set in para (ii).

42. Receivers to the property of a registered person shall :

(i) Give notice to the DG within 14 days in writing of his appointment as

receivership;

(ii) Set aside sufficient amount of any sales tax payable to RMCD by the
person before disposing of any of its asset; and

(iii) Pay RCMD the amount set in (ii) after disposing of the asset.

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FREQUENTLY ASKED QUESTIONS (FAQs)

1. Q : My company is providing 3 type of services - hotel rooms, food and

beverages and parking spaces. If value for my hotel room services is
RM700,000, F&B is RM400,000 and parking services is RM200,000. Am
I liable to register under this Act? Which service do I register? What
is the value of taxable service?
A : Combine value of taxable service for Group A and B is RM1.1mil (Hotel
room services and Food and Beverages), therefore you are liable to
register for providing taxable services under group A & B. Parking space
services is in Group I, only services from Group A to F can be combine to
determine the value of taxable services. You only need to register and
charge for hotel room services and F&B.

2. Q : Provision of services from DA to PCA is subject to service tax. How

to determine the value of taxable service and does it include supplies
to PCA only or include supplies made in DA?
A : The calculation value of taxable service for registered persons in DA only
includes the value of supply to PCA only (supply to PCA is categorized as
taxable supply). Supplies in DA are not subject to service tax.

3. Q : My company supplies three types of taxable services in group G but

the supplies amount if I calculated separately does not achieve the
value of taxable services. Unless if I combined the total amount of
supplies then it will exceeds the value of taxable services. Do I need
to be registered under Service Tax 2018?
A : Yes value of services within the same group when combined exceeds the
Value of Taxable Service (VTS) is liable to register under the Service Tax
2018.

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4. Q : Is the supply of services to the government taxable under the Service

Tax 2018? Is there any exception?
A : The supply of services to the government is subject to the Service Tax. No
exception for supply of services to government.

5. Q : Are there any exemption from registration under the Service Tax Act
2018?
A : No, there is no exemption on registration under this Act.

6. Q : My company sells computer spare parts and also provides IT

services, How do I calculate the value of my taxable services in
relation to the IT services?
A : Provision of all IT services is taxable except; i) provision of sales of goods
in connection with the provision of IT services and ii) provision of IT services
in connection with goods or land situated outside Malaysia and other
matters related to either.

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INQUIRY

For any inquiries for this guide please contact:

Internal Tax Division

Royal Malaysian Customs Department
Level 3 - 7, Block A, Menara Tulus,
No. 22, Persiaran Perdana, Presint 3,
62100 Putrajaya.

FURTHER ASSISTANCE AND INFORMATION ON SST

Further information on can be obtained from:

(i) SST website : https://mysst.customs.gov.my

(ii) Customs Call Centre:

• Tel: 03-7806 7200 / 1-300-888-500
• Fax: 03-7806 7599
• Email: [email protected]

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APPENDIX I

GROUP A: ACCOMMODATION

(1) (2) (3)

Person Taxable Service Total Value Of
Taxable
Service

Any person operating Provision of all services

accommodation including hotel, inns, and provision or sale of
RM 500,000
lodging house, service apartment, food, drinks and tobacco
homestay and any other similar products.
establishment.

GROUP B: FOOD AND BEVERAGE

(1) (2) (3)

Person Taxable Service Total Value Of
Taxable
Service

1. Any person operating restaurant, Provision by the person in

bar, snack-bar, canteen, coffee column (1) of—
house or any place which provides
food and drinks, whether wholly or (a) all services including
partly eat-in or take-away preparing or serving
excluding— food or drinks; and
(a) a canteen located in an (b) sale of tobacco RM 1,000,000
educational institution. products, alcoholic and
(b) a canteen operated by a non-alcoholic
religious institution or body. beverages.

2. Any person providing catering

services.
3. Any person operating food court.

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GROUP C: NIGHT-CLUBS, DANCE HALLS, HEALTH CENTRES, MASSAGE

PARLOURS, PUBLIC HOUSES AND BEER HOUSES

(1) (2) (3)

Person Taxable Service Total Value Of
Taxable
Service

1. Any person operating any— Provision of all services

i. night-club, and provision or sale of
food, drinks and tobacco
ii. dance hall, products.
iii. cabaret, or
iv. place licensed under paragraph
(a) or (b) of subsection (1) of
section 35 of the Excise Act
1976 and which is stated in the
licence in paragraph (1) of
regulation 9 of the Excise
(Sales of Intoxicating Liquors)
Regulations 1977 as First,
Second or Third Class Public
House or First or Second Class
Beer House. RM 500,000
2. Any person operating any
health or wellness centre,
massage parlour or similar places
which is approved by the
appropriate local authorities or
which is lawfully registered, and
where applicable, which is
approved by the appropriate local
authorities and lawfully registered
excluding any facilities providing
similar activities registered under
Private Healthcare Facilities and
Services Act 1998, government
healthcare facilities, teaching
hospital established under the
Universities and University Colleges
Act 1971 or the University
Technologies MARA Act 1976.

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GROUP D: PRIVATE CLUB

(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service

Any person operating Provision of all services and provision

RM 500,000
private club. or sale of food, drinks and tobacco
products.

GROUP E: GOLF CLUB AND GOLF DRIVING RANGE

(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service

Any person operating Provision of all services and provision

RM 500,000
any golf course or golf or sale of food, drinks and tobacco
driving range. products.

GROUP F: BETTING AND GAMING

(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service

Any person licensed a. Betting and gaming services

under any written law involving betting, sweepstakes,
involving betting, lotteries, gaming machines or
sweepstakes, lotteries, games of chance.
gaming machines or
b. Conducting tournaments involving
games of chance. RM 500,000
betting, sweepstakes, lotteries,
gaming machines or games of
chance.
c. Conducting or allowing the
conduct of a card game or any
other game by the casino operator

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GROUP G: PROFESSIONALS
For the purpose of this Group, any person in column 1 of Group G having a total value
of taxable service, whether combined or separately, of more than RM 500,000 of any
one or more taxable services mentioned in column 2 of such group.

(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service

a. Provision of legal services

1. Any person who is an
including consultancy services on
advocate and solicitor
registered under the legal matters and other charges in
written laws for the time connection to the provision of
being in force. legal services excluding:

2. Any person who is a

syarie lawyer registered (i) provision of such services
under the relevant State supplied in connection with
Enactment laws. goods or land situated outside
3. Any person who is a Malaysia or where the subject
public accountant matter relates to a country
registered under the outside Malaysia.
written laws for the time
being in force.
(ii) any statutory fees paid to the
4. Any person who is, a government or statutory body.
licensed or registered RM 500,000
surveyors including
b. Provision of legal services on
registered valuers,
Islamic matters including
appraisers or estate
consultancy services and other
agents licensed or
charges in connection to the
registered under the
provision of legal services
written laws for the time
excluding;
being in force.

5. Any person who is a (i) provision of such services

professional engineer supplied in connection with
registered under the goods or land situated outside
written laws for the time Malaysia or where the subject
being in force. matter relates to a country
outside Malaysia.
6. Any person who is an
(ii) any statutory fees paid to
architect registered

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(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service
under the written laws the government or statutory
for the time being in body.
force.

c. Provision of accounting, auditing,

7. Any person who book keeping, consultancy or
provides consultancy other professional services and
services excluding other charges in connection to the
approved companies provision of accountancy services
with status or definitions excluding:
as research and
development companies (i) provision of such services
and contract research supplied in connection with
and development goods or land situated
companies under outside Malaysia or where
section 2 of the the subject matter relates to
Promotion of a country outside Malaysia;
Investments Act 1986 and
[Act 327] and approved
research institute under
section 34B of the (ii) any statutory fees paid to the
Income Tax Act 1967 government or statutory body.
[Act 53].
d. Provision of all types of surveying
8. Any person who services including valuation,
provides management appraisal, estate agency or
services excluding the professional consultancy services
management services and other charges in connection
provided by; to the provision of surveying
(i) the developer, joint services excluding:
management body or
management (i) provision of such services
corporation to the supplied in connection with
owners of a building goods or land situated outside
held under a strata title; Malaysia or where the subject
or matter relates to a country
(ii) asset and fund outside Malaysia; and
managers

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(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service
9. Any person who (ii) any statutory fees paid to the
provides employment government or statutory body.
services.
10. Any person who e. Provision of engineering
is a private agency consultancy or other professional
licensed under the services and other charges in
Private Agencies Act
connection to the provision of
1971 [Act 333].
engineering services excluding:

(i) provision of such services

supplied in connection with
goods or land situated
outside Malaysia or where
the subject matter relates to
a country outside Malaysia;
and

(ii) any statutory fees paid to the

government or statutory
body.

f. Provision of architectural services

including professional consultancy
services and other charges in
connection to the provision of
architectural services excluding:

(i) provision of such services

supplied in connection with
goods or land situated outside
Malaysia or where the subject
matter relates to a country
outside Malaysia; and

(ii) any statutory fees paid to

government or statutory body.

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(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service

g. Provision of consultancy services

including professional consultancy
services and other charges in
connection to the provision of
consultancy services other than
specifically mentioned in this
Schedule excluding;

(i) provision of consultancy

services relating to medical
and surgical treatment
provided by private clinics or
specialist clinics; or
(ii) provision of consultancy
services supplied in
connection with –
(a) goods or land situated
outside Malaysia; or
(b) other than matters relating
to (a) outside Malaysia.
h. Provision of all types of
management services and other
charges in connection to the
provision of management services
including project management or
project coordination excluding
provision of such services supplied
in connection with:

(i) goods or land situated outside

Malaysia; or
(ii) other than matters relating to
(a) outside Malaysia
i. Provision of all types of
employment services excluding–

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As at 27 August 2018

(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service
(a) provision of employment
services in the form of
secondment of employees or
supplying employees to work
for another person for a
period of time; or
(b) provision of employment
services for employment
outside Malaysia.

j. Provision of guards or protection

for the personal safety or security
of another person or for the safety
or security of the property or
business of such other person
excluding provision of such
services to guard or protect
person, property or business
situated outside Malaysia.

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 Guide on Service Tax Registration
As at 27 August 2018

GROUP H: CREDIT CARD AND CHARGE CARD

(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service
Any person who is a. Provision of credit card or
regulated by Bank charge card services through the
No Value of
Negara Malaysia and issuance of a principal credit
taxable services
provides credit card or card, principal charge card,
charge card services supplementary credit card or
through the issuance of supplementary charge card,
a credit card or a charge whether there is annual
card subscription or fee is imposed or
not excluding—
(i) provision of charge card
services where the charge
card is issued by any
petroleum company to the
Government of Malaysia or
any person for the
procurement of products
and services supplied for
the use of or in connection
with vehicles owned or used
by the Government of
Malaysia or such person; or
(ii) provision of charge card
services where the charge
card is used as a payment
instrument only within the
premises of a workplace, an
education institution or a
golf or sports club by its
workforce, students or
members, as the case may
be.

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 Guide on Service Tax Registration
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GROUP I: OTHER SERVICE PROVIDERS

(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service
1. Any person who is an a. Provision of all types of
insurer, takaful insurance contract or takaful
operator, licensed certificate to cover against any
under the Financial risks in Malaysia incurred to an
Services Act 2013, individual excluding medical
Islamic Financial insurance or medical takaful
Services Act 2013, and life insurance contract or
Labuan Financial family takaful certificate.
Services and
b. Provision of all types of
Securities Act 2010
insurance contract or takaful
and Labuan Islamic
certificate to all business
Financial Services
organisations excluding –
and Securities Act RM 500,000
2010. (i) the insuring or takaful
coverage of risks relating to
the transport of passengers
or goods :
(A) from a place outside
Malaysia to another
place outside Malaysia ;
(B) from the last exit point in
Malaysia to any place in
other country ; or
(C) from a place outside
Malaysia to the first
entry point in Malaysia.
and includes the insuring or
takaful coverage of risks
relating to the transportation
of :
aa) goods from a place
in Malaysia to
another place in
Malaysia to the
extent the services
are provided by the
same provider that

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 Guide on Service Tax Registration
As at 27 August 2018

(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service
forms part of the
transport services
referred to in
paragraph (B) and
(C)
bb) passengers from a
place in Malaysia to
another place in
Malaysia to the
extent the services
are provided by the
same provider that
forms part of the
transport services
referred to in
paragraph (B) and (C)
(ii) the insuring or takaful
coverage on educational
institution and religious
organization registered
under any written law.
(iii) Provision of all types of
insurance contract, takaful
certificate, to cover against
any risks incurred in the
making of advances or the
granting of credit directly
relating to the export of
goods, services or
investments outside
Malaysia.
(iv) Provision of insurance
contract or takaful certificate
to cover risks outside
Malaysia.

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 Guide on Service Tax Registration
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(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service
2. Any person providing a. Provisions of—
telecommunication
services and paid
(i) telecommunication services;
television and
broadcasting
services who is
registered under the (ii) other services in connection
Communications and with telecommunication
Multimedia Act 1998 services
[Act 588] or licensed RM 500,000
under the excluding provisions of services
Communications and to another telecommunication
Multimedia service provider in Malaysia or
(Licensing) outside Malaysia.
Regulations 2000.

b. Provision of paid television

broadcasting services.

3. Any person who is Provision of services for clearing of

given permission to goods from customs control. No Value of
act as an agent under
taxable
section 90 of the
Customs Act 1967. services

4. Any person who Provision of parking spaces for

operates or provides motor vehicles where parking
parking spaces. charges are imposed. RM 500,000

5. Any person who Provision of general servicing,

operates a motor engine repairs and tuning,
vehicle service or changing, adjusting and fixing of
repair centre or parts, wheel balancing, wheel RM 500,000
provides motor alignment or body repairs including
vehicle service or knocking, welding or repainting of
repair. motor vehicles.
6. Any person who Provision of courier delivery
provides courier services for documents or parcels RM 500,000
services licensed not exceeding 30 kilograms each
under Section 10 of excluding provision of courier

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 Guide on Service Tax Registration
As at 27 August 2018

(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service
Postal Services Act delivery services for documents or
2012. parcels –

(i) from a place outside

Malaysia to a place outside
Malaysia;

(ii) from a place within Malaysia

to a place outside Malaysia;
or

(iii) from a place outside

Malaysia to a place within
Malaysia

and includes the provision of

courier delivery services within
Malaysia that forms parts of the
service referred to in
subparagraphs (ii) and (iii)where
the service is provided by the
same person.
7. Any person who Provision of hire-and-drive or hire-
provides hire-and- car services including hire of any
drive passenger kind of passenger motor vehicle
motor vehicle and with or without chauffeur licensed by
hire-passenger motor Suruhanjaya Pengangkutan Awam
vehicle services. Darat in Peninsular Malaysia and
Commercial Vehicles Licensing
Board Act 1987 for Sabah and RM 500,000
Sarawak including provision of hire-
and-drive car and hire of any kind of
passenger motor vehicle as defined
under the Tourism Vehicles
Licensing Act 1999 as operated by
tourism operators registered under
the Tourism Industry Act 1992.

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 Guide on Service Tax Registration
As at 27 August 2018

(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service
8. Any person who Provisions of all advertising services
provides advertising excluding provision of such services RM 500,000
services. for promotion outside Malaysia.
9. Any person who Provision of all types of information RM 500,000
provides information technology services excluding;
technology services.
(i) the provision or sale of
goods in connection with the
provision of the information
technology services;

(ii) provision information

technology services in
connection with-

(A) goods or land situated

outside Malaysia;
(B) other than matters
relating to (A) outside
Malaysia.
10. Any person who Provision of electricity to any
provides transmission domestic consumer excluding for
and distribution of the first 600 kWh for a minimum
RM 500,000
electricity. period of twenty-eight days per
billing cycle consumed by that
consumer.
11. Any person who is a. Provision of passenger air
granted air service transport service excluding
licence under section provision of passenger air
35 of Malaysian transport service—
Aviation Commission
Act 2015 [Act 771] or (i) from a place outside RM 500,000
air service permit Malaysia to a place outside
under section 36 of Malaysia;
Malaysian Aviation
Commission Act (ii) from a place within Malaysia
2015. to a place outside Malaysia;

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 Guide on Service Tax Registration
As at 27 August 2018

(1) (2) (3)

Person Taxable Service Total Value Of
Taxable Service
(iii) from a place outside
Malaysia to a place within
Malaysia; or
(iv) by an operator for the route
as specified under the Rural
Air Services Agreement;
b. Provision of all services in
connection with services referred
to (a).

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 Guide on Service Tax Registration
As at 27 August 2018

Appendix II

Flow Chart 1: For Person Who Provides Taxable Services

Do you provide You are not required

No
taxable services? to register

Yes

Is the value of
You are not required
chargeable service
exceeded the No to register
threshold value of but you may register
RM500,000.00 or voluntarily
preparation of food
and beverages and
has annual sales
exceeding the
threshold value of
RM1,000,000?

Yes

You are required to

register

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