This article is written by Lee Hishamuddin and Gledhill (LHAG) and was first published in their SST e-Alert in October 2019. Reproduced with permission from LHAG.
Effective from January 2020, there will be a 6% of service tax imposed on digital services in Malaysia for both local and foreign service providers in order to comply with Malaysia's new Sales and Service tax. The
Royal Malaysian Customs Department (Customs) recently
issued a Guide on Digital Service Tax (Guide) to assist FSPs.
This alert highlights some of the key points that FSPs should
consider in assessing their liability prior to the implementation.The service tax is also applicable to online platforms that carry out transactions on behalf of overseas service providers but do issue invoice or any other document under their name.
