Sales tax is a tax charged and levied:-
on taxable goods manufactured in Malaysia by a taxable person and sold, used or disposed by him;
on taxable goods imported into Malaysia.
Sales tax is not charged on:-
goods listed under Proposed Sales Tax (Goods Exempted From Sales Tax) Order;
Certain manufacturing activities are exempted by Minister of Finance through Proposed Sales Tax (Exemption from Registration) Order.
How Sales Tax Works?
Taxable person is a person who manufactures taxable goods and is:-
liable to be registered
Reached sales threshold
Manufacturer -- RM 500,000.00
Sub-contractor -- RM 500,000.00
registered under Sales Tax Legislation
b) SERVICE TAX
Service tax is charged:-
provided in Malaysia
by a registered person carrying on his business
Service tax is not chargeable:-
Any person providing taxable services liable to be registered if the total amount of taxable services provided by him in 12 months exceed RM500, 000.
Rate of tax:-
Fixed at a rate of 6%.
Provision of credit card or charge card services
A specific rate of tax of
Any person who carries on business of providing taxable services in any prescribed establishment is required to be licensed under the service tax act.
How Service Tax Works?