SST Will Be Imposed On Homestay & Airbnb Operations

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What is SST?

The Sales Tax is only imposed on the manufacturer level, the Service Tax is imposed on consumers that are using tax services. SST rates are less transparent than the GST which had a standard 6% rate, the SST rates vary from 6 or 10%.

Service tax is a tax charged on:-

– any provision of taxable services;
– made in the course or furtherance of any business;
– by a taxable person; and
– in Malaysia.

* Service tax is not charged on imported nor exported services.

A taxable person is a person who provides taxable services in the course or furtherance of business in Malaysia and is liable to be registered or is registered under the Service Tax Act 2018.

The proposed rate of tax is 6% and a specific rate for credit/charged card.

Why SST Is Important To Property Industry?

For property prices, ie, new houses are expected to experience a slightly cheaper price since they can save from input costs.

SST will also be imposed on Hotel services which include:

– Lodging house
– Service apartment
– Homestay
– Inn
– Rest house
– Boarding house

Registration For Service Tax

1. How do I register for service tax?

Registration is processed online through by MySST system. You will be notified of registration or in the absence of a notification, you may need to apply individually online using MySST system.

2. How do I know that I will be registered?

You will be informed by email. For the existing GST registrant who automatically liable to be registered under service tax, they will be informed through a letter.

3. I am currently GST registrant. Will I be receiving a service tax registration notification
through Taxpayer Access Point (TAP)?

No, you will be receiving notification through your personal/business email from 1st August 2018.

4. How long does it take for my application for registration be approved if I apply
individually?

Registration is auto approve within 24 hours for a GST registrant. If a verification process is required, it will take a little while longer.

5. Can I submit my service tax return according to my company’s financial year end?

Yes, you may apply in writing to the Director-General.

6. Can I register under service tax voluntarily?

Yes, you can register voluntarily provided that you are manufacturing taxable goods.

7. Can I register my branches separately?

Branch registration is allowed.

8. Is there any facility for group registration?

Group registration is not allowed.

9. I am GST registrant. Do I need to apply to cancel my registration?

When the GST Act 2014 is repealed, you are automatically ceased to be a GST registered person. You are not required to apply for deregistration. However, you are required to submit the final GST return within 120 days from the Act being repealed.

Source: http://gst.customs.gov.my/

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