The Ministry of Finance (MoF) announced that the effective date of the Sales & Service Tax on 1 September 2018.
The F&B operators who has reached the prescribed threshold and provide taxable services at places described below are required to charge Service Tax 6%:
Effective 1 September 2018, under group C, D & E, First Schedule of Service Tax Regulations 2018:
(i) Group C: Night clubs, dance halls, cabaret, health centres, massage parlours, public houses and beer houses
(ii) Group D: Private clubs
(iii) Group E: Golf club & golf driving range are subject to service tax rate of six (6) percent.
According to the Guide published on 23 August 2018 from Royal Malaysian Customs Department Internal Tax Division Putrajaya.
Update:
24/8/18 (F&B) Service Tax 6% charged on actual value of taxable service provided.
24/8/18 (F&B) Service Charge is NOT subject to Service Tax 6%
25/8/18 [Group C, D & E (Clubs)] Service Tax 6% charged on actual value of taxable service provided.
25/8/18 [Group C, D & E (Clubs)] If the tips is included in the customer’s bill as a mandatory service charge, then service tax is chargeable.
Official F&B Guide Download here : Download now
Official Group C, D & E (Clubs) Guide Download here : Download now
(Source: http://www.customs.gov.my/)
The F&B operators who has reached the prescribed threshold and provide taxable services at places described below are required to charge Service Tax 6%:
- Restaurant
- Bar
- Cafeteria
- Catering
- Drive Thru
- Food Truck
- Retail Outlet/Snack Bar/Kiosk
- Hawkers/Push-Cart
- Food Court
- Online F&B business.
Effective 1 September 2018, under group C, D & E, First Schedule of Service Tax Regulations 2018:
(i) Group C: Night clubs, dance halls, cabaret, health centres, massage parlours, public houses and beer houses
(ii) Group D: Private clubs
(iii) Group E: Golf club & golf driving range are subject to service tax rate of six (6) percent.
According to the Guide published on 23 August 2018 from Royal Malaysian Customs Department Internal Tax Division Putrajaya.
Update:
24/8/18 (F&B) Service Tax 6% charged on actual value of taxable service provided.
24/8/18 (F&B) Service Charge is NOT subject to Service Tax 6%
25/8/18 [Group C, D & E (Clubs)] Service Tax 6% charged on actual value of taxable service provided.
25/8/18 [Group C, D & E (Clubs)] If the tips is included in the customer’s bill as a mandatory service charge, then service tax is chargeable.
Official F&B Guide Download here : Download now
Official Group C, D & E (Clubs) Guide Download here : Download now
(Source: http://www.customs.gov.my/)
Below is the sample Invoice for Food & Beverages Business.
Pic 1
Kindly contact us if you have any question on Service Tax and we will be pleased to assist you or you can visit https://mysst.customs.gov.my/Highlights to get the latest update.
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