sales-service-tax-what-is-it-and-compliance-process

Sales & Service Tax – What is it And Compliance Process

Sales & Service Tax – What is it And Compliance Process

Malaysia’s Sales and Service Tax (SST) is a consumption tax imposed on certain services provided in the country. The threshold varies from industry to industry and some industry are exempted.

Requirements for a Service Tax license:

To apply for a Service Tax license in Malaysia, you typically need to register with the Royal Malaysian Customs Department (RMCD). Requirements may include providing business details and financial records. Specific requirements may vary based on the type of services you offer. Generally it starts at 6% when total turnover in the last 12 month reached RM500,000. Please refer to Royal Malaysian Customs Department (RMCD) in your specific threshold and category. Service providers are then required to collect this tax from their customers and remit it to the government. It’s typically added to the total bill.

Compliance for SME business owners:

  1. Register:
    Ensure your business is properly registered with the RMCD if your services fall under the taxable categories.
  1. Billing and Collection:
    Accurately calculate and collect the Service Tax from your customers. Display it separately on your invoices. Maintain a system of billing and collection as supporting document for your SST submission.
  1. Filing and Payment:
    Submit SST returns and pay the tax to the RMCD on time, typically on a monthly or quarterly basis.
  1. Record Keeping:
    Maintain thorough records of transactions and tax-related documents.
  1. Stay Informed:
    Keep up with changes in tax rates and regulations to ensure compliance. Ensure you have a finance and tax agent that can support you and your business.

How InTune Outsourcing Can Support SME Business Owners?

InTune Outsourcing is one of the Malaysia’s Most Advanced and Top Outsourced Accounting, Finance, HR and Payroll services providers.

We have served more than 400 clients todate and InTune offer full-range services from start up to small to medium-sized companies.

InTune takes away the stress and pains from managing Accounting, Finance, Payroll and HR, including Bookkeeping, Payment Services, Accounts Payable, Accounts Receivable, Payroll and more, by providing an expert team of CPAs and other accounting professionals who understand the special accounting needs of growing businesses.

We can also help in preparing Budgets too as part of our Consultancy Package.

Contact us for more detail now.