A tax to be known as service tax shall be charged and levied on any taxable services provided in Malaysia by a registered person in carrying on his business.
(1) For the purposes of this Act, the value of taxable service on which service tax is payable shall be determined as follows:
(a) in the case of taxable service for-
(i) the sale of goods by a taxable person to-
(A) a person not connected with the taxable person, the actual price for which the goods are sold; or
(B) a person connected with the taxable person, the price at which the goods would have
been sold in the ordinary course of business to a person not connected with the taxable person; or
(ii) the provision of goods, where the goods are provided for free, the price at which the goods
would have been sold in the ordinary course of business to a person not connected with the taxable person;
(b) in the case of taxable service, other than the taxable service specified in paragraph (a)-
(i) provided by a taxable person to a person not connected with the taxable person-
(A) the actual value of the taxable service provided; or
(B) in the case of premium for insurance policy, or takaful contribution for takaful certificate, the actual premium or contribution paid;
(ii) provided by a taxable person to a person connected with the taxable person, the value of the taxable service which would have been provided in the ordinary course of business to a person not connected with the taxable person; or
(iii) where the taxable service are provided for free, the value of taxable service which would have been provided in the ordinary course of business to a person not connected with the taxable person;
or
(c) in the case of betting and gaming which are prescribed to be taxable services, the value of such betting and gaming shall be as prescribed.
(2) For the purpose of this section-
"goods" means goods as prescribed;
"person connected with the taxable person" means a person connected with the taxable person as prescribed.
(1) Service tax shall be charged and levied at the rate fixed in accordance with subsection (2) on the taxable services by reference to the value of the taxable services provided as determined under section 9.
(2) The Minister may, by order published in the Gazette-
(a) fix the rate of service tax to be charged and levied under this Act; and
(b) vary or amend the rate of service tax fixed under paragraph (a).
(3) Any order made under subsection (2) shall-
(a) be laid before the Dewan Rakyat at the next meeting of the Dewan Rakyat; and
(b) at the expiration of one hundred and twenty days from being laid under paragraph (a) or of such extended period as the Dewan Rakyat may, by resolution, direct, cease to have effect in whole if the order is not confirmed, or in part in so far as the order is not confirmed, by a resolution passed by the Dewan Rakyat within the said one hundred and twenty days or, if such period has been extended, within such extended period.
(4) Where an order ceases to have effect in whole or in part as provided under subsection (3), any service tax charged and levied in pursuance of the order or such part of the order as ceases to have effect shall, subject to subsections (5) and (6), be refundable to the persons by whom such service tax was paid.
(5) Unless the Minister otherwise directs, no service tax refundable under subsection (4) shall be refunded, unless the person by whom the service tax was paid makes a claim in writing to the Director General within one year from the date on which the order ceases to have effect in whole or in part, and the claim shall contain such particulars as the Director General may require.
(6) The Director General may reduce or disallow any service tax refundable under subsection (4) to the extent that the refund would unjustly enrich the person by whom the service tax was paid.
(1) The service tax chargeable under section 7 shall be due at the time when payment is received for the taxable service provided to the customer by the registered person.
(2) Where the whole or any part of the payment for any taxable service provided by the registered person is not received from the customer within a period of twelve months from the date of the invoice for the taxable service provided, service tax shall be due on the day following that period of twelve months.
(3) Notwithstanding subsection (1)-
(a) the service tax required to be accounted in any return made under subsection 26(3) shall be due on the day the return is required to be furnished to the Director General;
(b) the service tax in respect of betting and gaming which are prescribed to be taxable services shall be due at the time as prescribed;
(c) where an arrangement or agreement for the provision of any taxable service is made by any person, who is a taxable person under this Act, within the period beginning from 1 June 2018 and ending immediately before the effective date, and the taxable service is provided or performed on or after the effective date-
(i) the arrangement or agreement for the provision of such taxable service shall be deemed to have
been made on the date such taxable service is provided or performed notwithstanding any payment, wholly or partly, is received or invoice is issued, for such taxable service during such period;
(ii) any payment received within such period or on or after the effective date, or invoice issued
within such period, shall be deemed to have been received or issued on the date such taxable service is provided or performed; and
(iii) service tax shall be charged and levied on such taxable service and shall become due on the date such taxable service is provided or performed.
(4) Where the taxable service referred to in paragraph (3)(c) are betting and gaming, the service tax in respect of such betting and gaming shall be due at the time as prescribed under paragraph (3)(b).
Important Notice: Legislation from this website is not a copy of the Gazette printed by the Government Printer, Percetakan Nasional Malaysia Berhad, for the purposes of section 61 of the Interpretation Acts 1948 and 1967 [Act 388] and does not constitute prima facie evidence of the contents of the Gazette by virtue of the section.