HRDF HRD Corp Claimable Sales and Service Tax SST Training

2024 SST

On March 1, 2024, there will be a 2% increase in the Service Tax.
On 1 March 2024, Malaysia increased its Service Tax rate from 6% to 8%. Nevertheless, certain services continued to be subject to the previous 6% rate. The individual rate for Sales Tax on most goods stays unchanged at 10%.

Guidelines for implementing a rise
The Royal Malaysian Customs Department (RMCD) has issued guidelines for conventional services for the implementation of a 2% increase in Service Tax, effective from 1 March 2024. On February 14th, it released distinct instructions for digital service providers who are not residents.

The plan outlines three potential scenarios for taxing and provides guidance on how to address the increase.

The existing 6% rate applies to services that are fully provided before 1 March.
If the services have commenced their provision before the date of 1 March and are concluded by 31 August, then the 6% rate may still be applicable in specific circumstances. This applies even if the invoice has already been issued and paid prior to 1 March. Nevertheless, if the invoice remains unpaid by 1 March, a new invoice must be sent to account for the 2% increase. Regarding digital services, the majority of supplies are offered through subscription models. In the event that an invoice covers a period of time that includes a tax increase, the subscription fee should be divided proportionally. However, it is currently unclear how providers can accurately assess this division or how it can be monitored by RMCD.
If the services are rendered on or after 1 March (and do not meet the criteria for exception 2.), then the new rate of 8% will be applicable.

Key services will continue to be charged at a rate of 6% following the increase.

The following services are still subject to the 6% rate:

The services provided include logistics, warehouse, courier, transport, and supply chain services (replacing courier and warehousing services), as well as food and drink, telecom services, and parking.

October 2023: Malaysia’s budget for the year 2024
The budget, which was unveiled to the parliament on 13 October 2023, has a 2% increase in the Service Tax, raising it from 6% to 8%. Specific necessary goods will continue to be taxed at a rate of 6%, while a fresh Luxury Tax will be introduced. There is a proposal to incorporate logistics under the Service Tax framework. The aforementioned modifications will take effect starting from the first of March in the year 2024.

Service Tax is a tax imposed on the turnover generated from the provision of goods and services, which also includes digital services. Additionally, there is a Sales Tax of either 5% or 10% imposed on the total revenue generated from the sale of products.

Malaysia restored Sales and Service Taxes following a temporary implementation of Goods & Services Tax from April 2015 to July 2018. There are reports suggesting that Malaysia is contemplating the reintroduction of the Goods and Services Tax (GST).

1. Excluded from the increase, food, beverages, car parks, and telephones will continue to be taxed at a rate of 6%.
2. The scope of the Service Tax will be expanded to include logistical services (6%), brokerage and underwriting services, and karaoke outlets.
3. An additional levy, known as the Luxury Tax, will be implemented on the purchase of high-end jewellery and timepieces.

Participants will leave the workshop with the information and skills needed to successfully navigate the complex SST system. Throughout the seminar, attendees will get a grasp of the SST’s essentials, including how to compute and pay the tax, as well as its scope and applicability. Participants will also gain an understanding of the SST’s compliance requirements, such as registration and filing procedures, as well as how to prepare and submit SST returns. This involves understanding how to meet the registration and filing requirements, all in our HRDF HRD Corp Claimable Sales and Service Tax SST Training.

SST accounting fundamentals, such as the treatment of sales and purchases, record-keeping criteria, and the availability of input tax credit, will be discussed throughout the curriculum. Participants will learn how to do SST audits as well as discover and address common SST faults and errors.

The goal of the Sales and Service Tax (SST) Course is to provide participants with a thorough understanding of SST so that their businesses can adopt and comply with the new tax system. The previous Goods and Services Tax was replaced by the new SST on September 1, 2018, when the new tax law went into force (GST). Throughout this training programme, participants will learn everything they need to know about SST, including its introduction, methodology, implementation, accounting, compliance, and auditing.

Learning Objectives

After attending the workshop, learners will be able to: ·

• Understand the SST Concept, Scope and Charge, and Implementation mechanism
• Recognize the various SST Exemptions and Facilities available and apply them for your organisation
• Explain and compute SST Taxable Period, Submission and Return
• Describe the Special Rules
• Prepare for SST Submission and submit SST Return SST-02
• Document keeping to comply for audit purposes
• Apply the SST procedure and document accordingly

Learning Facilitation Methodology

• Interactive Lecture
• Group Discussion
• Question and Answer

Target Audience

• CEOs & CFOs
• Management Department
• Account/Finance/Admin
• Procurement Department
• Individual wish to learn SST

Workshop Outline and Module Description

Module 1: Introduction of SST Model

• Simple way to understand SST
• Taxable Persons, Threshold, Registration
• Person affected by Sales Tax – Manufacturer, Importers, Exporters
• Taxable Goods
• Scope and Charges of SST
• Mechanism of SST · Rate of Tax

Module 2: SST at Work

• SST Exemptions and Facilities
• SST Special Rules – Treatment for LMWs, Free Zones, Designated Areas
• Service Tax Potentially Double Taxation Areas and Elimination Possibilities
• SST Returns and Payment
• Accounting Entries and Transactions
• Invoices, Credit Notes, Debit Notes, Record Keeping
• Submission of SST-02 Returns

Module 3: SST Penalties and Offences

• SST Legislation
• Scenarios and Situation subjected to fines and penalties
• Penalties on Offences

Module 4: Practical in Action

• Hands-on session on accurate SST calculation
• Reading your tariff codes from the customs
• Other Reports Required by Customs
• Laporan CJ (P) Jadual C
• Impact of SST on your pricing and business
• Study on common errors and managing audit

Finally, the SST training session is a valuable resource for any business that want to apply SST and meet its standards. Participants will leave the event with a thorough understanding of the SST system as well as the skills required to manage the SST compliance demands of their own organisations.

Contact us for HRDF HRD Corp Claimable Sales and Service Tax SST Training ( Corporate & Personal Coaching )

Name * First Last Phone * Email * HRDF / HRD Corp Claimable? * Yes No Do you like to claim the training courses from HRDF / HRD Corp Malaysia? HRDF HRD Corp Account & Tax Training Request * Submit

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