2 September 2019
From 1 January 2020, the Malaysian tax authority confirmed that it would amend it’s current Sales and Service Tax (SST) legislation in order to apply SST to online services supplied by non-resident (foreign) companies.
At present, foreign businesses providing digital services in Malaysia do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage this gives to non-resident companies over Malaysian resident providers, the Malaysian government propose that SST at 6% will be charged on these types of transactions made to both businesses and to consumers.
This new obligation will be subject to an RM 500,000 registration threshold (approx. € 100,000) and will apply to a range of electronic services including: streamed games, music, apps, films, e-books, e-journals and internet services.
LATEST NEWS
Hungary to introduce mandatory digital VAT filing from...
From 1 January 2027, all businesses registered for VAT in Hungary will be required to file their VAT returns through the country’s eVAT, or eÁFA, system...
SEE MORE
LATEST NEWS
EU customs reform increases responsibilities for...
In September 2026, the EU formally adopted a new Customs Code that will significantly change how goods are imported into the EU. Although the reforms apply...
SEE MORE
LATEST NEWS
Germany plans import VAT accounting reform
Germany is planning to introduce a new import VAT accounting system from 1 January 2030, which could significantly improve cash flow for businesses importing...
SEE MORE