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
Danish decision on OSS compliance reinforces the...
A recent Danish Tax Appeals Tribunal decision has reinforced the importance of meeting VAT reporting obligations under the EU's One Stop Shop (OSS) regime. In...
SEE MORE
LATEST NEWS
Italy extends deadline for recovering Input VAT
Under a new legislative decree issued in August, Italy introduced a positive law for businesses registered for VAT in the country. From 1 January 2027...
SEE MORE
LATEST NEWS
Portugal clarifies VAT correction procedures and...
Portugal's Tax Authority has issued new guidance on VAT invoice corrections and introduced updates to the periodic VAT return, reflecting the country's...
SEE MORE