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
Switzerland’s new rules for platforms from 1 January...
Switzerland’s Federal Tax Administration will impose “deemed supplier rules” from 1 January 2025 on digital platforms (such as Amazon) to charge, collect...
SEE MORE
LATEST NEWS
Romania extends electronic invoicing to “business to...
Romania has announced that it will extend its electronic invoicing regime (eFactura) to business-to-consumer (B2C) transactions for both VAT-registered...
SEE MORE
LATEST NEWS
VAT Gap Report - 2022 estimate of lost EU VAT shows...
According to the annual VAT Gap report, an estimated €89 billion in VAT revenue was lost within the European Union (EU) due to non-compliance or...
SEE MORE