Digital Service Tax
New service tax effectively come into operation on 1 January 2020.
Characterics
- delivered or subscribed over the internet or other electronic network
- delivered throught information technology medium (human eye cannot see and touch)
- minimal or no human intervention (eg. automation, click to subscribe and consume)
Taxable Person
- Foreign Service Provider (FSP)
any person who is outside Malaysia providing any digital service to a consumer and includes any person who is outside Malaysia operating an online platform for buying and selling goods or providing services (whether or not such person provides any digital services) and who makes transactions for provision of digital services on behalf of any person.