8. Digital service tax briefcase: Difference between revisions

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=Digital Service Tax=
=Digital Service Tax=
New service tax effectively come into operation on 1 January 2020.
New service tax effectively come into operation on '''1 January 2020'''.


==Characterics==
==Characterics==
* delivered or subscribed over the internet or other electronic network
* delivered or subscribed over the '''internet or other electronic network'''
* delivered throught information technology medium (human eye cannot see and touch)
* delivered through '''information technology medium''' (human eye cannot see and touch)
* minimal or no human intervention (eg. automation, click to subscribe and consume)
* minimal or '''no human intervention''' (eg. automation, click to subscribe and consume)


==Example==
==Scope on Digital Service==
* Software, application & video games
* Software, application & video games
* music, e-book and film
* music, e-book and film
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==Taxable Person==
==Taxable Person==
1. Foreign Service Provider (FSP)  
1. Foreign Service Provider (FSP)  
* any person who is outside Malaysia providing any digital service to a consumer directly
* any person who is '''outside Malaysia providing''' any digital service to a consumer directly
* any person who is outside Malaysia operating an online platform for buying and selling goods  
* any person who is '''outside Malaysia operating an online platform''' for buying and selling goods  
* providing services (whether or not such person provides any digital services) who makes transactions for provision of digital services on behalf of any person
* providing services (whether or not such person provides any digital services) who makes transactions for provision of digital services '''on behalf of any person'''
2. Threshold exceed RM500,000 (historical or future 12 months)
2. Threshold exceed RM500,000 (historical or future 12 months)


==Accounting Basis==
==Accounting Basis==
* Default is Payment basis (same to service tax)
* Default is '''Payment basis''' (same to service tax)
* Allow to apply for Accrual Basis (billing).
* Accrual Basis (billing) must apply to DG upon registration
 
==Taxable Period==
* Three months (quarterly)


==Exchange Rate==
==Exchange Rate==
* Can use any exchange rate to calculate tax payable
* Can use any exchange rate to calculate tax payable


==Taxable Period==
* Three months '''(quarterly)'''
==Returns Form==
* Digital Service Return [https://drive.google.com/file/d/1n2rrcnGrYms9RWki20Rg9vukzzRNtHll/view?usp=sharing DST-02]


==Exemption==
==Exemption==
* No exemption is allowed
* No exemption announced


==Claim Refund==
==Claim Refund==
* Digital service tax overpaid allowed to claim refund.
* Digital service tax overpaid allowed to claim refund.
* Need fill-in JKDM-2 form. [https://mysst.customs.gov.my/assets/document/SST%20Form/JKDM%20No.%202.pdf JKDM-2]
* Need fill-in [https://mysst.customs.gov.my/assets/document/SST%20Form/JKDM%20No.%202.pdf JKDM-2].

Latest revision as of 09:23, 17 August 2020

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 through information technology medium (human eye cannot see and touch)
  • minimal or no human intervention (eg. automation, click to subscribe and consume)

Scope on Digital Service

  • Software, application & video games
  • music, e-book and film
  • advertisement and online platform
  • search engine and social network (facebook)
  • database and hosting (eg. website hosting, online data, file sharing, cloud storage)
  • internet based telecommunication (eg. VOIP)
  • Online training
  • Subscription to online newspapers
  • payment process services (paypal)

Taxable Person

1. Foreign Service Provider (FSP)

  • any person who is outside Malaysia providing any digital service to a consumer directly
  • any person who is outside Malaysia operating an online platform for buying and selling goods
  • providing services (whether or not such person provides any digital services) who makes transactions for provision of digital services on behalf of any person

2. Threshold exceed RM500,000 (historical or future 12 months)

Accounting Basis

  • Default is Payment basis (same to service tax)
  • Accrual Basis (billing) must apply to DG upon registration

Exchange Rate

  • Can use any exchange rate to calculate tax payable

Taxable Period

  • Three months (quarterly)

Returns Form

Exemption

  • No exemption announced

Claim Refund

  • Digital service tax overpaid allowed to claim refund.
  • Need fill-in JKDM-2.