8. Digital service tax briefcase

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Revision as of 03:09, 16 January 2020 by Csloo (talk | contribs) (Taxable Person)
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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

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)
  • Allow to apply for Accrual Basis (billing).

Taxable Period

  • Three months (quarterly)