Sales tax administered in Malaysia is a single stage tax imposed on the finished goods manufactured in Malaysia and goods imported into Malaysia.
Sales tax is imposed on taxable goods manufactured in Malaysia by any registered manufacturer at the time the goods are sold, disposed of other than by sales or used otherwise than as a materials in the manufacture of the taxable goods.
Sales tax on imported goods is charged when the goods are declared, duty/ tax paid at the time of customs clearance.
A. Manufacturing
Scope of Manufacturers
Manufacturers who manufacture taxable goods with sales value which exceeds RM500,000 within the period of 12 months, are required to be registered.
Manufacturers who manufacture taxable goods with sales value of RM500,000 and below, have the option to be registered on a voluntary basis.
Manufacturers who carry out its business as a subcontractor and the total labour charge of the subcontract works exceeds RM500,000 within 12 months, are required to be registered.
Activities in Manufacturing
a. Manufacturing
Principles related to the definition of manufacturing are:
a. Manufacturing is the process of changing the organic or inorganic materials manually or mechanically, into a new product by changing the size, shape, composition, properties or quality of the material.
b. Installation of tools and components into machines or equipment, such as the assembly of personal computer and television.
c. Changing the quality of the finished goods turning it into a new product, such as hot-dip galvanizing, chroming, electroplating and subcontract work of painting finished goods sent by another manufacturer for example painting of motor car body kit / accessories. Manufacturer only charges labour fee for work performed on the finished goods.
d. Manufacturing of petroleum products involved the refining process that include separation, conversion, purification and blending of refinery streams (e.g.: reformate isomerate, treated naphta) and/or petrochemical streams (e.g. MTBE Methyl ter – butyl ether).
Simple manufacturing process like combining two or three tools / components with screws on a machine is not subjected to the definition of manufacture provided that:
(i) The machine is complete and there are no additional materials used in the new installation.
(ii) Installation can be made easily and quickly.
Taxable goods manufactured and manufacturing activities conducted in the Designated Areas (DA) and Special Areas (SA) are not subject to sales tax.
Subcontractors normally do work that are given by another manufacturer. The manufacturer supplies raw materials or semi finished goods to the subcontractor for further work to be done to complete the goods. Registered manufacturer can apply to appoint subcontractors by submitting an application through the MySST system.
Subcontract work to another person comprises of the following:
(i) Subcontract to Another Registered Manufacturer
Unfinished goods sent from a registered manufacturer to another registered manufacturer to manufacture and complete. The finished goods are subsequently acquired back by the same registered manufacturer and subject to sales tax unless an exemption is claimed by the registered manufacturer.
(ii) Subcontract to Non-Registered Manufacturer
Goods transported from a registered manufacturer to any nonregistered manufacturer for further work or to complete the manufacturing process. The finished goods are later acquired back by the same registered manufacturer and subject to sales tax unless an exemption is claimed by the non registered manufacturer.
Semi-finished goods transported from a manufacturer in the Free Zone (FZ) which is in Special Areas (SA), to any non-registered manufacturer in Principal Customs Area (PCA) for further processing or to be completed as finished goods, is as if importation of goods into Malaysia. Any goods imported is subject to sales tax unless an exemption is claimed by the manufacturer.
Goods returned to the manufacturer in FZ is as if such goods are exported from Malaysia to a place outside Malaysia and exemption from payment of tax can be claimed by the exporter.
(iii) Subcontract to Licensed Manufacturing Warehouse/Free Industrial Zone
Goods transported from a manufacturer in PCA to the Free Industrial Zone (FIZ) or moved to a Licensed Manufacturing Warehouse (LMW) for subcontract work and subsequently re-imported or returned via the same route to the manufacturer in PCA, are subject to sales tax unless an exemption is claimed by the manufacturer.
Goods Returned or Sent for Re-Processing and Repair
Goods imported from any country, transported from FIZ or Labuan which is in Designated Area (DA) or moved from LMW for repair and subsequently re-exported, transported or moved back through the same route within three (3) months, is subject to sales tax unless an exemption is claimed by the importer.
Locally manufactured taxable goods, excluding petroleum, which have been exported and subsequently re-imported within twelve (12) months from the date of export for the purpose of reprocessing, are subject to sales tax unless an exemption is claimed by the importer.
Goods exported to any country, transported to FIZ or Labuan or moved to LMW for repair and subsequently re-imported or returned by the same route, is subject to sales tax unless an exemption is claimed by the importer.
Irrespective of the total sales value of taxable goods in the period of twelve (12) months, manufacturers with manufacturing operations as below are exempted from registration.
(i) The developing and printing of photographs and the production of film slides;
(ii) The engraving of articles with the name of the recipient, his sports record or other circumstances under which the article was donated or awarded;
(iii) The incorporation of goods into buildings;
(iv) The manufacture of ready mixed concrete;
(v) The preparations of meals;
(vi) The preparation of tarred metal, tarred screenings, and hot mixed preparations of bitumen and metal for roadmaking;
(vii) The production of copies of document by the photo copy or similar copying process;
(viii) The repacking of bulk goods into smaller packages by a person other than a registered manufacturer;
(ix) The repair of second hand or used goods;
(x) The testing of eyesight, the prescription of suitable lenses and the fitting of such lenses into frames;
(xi) The following operations when performed by a person other than a registered manufacturer:
(a) the varnishing and or polishing of finished pieces of furniture.
(b) the fitting of glass tops and, or glass doors to pieces of furniture otherwise complete.
(xii) The reduction of size and or changing of the shape of taxable materials without changing the nature of such materials, provided that the sizing and, or shaping is not part of the normal process in manufacture of a separate article;
(xiii) The rendering of personal tailoring service but excluding the manufacturing of garments and other textile articles on the basis of bulk and not personalised production by a firm or company engaged in the business of manufacturing garments and other textile articles;
(xiv) The printing of logo, knitting, crocheting or embroidering on ready made garments supplied by another person;
(xv) The colouring of cloth supplied by another person without changing the size or shape of the said cloth;
(xvi) The manufacture of batik fabrics using traditional techniques of manual block printing, manual screen printing and, or hand drawing or painting and the articles thereof;
(xvii) The installation of air conditioners in motor vehicles;
(xviii) The manufacture of jewellery and goldsmiths wares;
(xix) The extraction of gold from mineral ores; or
(xx) The recovery of gold from jewellery and, or the refining of gold.
Raw Materials and Components
Sales tax exemption is given to raw materials and components used directly in the manufacturing process of goods manufactured, from the initial stage of manufacturing until the finished products is finally packaged and ready for export. This includes packaging materials and casings (e.g. casings for calculators and cameras). The exemption is given provided that it is claimed by the person entitled for the claim or the goods are exempted from tax in the exemption order.
Raw materials / components which are not eligible for sales tax exemption, such as:
(i) Fuel oil
(ii) Materials for machinery and factory cleaning purposes
(iii) Wearing apparel for workers
(iv) Furniture / office equipments
(v) Building materials
(vi) Food stuffs and drinks
Raw materials, components and packaging materials excluding petroleum, imported or purchased from any registered manufacturer or LMW or Licensed Warehouse (LW), by any registered manufacturer in PCA, are subject to sales tax unless an exemption is claimed by the registered manufacturer.
Raw materials, components and packaging materials including petroleum to be used as raw material, imported from LMW or LW or purchased from any registered manufacturer by any registered manufacturer of petroleum product, are subject to sales tax unless an exemption is claimed by the registered manufacturer of petroleum products.
The exemptions can be claimed provided that:
(i) Raw materials, components and packaging materials including petroleum shall be used solely in the manufacturing of finished goods manufactured by the registered manufacturer;
(ii) Registered manufacturer has to pay sales tax on the raw materials, components and packaging materials including petroleum that could not be accounted for.
Machinery / equipment required for manufacturing are all items necessary for the processing of the goods manufactured starting from the initial state right up to the finishing state where the final product is packed ready to be sold or for export.
All such machinery and equipment must be new and unused. Machinery and equipment can be imported or purchased from local suppliers.
Machinery / equipment not included in the above definition are forklifts, construction / building materials, office equipment / furniture, fire-fighting equipment, vehicles and generator
Machinery and equipment imported or purchased from LMW, LW, FZ or manufacturer approved by the DG, by any manufacturer in PCA which has been endorsed by MIDA, is subject to sales tax unless an exemption is claimed by the manufacturer in PCA.
Sales tax exemption on machinery and equipment imported or purchased by the approved manufacturer can be claimed provided that:
(i) The machinery and equipment are new and unused and are placed at all times at the premise of the approved manufacturer;
(ii) The machinery and equipment shall be used directly in the manufacture of finished goods at the premise of the approved manufacturer;
(iii) All machinery and equipment which are exempted from sales tax cannot be sold, transferred or moved from the premise of the approved manufacturer without the permission of the DG;
(iv) The manufacturer shall pay taxes on goods that cannot be accounted for.
Manufacturing aids are any goods used in the manufacturing process to accelerate and to further improve, complete or complement the manufacturing process of the goods manufactured.
Examples of manufacturing aids are lubricants, jigs, mould, mounting materials, chemical cleaners and sandpaper.
For electronic industry sector, the sales tax exemption on the cleanroom equipment is also considered on the basis that although the device is not used directly in manufacturing, it is necessary to guarantee the manufacturing area is free from dust and electrical emissions interference. Such items / equipments are:
(i) Floor panel/conductive floor tiles
(ii) Face masks
(iii) Cap made of non-woven fabric
(iv) Glass
(v) Security shoes
(vi) Finger cots
Besides being imported, manufacturing aids can also be purchased from LMW, LW or FZ or another registered manufacturer by any registered manufacturer in PCA and are subject to sales tax unless an exemption is claimed by the registered manufacturer in PCA.
Exemption from payment of sales tax on manufacturing aids imported or purchased from local supplier can be obtained provided that:
(i) That the goods shall be used solely in the manufacturing of finished goods of any registered manufacturer.
(ii) The manufacturer shall pay taxes on goods that cannot be accounted for.
Disposal of machines, equipment and spare parts that are imported or obtained through tax exemption can be made through several manners such as destruction, transfer, sale, export and free gifts.
If the goods to be disposed are aged less than 10 years from the date of importation or purchase, the registered manufacturer must account for the sales tax. The registered manufacturer is to account for sales tax based on the tax rate and value of the goods upon acquisition from his supplier
If such goods are aged 10 years or more, the registered manufacturer is exempted from paying sales tax.
The approval from relevant agencies should be obtained in advance if the goods exempted from sales tax are to be destroyed and subject to regulation or control of the agency concerned e.g. Department of Environment.
Taxable Period
Taxable period is two (2) calendar months or part of the two months ending on the last day of the second month.
Submission of Return
Sales tax return shall be submitted not later than the last day of the month following the taxable period specified.
Each registered manufacturer is required to submit sales tax return whether there are any taxable goods manufactured, sold, disposed of other than sale, disposed of apart from to be used as a material in manufacturing and whether any sales tax paid or not for the taxable period.
The registered manufacturer is required to declare the sale of taxable goods in the sales tax return and pay sales tax due and payable not later than the last day on which the registered manufacturer is required to furnish the return.
The finished goods manufactured and exported out of Malaysia by a registered manufacturer are exempted from sales tax should be declared in the Customs Form No. 2 (K2).
Issuance of Documents
The registered manufacturer is required to issue documents on matters as follows:
a. Invoice to be issued upon sale of taxable goods, in national language or English language
b. Issuance and receipt of the credit notes or debit notes to make deduction or addition on the sales and purchases of taxable goods.
Record Keeping
Every taxable person is required to keep records on matters as follows:
(i) Record of sales of taxable goods.
(ii) Record on the importation and exportation of taxable goods.
(iii) Other records such as:
(a) Purchase invoice and returns of all raw materials and packaging materials used in the manufacturing.
(b) Sales tax returns which are properly kept and updated.
(c) Agreement or transaction documents with the seller or buyer, for the purpose of audit inspection.
For taxable goods manufactured by a taxable person, the value of sales is determined taking into account the value of:
(i) Goods sold by the taxable person; or
(ii) Goods manufactured by the taxable person; and
(a) Used by him other than used as materials in the manufacturing of taxable goods; or
(b) Disposed of by him other than sale.
For taxable goods imported into Malaysia, the value of taxable goods for the purpose of duty/tax payment is the sum of the following amount:
(i) The value of the taxable goods for the purpose of customs duties payment;
(ii) The amount of customs duties, if any, paid or payable on the taxable goods; and
(iii) The amount of excise duty, if any, paid or payable on the taxable goods.
Examples on calculation of duty / tax on imported goods:
Bad Debts
The registered manufacturer can claim back either wholly or partly sales tax paid to the DG provided that:
(i) The whole or part of the sales tax has been written off as bad debts in his account and;
(ii) The DG is satisfied that reasonable efforts have been taken to recover the sales tax involved.
B. Import and Export
Import
Importation and Transportation of Goods Into Principal Customs Area
Goods other than sales tax exempted goods, imported into Principal Customs Area (PCA) are subject to sales tax. Importation shall be declared in the Customs Form No. 1 (K1) and sales tax has to be paid at the time of customs release.
Taxable goods transported from LW or LMW into PCA are to be declared in the Customs Form No. 9 (K9).
Taxable goods transported from FZ into PCA are to be declared in the Customs Form No.1 (K1).
Importation and Transportation of Goods Into / From Designated Areas (DA)
Designated Area (DA) is an area which comprises of Labuan, Langkawi and Tioman.
Sales tax is not charged on taxable goods imported, transported or sold in the following circumstances for DA:
▪ Taxable goods imported from a place outside Malaysia into DA are not subject to sales tax and should be declared in Customs Form No. 1 (K1).
▪ Taxable goods transported from Malaysia to DA is considered as if exportation. The goods are not subject to sales tax and should be declared in Customs Form No. 2 (K2) in Malaysia.
▪ Taxable goods transported from DA to another DA are not subject to sales tax as provided in paragraph 50(a)(ii) of the Sales Tax Act 2018 and should be declared in Customs Form No. 8 (K8).
▪ Taxable goods transported from DA to FZ and LW are not subject to sales tax and should be declared in Customs Form No. 8 (K8).
▪ Taxable goods transported from DA to LMW are not subject to sales tax and should be declared in Customs Form No. 1 (K1).
▪ Taxable goods transported from DA to JDA are not subject to sales tax and should be declared in Form JDA No. 1 (JDA1).
▪ Taxable goods transported from DA to Inland Clearance Depot (ICD) is an importation and subject to sales tax but exempted under item 49 Schedule A of the Sales Tax (Person Exempted from Payment of Tax) Order 2018. Importation should be declared in Customs Form No. 8 (K8).
▪ Taxable goods transported from DA to a place outside Malaysia is an exportation and are not subject to sales tax. Exportation should be declared in Customs Form No. 2 (K2) for air and sea mode while Customs Form No. 8 (K8) for road mode.
▪ Goods transported from DA to Malaysia is considered as if it is an importation and subject to sales tax. The imported goods must be declared in the Customs Form No. 1 (K1).
Importation and Transportation of Goods Into / From Special Areas
Special Areas (SA) is an area which comprises of Free Zone (FZ), Licensed Warehouse (LW), Licensed Manufacturing Warehouse (LMW) and Joint Development Area (JDA).
Sales tax is not charged on taxable goods imported, transported or sold in the following circumstances for FZ:
▪ Goods imported into FZ are not subject to sales tax. Importation into Free Commercial Zone (FCZ) should be declared in ZB1 Form which is monitored by the Free Zone Authority, while importation into Free Industrial Zone (FIZ) and Stulang Laut (FCZ) shall be declared under Customs Form No. 8 (K8).
▪ Goods transported from Malaysia to FZ is considered as if it is an exportation and are not subject to sales tax and should be declared in Customs Form No. 2 (K2).
▪ Goods transported between FZ, and FZ to LW are not subject to sales tax and should be declared in Customs Form No. 8 (K8).
▪ Goods transported from FZ to LMW are not subject to sales tax and should be declared in Customs Form No. 1 (K1).
▪ Goods transported from FZ to JDA are not subject to sales tax and should be declared in Form JDA No. 1 (JDA1).
▪ Goods transported from FZ to DA are not subject to sales tax and should be declared in Customs Form No. 8 (K8).
▪ Goods transported from FZ to ICD is an importation and subject to sales tax but exempted under item 49 Schedule A of the Sales Tax (Person Exempted from Payment of Tax) Order 2018. The importation should be declared in Customs Form No. 8 (K8).
▪ Taxable goods transported from FZ to a place outside Malaysia is an exportation and are not subject to sales tax. The exportation from FCZ should be declared in ZB1 form which is monitored by the Free Zone Authority, while declaration from FIZ should be made in Customs Form No. 8 (K8).
▪ Goods transported from FZ to Malaysia is considered as if it is an importation and sales tax is applicable. The importation should be declared in Customs Form No. 1 (K1).
Sales tax is not charged on taxable goods imported, transported or sold in the following circumstances for LW:
▪ Goods imported into LW are not subject to sales tax and should be declared in Customs Form No. 8 (K8).
▪ Goods transported from Malaysia to LW is considered as if it is an exportation and are not subject to sales tax and should be declared in Customs Form No. 2 (K2).
▪ Goods transported from between LW are not subject to sales tax and should be declared in Customs Form No. 8 (K8).
▪ Goods transported from the LW to FZ and LMW are not subject to sales tax and should be declared in Customs Form No. 8 (K8).
▪ Goods transported from LW to JDA are not subject to sales tax and should be declared in Form JDA No. 1 (JDA1).
▪ Goods transported from LW to DA are not subject to sales tax and should be declared in Customs Form No. 8 (K8).
▪ Goods transported from LW to ICD is an importation and subject to sales tax but exempted under item 49 Schedule A of the Sales Tax (Person Exempted from Payment of Tax) Order 2018 and the importation should be declared in Customs Form No. 8 (K8)
▪ Taxable goods transported from LW to a place outside Malaysia is an exportation and are not subject to sales tax. The exportation should be declared in Customs Form No. 8 (K8).
▪ Goods transported from LW to PCA or Malaysia is considered as if importation and sales tax is applicable. The importation should be declared in Customs Form No. 1 (K1) or Customs Form No. 9 (K9).
Sales tax is not charged on taxable goods imported, transported or sold in the following circumstances for LMW:
▪ Goods imported to LMW are not subject to sales tax and should be declared in Customs Form No. 1 (K1).
▪ Goods transported from Malaysia to LMW is considered as if it is an exportation and are not subject to sales tax and should be declared in Customs Form No. 2 (K2).
▪ Goods transported between LMW are not subject to sales tax and should be declared in Form GPB No. 1 (GPB1).
▪ Goods transported from LMW to FZ are not subject to sales tax and should be declared in Customs Form No. 2 (K2).
▪ Goods transported from LMW to LW are not subject to sales tax and should be declared in Form GPB No. 2 (GPB2).
▪ Goods transported from LMW to JDA are not subject to sales tax and should be declared in Form JDA No. 1 (JDA1).
▪ Goods transported from LMW to DA are not subject to sales tax and should be declared in Customs Form No. 2 (K2).
▪ Goods transported from LMW to ICD is an importation and subject to sales tax but exempted under item 49 Schedule A of the Sales Tax (Person Exempted from Payment of Tax) Order 2018. The importation should be declared in Customs Form No. 2 (K2).
▪ Taxable goods transported from LMW to a place outside Malaysia is an exportation and are not subject to sales tax. Exports should be declared in Customs Form No. 2 (K2).
▪ Goods transported from LMW to Malaysia is considered as an importation and sales tax is applicable. The importation should be declared in Customs Form No. 9 (K9).
Sales tax is not charged on taxable goods imported, transported or sold in the following circumstances for JDA:
▪ Taxable goods imported into JDA from outside Malaysia are not subject to sales tax and should be declared in Form JDA No. 1 (JDA1)
▪ Taxable goods transported from JDA to a place outside Malaysia is an exportation and are not subject to sales tax. The exportation should be declared in Form JDA No. 2 (JDA2).
▪ Taxable goods transported from Malaysia to JDA or from JDA to Malaysia are not subject to sales tax and should should be declared in Form JDA No. 3 (JDA3).
Importation of Goods into Duty Free Shop (DFS)
A licensee who operates a duty free shop other than in Designated Areas is exempted from the payment of sales tax on taxable goods in the following circumstances:
▪ All types of taxable goods imported to DFS, located in PCA are subject to sales tax unless an exemption is claimed by the licensee and should be declared in Customs Form No. 8 (K8).
▪ All types of taxable goods imported to DFS, located in FCZ are subject to sales tax unless an exemption is claimed by the licensee and should be declared in Customs Form No. 8 (K8).
▪ All types of taxable goods transported from LW to DFS which is located in PCA, are subject to sales tax unless an exemption is claimed by the licensee and should be declared in Customs Form No. 8 (K8).
▪ All types of taxable goods transported from LW to DFS which is located in the FCZ, are subject to sales tax unless an exemption is claimed by the licensee and should be declared in Customs Form No. 8 (K8).
▪ Transportation of liquor, cigarettes and tobacco products manufactured in Malaysia, from LW to DFS which is located in DA, are subject to sales tax unless an exemption is claimed by the licensee and should be declared in Excise Form No. 8 (E8)
▪ Transportation of liquor, cigarettes and tobacco products manufactured in Malaysia, from the Free Commercial Zone (FCZ) to DFS which is located in DA, are subject to sales tax unless an exemption is claimed by the licensee and should be declared in Excise Form No. 8 (E8).
Export
Taxable goods exported by a registered manufacturer, are exempted from payment of sales tax and the exportation is declared in the Customs Form No. 2 (K2).
Taxable goods which are exported are not subject to sales tax.
Sales of taxable goods involving the exportation to a place outside Malaysia:
(i) Taxable goods transported from Malaysia to a place outside Malaysia is considered as an exportation and are not subject to sales tax. The exportation should be declared in Customs Form No. 2 (K2).
(ii) Taxable goods transported from ICD to a place outside Malaysia is considered as an exportation and are not subject to sales tax. The exportation should be declared in the Customs Form No. 8 (K8).
Export Through Third Party
Any person approved by the DG to purchase locally manufactured goods for export purposes, is exempted from paying sales tax and provided that:
(i) Goods are purchased from a registered manufacturer.
(ii) Finished goods must be exported within six (6) months from the date of purchase.
(iii) Finished goods cannot be sold or disposed of in Malaysia except with the approval of the DG and after the relevant tax payment is made.
(iv) Records should be updated and may be checked by Customs officers at any time.
(v) Sales tax must be paid on goods that could not be accounted for.
(vi) If the finished goods are not exported within six (6) months from the date of purchase, taxes incurred must be paid.
Frequently Asked Questions (FAQs)
Q : KG Sdn Bhd provides a subcontract work to its customer on 18 August 2018. However, KG Sdn Bhd only issued an invoice on 1 September 2018. What is the tax treatment on the subcontract work performed?
A : KG Sdn Bhd shall charge GST at standard rate of 0% on the value of the subcontract work performed to its customer on 18 August 2018.
Q : Tank Technicals (M) Sdn Bhd has issued an invoice on the repair job provided to its customer on 24 August 2018. However, the repair job was only performed on 16 September 2018. What is the tax treatment on the work performed?
A : Tank Technicals (M) Sdn Bhd shall charge sales tax 10% on the value of the work performed on 16 September 2018.
Q : EM Packaging (M) Sdn Bhd has issued an invoice on 23 August 2018. However, the subcontract work had been performed started on 23 August 2018 until 04 October 2018. What is the tax treatment on the subcontract work performed?
A : EM Packaging (M) Sdn Bhd shall charge GST at standard rate 0% for the value of work performed until 31 August 2018. Meanwhile, sales tax shall be charged on the value of the subcontract work performed from 1 September 2018 until 4 October 2018.
Q : I am a registered manufacturer and have a canteen provided for our employees at the factory. However, the company is not the operator or the owner of the canteen. What is the tax treatment on the operation of the canteen?
A : The operator of the canteen is liable to be registered if his sales value exceeds RM1,500,000.
Q : If I am a registered manufacturer and provides management service / shared services, what is the tax treatment for the services performed?
A : Preparations of all types of management services and other charges related to the preparation including management or project coordination is subject to service tax.
Q : Registered manufacturer provides repair, testing services and also research and development (R&D) services. What is the tax treatment for the services performed by the registered manufacturer?
A : Services such as repair, testing, or research and development services is not part of the prescribed services under the Service Tax Act 2018. Therefore, the services are not subject to service tax.
Q : Transportation charged by the manufacturer to his customer on delivery of goods.
A : Transportation service on delivery of goods by the manufacturer to his customer is not part of the prescribed services under the Service Tax Act 2018. Therefore, the service is not subject service tax.
Q : Customs declaration on importation and exportation charged by the customs agent to the manufacturer.
A : If the customs declaration performed by an operator whose principal is in the Special Areas i.e. warehouse, the customs declaration is not subject to service tax. However, if the operator’s principal is located in the PCA thus the customs declaration is subject to service tax.
Q : Warehouse rental or storage charged by the warehouse operator to the manufacturer.
A : The warehouse rental or storage charged by the warehouse operator to the manufacturer is not part of the prescribed services under the Service Tax Act 2018. Therefore, the service is not subject to service tax.
Edited by: 浪子
Bibliography
Royal Malaysian Customs Department. (2018). Guide on : A. Manufacturing B. Import / Export. Retrieved from https://mysst.customs.gov.my/assets/document/Industry%20Guides/1.%20Guide_Manufacturing%20n%20Import%20Export%2023082018-v2.pdf
SST - Guide on Manufacturing & Import / Export
Reviewed by 浪子
on
January 03, 2019
Rating:
Reviewed by 浪子
on
January 03, 2019
Rating:
