Day: September 6, 2023

  • Tax and Duty Implications for Exporters: Use of New Code for Export of Finished Goods

    Tax and Duty Implications for Exporters: Use of New Code for Export of Finished Goods

    The notification from the Royal Malaysian Customs Department (RMCD), dated 24 May 2023, is of utmost importance for companies engaged in exporting activities.

    Starting from 1 June 2023, these companies are mandated to use the code “XE – EXPORT FINISHED GOODS WITH EXEMPTION” within the Customs Information System (Sistem Maklumat Kastam (SMK)) when declaring the export of finished goods.

    This requirement applies explicitly to finished goods produced from raw materials or components that were imported or acquired and enjoyed duty/tax exemptions, as outlined in sections 14(2) of the Customs Act 1967, section 11(2) of the Excise Act 1976, and section 35(3) of the Sales Tax Act 2018.

    Ensuring compliance with this new directive is crucial for companies involved in export operations, as it affects their products’ tax and duty treatment.

    It’s recommended that affected businesses promptly adapt to this change to avoid any potential issues related to non-compliance. Staying informed and adhering to regulatory updates is vital in the ever-evolving landscape of customs and taxation.

    Reference:-

    230.1-Use-of-New-Code-for-Export-of-Finished-GoodsDownload

    Disclaimer:

    The articles, templates, and other materials on our website are provided only for your reference.

    While we strive to ensure the information presented is current and accurate, we cannot promise the website or its content, including any related graphics. Consequently, any reliance on this information is entirely at your own risk.

    If you intend to use the content of our videos and publications as a reference, we recommend that you take the following steps:

    1. Verify that the information provided is current, accurate, and complete.
    2. Seek additional professional opinions, as the scope and extent of each issue may be unique.

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    1. 核实所提供的信息是最新的、准确的和完整的。
    2. 寻求额外的专业意见，因为每个问题的范围和程度，可能是独特的。

    Keep in touch with us so that you can receive timely updates

    请与我们保持联系，以获得即时更新。

    1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍

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    7. Threads ✍ https://www.threads.net/@ccs_your_auditor

    8. 小红书 ID ✍ 2855859831

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  • Customs Revised Guides on Accommodation

    Customs Revised Guides on Accommodation

    Some significant amendments to the Service Tax Regulations 2018 under the Service Tax (Amendment) Regulations 2023 [P.U. (A) 150/2023], which was gazetted on 12 May 2023.

    These Regulations come into operation on 15 May 2023.

    We would like to inform you that the RMCD released an updated service tax guide on accommodation services on 27 June 2023 (“Revised Accommodation Guide”).

    The Revised Accommodation Guide supersedes the earlier guide dated 13 October 2020.

    The salient points of the critical amendments to the revised guides, which will have implications for certain taxable services and individuals, are as follows:

    • “Special Areas”: The Revised Accommodation Guide specifies that accommodation services in “special areas,” including free zones, licensed warehouses, licensed manufacturing warehouses, the Joint Development Area, or petroleum supply bases licensed under section 77B of the Customs Act 1967, are subject to service tax effective from September 6, 2018.
      • However, accommodation services within “designated areas” such as Labuan, Langkawi, Pangkor, or Tioman remain exempt from service tax.
    • Expanded Exemptions: Effective May 15, 2023, the scope of accommodation premises excluded from service tax has been expanded.
      • This now includes accommodation premises provided by private educational institutions registered under the Education Act 1996 and those under the Private Higher Educational Institutions Act 1996.
    • Taxable Services Expansion: Taxable services related to tobacco products and beverages have been expanded to include the provision or sale of items such as cigarettes, tobacco pipes, electronic cigarettes, and preparations used for smoking through electronic cigarettes and vaporisation devices, whether or not containing nicotine.
    • Vending Machine Treatment: FAQ 23 has been updated to address the service tax treatment of vending machines on hotel premises. The updated answer specifies that transactions through machines owned by the hotel operator, selling beverages and certain tobacco-related products, are subject to service tax.
      • Transactions through vending machines not owned by the hotel operator remain unaffected.
    • Student Accommodation: FAQ 28 now clarifies that student accommodation in hostels provided by private colleges, private schools, or international schools registered under the Education Act 1996 or the Private Higher Educational Institutions Act 1996 is not subject to service tax.

    These updates are crucial for businesses and individuals affected by service tax regulations. It is essential to stay informed and ensure compliance with these changes to avoid potential issues.

    Reference:-

    231.1-Guide-on-Accommodation_20230627-V3Download
    231.2-Service-Tax-Amendment-Regulations_PUA150Download

    Disclaimer:

    The articles, templates, and other materials on our website are provided only for your reference.

    While we strive to ensure the information presented is current and accurate, we cannot promise the website or its content, including any related graphics. Consequently, any reliance on this information is entirely at your own risk.

    If you intend to use the content of our videos and publications as a reference, we recommend that you take the following steps:

    1. Verify that the information provided is current, accurate, and complete.
    2. Seek additional professional opinions, as the scope and extent of each issue may be unique.

    免责声明：

    我们网站上的文章、模板和其他材料只供参考。

    虽然我们努力确保所提供的信息是最新和准确的，但我们不能保证网站或其内容，包括任何相关图形的完整性、可靠性、适用性或可用性。因此，您需要承担使用这些信息所带来的风险。

    如果你打算使用我们的视频和出版物的内容作为参考，我们建议你采取以下步骤：

    1. 核实所提供的信息是最新的、准确的和完整的。
    2. 寻求额外的专业意见，因为每个问题的范围和程度，可能是独特的。

    Keep in touch with us so that you can receive timely updates

    请与我们保持联系，以获得即时更新。

    1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍

    4. Blog ✍ https://lnkd.in/e-Pu8_G 5. Google ✍ https://lnkd.in/ehZE6mxy

    6. LinkedIn ✍ https://www.linkedin.com/company/74734209/admin/

    7. Threads ✍ https://www.threads.net/@ccs_your_auditor

    8. 小红书 ID ✍ 2855859831

    3
  • Important Updates in the Food & Beverages Guide

    Important Updates in the Food & Beverages Guide

    Some significant amendments to the Service Tax Regulations 2018 under the Service Tax (Amendment) Regulations 2023 [P.U. (A) 150/2023], which was gazetted on 12 May 2023.

    These Regulations come into operation on 15 May 2023.

    As a result, the Royal Malaysian Customs Department uploaded the revised Guide on Food & Beverages onto their MySST website on 26 June 2023. It aimed to ensure clarity and compliance with the regulatory changes.

    Here’s what you need to know:

    1. Scope Expansion:

    • The provision or sale of certain items by food & beverage (F&B) operators is now subject to service tax. These include:
      • cigarettes,
      • tobacco products,
      • smoking pipes (including pipe bowls),
      • e-cigarettes,
      • vape devices, and
      • related liquids or gels (regardless of nicotine content).

    2. Special Areas Treatment:

    • F&B services provided in Special Areas have been subject to service tax since 6 September 2018.

    3. Deposit for Reservation:

    • FAQ no. 22 has been updated.
    • Deposits made for reservation are now subject to service tax and become due when payment is received, not upon service provision as stated previously.

    4. Convenience Store Purchases:

    • FAQ no. 25 clarifies that F&B purchases from convenience stores at petrol stations are not subject to service tax, as convenience stores are not classified as taxable entities.
    • Self-service F&B purchases are also exempt from service tax.

    5. Packaging Charges:

    • A new FAQ, no. 41, highlights that packaging charges incurred by customers for takeaway orders are subject to service tax.
    • These charges are considered part of the service provided by the restaurant.

    6. Plastic Bag Sales:

    • A new FAQ, no. 42, specifies that the sale of plastic bags to facilitate customers in carrying their packed food from restaurants is not subject to service tax.

    7. Restaurant Cigarette Sales:

    • With effect from 15th May 2023, sales of cigarettes at restaurants registered for service tax are subject to service tax (FAQ no. 43).

    8. Convenience Store Classification:

    • FAQ no. 44 explains that a convenience store providing food or beverages and offering a designated area for customer consumption within the store is not considered a taxable entity.
    • However, if the convenience store allocates a dedicated area for preparing and selling food or beverages, it falls under service tax regulations.

    These updates are essential for F&B operators to ensure compliance with the latest service tax regulations. For more detailed information, please refer to the revised “Guide on Food & Beverages.”

    References:-

    232.1-Guide-on-Food-BeveragesDownload
    232.2-Guide-on-Food-Beverages-27.12.2021Download
    231.2-P.U-A-150_2023-Service-Tax-Amendment-Regulations-2023-1Download
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