Comprehensive Guide to Service Tax in Malaysia: Definitions, Thresholds, and Statutory Obligations under the Service Tax Act 2018
This sharing provides a definitive overview of the Service Tax (ST) framework in Malaysia, focusing on its definition, registration thresholds, and the statutory obligations under Sections 12 and 13 of the Service Tax Act 2018. It incorporates the latest legislative changes, particularly those effective March 1, 2024, and July 1, 2025, which significantly expand the […]
Rental or Leasing Services Service Tax Policy NO. 2/2025 (Amendment No. 1)
Key Changes Between the Original and Amended Rental or Leasing Services Service Tax Policy NO. 2/2025 Special Remark/Further Action: Refer to the MySST portal for any updated announcements regarding exemptions previously covered under Item No. 1, and review contract terms in light of the updated (less restrictive) condition for contract value 租赁服务 服务税政策第2号（2025年）（修订第1号） 原政策与修正案（Amendment No. 1）对比要点 […]
The Finance Bill 2024 is out!
The Finance Bill 2024 is out! The Finance Bill 2024 is a comprehensive legislative proposal enacted to amend various fiscal and tax-related laws in Malaysia. Its primary objective is to streamline, update, and enhance the country’s financial, taxation, and regulatory frameworks to align with current economic and social priorities. The bill proposes amendments to multiple […]
E-Invoice Info: Function to generate QR code of the taxpayer information
Good news! Function to generate QR code of the taxpayer information Users can now generate a QR code of the taxpayer information through the MyInvois Portal and Application to facilitate the process of data sharing for e-Invoice issuance Follow the simple steps as follow: 1) on Portal: Click View Taxpayer Profile > Click Generate QR […]
Analysis of the Accounting Treatment for Disbursement in the e-invoice era
Case Study: Logistics Company B, Shipping Company A, and Company XYZ Scenario: – Shipping Company A issues e-invoice (RM1,000) to Company XYZ – Logistics Company B pays RM1,000 on behalf of Company XYZ – Logistics Company B charges RM5,000 for their logistics services Treatment 1 (Separate Handling): When Logistics Company B pays on behalf: DR: […]
Illustration 24: e-Commerce platform providers are responsible for issuance of e-Invoice (to Buyers) and self-billed e-Invoice (to Seller)
Understanding e-Invoice Requirements for E-commerce Transactions in Malaysia Key Changes in E-commerce Transactions: 1. Platform Provider’s Responsibilities: E-commerce platforms (like Zippit in the example) will be responsible for issuing e-Invoices Platforms must issue both e-Invoices to buyers and self-billed e-Invoices to sellers When Buyers Don’t Request e-Invoices: 1. Platform’s Actions: Issue normal receipts to buyers […]
FAQs #20 and #21 from the LHDNM e-Invoice General FAQs
Based on FAQs #20 and #21 from the LHDNM e-Invoice General FAQs document, let me explain. FAQ #20: Are individual buyers required to provide their details to suppliers for e-invoice issuance?Yes, when buyers request an e-invoice, they need to share their details with the supplier to facilitate e-invoice issuance. Which TIN should individual taxpayers use for e-invoice […]
Simplified Q&A with scenarios
Here’s a simplified Q&A with scenarios to help understand when self-billed e-Invoices can be issued: Q: I operate a grocery store, and some of my suppliers haven’t implemented e-invoicing yet. Can I issue self-billed e-invoices for these purchases? A: Let me explain with examples when you can and cannot issue self-billed e-Invoices: Scenario 1: NOT […]
Electronic Invoice Requirements
Electronic Invoice Requirements Effective Date: 1 October 2024 Implementation Timeline Phase 1: 1 October 2024 – Companies with annual sales > RM100 million Phase 2: 1 January 2025 – Companies with annual sales > RM25 million but ≤ RM100 million Phase 3: 1 July 2025 – All other businesses Annual Sales Determination – Based on […]
When should I issue a self-billed e-invoice if I engage consulting services from a Singapore company?
Q: When should I issue a self-billed e-invoice if I engage consulting services from a Singapore company? A: Let us explain with examples when you need to issue a self-billed e-invoice for foreign services: Example 1: ABC Sdn Bhd engages XYZ Singapore for IT consulting services. – Invoice received from XYZ Singapore: 10th August 2024 […]
