Newly Taxed Service Providers To Start Charging Service Tax From Sept 1


 The finance ministry also announces a grace period until December for businesses making good-faith efforts to comply.
An expanded SST will be implemented from July 1, which will see a sales tax of 5% to 10% imposed on selected and non-essential goods.PETALING JAYA: Companies offering newly taxable services under the revised sales and service tax (SST) will only need to start charging service tax from Sept 1, the finance ministry clarified today
The ministry said this applies to businesses not currently registered under SST but now fall under the expanded list of taxable services, such as property rentals.
“(Such companies) would need to first establish whether they have reached the revenue threshold of RM500,000 for rental within 12 months.
“If they have reached the revenue threshold in July, then the company will need to register by the month of August and only begin to charge service tax on their services beginning Sept 1,  which is more than two months from now,” it said in a statement today.
The clarification follows concerns from business groups that the July 1 deadline left insufficient time to implement the service tax, especially for companies unfamiliar with the SST framework.
To further support the transition, the finance ministry will offer a grace period until December during which no penalties will be imposed on companies that make genuine efforts to comply with the new requirements.
It said the grace period was in view of “the need to provide time for affected companies to understand how the SST revisions may apply to them”.
An expanded SST will be implemented from July 1, which will see a sales tax of 5% to 10% imposed on selected and non-essential goods.
The service tax will be expanded to include new services such as construction, rental or leasing, finance, private healthcare, education and beauty. - FMT


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