Malaysia: Implemented Service Tax Act 2018 (Act 807)

On 1 September 2018, the Service Tax Act was implemented in Malaysia. The Act provides for the scope of service tax, provisions relating to exemption, refund and remission as well as provisions on enforcement. The Act applies throughout Malaysia, excluding designated areas, free zones, licensed warehouses, licensed manufacturing warehouses and joint development areas. The Act also provides that a service provider registered for goods and service tax before 1 September 2018, who provides taxable services on that date, is automatically deemed registered under the Service Tax Act 2018 if their total taxable services exceed the threshold using the future method (calculated over the effective month and the following eleven months) and are required to charge service tax from 1 September 2018.