Mastery of Service Tax Scope Expansion and Sales Tax Revisions: Implications, Exemptions and Compliance

Sales and Service Tax (SST) since implementation w.e.f. 1/9/2018, has undergone various updates with the latest major updates to take effect from 1/7/2025. The scope of Sales Tax has been significantly expanded to cover approximately 97% of Malaysia’s total 12,000 HS codes. At the same time, Service Tax coverage has been widened to include rent or leasing, construction services, private education, and private healthcare services. Several existing taxable service groups have also undergone changes and restructuring. As a result of these expansions and reorganisations, certain taxable services within specific groups have been redefined. This workshop is to provide an insight on its updates for implementation purposes and to assist participants in achieving the following objectives: • To be up-to-date with the implementation requirements • To avoid pitfalls / issues in the implementation • Understand the Exemptions available PRE-REQUISTE • Stable Internet Connection • Webcam and Earphones COURSE CONTENT Module 1: Service Tax Updates and its Implementation Mechanism • Updates via 2027 Budget • Updates since July 2025 Expansion and Redefinition of Service Tax Scope o Redefined Taxable Services in Groups A to E and G o Restructuring of Group H with Scope Expansion covering Financial Services o Expansion of Group I covering Private Health Care Services o Expansion of 3 more Groups: Group K covering Rental and Leasing Services; Group L covering Construction Services; Group M covering Education Services • Implementation Mechanism of each Updated Category o Registration Requirements and Thresholds o Transition Rules o SST Treatment on Different Transaction Scenarios o Materials Usage in Construction Work – SST Treatment o Non Taxable Services o Business to Business Exemption and its Documentation Requirements o Group Company’s Relief o Micro-SME’s Exemption o Treatment of SST Payment on Construction Retention Money o E-Invoice Treatment of Retention Money o SST Treatment for Non-Reviewable Contract o Treatment of Implementation Mechanism within and between Designated Areas and Special Areas o Treatment of Implementation Mechanism between Malaysia and Designated Areas and Special Areas and vice versa o Treatment of Imported Services under the Expanded Scope and its Exemptions o Penalty Grace Period Module 2: Other Service Tax Exemptions • Person Exempted from Paying Service Tax Facilities Criteria • Claiming Refund of SToDS (Service Tax on Digital Services) incurred by Local Digital Tax Service Provider • Treatment of Imported Services Requirement by all Businesses including Non-SST Registered Companies and its Exemptions • Service Tax Treatment on Inter-Company Professional Services and Definition of Group Companies and When These Services are Taxable to Group Companies Module 3: Sales Tax Updates and its Implementation Mechanism • Updates via Budget 2027 • Updates since July 2025 Expansion of Taxable Products o Transitional Mechanism on Sales Tax Rate Change o Treatment of current AME Scheme o Treatment of Exempted Goods in Stock that are Exempted under Schedule B o What remains not subject to Sales Tax o Items that will be subjected to 5% o Items that will be subjected to 10% o Rate Determination Module 4: Other Categories of Sales Tax Exemptions • Goods Exempted from Charging Sales Tax • Persons Exempted from Paying Sales Tax and its Terms and Conditions o Schedule C – Registered Manufacturers o Schedule B – Non-Registered Manufacturer o Major Exporter Scheme o Schedule A – Other Categories of Person • Sales Tax Treatment on Scraps and Finished Goods • Sales Tax Credit Systems • Sales Tax Drawback Facilities vs Schedule A Item 57 Exemption Module 5: SST Administrative Matters • Bad Debt Relief • Refunds • Invoicing Particular Requirements • SST Payment Basis – Accrual, Collection and Deemed Collect Basis • Accounting for Imported Service Mechanism for Non-SST Register Business • Service Tax Contra System Module 6: Implementation Health Check • Key Common Areas to Look Out for Errors for Sales Tax and Service Tax • Audit Coverage and Awareness • Appeals WHEN & WHERE 16 October 2026 (Friday) 9.00 am to 5.00 pm Remote Online Training – Zoom WHO SHOULD ATTEND CEO, Managing Directors, GM, CFO, Accountants, Finance Manager, Department Head, Tax Consultant, Operational Staff involved in SST TRAINING INVESTMENT RM 800 per participant (inclusive of Service Tax, Online Course Materials, E-Certificate of Attendance) 🔥Group Promo: Save 15% Register min. 3 pax for RM 680 per pax (Normal Rate: RM 800) HRD Corp Claimable (SBL-Khas)