As the new rate of Malaysia’s Sales and Service Tax (SST) has been increased to 8% - there are a plethora of new service has been subjected to service tax, yet netizens are still confused with the items that being imposed with the taxable services.

Want to know which new services are facing service tax?

- Karaoke centre services
- Brokerage and underwriting services for non-financial services such as ship/aircraft brokerage, commodities and real estate
- Logistics services
- Maintenance or repair services

However, these services won't be affected by the new tax rate - they're staying at 6%.

- Food or beverage preparation services
- Telecommunication services (phone bills and Internet bills)
- Vehicle parking space provision services, and
- Logistics services

The table below provides an overview of the changes:

With that being said, leading digital platforms such as Google and Taobao have communicated their intention to align their services with the updated tax rate up to 8% for its services, while TaoBao will implement a 10% SST rate, according to TechNave.

Shopee, another prominent e-commerce platform, has also unveiled plans to adjust its SST rate in line with the regulatory change.

Source / Image Credit: SAYS, AWANI & FMT, Kementerian Kewangan