KUALA LUMPUR: The Finance Ministry (MOF) has agreed to provide transitional support to industry players during the change in the scope of the Sales and Service Tax (SST), following feedback regarding difficulties in complying with all operational requirements.
In a statement today, MOF said the government will allow service providers to manually submit statements for the taxable period from July 1 to Sept 30, 2025.
"However, the Service Tax (ST) must still be charged and collected during this period.
"The MADANI government understands that service providers need more time to upgrade their systems for tax compliance and implementation," MOF said.
Meanwhile, MOF said registered manufacturers are required to impose and collect Sales Tax (ST) starting July 1, 2025, and are eligible to apply for exemptions on raw materials used in the manufacturing of taxable goods.
Additionally, companies that have already received ST exemptions via the tax exemption committee under the Malaysian Investment Development Authority (MIDA) before July 1 will continue to enjoy the exemption, subject to the terms and duration previously set.
"However, if these companies manufacture finished taxable goods after July 1 and meet the specified threshold value, they are required to register as registered manufacturers and may apply for exemption via the MySST portal at mysst.customs.gov.my.
"MOF hopes that these measures will help facilitate business operations and ease compliance for companies affected by the SST scope expansion," the statement added.
Business and members of the public can contact the Royal Malaysian Customs Department Call Centre hotline at 1-300-888-500 for more information. - Bernama
