Autodesk software and Imported Taxable Services for SST

Latest Announcement 20/02/2019

1. What is Imported Taxable Service?
Imported Taxable Service means any taxable service acquired by any person in Malaysia
from any person who is outside Malaysia.

  • Software downloaded / delivered by email ala Autodesk software is classified as Imported Taxable Service and subject to 6% service tax.

2. Who should account for service tax on Imported Taxable Service?
Any person (registered person or person other that taxable person, who in carrying on
his business) acquires any imported taxable service should account for service tax in a
prescribe form

  • If you are a company in Malaysia and you import services as per above, you have to pay Kastam.
  • exception if you are downloading for personal use. This exception is planned for removal next year. Foreign companies conducting this mode of business is required to register with Kastams (presumably to provide Kastams with information of customers)

Loophold?

If you acquire the software that comes in a CD format, then it is considered as goods and hence not taxed. :)

When you buy Autodesk software from Acad Systems’, you would have paid for the SST which will be embedded in from Autodesk distributor.

If you are a business and buy directly from a foreign company eStore like Autodesk’s, you have to declare and pay 6% to Kastams yourself which can be cumbersome – better you buy from Acad Systems to avoid this troublesome procedure.

3. How to declare and pay service tax on Imported Taxable Service?
A. Declaration for Imported Taxable Service by Person Other Than Taxable
Person (PoTTP)
Declaration for Imported Taxable Service can be made online through MySST
system starting from 20 February 2019.

B. Declaration for Imported Taxable Service by Registered Person (RP)
Declaration for Imported Taxable Service can be made online through MySST.
Registered person need to account service tax on imported taxable service
according to their taxable period.

4. For more detail information about
– Imported Taxable Service, please refer to :
i. Finance Act 2018 ii. Service Tax (Amendment) (No.3)
Regulations 2018 iii. Guide on Imported Taxable Services.

Kindly share your knowledge if you have different interpretation of SST. Thank you.