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FAQ for Sales and Service Tax effective 1 September 2018

 

TIMELINE FOR CUCKOO

As you are aware, the Government has announced that effective 1 Sep 2018, the 6% Service Tax shall replace the Goods and Services Tax (GST) which has been reduced to zero percent (0%) for the past months.

Services provided by CUCKOO Malaysia are not required to charge a 6% service tax as the services provided does not fall under the Taxable Services List issued by Royal Malaysian Customs Department (“RMCD”).

Here are some frequently asked questions about the implementation of the Sales and Service Tax effective 1 September 2018 on CUCKOO products and services moving forward, and some key points on the transition.

GENERAL

What is Sales Tax?
Sales Tax is a single-stage tax charged on taxable goods manufactured in Malaysia by a taxable person or on taxable goods imported into Malaysia. The rates are 0%, 5% or 10%.

What is Service Tax?
Service Tax is tax charged on provision of taxable services listed on the Taxable Service List issued by RMCD made in Malaysia by a taxable person. The rates are 6% or RM25 per year for credit card / charge card.

Are CUCKOO products and services subject to the Sales and Service Tax (“SST”)?
No, all the products and services supplied by CUCKOO are not subject to Sales Tax or Service Tax.

Is CUCKOO registered for SST?
No, CUCKOO is not required to register for Sales Tax and Service Tax.

Will the prices of CUCKOO products and services be revised following the implementation of SST?
No, all our prices remain unchanged!

Transition

I have paid an advance 2-month rental payment in Aug ‘18 for Sep-Oct ’18, do I need to top up the 6% Service Tax following the implementation of the SST?
No, there is no need for the top up as CUCKOO services will not be subject to the 6% Service Tax.

I purchased products/services from CUCKOO in Aug ‘18 and would like to cancel my order in Sep ’18, will CUCKOO refund the GST paid to me?
There will not be any GST refund payable to you as GST was at 0% in Aug ’18. On the other hand, if the product was purchased prior to 1 Jun ‘18, you’ll get a 6% GST refund.

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