Malaysia: Implementation of service tax on goods delivery services postponed

Postponement of implementation of service tax on goods delivery services to a later date

Postponement of implementation of service tax on goods delivery services to a later date

The Royal Malaysian Customs Department on 30 June 2022, announced the postponement of the implementation of service tax on goods delivery services to a later date.

Background

It was proposed in the 2022 Budget announcement that the scope of service tax be expanded to include goods delivery services regardless of the status of the service providers (whether licensed or not), but exclude delivery services for food and beverages as well as logistic services. The measure was proposed to be effective 1 July 2022. Read TaxNewsFlash

KPMG observation

The postponement is viewed as providing relief to businesses, as it will allow them more time to understand details of the proposed expansion and gather clarity for a smoothly executed implementation. 

Read a July 2022 report prepared by the KPMG member firm in Malaysia

 

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