VATLive > Blog > VAT > Malaysia approved foreign e-services tax

Malaysia foreign e-services 6% SST

  • VAT
  • Apr 15, 2019 | Richard Asquith

The Malaysian parliament has approved a Bill imposing its new Sales and Service Tax (SST) on foreign providers of digital services to local consumers.

The 6% tax will apply to digital, or e-services, including: downloads/steaming media; gaming; e-books; software; automated e-learning; SaaS supplies; storage; and subscription sites etc. Malaysian consumers are defined based on any two of the following criteria:

  • Ordinarily resident in Malaysia
  • User with a Malayzian IP address
  • Customer who makes payments via Malaysian-registered credit card

The amendment to the SST laws will apply to both service providers and platforms that bill on behalf of non-resident providers. These providers and marketplaces will be obliged to register with the Malaysian tax office to report and remit applicable Services Tax

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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