Updated Service Tax Guide Clarifies Logistic Services, Enhances Compliance and Practical Application

• The Royal Malaysian Customs Department released an updated service tax guide on logistic services on 6 June 2025.
• The guide is available only in Bahasa Malaysia and replaces the version from 5 April 2024.
• No fundamental policy changes were introduced, but clarity, structure, and practical application were enhanced.
• The MYR 500,000 service tax registration threshold and 6 percent tax rate remain unchanged.
• The guide adopts a more practical and business-oriented approach to support compliance.
• It addresses interpretive challenges from the March 2024 expansion of the service tax regime.
• Core taxable logistic services remain consistent, with added clarifications and examples.
• Taxable logistic services exclude delivery, distribution, or transportation of goods in specific international scenarios.
• Definitions of first entry and last exit points in Malaysia are clarified based on transport mode.
• Exemptions from service tax payment for logistic services are indicated in the guide.

Source: taxathand.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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