SST – Updates for Implementation Requirements

HRD CORP CLAIMABLE

INTRODUCTION

Sales and Service Tax (SST) since implementation w.e.f. 1/9/2018, has undergone various updates with the latest major updates to take effect from 1/7/2025.

While the Sales Tax saw an expansion in the scope of taxable products, the Service Tax was broadened with the addition of three new groups: Group K covering rental or leasing services; Group L covering construction services; and Group M covering education services. Several existing groups were also expanded. For example, Group H was restructured to cover financial services more comprehensively, while Group I was expanded to include private healthcare services. As a result of these expansions and restructurings, certain taxable services within the affected groups were also redefined.

This workshop is to provide an insight on its updates for implementation purposes and to assist participants in achieving the following objectives:

· To be up-to-date with the implementation requirements

· To avoid pitfalls / issues in the implementation

· Understand the Exemptions available

PRE-REQUISITE

• Stable Internet Connection

• Webcam and Earphones

COURSE CONTENT

Module 1: Service Tax Updates and its Implementation Mechanism

Expansion and Redefinition of Services Tax Scope:

· Redefined Taxable Services in Groups A to E and G

· Restructuring of Group H with Scope Expansion covering Financial Services

· Expansion of Group I covering Private Health Care Services

· Expansion of 3 more Groups: Group K covering Rental and Leasing Services, Group L covering Construction Services. Group M covering Education Services

Implementation Mechanism of each Category

· Registration Requirements and Thresholds

· Transition Roles

· SST Treatment on Different Transaction Scenarios

· Materials Usage in Construction Work – SST Treatment

· Non Taxable Services

· Business to Business Exemption and its Documentation Requirements

· Group Company’s Relief

· Micro-SME’s Exemption

· Treatment of SST Payment on Construction Retention Money

· E-Invoice Treatment of Retention Money

· SST Treatment for Non-Reviewable Contract

· Treatment of Implementation Mechanism within and between Designated Areas and Special Areas

· Treatment of Implementation Mechanism between Malaysia and Designated Areas and Special Areas and vice versa

· Treatment of Imported Services under the Expanded Scope and its Exemptions

· Penalty Grace Period

Module 2: Other General Service Tax Exemptions

· Person Exempted from Paying Service Tax Facilities Criteria

· Claiming Refund of SToDS (Service Tax on Digital Services) incurred by Local Digital Tax Service Provider

· Treatment of Imported Services Requirement by all Businesses including Non-SST Registered Companies and its Exemptions

· Service Tax Treatment on Inter-Company Professional Services and Definition of Group Companies and When These Services are Taxable to Group Companies

Module 3: Sales Tax Updates and its Implementation Mechanism

· Transitional Mechanism on Sales Tax Rate Change

· Treatment of current AME Scheme

· Treatment of Exempted Goods in Stock that are Exempted under Schedule B

· What remains not subject to Sales Tax

· Items that will be subjected to 5%

· Items that will be subjected to 10%

· Rate Determination

Module 4: Other Categories of Sales Tax Exemptions

· Goods Exempted from Charging Sales Tax

· Persons Exempted from Paying Sales Tax and its Terms and Conditions

· Procedures on Sales Tax Treatment on Scraps at Different Stage of Production and Finished Goods

· Sales Tax Credit Systems

· Sales Tax Drawback Facilities vs Schedule A Item 57 Exemption

Module 5: SST Administrative Matters

· Bad Debt Relief

· Refunds

· Invoicing Particular Requirements

· SST Payment Basis – Accrual, Collection and Deemed Collect Bassis

· Accounting for Imported Service Mechanism for Non-SST Register Business

· Service Tax Contra System

Module 6: Implementation Health Check

· Key Common Areas to Look Out for Errors for Sales Tax and Service Tax

· Audit Coverage and Awareness

· Appeals

WHEN & WHERE

15 October 2025 (Wednesday); 9.00 am to 5.00 pm

Remote Online Learning - Zoom

W HO SHOULD ATTEND

CEO, Managing Directors, GM, CFO, Accountants, Finance Manager, Department Head, Tax Consultant, Operational Staff involved in SST

T RAINING INVESTMENT

RM 750 per participant (inclusive of Service Tax, Online Course Materials, E-Certificate of Attendance)

HRD Corp Claimable (SBL-Khas)

REGISTER HERE: http://carriera.com.my/index.php/training-registration-hrdf-sbl-claimable/

DOWNLOAD BROCHURE HERE: https://carriera.com.my/wp-content/uploads/2025/07/SST-Updates-for-Implementation-Requirements.pdf