Service Tax on Digital Services or Digital Service Tax (“DST”) is a consumption tax charged and levied on the provision of digital services by a foreign registered person ("FRP") to any consumers in Malaysia.
DST is invoiced by the FRP that is selling digital services and collected from the customer. Subsequently, the supplier reports and remits the collected DST to the tax authorities.
Under Malaysia DST laws, Zoom is required to collect DST on supplies to both business (“B2B”) and non-business customers (“B2C”).
If a supply meets the following criteria it will be considered a digital service:
If a customer's ‘Sold To’ location is in Malaysia, Zoom will charge DST on its invoices.
This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.
It is your responsibility as a customer to ensure that your ‘Sold To’ address is accurate.
No. DST applies to the sale of all Zoom’s services in Malaysia.
Any exemptions applicable under the Malaysian Service Tax Legislation will require Zoom to charge DST on the provision of digital services before the exemption (if any) can apply.
As such, it will be the customer's responsibility to ensure that it meets the conditions prescribed under the Malaysian Service Tax legislation before claiming or applying the relevant exemptions.
No. DST applies to the sale of all Zoom’s services in Malaysia.
If you are a B2B customer applying for exemption(s) or relief, you are required to ensure that you meet the conditions prescribed under the Malaysian Service Tax legislation before making any claim or applying the relevant exemption applicable to your business.
As of August 1, 2024, as a customer you may be required to issue a self-billed e-invoice in Malaysia for any purchases from Zoom.
As a foreign supplier to customers in Malaysia, Zoom is not required to issue an e-invoice to customers in Malaysia.
Zoom will issue a commercial invoice for any sales to customers in Malaysia. This commercial invoice from Zoom can be used by the customer to extract the details to document the expense on the self-billed e-invoice.
Every customer is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant tax rules. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.