Indirect Tax Alert: MySToDS Portal Goes Live
On 30 March 2020, the Royal Malaysian Customs Department (“RMCD”) announced that the MySToDS portal for Service Tax on Digital Services (“SToDS”) by foreign registered persons (“FRPs”), will go live on 1 April 2020. This follows the introduction of SToDS in Malaysia, effective 1 January 2020. Please note that the login details (including a temporary password) will be sent to the FRP’s business email address that is registered with RMCD.
The MySToDS portal serves as a one-stop platform to assist FRPs with all SToDS-related matters (e.g., submission of SToDS returns, payment of SToDS, etc.). With that, RMCD has also released a Guide on Digital Services by Foreign Service Providers (“FSPs”) as at 30 March 2020, for further guidance.
Please find below the salient points of the above-mentioned Guide, for your kind attention:
Application for SToDS registration
- A FSP who is liable to be registered shall apply for registration via the DST-01 form through the MySToDS portal, not later than the last day of the month following the month in which the registration threshold has been exceeded.
- The effective date of registration will be on the first day of the month following the month in which the application is made.
Submission of DST-02 return (i.e., SToDS return)
- Every FRP will be assigned a taxable period for which to account for SToDS. The Director General (“DG”) may vary the length of any taxable period or the date on which any taxable period begins or ends, upon application in writing from the FRP.
- The FRP is required to file SToDS returns via the DST-02 form on a quarterly basis and pay the related service tax due, not later than the last day of the month following the end of the quarterly taxable period to which the return relates.
- The value of digital services and the amount of corresponding service tax shall be declared in Ringgit Malaysia (“MYR”). Where the FRP charges its consumers in a currency other than MYR, the FRP shall convert the total value of digital services and the amount of SToDS to MYR.
- The DST-02 return shall be submitted to RMCD accordingly, regardless if there is any service tax to be remitted.
Payment of SToDS
- The FRP is required to remit the SToDS due and payable not later than the last day of the month following the end of the taxable period.
- The payment of SToDS, penalty or any other money by the FRP can only be undertaken in MYR and shall be deemed to be paid when the payment is received by the DG and is credited into RMCD’s account.
- The methods of payment for SToDS are as follows:
a) Telegraphic transfer (TT)
b) Financial Process Exchange (FPX) – this method will require the FRP to have a bank account in Malaysia. However, this method is only available from 1 July 2020.
- For payments made through TT, please note that immediately after the payment has been made, the FRP must update the payment information and attach the proof of payment in the MySToDS portal.
- Please note that RMCD will only process the payment when the payment has been credited to RMCD’s account and the relevant information has been updated by the FRP in the MySToDS portal. Therefore, RMCD encourages FRPs to make payment before the 15th of the month.
The above-mentioned announcement made by the RMCD can be found in the official link of the MySST portal, whilst the above-mentioned Guide issued by the RMCD can be found in the official link of the MySToDS portal.
Below is the said Guide as well, for your ease of reference.
