Service Tax (ST) was introduced on 1st September 2018, and effective 1st July 2025, the scope has been expanded to cover construction services.
Businesses involved in construction must now ensure proper SST registration, invoicing, return submission (SST-02), and compliance with the latest tax treatment rules. With customs audits expected to increase, this program provides full compliance under the updated SST framework.
Brochure
— Course Fee: RM 1,080.00 (Inclusive of 8% Service Tax) —
Module 1 – Service Tax Legislation Overview
- Service Tax Act 2018 and other
key legislation provisions
- Definition of taxable services
- Mandatory registration:
- Taxable threshold
- Who must register?
- SST threshold computation
- Effective date on 1 July 2025
- Taxable construction services include:
- Commercial building, infrastructure, M&E services
- Mixed development project
Module 2 – Exemptions Available
- Construction services exemption available:
- Pure residential building works and public amenities.
- Works related to Federal/State Government and Local Authorities.
- B2B exemption criteria, e.g. both parties are from same service category
- Need to apply?
- Group of companies exemption
- E-Invoice disclosure requirement
- Supplier and customer SST registration number
- Value of taxable services
- Detailed of exemption
Module 3 – Operating in Special/Designated Areas
- Special Areas:
- Taxable if principal place of business is in PCA.
- Designated Areas (Langkawi, Tioman, Pangkor, Labuan) tax treatment
- Way to determine whether the registrant’s place of business is in SA/DA/PCA
Module 4 – SST-02 Return Submission
- How to submit SST-02 accurately:
- Bimonthly via MySST portal, e.g.
- Value of taxable services
- Exempted amounts
- SST payment deadline
- Bimonthly via MySST portal, e.g.
Module 5 – Transitional Period and Customs Ruling
- Contracts spanning pre- and post- implementation period, i.e. 1st July 2025
- When and how to apply for Customs ruling to confirm facts
- Non-reviewable contract
Module 6 – Case Study on Various Scenarios
- Purchase building materials on behalf, taxable?
- Back charge of materials to contractor, taxable?
- Treatment of V.O., ommisison and LAD
- Special note for retention sums, progress claims and consultants’ certificate
- Distinguish between residential vs commercial projects.
- How to determine the construction services value?
- Percentage of completion
Module 7: Common Pitfalls and Appeal Process
- Missing B2B exemption documentation.
- Various service tax possible penalty
- Appeal process
- Q & A