Frequently Asked Questions

The Service Tax is a consumption tax governed by the Service Tax Act 2018 and its subsidiary legislation. The Service Tax Act 2018 takes effect from 1 September 2018 onwards.

According to Service Tax Regulation 2018, First Schedule, Group I, Item 2(a), all telecommunication services are subject to the 6% Service Tax effective 1 September 2018, except the following:

• Digital goods and services (e.g. Apple Carrier Billing, Pay on Google Play™, etc.)

• Devices

• GoLife Insurance

This is a non-exhaustive sample list of taxable telecommunication services:

• Rate plans inclusive of supplementary line or member lines

• Local and IDD calls

• SMS, MMS, etc.

• Data Booster

• Voice bundle – U Talk Plus, Talk Plus

• SMS bundle – U SMS Plus, SMS Plus

• Content – RBT, song purchase, etc.

• Subscription-based services such as VIU, HyppTV, etc.

• Roam-Onz, U Data Roam

• Roaming services (data and voice) in overseas areas

• Telecommunication services consumed within Special Areas (Free Trade Zones) and Designated Areas (Langkawi, Labuan and Tioman) 

• Retrieval of voicemail

• SIM card replacement

• Broadband activation fee

Reconnection is considered a service, so it is subject to the 6% Service Tax.

There will be an indication next to the items under “Details of Charges” on your postpaid bill:

• SR – Subject to 6% Service Tax 

• NA – Tax not applicable

The RM10 rebate is related to a service that is subject to the 6% Service Tax. This means that the RM10 rebate does not apply to the 6% Service Tax.

The GST was abolished effective 1 September 2018, so you do not have to pay GST for your UPackage plan effective 1 September 2018.

Both the device and its upfront payment are not subject to the 6% Service Tax. 

Transition Period During and After Service Tax Implementation 

Some voice plans and data plans will be impacted by the implementation of the 6% Service Tax. The Service Tax for access fee, services and usage was not charged for the month of September 2018. Instead, this charge was carried forward to the month of October 2018. 

The Service Tax charges for the September and October bills will be reflected and displayed as a total sum for two different bill periods, showing the tax amount that was not charged in the past and the current tax amount.

Impacted Voice Plans

U28, U50, U80, U58, U88, UD68, UD90, UD98, UD130, UD158, P50, P70, P78, P98, i40, i60, i90, i130, Internet Share Plan 

Note: The Service Tax for access fee, services and usage is prorated.

The bill that you received on 1 September 2018 was a bill for services consumed during the period of 1 to 31 August 2018. The 6% Service Tax takes effect on 1 September 2018, so you were charged 0% GST and no Service Tax.