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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
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.
Bill Received Date | 07-Sep-18 | 15-Sep-18 | 01-Oct-18 |
---|---|---|---|
Bill Period | 7 Aug – 6 Sep | 1 Aug – 14 Sep | 1 – 30 Sep |
Transition period in which Service Tax was not charged | 1 – 6 Sep | 1 – 14 Sep |
1 – 30 Sep |
Service Tax to be charged | Two Bill Period
|
Two Bill Period
|
Two Bill Period
|
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.
We are not allowed to charge the 6% Service Tax before 1 September 2018. However, we have to charge the 6% Service Tax for services consumed after 1 September 2018. This means that the 6% Service Tax for your advance access fee for the period of 1 to 30th September 2018 (which is covered by your 1 September bill) will be charged to you in your 1 October 2018 bill.
Service Tax Calculation
Your bill will include the following fees and charges for the 6% Service Tax:
Service Tax for monthly access fee.
Service Tax for itemised bill and other charges.
Service Tax that was not charged on the bill dated 01/09/2018, for impacted plans during the implementation period.
EXAMPLE FOR BILLS RECEIVED ON 7 SEPTEMBER 2018
U28, U50, U80, U58, U88, UD68, UD90, UD98, UD130, UD158 P50, P70, P78, P98, i40, i60, i90, i130, Internet Share Plan
Example: | Service Tax |
---|---|
Access fee (U28) (07/10/2018 – 06/11/2018) | 1.68 |
Access fee (U28) (01/09/2018 – 06/09/2018, not charged in bill dated 07/08/2018) | 0.325 |
Itemised bill RM3 | 0.18 |
Other charges RM5 | 0.3 |
TOTAL | 2.485 |
MB40, MB68, MB88, MB128*
Example: | Service Tax |
---|---|
Access fee – U Broadband MB40 (07/10/2018 – 06/11/2018) | 2.4 |
Access fee – U Broadband M740 (01/09/2018 – 06/09/2018, not charged in bill dated 07/08/2018) | 2.4 |
TOTAL | 2.48 |
EXAMPLE FOR BILLS RECEIVED ON 15 SEPTEMBER 2018
U28, U50, U80, U58, U88, UD68, UD90, UD98, UD130, UD158 P50, P70, P78, P98, i40, i60, i90, i130, Internet Share Plan
Example | Service Tax |
---|---|
Access fee (U28) (15/10/2018 – 14/11/2018) | 1.68 |
Access fee (U28) (01/09/2018 – 14/09/2018, not charged in bill dated 05/08/2018) | 0.759 |
Itemised bill RM3 | 0.18 |
Other charges RM5 | 0.3 |
TOTAL | 2.919 |
MB40, MB68, MB88, MB128*
Example: | Service Tax |
---|---|
Access fee – U Broadband MB40 (15/10/2018 – 14/11/2018) | 2.4 |
Access fee – U Broadband M740 (01/09/2018 – 14/09/2018, not charged in bill dated 15/09/2018) | 2.4 |
TOTAL | 2.48 |
EXAMPLE FOR BILLS RECEIVED ON 1 OCTOBER 2018
U28, U50, U80, U58, U88, UD68, UD90, UD98, UD130, UD158 P50, P70, P78, P98, i40, i60, i90, i130, Internet Share Plan
Example: | Service Tax |
---|---|
Access fee (U28) (01/10/2018 – 30/11/2018) | 1.68 |
Access fee (U28) (01/09/2018 – 30/09/2018, not charged in bill dated 01/09/2018) | 1.68 |
Itemised bill RM3 | 0.18 |
Other charges RM5 | 0.3 |
TOTAL | 3.84 |
MB40, MB68, MB88, MB128*
Example: | Service Tax |
---|---|
Access fee – U Broadband MB40 (01/10/2018 – 31/10/2018) | 2.4 |
Access fee – U Broadband MB40 (01/09/2018 – 30/09/2018, not charged in bill dated 01/09/2018) | 2.4 |
TOTAL | 2.48 |
Notes:
*Mobile Broadband Plans are categorised as data plans that practice non-prorated charges. Therefore, the Service Tax is charged based on the full month’s access fee.
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