Google has just sent out an email notification to Workspace users stating that they will be charging 8% instead of 6% for SST starting from March 2024. The company said that invoices from them will incorporate the new consumption tax rate moving forward.
Users of Google Workspace in Malaysia received emails recently mentioning that they will be receiving new invoices reflecting the change in SST rates. The company did say that the change will be automatic, and no action is required to be taken by the customers. Even so, it is a blow to the wallet of users as the SST will see an increase in their monthly payments to Google.
Expect other online services to increase SST too
We can also expect other online services such as streaming and gaming to see increased SST rates too. Expect brands such as Netflix, Disney Hotstar, Viu and others to make statements soon. Streaming services were first appended with SST locally way back in January 2020 – which saw a slight increase in the monthly fee for the services. We should see something similar happen with the new SST rate increase.
Some services are exempted from the SST increase
At the same time, the Malaysian government confirmed that some services will not see the 2% rate increase. This includes food and beverages (F&B) and telecommunication as the two sectors are deemed essential to the rakyat. Car parks and logistics services will also not see an SST increase as well.
The SST increase is part of the government’s plan to increase revenue to create more funds for public infrastructure. Also announced during the budget is the introduction of the luxury goods tax and enforcement of the capital gains tax.