Celcom Axiata Berhad welcomes the government’s decision of exempting the Sales and Service Tax (SST) on its prepaid services effective 6 September 2018.
Mobile communications has become an integral part of daily life. As such, this decision will make a positive impact on many Malaysian prepaid mobile users.
According to Mohamad Idham Nawawi, Chief Executive Officer of Celcom Axiata Berhad, Celcom has already provided tax rebates to Malaysian customers who have purchased prepaid plans from 1 September till 5 September 2018, in the form of on-net call freebies as stated on our website.
6% SST still applies for non-Malaysians and other Celcom services.
Celcom SST FAQ:
What is SST and how will it affect Celcom customers?
SST stands for Sales and Service Tax which is to replace GST effective from 1 September 2018. With the introduction of SST, our products and telecommunication services, where applicable, will be subject to Service Tax from 1 September 2018 and onwards. The prevailing Service Tax rate is 6%.
What products and services will subject to Service Tax from September 2018
All telecommunication services and other services in connection with telecommunication services will be subject to Service Tax at 6% under the provision of Service Tax Act 2018 and Service Tax Regulations 2018.
Example of Telecommunication services subject to Service Tax: Voice, SMS, MMS, IDD, International Roaming, VAS, Data/Internet, Content, SIM Replacement, etc.
Postpaid
Will there be Service Tax charged in my postpaid bill received in September 2018 and in subsequent months?
For your postpaid bill received in September 2018, only charges in relation to taxable services rendered from 1 Sep 2018 and onwards will be charged with Service Tax. Similarly to the subsequent months’ bill, Service Tax will apply accordingly on all taxable services.
Prepaid
Will there be Service Tax charged for prepaid subscribers from 1 September 2018?
Celcom Axiata Berhad welcomes the government’s decision of exempting the Sales and Service Tax (SST) on its prepaid services effective 6 September 2018.
Will there be any reload freebies for SST?
Yes, please refer to XPAX SST reload freebies.
Starter Pack
Is starter pack subject to Service Tax and what is the price of the Starter Pack?
Starter pack is for the provision of telecommunication services and is subject to Service Tax. Our Xpax Starter Pack is priced at RM10 (inclusive of Service Tax) with a preloaded credit of RM6.00.
Devices
If I purchase a mobile phone or accessories from Celcom, is it subject to Service Tax?
Sale or rent of mobile phone or accessories is not a taxable service under the provision of Service Tax Act 2018. Hence, Service Tax will not be charged during your purchase or rent of a mobile phone or accessories. Only taxable services will be subject to Service Tax.
If I purchase a Device with Xpax Postpaid Plan from Celcom, will there be Service Tax imposed?
There will be no Service Tax imposition on the Device. Service Tax will only apply on the monthly commitment of the Postpaid Plan that is charged in the bill.
Others
Are International Roaming, IDD, Over-The-Top (OTT), VAS and Mobile Internet subject to Service Tax?
Yes, these are telecommunication services and are taxable services under the provision of Service Tax Act 2018.
Is Service Tax applicable to Telecommunication services provided by Celcom to Designated Areas (Langkawi, Labuan & Tioman)
Yes, Telecommunication services to Designated Areas (Langkawi, Labuan & Tioman) are subject to Service Tax.
Where can I obtain more information on SST?
To know more, please visit
- General info: https://mysst.customs.gov.my/
- Service Tax Regulations 2018:
https://mysst.customs.gov.my/assets/document/Service%20Tax%20Regulations%202018.pdf - Guide on Telecommunication Services: https://mysst.customs.gov.my/assets/document/1.%20Guide%20on%20Telecommunication%2021082018_rev5.pdf