MATTA Welcomes Service Tax Policy on Tourism Management Services

KUALA LUMPUR, 10 September 2019 – The Malaysian Association of Tour and Travel Agents (MATTA) welcomes the Service Tax Policy No.1/2019 issued by the Royal Malaysian Customs Department (RMCD) on 1 September 2019.

The circular states that from September 2019, Tourism Management Services are among the four services no longer prescribed as taxable service under the First Schedule of the Service Tax Regulations 2018. Businesses may issue invoice without service tax for services provided up to August, or credit note if payment has not been received. However, any service tax collected must be remitted to RMCD and there is no refund for service tax paid.

MATTA President Datuk Tan Kok Liang says “The decision came as a huge relief for tourism industry players as MATTA had been pursuing up to the highest level to clear confusion and impact of double taxation. We are deeply grateful to Finance Minister Lim Guan Eng for taking an interest on this matter and for RMCD officials for looking into our proposals.”

“The decision was certainly timely as service tax exemption applies to inbound tour packages and our tourism industry is gearing towards Visit Malaysia 2020. Making inbound tour package prices more competitive in the marketplace have considerable impact on long-stay rural tourism and ecotourism packages. We applaud the government’s efforts in facilitating growth of tourism in our country”, concludes Tan.

President MATTA
Term 2019 – 2021