Indirect Tax Alert
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Issue No. 43/2024 | 6 December 2024
Customs Media Release on Service Tax Treatments of Food & Beverages Provided by Operators of Golf Clubs or Golf Driving Ranges
The Royal Malaysian Customs Department (RMCD) recently issued a media release dated 5 December 2024 to clarify the service tax treatments of food and beverages (“F&B”) provided by operators of golf clubs or golf driving ranges following a viral reporting on one of the media platforms stating that F&B provided by these operators have been exempted from service tax.
The RMCD clarified that prepared or served F&B or catering services provided by operators of golf clubs or golf driving ranges are still subject to a service tax at a rate of 6%. However, processed and packaged food products by manufacturers, such as crackers, dry biscuits, and candies, sold by operators of golf clubs or golf driving ranges are not subject to service tax starting 27 November 2024.
PwC Comment
The above service tax treatments clarified by RMCD are consistent with our comments stated in our Indirect Tax Alert Issue No. 48/2024 dated 26 November 2024 regarding the amendments in the Service Tax (Amendment) (No.2) Regulations 2024.
If you think your business may be affected by the above amendments or if you need any clarification or assistance, please do not hesitate to contact us and we would be happy to assist you.
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