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Issue No. 3/2025 | 21 March 2025
Service Tax Policy No. 7/2024 (Amendment No.1) - Service Tax on the Issuance of Virtual Credit Cards
The Royal Malaysian Customs Department (RMCD) recently uploaded the Service Tax Policy No. 7/2024 (Amendment No.1) - Service Tax on the Issuance of Virtual Credit Cards dated 14 March 2025 onto their MySST portal to amend paragraph 1(a) of the Service Tax Policy No. 7/2024 (“STP 7/2024”) dated 26 July 2024.
Previously, the condition stated in paragraph 1(a) of STP 7/2024 requires the activation/renewal date, expiry date and card verification value (CVV) number of the virtual credit card to be the same as that of the existing physical credit card in order for the issuance of the virtual credit card not to be subject to service tax. The Service Tax Policy No. 7/2024 (Amendment No.1) has removed the requirement for the CVV number of the virtual credit card to be the same as that of the existing physical credit card.
PwC Comment
We understand that it is unlikely that the CVV number of a virtual credit card issued to a person is the same as the CVV number of the physical credit card issued to that person. As such, RMCD has to issue the above Service Tax Policy No. 7/2024 (Amendment No.1) to amend the conditions for the issuance of virtual credit card not to be subject to service tax.
If your business is affected by the above amendment or if you have any questions on the above matters, please do not hesitate to contact us and we would be happy to assist you.
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