The Royal Malaysian Customs Department has announced that, effective 1 March 2024, the Sales and Service Tax (SST) rate will increase from 6% to 8%.
In accordance with this announcement, KALEOZ will revise the Service Tax rate applied to platform fees charged to sellers from 6% to 8%, effective 1 March 2024.
For more information, please refer to the official announcement HERE.
Following the implementation of SST in Malaysia effective 1 September 2018, SEA Gamer Mall Sdn Bhd will impose Service Tax on taxable services provided through KALEOZ.com, in accordance with the Service Tax Guideline on Information Technology Services dated 9 August 2018.
What is Sales Tax?
Sales Tax is a single-stage tax imposed on:
- Taxable goods manufactured in Malaysia by a taxable person and sold by that person (including goods used or disposed of); and
- Taxable goods imported into Malaysia.
What is Service Tax?
Service Tax is a tax imposed on:
- The provision of taxable services;
- Services provided in the course or furtherance of any business;
- Services provided by a taxable person; and
- Services provided in Malaysia.
The current Service Tax rate applicable to KALEOZ services is 8%.
Does KALEOZ.com Charge Sales Tax?
No.
SEA Gamer Mall Sdn Bhd is not required to be registered under the Sales Tax Act 2018. Therefore, goods sold through KALEOZ.com are not subject to Sales Tax.
Does KALEOZ.com Charge Service Tax on Marketplace Service Fees?
Yes.
SEA Gamer Mall Sdn Bhd is registered under the Service Tax Act 2018 and is required to impose 8% Service Tax on applicable marketplace service fees.
Based on the Service Tax rules and regulations issued by the Malaysian government, all applicable service fees charged by KALEOZ.com are subject to 8% Service Tax.
How is Service Tax Charged by KALEOZ.com?
Service Tax is charged only on seller fees, not on the total sales amount.
Example: MYR 100.00 sales order
| Description | Calculation | Amount |
|---|---|---|
| Sales Order Amount | - | MYR 100.00 |
| Seller Fee (5%) | MYR 100.00 × 5% | MYR 5.00 |
| Service Tax on Seller Fee (8%) | MYR 5.00 × 8% | MYR 0.40 |
| Total Deductions | MYR 5.00 + MYR 0.40 | MYR 5.40 |
| Seller Income | MYR 100.00 - MYR 5.40 | MYR 94.60 |
Are Product Prices on KALEOZ.com Inclusive of Tax?
Yes.
All product prices displayed on the KALEOZ.com website are the final prices payable by buyers.