Sales Tax and Service Tax (“SST”)
What is Sales Tax?
Sales Tax is a single-stage tax charged and levied:
i. On taxable goods manufactured in Malaysia by a taxable person and sold by him (including used or disposed off); and
ii. On taxable goods imported into Malaysia
What is Service Tax?
Service Tax of 6% is a tax charged on: -
• Any provision of taxable services;
• Made in the course or furtherance of any business;
• By a taxable person; and
• in Malaysia.
Service Tax is not charged on imported nor exported services
Does Lazada charge Sales Tax?
Lazada is NOT liable to be registered under the Sales Tax Act 2018, hence all Goods sold by Lazada is not subjected to Sales Tax
Does Lazada charge Service Tax on Marketplace fees?
Lazada Malaysia, as a Service Tax Registered company under Service Tax Act 2018, will impose 6% of Service Tax on certain fees. Based on the rules and regulations pertaining to Service Tax issued by the government, all Marketplace Services fees except delivery fees are subjected to 6% Service Tax. Therefore, with this implementation, all services performed effective 1 September 2018 will be affected by this 6% Service Tax.
Must invoices issued by Lazada be in the form of hard copy?
No, invoices can be in the form of electronic form. Lazada may provide Seller with electronic documents such as invoice, receipt, credit note, debit note, or any other document.
What is the purpose of invoice issued by Lazada?
• Lazada is a Service Tax registered company. Service Tax is charged to taxable supplies (i.e., commission, payment fees, and others) at prevailing Service Tax rate.
• In compliance with Service Tax regulations, Lazada will issue invoice on the supplies made to all Sellers.
• Lazada will send invoice to Sellers every month.
• The invoice will be distributed to Sellers on 20th of the following month.
How is Service Tax charged by the Lazada?
If Lazada charge Seller a fee of RM1,000, this amount is subject to Service Tax at 6%. Therefore, a total RM1,060 will be charged to the Seller.
What if charges / Service Tax amount in Seller Center does not tally with the amount stated in the invoice?
You can download the transaction report in Seller Center. It is advisable to download the transaction base on the period of the invoice for easy matching.
What should I do if I do not receive my monthly invoice?
Please check your inbox of the email address registered in Seller Center. It is preferable to have another email address for the invoice if you are still having a problem in receiving the invoice
Is the sale price of the product inclusive of tax?
Price of all items in Lazada website is final. The invoice template facility provided by Lazada will not display any taxes that is applicable to Seller. Seller should issue valid invoice if required to do so under current tax rulings, as highlighted in MP Agreement under Seller Undertakings clause.
What is Seller’s responsibility on taxation?
The sales made to buyer via Lazada Market Place model (dropshipping / FBL) is purely a supply by Seller. Seller should account any taxes accordingly on each of the supply to buyer and comply with any other requirements under the applicable tax legislations. Seller shall keep all the records related to this supply.
Seller should ensure valid documents to be produced to customer for the orders via Lazada platform as highlighted in MP Agreement under Seller Undertakings clause.
The use of invoice facility provided by Lazada is at your discretion. Seller is fully responsible to check the accuracy of the document before sending it to customer. If you have issued the invoice to customer, any adjustment pertaining to the order such as return order, wrong figures and etc should be adjusted according to the current tax rules.
As required by laws in Malaysia (i.e. Section 32 of Income Tax Act 1967, Section 245 of Companies Act 2016, Section 24 of Service Tax Act 2018 and etc) the business is required to keep the record relating to the transactions of the sales, purchases, including invoice, Debit Note, Credit Note, all accounting records and any other related documents as required to support the transactions for 7 years. Therefore, we advise you to keep all the record (i.e. transaction report, invoice) as required by current regulations diligently. If you don’t receive the invoice, please highlight to us within one month of the scheduled invoice issuance date (i.e. 20th). Failing which, the request would not be entertained.