1. What is Sales and Service Tax (SST)
i. Service Tax
- Service tax that is a tax charged and levied on taxable services provided by any taxable person in Malaysia in the course and furtherance of business.
- Taxable person is any person who belongs in Malaysia and is prescribed to be a taxable person.
- Taxable service is any service which prescribed to be a taxable service
ii. Sales Tax is a single stage tax charged and levied
- on taxable goods manufactured in Malaysia by a taxable person and sold by (including used or disposed off); and
- on taxable goods imported into Malaysia
3. Can TNB charge Sales and Service Tax?
- Under Service Tax Act 2018, provision of electricity is prescribed as a taxable service subject to 6% Service Tax. As a registered taxable person, TNB is complied to charge Service Tax for provision of electricity.
- However, not all our customers are subjected to Service Tax.
4. Which TNB Customer Category is applicable to Service Tax?
5. What are the condition where Service Tax will be charged for Residential (Domestic) customers?
Residential (Domestic) customers are subjected to Service Tax provided:
- The monthly consumption is more than 600 kWh (more than RM 231.80); and
- The billing period is 28 days and above.
6. Does Service Tax Act stipulate item 3 and 4?
Yes. Reference can be made to First Schedule [Regulation 3] under Service Tax Regulation 2018X
7. I am a Residential customer. My monthly consumption is less than 600 kWh. Am i Affected?
No, you don’t if your billing period is 28 days and above. However, if the billing period is less than 28 days, Service Tax will be imposed on your entire consumption.X
8. Why is my billing period less than 28 days?
Generally, the monthly billing cycle is set from 28 to 31 days. However, the billing period can be less than 28 days in the following scenarios:
- When customers request to terminate their supply contract with TNB.
- When customers sign a new supply contract with TNB.
- When customers request for change of tariff from Residential to Non-Residential or vice-versa
9. Does TNB charge Service Tax on Non-Residential customers?
No. Non-Residential customers are not govern under Service Tax Act 2018.X
10. Will my bill show how much Service Tax I have to pay?
11. What are the billing components that are subject to Service Tax, 6%?
- Energy Consumption (kWh)
- Discounts (Service Tax will be calculated after discount)
- Temporary Load Charge
12.I have a Street Light attached to my account. Is Service Tax charged on Street Light consumption?
No. Individual Street Light is not taxable.X
13. What are the other services in TNB subjected to Service Tax?
Service Tax is only applicable to billing components specified as in item 11. Other services such as Connection Charge, Supply Application, Meter Accuracy Test is not subjected to Service Tax.X
14. TNB charges 1% interest on Late Payment. Is this subject to Service Tax?
No. 1% interest Late Payment is not taxable.X
16. What does TNB do with the Service Tax charged and collected from the electricity bill?
TNB as a taxable person have to charge the Service Tax as stipulated in the Service Tax Act 2018. The tax collected will be remitted to Royal Malaysian Custom Department.X
17. Where can I channel my enquiries or get more information on Service Tax charged by TNB?
Sample Calculation with Service Tax in electric bill
Sample 1: Calculation of electric bill for consumption in transtion period
- Tariff: A - Residential
- Billing Period: 18/08/2018 - 17/09/2018 (31 days)
- Total Consumption: 694 kWh
Method of Calculation is as below:
Sample 2: Calculation of electric bill after 1 September 2018
- Tariff: A - Residential
- Biiling Period: 3/9/2018 - 3/10/2018 (31 days) - No Transition Period
- Total Consumption: 730 kWh
Step 1: total consumption more than 600 kWh
Step 2: Refer to the column Kena ST where Jumlah Kegunaan Bulan Semasa x Kadar ST 6%X