is all restaurant must pay service tax?

Posted on 14th Oct 2023 00:00:00 in pinned

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No, not all restaurants in Malaysia must pay service tax. Service tax is only applicable to restaurants that meet the following criteria:

The restaurant is registered with the Royal Malaysian Customs Department (RMCD) for service tax.
The restaurant's annual turnover exceeds RM1,500,000.
The restaurant serves food and beverages to customers on a commercial basis.
Restaurants that do not meet these criteria are not required to pay service tax.

If you are unsure whether or not a particular restaurant is required to pay service tax, you can check with the RMCD or ask the restaurant directly.

Here are some examples of restaurants that are not required to pay service tax:

Small, family-run restaurants
Restaurants that only serve takeaways or delivery orders
Restaurants that are located in designated areas, such as hospitals, schools, and universities
Restaurants that are operated by non-profit organizations
If you are dining at a restaurant that is not required to pay service tax, you may still be charged a service charge. However, service charge is different from service tax. Service charge is a voluntary fee that is paid to the restaurant staff. Service tax is a mandatory tax that is paid to the government.



No, all restaurants in Malaysia do not have to pay service tax. Only restaurants that have a total value of taxable services exceeding RM1,500,000 per year are required to register for and charge service tax.

Restaurants that are not required to register for service tax may still choose to charge a service charge, but this is optional and is not the same as service tax. Service charges are typically used to cover the cost of providing services to customers, such as table service and food preparation.

Customers should always check the bill carefully to see if service tax or a service charge has been applied. If you are unsure, you can always ask your server or the cashier for clarification.

Here are some examples of restaurants that are not required to pay service tax:

Small family-owned restaurants
Food stalls and hawker centers
Cafes and coffee shops
Takeaways and delivery orders
Restaurants that are required to pay service tax must display a valid service tax license in the premises.

I hope this information is helpful.



No, not all restaurants in Malaysia must pay service tax. Restaurants are only required to pay service tax if their annual value of taxable services exceeds RM1,500,000.

Here is a list of restaurants that are exempted from paying service tax:

Restaurants that serve food and beverages in designated areas, such as hospitals, schools, and universities
Restaurants that serve food and beverages by non-profit organizations
Restaurants that serve food and beverages in takeaways and delivery orders
Additionally, restaurants that are registered for service tax are not required to charge service tax on the following items:

The cost of food and beverages
The cost of service charge, if applicable
The cost of any other goods or services that are not subject to service tax
If you are unsure whether or not a restaurant is required to charge service tax, you can always ask your server or the cashier.

Tips:

When dining at a restaurant in Malaysia, it is always a good idea to check the bill carefully to make sure that the correct amount of service tax has been charged.
If you are unsure about anything on the bill, do not hesitate to ask your server or the cashier for clarification.
If you are not satisfied with the service that you have received, you can always leave feedback with the restaurant manager.