Service Tax in Restaurants
Some restaurants charge service tax of 5%, whereas others 10%. Ever wonder how service tax works. According to The Star newspaper dated July 11, 2008, only restaurants earning more the 3 million per year(previously RM500,000 annum) can charge service tax, and this took effect July 1 last year.
However, seems like not all restaurants observe this, i doubt some small restaurants which i visited make more than 3 million a year 😛 but they do charge service tax. You could lodge complain at
1. cd [at] customs.gov.my or
2. kastam [at] customs.gov.my
According to article in Malaysia Royal Custom website, restaurants in hotel, nightclubs, dance halls, cabarets, health centre, massage palours, public houses and beer houses can charge service tax with no pre-requisite of annual earning 3 millions.
For full list of restaurant authorised to charge service tax, refer to Lowyat.net or Promotions and Sales in Malaysia.
One things which confuses things for me is this Service Tax Act specify 5% service tax is at stake, but at times restaurant charge 10% service tax.
