New taxable services: Logistics services

The following services will be included under the new Logistics Services (Group J) and subject to Service Tax at 6 % effective 1 March 2024:

1. Logistics services including:

Logistics Management Services
Port and Airport Management Services
Warehousing or Warehouse Management Services (from Group G)
Freight Forwarding
Shipping
Air Cargo
Cold Chain Facilities

2. Delivery or distribution or transportation services of goods

(excluding delivery of food and beverages prepared by food and beverage providers)

3. Delivery or distribution or transportation services of goods using e-commerce platforms for any person

(excluding delivery of food and beverages prepared by food and beverage providers)

4. Customs agent services for the release of goods from customs control

(from Group I)

5. Courier services (from Group I)

Service Tax Registrations

The threshold for Service Tax registrations for logistics services is RM500,000 for the total value of taxable services in a 12-months period, except for customs agent services where there is no threshold for registration.

For service providers who are already a taxable person (previously registered under courier services, warehouse management and customs agents), the 6 % Service Tax applies on all logistics services (inclusive of the newly added taxable services) from 1 March 2024.

For taxable persons other than courier services, warehouse management and customs agents, the imposition of Service Tax on logistics services would be effective from 1 April 2024.

B2B exemption is available where both, the service provider and their recipient are registered for Service Tax under the same group of services.