Updated Food and Beverage SST Guidelines (16 April 2024)

Latest F&B SST Guide Key Points:

The scope of the Service Tax covers services provided by restaurants, bars, cafeterias, coffee shops, catering services, and food courts with characteristics of a restaurant.

1. The threshold for SST registration for F&B operators is exceeding RM1.5 million within a 12-month period.

2. The standard service tax rate for the provision of food and beverages is 6%. However, effective March 1, 2024, services other than food, beverages, telecommunications, parking, and logistics have been increased to 8%.

3. Other services provided within the Food and Beverage Area (FBA) such as facility rentals, entertainment, cigarette sales, and alcoholic beverage sales are subject to an 8% rate. Package-related services (e.g., wedding packages) will follow the main service rate of 6%.

4. Bakery sales at cake shops and packaged food sales (e.g., at convenience stores) are not subject to SST as they do not have restaurant characteristics. However, franchise counters selling food are subject to SST if the franchisor requires registration.