Notes - Food & Beverages (Group B)

• F&B include:
  •  Any person operating Restaurant, Bar, Snack-Bar, Canteen, Coffee House or Any Place Which Provides F&B whether wholly or partly eat-in or take-away excluding:
    • A canteen located in an Educational Institution
    • A canteen operated by a Religious Institution or Body
      * Including Kiosk, Counter, Sales Booths and Pasar Tani or Night Market
  • Any person providing Catering Services
  • Any person operating a Food Court including any eating place which is centrally managed with a common cashier system and where two or more person provides food and drinks
    
    
• Taxable services also include provision of Other Services Other Than Rental of the space within the food and beverages establishment (FBE) and Sale of Beverages including Bottled, Pack or Canned Drinks and Alcoholic Drinks (except Mineral Water or Drinking Water)
  * Charged Parking, Rental of Facilities, Services of Entertainment such as Karaoke, Playground and Others, Cooks Services and Services of Corkage and Towel provided by the F&B operator are also subject to Service Tax
  * Sales of Non-Food Merchandise such as stationery, newspaper is NOT subject to Service Tax
  * Sales of Tit-Bits and Snacks such as sweets, ice cream is NOT subject to Service Tax
  
  
• Service Charge and Tips are NOT subject to Service Tax
  
  
• Q: I am a restaurant owner who received a customer request to organize a birthday celebration. However, the F&B was outsourced to a caterer. What is the treatment for this situation?
  A: F&B by the caterer which was charged to restaurant owner is subject to Service Tax of 6%. Birthday celebration that is charged as a package by the restaurant owner is subject to Service Tax with the value of F&B included.
  
  
• Deposit received should be accounted for Service Tax not later than the last day of the month following the end of each taxable period
  
  
• F&B sold in passenger transport via land and sea mode are NOT subject to Service Tax as they are not provided by F&B operators in the restaurant category. However, food sales for air passenger transport are subject to Service Tax under the air passenger transport service category
  
  
• Food and beverages purchased and consumed on self-service basis at convenience stores are NOT subject to Service Tax. However, if the convenience store provides area to dine in such as tables and chairs, the food prepared or served by the staff are subject to Service Tax, including sales of tobacco products, alcoholic and non-alcoholic beverages
  
  
• The service of preparing and selling food and beverages through online is NOT subject to Service Tax
  
  
• The preparation or sale of food or beverages provided by the franchisee shall be in accordance with the terms set out by the franchisor as specified in the franchise agreement

For more information, kindly refer to https://mysst.customs.gov.my/ or our company Facebook https://www.facebook.com/ycsmanagement/

We do provide SST Registration Serice, Accounting Service and SST Reporting Service. Kindly refer to https://www.ycsaccounting.com.sg/our-services/malaysia/accounting for details. Please feel free to contact us at +607 – 225 4911 should you need more clarifications. Or you can just click HERE to contact us.