Service Tax on Repair and Maintenance Services

The Royal Malaysian Customs Department (Kastam) issued Guideline on Service Tax for Repair and Maintenance Services on 26 February 2024 to provide guidance on repair and maintenance services which will be subject to service tax started from 26 February 2024.


The provision of any maintenance or repair services including maintenance management, corrective maintenance, preventive maintenance, calibration, adjustment, restoration, rearrangement or overhaul is subject to service tax as specified under item (n), column (2), Group G, First Schedule, Service Tax Regulations 2018.

The enforcement date of service tax for maintenance or repair services is from 26 February 2024.

Taxable services specified for motor vehicle servicing or repair services and cleaning services are not included in the scope of these maintenance and repair services. This guide should be read in conjunction with the Motor Vehicle Service or Repair Guide and the Cleaning Service Guide.


Maintenance services refer to activities carried out by service providers to preserve, maintain, operate, regulate, prevent, restore or manage a building, item, land or system so that it can function properly and effectively, meet current standards, improve conditions and performance, extend life span, increase productivity, be safe, minimize the risk of damage, accidents and others.

Maintenance services can include various service area such as equipment maintenance, facility management, road maintenance, computer or information technology maintenance, telephone maintenance, field maintenance, drain and ditch maintenance, system maintenance and other maintenance related to buildings, land, goods and system.

Repair service refers to the activity of repairing, fixing or restoring a building, item, land or system that is damaged, does not work, or needs maintenance. Repair services are part of maintenance services.

For service tax purposes, the activities listed below are included in the category of corrective maintenance or repair services:
  • Calibrate
  • Adjustment
  • Recondition
  • Reconfigure
  • Overhaul
(The above list is not limited)


Preventive Maintenance Services

Preventive maintenance services are maintenance activities designed to prevent damage from occurring. This maintenance service is performed on a routine, scheduled or periodic basis.

Corrective Maintenance Service or Repair Service

Corrective maintenance or repair services are emergency, ad hoc, upon request or unscheduled. Repair service is the process of returning a product to its original or better condition by replacing the damaged item or improving the existing specifications.

  1. Maintenance management services relating to land or buildings for residential use provided by any developer, joint management body, management corporation or residential association are not subject to service tax.
  2. Repair services for residential buildings.
Please click here to refer detail guide on repair services for residential buildings.


For the purpose of registration under the Service Tax Act 2018, any person who provides maintenance and repair services must calculate the total value of taxable services provided in the current month and eleven months ahead. If the total value of the taxable service exceeds RM500,000, the application for the purpose of registering the taxable service must be applied for no later than the last day of the following month.

The registered person is responsible for:
  • Imposing service tax on taxable services
  • Issuing invoices to customers in respect of any transaction relating to the provision of taxable services
  • Submit the SST-02 service tax return electronically/manually and pay the service tax before the due date
  • Keeping proper records in relation to service tax transactions

The service tax charged to the customer must be pledged and paid to the Royal Malaysian Customs Department when payment has been received from the customer.

However, under section 11(2), ITA 2018 if no payment is received 12 months from the date the taxable service was provided, then it is the responsibility of the registered person to account and make payment to the Royal Malaysian Customs Department for the value of the payment that has not been received.


The provision of maintenance or repair services to any person in the same group of companies (hereinafter referred to as group members) is a non-taxable service provided that the total value of the taxable service to a third party within a period of twelve (12) months does not exceed an amount equal to the value of five percent (5%) of the total value of the same taxable service. For the purpose of this policy, this facility is referred to as group relief.

If a company in a group of companies obtains maintenance or repair services, from any company in the same group of companies outside Malaysia, the service is not an imported taxable service.
For more information please contact the following personnel:

Ten Jia Sheng
+60 14-911 1880

18 May 2024