Well, the time has come. Digital tax is about to hit Malaysia next year, and the first company to reveal that they will pass the tax back to us is Google. According to an email sent out to G Suite users, they will start including the 6% service tax on their digital services and that no action is required on the user.
This service tax will be shown on the invoive for G Suite in “Transactions” under the “Billing & Payments”. While Google has not mentioned any other services being taxed, neither did they send any other official statement, we can also assume that any payment made under Google will also be charged.
This means it’s likely that anything you purchase on Google apps, be it apps or in-app purchases, as well as the recent YouTube Premium will also have a 6% tax.
As 2020 draws closer, we can expect more online services to announce whether they will be raising their prices due to the digital tax that’s meant to start on January 1 2020. We can expect this especially from services like Netflix and Spotify, which are currently popular streaming services in Malaysia, or even game platforms like Steam and Epic Games.