Foreign Digital Service Providers: A Holiday Is No Excuse for a Late Service Tax Return

An amendment to the Service Tax (Digital Services) Regulations 2019 was gazetted on 27 October 2026 as P.U. (A) 371. It replaces regulation 16, which sets out when service tax returns and payments are treated as received, and comes into operation on 28 October 2026. The rule is written with the foreign registered person in mind, namely overseas providers of digital services.

Under the new regulation, returns and payments of service tax or penalty made through electronic services can be received at any time, except when the system is under maintenance. The time of receipt is based on Malaysian standard time (UTC/GMT + 8 hours), wherever the business is located.

The key point concerns holidays. Where the last day for the return and payment falls on a weekly holiday or public holiday, whether in Malaysia or in the country where the foreign registered person is established, the last day remains that same day. In practice, a holiday does not push the deadline to the next working day.

With the system open around the clock, there is little reason to wait for the final day. An overseas team working in a different time zone also needs to plan around Malaysian dates and Malaysian time, not its own.

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