Malaysia Sales and Service Tax

The sales and service tax (SST) is added on advertising costs at a rate of 8%.

For the business location you have selected, billing is managed by Microsoft Ireland Operations Ltd., in Ireland. Effective March 1, 2024, Microsoft Advertising is required by law to charge an 8% Malaysia Sales and Service Tax (SST).

Microsoft Advertising cannot provide guidance on tax or VAT. Please contact your tax advisor or local tax office if you have questions.

How is the service tax applied to my account?

The service tax is included as a percentage of your net advertising charges for postpay threshold and monthly invoice accounts. For prepay accounts, a portion of prepay funds go towards taxes.

Regardless of how you pay, your billing document will include a separate line item for the service tax.

Postpay threshold and monthly invoice accounts

If you have a postpay threshold or monthly invoice account, the 8% digital service tax will be added as a percentage of your net charges. For example, you would be assessed RM8 MYR if you generated RM100 MYR in advertising charges. Learn about billing thresholds.

Important

For monthly invoice accounts, the insertion order budget only applies to ad spend. If you have a strict budget limit, you will need to account for taxes.

Prepay accounts

If you have a prepay account, some of your prepay funds will go towards taxes. For example, if you added RM100 MYR to your prepay account, RM7.41 MYR would cover taxes and the remaining RM92.79 MYR would cover advertising charges.