It is not uncommon for Malaysian service tax registrants to incorrectly charge service tax to their customers/service recipients in the normal course of business. The scope of service tax can be unclear, and the interpretations adopted by the Royal Malaysian Customs Department (RMCD) continually change. Once a taxpayer has determined that they have overpaid service tax, the process for obtaining the tax refund can be complicated. The RMCD recently has indicated that credit notes cannot be used to adjust and offset overpaid tax, and a refund may be claimed only through adjusting the original return in which the transaction was reported and then seeking a refund.
Source: Deloitte
