What is the service tax on digital services in Malaysia?

The Malaysian authorities have introduced a service tax on digital services provided by foreign service providers. From November 10, 2020, PayPal Services provided to Malaysian account holders are subject to this service tax.
 
The service tax only applies to the PayPal fees charged for processing a transaction, not the total transaction value.
 
What is the service tax rate?
More information about the service tax, including the current rate prescribed by Malaysian tax authorities, can be found on the Royal Malaysian Customs website.
 
Do I have to take any action to comply with this tax requirement?
You don’t have to take any action relating to this change. The service tax is integrated into our payment experiences and applicable fees.
 
Is the service tax levied against the total transaction value?
The service tax will only apply to the PayPal fees charged for processing a transaction, not the total transaction value.
 
Where can I find how much digital service tax I’ve paid?
The service tax is integrated into applicable fees and isn’t itemized separately in our payment experiences.
 
The current rate prescribed by Malaysian tax authorities can be found on the Royal Malaysian Customs website.
 
Is the service tax paid by merchants and consumers?
The service tax applies to all PayPal fees paid by our customers in Malaysia – both merchants and consumers.

Can I claim a refund on the service tax?
No. More information about the service tax can be found on the Royal Malaysian Customs website.
 
For an overview of all fees, log in to your PayPal account and click Fees at the bottom of any PayPal page.

Is the service tax refunded if a transaction is cancelled or reversed?
The service tax is integrated into PayPal transaction fees. In the event of a cancelled or reversed transaction, the prevailing refund policy on transaction fees will apply.