1. What is GST and when it will be implemented by Digi?
GST (Goods & Services Tax) is a broad based consumption tax covering all sectors of the economy i.e., all goods and services made in Malaysia including imports. The 6% tax is levied on the supply of goods and services at each stage of the supply chain – from the supplier up to the retail stage of the distribution.
There is a list of specific goods and services that would not carry the GST, as determined by the Ministry of Finance and published in the Gazette. These are categorised under “zero rated supply” and “exempt supply orders”. Visit www.gst.customs.gov.my for more details.
In accordance with the national GST guidelines, the ICT industry qualifies for GST. Therefore, Digi will implement the GST on its products and services effective from the national implementation date, which is set on 1 April 2015.
2. How will GST be reflected in my bill?
Effective 1 April 2015, the 6% Service Tax is abolished. So, for Postpaid customers, the GST replaces the Service Tax column in your monthly bill statement.
In the GST section of the bill statement, the breakdown will be as follows:
a. Access – 6% GST on the Monthly Fixed Charges
b. Calls – 6% GST on the lump sum total of Usage Charges, excluding non-taxable items like International Roaming, International Travel Insurance, Zakat and Donations.
c. Others – 6% GST on the lump sum total of Other Credit & Charges and Discounts.
For Prepaid customers, GST is levied on the prepaid starter packs with the Recommended Retail Price (RRP) displayed with the price including 6% GST. All reload denominations will include GST from date of implementation. WIth effective from 1 Jan 2017, prepaid customers can log on to MyDigi to print the tax invoice.
3. I hear that there are additional FREE calls and SMS for prepaid customers post-GST. How do I get to enjoy these freebies?
Customers, who perform prepaid reloads starting 3 April, will enjoy FREE ON-NET calls and SMS for reload value of more than RM5. The offer is for 3 months starting from 3 April.
1. How much FREE calls and SMS is Digi offering for reloads?
2. When does this start?
Customers who perform prepaid reloads starting 3 April, will enjoy FREE ON-NET calls and SMS or FREE Internet quota for reload value of more than RM5. We are configuring our system to facilitate this allocation on 3 April, and as such, the FREE calls and SMS or FREE Internet quota may not immediately reflect on your credit balance.
3. Will I be notified for the additional Freebies?
Yes, you will receive an SMS notification informing you of the amount of freebies and the validity period of the freebies.
4. What is the validity of the Freebies?
3 days from the date of activation.
5. What can I use this credit for?
The FREE calls and SMS are only applicable for ON-NET (Digi-to-Digi) calls and SMS only.
6. How long will I be able to enjoy this additional Freebies?
Every time you reload starting from 3 April for three (3) months.
7. I had bought my reload coupons after 1 April but before 3 April. Do I qualify for these additional freebies as well?
No, the additional freebies are only available for activation of reloads from 3 April onwards for the next three months.
8. My Prepaid Broadband plan come with Unlimited Internet, do I enjoy extra FREE Internet upon reload?
No, the offer is only applicable to Prepaid Broadband plan without Unlimited Internet.
4. Is the 6% Service Tax still applicable after GST is implemented?
No, Service Tax will be abolished effective from 1 April 2015.
5. As a non-Malaysian customer subscribing to Digi services, will I be charged for GST?
If you are a non-Malaysian staying in Malaysia, and using services provided in Malaysia, GST will apply.
6. Once GST is implemented, will an impact on the current EPP service tax discount entitlement?
There will be no impact; the same treatment will be accorded under GST.
7. Which Digi services are NOT subject to GST?
Digi is in compliance with the general GST guidelines that identify which products and services are taxable under GST. They are as follows:
1. Discounts and promotional offers are subject to GST.
2. Effective 1 April 2015, rebates are classified as “Offers” or “Discounts”, and calculated as such. GST will be adjusted accordingly.
3. Goods sold in Designated Areas (namely Labuan, Tioman and Langkawi) are exempt from GST.
4. Telecommunication services are not exempted from GST in Designated Areas.
Below is the list of Digi products and services that outlines the GST impact by location:
| Type | Products & Services | Malaysia | Designed Area (Labuan, Langkawi, Tioman) |
|---|---|---|---|
| Products | Device (modem, handset) | Yes | No |
| Accessories | Yes | No | |
| Services/ Items | Deposit (refundable) | No | No |
| Stamp Duty | No | No | |
| Freebies | No | No | |
| Overpayment | No | No | |
| Donations (e.g., East Coast Flood Fund) | No | No | |
| Late Payment Charges | No | No | |
| Interest Charges (for late payment) | No | No | |
| SIM pack | Yes | Yes | |
| Reload coupon | Yes | Yes | |
| CPA services – General | Yes | Yes | |
| CPA services – Zakat/donation | No | No | |
| Insurance - General | Yes | Yes | |
| Insurance – International Travel Insurance | No | No | |
| SIM replacement | Yes | Yes | |
| Change MSISDN | Yes | Yes | |
| General service (voice, messaging, internet) | Yes | Yes | |
| IDD | Yes | Yes | |
| Digi Live Services (Deezer, CallerTuners, Ringtones, etc) | Yes | Yes | |
| International Roaming | No | No | |
| Domestic Roaming | Yes | Yes |
8. What is the GST treatment for a promotion package for new customers, whereby a free device (e.g., mobile phone) is bundled with the service package?
GST will be calculated on the total consideration paid, i.e., bundled package price.
9. What is the GST treatment for a promotion package, whereby a customer is entitled to purchase another mobile service at a reduced price after purchasing another specific mobile service at a normal rate?
GST will be calculated on the total consideration paid (i.e., bundled package price).
10. Will I be charged GST on the total Commitment Fee or Net amount after deducting my rebate for the Digi Smart Plan?
GST will be imposed on the Net amount.
11. Is the current VAT (Value Added Tax) imposed by a foreign network while I am roaming still applicable after GST is implemented?
Yes, the VAT imposed by the foreign network will be maintained, but the Malaysian GST will not be levied on the roaming usage.
12. How are refunds handled for services that are exempt from GST (ie, International Roaming Services or International Insurance Policy)?
For Prepaid customers, they will receive an SMS notification on the successful GST refund the following day from the date the charges were incurred.
For Postpaid customers, the final total calculated in the monthly bill statement will have excluded the GST-exempt services.
13. Will in-bound roamers be subject to GST?
GST is applicable for domestic in-bound roaming customers, but not for International in-bound roamers. E.g., Malaysia-registered customers, who roam between networks in Malaysia, are subject to GST whereas GST is not applicable to Non-Malaysia registered customers who roam in Malaysia.
14. My registered address is in the Free Trade Zone in Malaysia. Do I need to pay GST?
Yes, you do. Services are subjected to GST, unlike goods sold in the free trade zone.
15. Will I be subjected to GST if I sign up for a device plan at a Duty Free Zone?
While the device is GST-zero rated (means you don’t have to pay GST), you will still be levied with GST for the service plan.
16. What is the GST treatment on bad debts due to non-payment of mobile phone bill? What happens if the customer pays back the debt?
Customer only needs to pay the total amount owed in the invoice.
17. When a refund is made, will the GST charged be included?
Yes