The Royal Malaysian Customs Department published a service tax specific guide on Disbursement and Reimbursement, dated 15 September 2020. The main focus of the guide concerns the recovery of expenses of a claimant acting as a principal or as an agent on behalf of a customer, which determines whether a recovery of expenses is a disbursement or a reimbursement, and the resulting service tax treatment.
The recovery of expenses by a claimant while acting as an agent is treated as a disbursement…