SST refers to Sales Tax and Service Tax which are consumption taxes imposed on certain goods and services. The cost is borne by the consumer, while businesses collect and remit the tax to the government.

Under the expanded scope of taxable services announced in the Malaysian Budget 2025, higher education services, previously exempt, will now be subject to service tax from 1 July 2025.

The service tax is set at 6% and will apply to fees relating to education services, including but not limited to:

• Tuition fees,
• EMGS fees,
• Resource fees

Refundable deposits will not attract service tax as they do not constitute payment for a service.

• The 6% service tax will apply to higher education services provided to non-Malaysian citizens.
• Malaysian citizens remain exempt.

BAC and VUC will begin charging service tax from 1 September 2025, in line with regulatory requirements.

• Fees invoiced and fully paid before 1 September 2025 will not be subject to service tax.
• Any outstanding invoices as of 1 September 2025 may be adjusted to include the 6% service tax.

No. The introduction of service tax will not affect your visa, student pass, or immigration process. Please ensure timely payment of fees to maintain your student status.

No. On-campus accommodation fees are not subject to service tax.

Should there be any overcharging or undercharging of service tax, adjustments will be made as soon as practicable.

For enquiries, please contact :
International Student Office via groupiso@bac.edu.my or ‪+60 12-962 4722‬