On 26 July 2024, the Royal Malaysian Customs Department (Customs) issued the Service Tax Policy No. 7/2024 relating to service tax treatment on issuance of virtual credit card.
For virtual credit cards issued as a product enhancement on an existing physical credit card is not subject to service tax if meet the following conditions:
- card activation/renewal date, expiry date and the card verification value (CVV) number of the virtual credit card remained the same as the existing physical credit card;
- only one credit card statement or bill will be issued to the customer based on the existing physical credit card numbers; and
- service tax has been levied on withdrawals and renewals of the existing physical credit card.
Service tax will be charged on the issuance of virtual credit cards if:
- virtual credit card is issued without a physical credit card; or
- virtual credit card is issued to completely replace the physical credit card.
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