Malaysia GST - What is GST?

WHAT IS GST?

#GST10

General Information

Good and Services Tax or well known as GST will replace the current Sales Tax & Service Tax (SST)

Sales and Service Tax will be abolished from 1 April 2015.

GST is charged on goods and services that are:

• Supplied in Malaysia
• Imports

It is also known as Value Added Tax (VAT)

GST is a consumption tax. Simply means that the consumers will be the one who bears all the tax. All the taxes will be passed on to the consumers. Let me stop here for now. I will find opportunity to explain this again in my next blog.

GST will take effect from 1 April 2015.

One has to register with Royal Malaysian Custom (RMC) if one taxable annual turnover is more than RM500,000.00 by 31 December 2014. The registration has begun since 1 June 2014.
Note: If you are selling exempt supplies and more than RM500,000.00 turnover, you do not have to register. Kindly confirm this with your tax accountant on this. Please let me know if my understanding is wrong.

The annual sales turnover can be determined based on either:

• The total value of taxable supplies of the current month and the previous 11 months, or
• The total value of taxable supplies of the current month and the next 11 months.

Late registration with RMC are subject to penalty and it will compute based on number of days late. Try to avoid paying any penalty by making sure that you registered before the deadline. The maximum amount of penalty charges will be Ringgit Malaysia 20,000.00


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Hope it will help in your implementation and a have a smooth transition on 1 April 2015. 

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CUKAI BARANG DAN PERKHIDMATAN (lebih dikenali sebagai GST)