Malaysia cuts GST registration threshold

Mon 9th Nov 2015

The new 2016 budget has introduced a number of changes to the Malaysian GST regime, which was introduced in April this year to replace the Sales and Services Taxes. The GST rate is 6%.

The changes include:

  • The GST registration threshold will be reduced from MYR100,000 to MYR50,000 per annum on the flat rate VAT scheme for certain sectors only
  • A GST exemption regime for reimporters is to be introduced
  • The range of medicines subject to nil VAT will be extended
  • Purchasers by consumers of prepaid phone cards are to receive a 6% credit of the GST
  • Flights to a number of Malaysian rural locations and airlines are to become nil rated for VAT