Malaysian GST details

Sun 6th Apr 2014

Following the announced introduction of Malaysian Goods & Services Tax on 1 April 2015, a draft Bill has been published in Parliament. The new GST will replace the existing Sales Tax at 10% (5% on basic foodstuffs) and the Service Tax of 5%.

Key measures contained within the Bill include:

  • 6% GST rate
  • Imports of goods will be subject to the new tax
  • The following goods will be exempt from GST: public transport; basic foodstuffs; and education
  • Fines for non-payment of GST of up to 20 times the missing GST, with the possibility of a prison sentence
  • GST invoices must be issued within 21 days of the tax point
  • Relief program for the change over between the existing service tax and GST
  • Non-resident taxable entrepreneurs will be required to register and charge GST above a prescribed threshold

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