Goods and Services Tax (GST)

Goods and Services Tax (GST) in Malaysia

Malaysia replaced its Sales and Service Tax regimes with the Goods and Services Tax (GST) effective 1 April 2015. The implementation of GST system that has two rates of GST (6% and 0%), and provides for the zero-rating of exported goods, international services, basic food items, and many books. As a broad based tax, GST is a consumption tax applied at each stage of the supply chain. GST is charged on any taxable supply of goods and services (made in the furtherance of any business by a GST-registered person in Malaysia). It is also charged on the importation of goods and services into Malaysia.

 

Goods and Services Tax (GST) Registration

Under Goods & Services Tax (GST) system in Malaysia, businesses with annual sales of RM500, 000 or more, are required to be registered under the GST. If your business annual sales do not exceed this amount, you are not obliged to register for GST.

Here is a step-by-step guideline that can help you to register GST and understand the tax system.

• Before GST registration
  • Equip yourself with GST knowledge:
    • Malaysia Tourist Refund Scheme,
    • GST Margin Scheme for Second Hand Car Dealer in Malaysia,
    • Understand what is the GST paid by you but you can’t claim back: Malaysia GST Blocked Input Tax Credit,
    • Understand what is the GST you paid for your expenses or purchases that you can claim back : GST Input Tax Credit Refund Claiming
  • You can get your GST-related questions and doubts answered here: Goods and Services Tax (GST) FAQ
  • Find out if you are eligible to register for GST : Do I Need to Register For GST
• GST registration
  • Step by Step Guide for GST Registration
• After GST registration
  • You can check your registration status or check the registration status for a business

In relation to GST registration, many people are not aware of the penalties and offences may be imposed if the following offences are committed:

• Inaccuracy of GST return
• Failure to submit
• A GST return is submitted without payment or a lesser payment
• Any refund paid to which there is no proper entitlement (Wrong calculation on input tax credit)
• Failure to register (even sales more than RM500,000)

That said, you need not to put yourself into the hassles and troubles when comes to GST and GST registration. 3E Accounting is here to provide you the full range of GST tax services that include:

Please do not hesitate a single moment before you reaching out to us!

Overview of GST Resources