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Goods and Services Tax (GST) Registration in Malaysia

The implementation of GST has changed the tax system in Malaysia. Also known as Value Added Tax (VAT) in other countries, GST is nothing new in this region. It replaced the Sales Tax and Service Tax systems in Malaysia.

Goods and Services Tax (GST) Registration is easy and simple. Below are some guidelines on Goods and Services Tax (GST) Registration in Malaysia and the complete services we can offer to you.

 

Requirements for Registration

Businesses have to understand the statutory registration requirements when they register for GST.

  • Who Must Register?A business with annual sales revenue exceeding RM500,000 are liable (and must) to be registered under GST. In order to know whether you need to register for GST or not, you will have to calculate your taxable turnover, which is based on: The total values your taxable supplies (standard-rated and zero-rated) for a twelve month period but excludes the value of
    • exempt supplies,
    • out of scope supplies,
    • capital assets disposed,
    • imported services (e.g. certain services you receive from abroad such as consultancy and auditing services ), and
    • disregarded supplies made under a Warehousing Scheme or made

    within or between Designated Areas.

    You can check the eligibility from here: Do I Need to Register For GST?

  • ExemptionsIf you are ONE of the following categories, you do not need to apply GST license with Royal Malaysia Customs.
    • Your company’s last 12 months’ sales was less than RM500,000
    • Your company’s next 12 months’ sales is expected to be less than RM500,000
    • You are running business in Exempt Supply category
    • You are exporting all your products overseas (Out-of Scope)

    However, you are required to register with Royal Malaysia Customs (RMC) and charge 6% GST to all your customers if you are not anyone of the above.

  • Zero-Rated Supply CompanyFor business that falls in Zero-Rated Supply category, the business owner does not have to charge 6% GST even though the company’s yearly sales exceed RM500, 000. However, the company will still need to register with Customs Department in order to claim back GST paid on the purchases & expenses.

 

How to Register for GST?

Registering for GST could be a difficult task if you are not familiar with the process. You can start registering for GST either electronically via the GST portal or by filling up a manual form.

Generally, the following important documents are required for GST registration purpose:

  • Identification document:
    • business registration number as provided by SSM,
    • identity card number,
    • passport number (if not a Malaysian citizen),
    • registration number given by ROS or identification number provided by local authorities, professional or statutory bodies, whichever is applicable.
  • A copy of bank statement (to be attached with the application form)Here is the step by step  that could help you to understand how to register for GST in Malaysia. After the GST registration, you can check your registration status as well as the registration status of the business.