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What is Goods and Services Tax (GST)?
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GOODS AND SERVICES TAX (GST) which is also known as VAT or the value added tax in many countries is a multi-stage consumption tax on goods and services. It will replace existing SST (SALES AND SERVICES TAX) and start to implement on 1 April 2015.
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What does it charge?
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GST is charged on goods and services that are supplied in Malaysia by a taxable person.
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Who is taxable person?
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A taxable person is a person who makes taxable supplies in Malaysia and whose annual turnover exceeds the proposed threshold of RM500,000.00.
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What is included in threshold taxable turnover?
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It includes:
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(a)
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Standard rated supplies
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(b)
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Zero rated supplies (includes goods exported)
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(c)
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Deemed supplies (private use of business assets, business gift > RM500.00, supply to connected person)
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(d)
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Disregarded supply (supplies between group members)
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How do I determine of taxable turnover?
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Based on historical turnover (based on turnover of the current month and the preceding 11 months), i.e. retrospective basis, or based on future turnover (based on turnover of the current month and the next 11 months) i.e. prospective basis.
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Can I voluntary register GST?
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Yes, businesses below threshold may apply for voluntary registration, but it must remain in the system for at least two (2) years once registered, and the GST records must be kept for at least seven (7) years.
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What are the responsibilities of a GST registered person?
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(a)
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Account for GST on taxable supplies made and received;
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(b)
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Submission of GST returns (GST-03) and pay tax not later than the last day of the following month after the taxable period;
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(c)
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Issuance of tax invoice;
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(d)
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Inform Customs of the cessation of business within thirty (30) days from the date of cessation;
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(e)
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Inform Customs of any changes of address, taxable activity, accounting basis and taxable period;
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(f)
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Keep adequate records of business transactions relating to GST in the Bahia Malaysia or English language for seven years.
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Should I apply for GST license if I am existing SST license holder?
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Yes, you are required to apply GST license if you meet the registration threshold. SST license will not automatically convert to GST license.
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How do I register GST license?
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You can visit www.gst.customs.gov.my register online or submit form GST-01 manually to nearest custom office.
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How do I determine my GST taxable period?
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If the company (registered person) has more than RM5,000,000 (Five Million Ringgit Malaysia) taxable supply, the company (registered person) must submit its GST every month.
If the company (registered person) taxable supply is less than RM5,000,000 (Five Milion Ringgit Malaysia), the company (registered person) can submit their GST querterly. The taxable period is following company year end. Please refer to the following tables for more details:
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| Company year ended
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Taxable period
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| Jan, Apr, Jul, Oct
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Feb to Apr, May to Jul, Aug to Oct, Nov to Jan
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| Feb, May, Aug, Nov
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Mar to May, Jun to Aug, Sept to Nov, Dec to Feb
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| Mar, Jun, Sept, Dec
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Apr to Jun, Jul to Sept, Oct to Dec, Jan to Mar
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When should I submit and pay my GST?
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GST must be submitted and paid within one month subsequence to your taxable period.
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How can I pay my GST?
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Tax payer will be able to make payment at seven Agent Banks:
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- Maybank Berhad
- RHB Bank Berhad
- Bank Islam Malaysia Berhad
- Hong Leong Bank Berhad
- CIMB Bank Berhad
- Public Bank Berhad
- Alliance Bank Berhad
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There are three channels available for payment at agent banks:
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- Over The Counter (Cash or Cheque) (Cheque payable to "Ketua Pengarah Kastam Malaysia")
- Bank Portal
- Self-Service Terminal (ATM, Cheque Deposit Machine and Cash Deposit Machine)
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Do we charge GST on export?
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No. To make our exports more competitive, GST on exports will be zero-rated and the exporter can recover all the input tax incurred in the course of his business.
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What are the GST rates in the Asean countries?
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The following are the GST rate among the ASEAN countries:
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Year of Implementation
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Initial Rate (%)
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Current Rate (%)
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| Indonesia
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1984
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10
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10
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| Thailand
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1972
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10
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7
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| Singapore
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1993
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3
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7
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| Philippines
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1998
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10
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12
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| Cambobia
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1999
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10
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10
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| Vietnam
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1999
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10
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10
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| Laos
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2009
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10
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10
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What is GST impact on imported goods? Would it make the imported goods cheaper or more expensive?
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Previously, imported goods are subject to import duty and sales tax unless exempted. Under GST, imported goods will still be subject to import duty but sales tax will be replaced with GST. As to whether the imported goods will be cheaper or more expensive will depend on a number of factors besides the GST rate.
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Where can I get more GST information?
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You can visit www.gst.customs.gov.my (official website) if you wish to know more about GST.
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