There
is an announcement on the implementation of GST in Malaysia recently
and the Malaysian GST commence on 1st
April 2015 at the rate of 6%. Generally, GST
is a multi-stage of consumption tax on the goods and services which
is also known as the value added tax (VAT) in many countries. GST is
a broad based consumption tax that covering all sectors of the
economy and its levied on the supply of goods and services at each
stage of the supply chain from the supplier up to the retail stage of
the distribution. Therefore, all goods and services that made in
Malaysia including the imports of goods and services as well are
subject to GST EXCEPT some specific goods and services which are
categorized under zero rated supply
and exempt supply orders as
determined by the Minister of Finance and published in the Gazette.
GST
is charged on:-
(a)
any taxable supply of goods and services;
~
cover all forms of goods and services (except zero rated supply and
exempt supply orders)
(b)
made in the course or furtherance of any business;
Business
includes any trade, commerce, profession, vocation or any other
similar activity whether or not for pecuniary profit. This means that
financial profitability is Not a criterion in
determining the status of business and instead any transaction
involved with goods and services are subject to the GST.
(c)
by a taxable person;
A
taxable person is a person who is or is required to be registered
under the GST Act. A taxable person is a person who makes taxable
supplies in Malaysia and whose annual turnover exceeds
the proposed threshold of RM500,000 (annual
turnover mean the total value of taxable supplies excluding the
amount of GST). Such person is required to be
registered under the GST Act. However, in some cases, a person is not
required to be registered for GST but he registers voluntarily for
GST. In this situation, he is also a taxable person.
**It is important to
take note that the proposed threshold of RM500,000 is not a profit of
the business, but instead is the business turnover.
(d)
in Malaysia.
To find out more,
click here
General Guide -revised as at 27 October
2013
