Goods and services tax to sales and service tax transition rules

On the 1 June 2018, the new Malaysian government withdrew the Goods and Services Tax (GST). It was replaced with a sales and services tax (SST) on 1 September 2018.

Below is a summary of the points for taxpayers to consider during the transition period.

  • Supplies made between 1 June and 1 September 2018 are liable to zero GST, and should be reported as normal in the quarterly or monthly GST return
  • The final GST return should be filed by 1 September 2018
  • GST audits and reviews will continue to 2019
  • SST will apply to any goods or services provided from 1 September 2018, irrespective of the invoice or payment dates
  • In the case of advance payments prior to September for supplies made after September, corrective invoices should be issued with SST levied
  • Where supplies span the GST and SST periods, separate invoices should be issued and reported in the appropriate tax return
  • The first SST return is due by 30 November 2018, covering September to October 2018
  • Tax payers are recommended to review and amend any taxable supply contract, and amend to reflect the new SST rules and rates