Malaysia cuts GST registration threshold

The new 2016 budget has introduced a number of changes to the Malaysian GST regime, which was introduced in April this year to replace the Sales and Services Taxes. The GST rate is 6%.

The changes include:

• The GST registration threshold will be reduced from MYR100,000 to MYR50,000 per annum on the flat rate VAT scheme for certain sectors only
• A GST exemption regime for reimporters is to be introduced
• The range of medicines subject to nil VAT will be extended
• Purchasers by consumers of prepaid phone cards are to receive a 6% credit of the GST
• Flights to a number of Malaysian rural locations and airlines are to become nil rated for VAT