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Malaysia Sales and Service Tax goes live

  • VAT
  • 01 September 2018 | Richard Asquith

Malaysia Sales and Service Tax goes live

Malaysia has now passed (‘gazetted’) its implementing legislation for the new Sales and Service Tax. It becomes effective today, 1 September 2018.

Goods produced locally or imported are now taxed at a standard rate of 10%. A range of goods are subject to a reduced rate of 5%, including basic foodstuffs; petroleum oils; construction materials; IT, telecommunications and printing hardware and materials; and timepieces. Oil and petroleum are subject to quantity-based rates.

The Service Tax rate is 6%.

SST replaces GST

The new Malaysian government has introduced SST to replace the 6% GST, which was suspended on 1 June 2018.  SST has a much narrower tax base.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.