Malaysia sales tax credits following GST launch
- 13 April 2015 | Richard Asquith
On 1 April 2015, Malaysia became the latest country to adopt a full OECD-style Goods & Services Tax – similar to VAT. This replaced the existing sales and goods taxes.
A key component of the new Malaysian GST regime is the right for Malaysian GST registered businesses to recoup input GST charged by their suppliers. To compensate companies holding stocks over the 1 April implementation date, the Malaysian tax authorities have agreed to provide tax refunds.
The special cash refund will be provided for sales tax incurred on stocks held at the start of April. Companies will need to provide an independent audit opinion on any goods worth more that RM 10,000 (about $2,500).
Companies must submit an appropriate application by the end of September.