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Malaysian GST details

  • Apr 4, 2014 | Richard Asquith

Malaysian GST details

Following the announced introduction of Malaysian Goods & Services Tax on 1 April 2015, a draft Bill has been published in Parliament. The new GST will replace the existing Sales Tax at 10% (5% on basic foodstuffs) and the Service Tax of 5%.

Key measures contained within the Bill include:

  • 6% GST rate
  • Imports of goods will be subject to the new tax
  • The following goods will be exempt from GST: public transport; basic foodstuffs; and education
  • Fines for non-payment of GST of up to 20 times the missing GST, with the possibility of a prison sentence
  • GST invoices must be issued within 21 days of the tax point
  • Relief program for the change over between the existing service tax and GST
  • Non-resident taxable entrepreneurs will be required to register and charge GST above a prescribed threshold

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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.