30 August 2018
The sales and service tax (“SST”) will be reintroduced in Malaysia from 1 September 2018. The SST was removed in 2015 with the introduction of the goods and services tax (“GST”). GST was zero-rated as of 1 June 2018 and has now been abolished as the Malaysian Parliament repealed the Goods and Services Tax Act 2014 on 20 August 2018.
Also on 20 August 2018, the Malaysian Parliament passed the Sales Tax Bill 2018 and the Service Tax Bill 2018. The Bills provide that the provision of services will be taxed at 6%, while the sale of goods will be taxed at either 5% or 10%, depending on the category of goods.
Royal Malaysian Customs has issued an FAQ in relation to the reintroduction of the SST. It is noted therein that a final GST return should be filed within 120 days from the date of repeal of the Goods and Services Tax Act 2014.
The Royal Malaysian Customs’ FAQ Sales Tax 2018 is available on the Royal Malaysian Customs website www.customs.gov.my. The Bills are available on the Malaysian Parliament website www.parlimen.gov.my and can be navigated to by clicking here.