Malaysia Goods and Service Tax (GST) Application
Hotline: 86-755-82143348, Email:anitayao@citilinkia.com
Businesses making taxable supplies have to be registered under Malaysia Goods and Services Tax (GST) if their annual sales turnover has exceeded the prescribed threshold. Only a registered person can charge and collect GST on the taxable supplies of goods and services made by him. GST is charged on the value or selling price of the products. The amount of GST incurred on input (input tax) can be deducted from the amount of GST charged (output tax) by the registered person.
If the amount of output tax is more than the input tax in the relevant taxable period, the difference shall be remitted to the Government. However, if the input tax is more than the output tax, the difference will be refunded by the Government.
Registrant’s Responsibilities and Obligations
GST requires businesses who have exceeded the prescribed threshold to register and to keep records of input and output tax. Businesses report their liability in a specific period called taxable period. Explore the following sections to understand your responsibilities and obligations as a registrant under GST.
1. Registering your Business
The first step to being GST-ready is to register for a GST identification number. You need to check whether you are required to register or whether you want to register voluntarily. Persons having businesses with annual sales turnover exceeding RM500,000 are liable to be registered under GST. Persons include an individual, sole proprietor, partnership, company, trust, estate, society, union, club, association or any other organization including a government department or a local authority which is involved in the business of making taxable supplies in Malaysia.
2. Issuing Tax Invoices
When you charge GST, you need to issue a tax invoice showing the amount of GST and the price of the supplies separately. The tax invoice has to be issued within 21 days after the time of the supply.
The Director General of Customs may upon request allow the tax invoice to be varied from the above whether in term of particulars in the tax invoice or issuance of other type of tax invoice e.g. simplified tax invoice.
3. Accounting for GST
Basically, all taxable persons will be required to account for GST based on accrual (invoice) basis of accounting i.e. all output tax and input tax are to be accounted and claimed based on the time when the invoice was issued or received. However, certain categories of taxable persons may be allowed to use the payment (cash) basis of accounting. This facility may be given to businesses who carry out their activities solely on a cash payment basis.
All business and accounting records relating to GST transactions are to be kept in Bahasa Melayu or English for a period of seven (7) years.
4. Filing GST Returns
GST returns must be submitted to the GST office not later than the last day of the following month after the end of the taxable period.Taxable period is a regular interval period where a taxable person is liable to account and pay to the government his GST liability. The standard taxable period is on quarterly basis.
5. Input Tax Credit Mechanism
Businesses have to charge and collect GST on all taxable goods and services supplied to the consumers. Only businesses registered under GST can charge and collect GST.
Businesses are allowed to claim whatever amount of GST paid on the business inputs by offsetting against the output tax.
6. Claiming GST Refund
Any refund of tax may be offset against other unpaid GST, customs and excise duties. Refund will be made to the claimant within 14 working days if the claim is submitted online or 28 working days if the claim is submitted manually.
7. Paying GST
If your output tax exceeds the input tax, the difference shall be remitted to the Government together with the GST returns not later than the last day of the following month after the end of taxable period.
8. Offences
Penalties may be imposed if the following offences are committed:
• Any deficiency on the net tax payable.
• No GST return is made.
• A GST return is submitted without payment or a lesser payment;
• Any refund paid to which there is no proper entitlement.
• Failure to register.
9. Review and Appeals
Any person who is aggrieved by the decision of the officer of GST may apply for a review and revision to the DG within 30 days from the date of notification. Alternatively, such person shall make an appeal to the Tribunal within 30 days from the date of the decision.
Contact us
For any Malaysia Goods and Service Tax (GST) Application enquiries, please do not hesitate to contact us, Malaysia hotline：603-2141 8908，Fax：603-21418909; Hong Kong hotline: 852-27826888, Fax: 852-34262391; China hotline: 86-755-82143181, Fax: 86-755-82143182; Email: tannetcom88@gmail.com (Malaysia), Group website：www.3737580.net
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