Businesses have about two weeks to comply with the new update from the Ministry of Finance (MoF) to reduce the Goods and Services Tax (GST) from 6 per cent to 0 per cent beginning June 1, 2018 throughout the country, for goods and services within Malaysia and those imported from abroad.
In the meantime, all registered businesses are still subject to all existing rules including those related to tax invoice, submission of tax return within predetermined taxable period, and claims of input tax credit.
Whilst the rakyat would be delighted with this news, GST registered businesses may face a challenging task to implement such change by June 1, highlighted Ng Sue Lynn, the executive tax director for Indirect Tax Practice at KPMG Malaysia.
“With only about 15 days to go, businesses need to consider various issues, some more complex than others,” she said in a statement yesterday, adding that among those things include reviewing the pricing of goods and services. The Ministry of Finance has reminded taxpayers on compliance with the Price Control and Anti Profiteering Act 2011. In other words, there is an expectation that reductions to the GST rate will flow through to consumers,” Ng said. “They also need to carefully consider time of supply issues, both from an output tax and an input tax perspective as 1 June 2018 nears. There are specific rules on this and non-compliance is an offence.”
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