This article relates to the Goods & Services Tax (GST) which was introduced in April 2015, but was subsequently replaced with the Sales & Service Tax in September 2018.
Is your business required to be registered under the GST Act?
Any business that makes taxable supplies in Malaysia, and whose cumulative 12 month taxable turnover exceeds the proposed threshold of RM500,000.00 is required to be registered under the GST Act.
Taxable supplies includes both goods and services.
Registration is mandatory and penalties apply for late or non-registration.
How to determine taxable turnover for GST?
| Category of Person | Taxable Turnover |
|---|---|
| a company | The value of all taxable supplies made by that company |
| a company with divisions or branches | The value of all taxable supplies from all divisions and branches |
| a sole proprietor/an individual | the value of all taxable supplies of his business |
| a partnership | the value of all taxable supplies by the partnership |
| a single taxable person | the value of all taxable supplies by the business entities registered as a single taxable person |
| a joint venture | the value of all taxable supplies made by the joint venture |
12 month period
The criteria is turnover over a 12 month period, and this is calculated using the following methods:
- Historical method
This would take into account your taxable supplies for any month and your taxable supplies for the last eleven months - Future method
This would take into account your taxable supplies for any month and the expected value of taxable supplies for the next eleven months