GST for Business

GST ( Goods and Services Tax) is a value added tax that is based on multilevel tax based on consumption. GST will be replacing the current Government Sales and Service Tax from 1st of April, 2015. There will be a huge impact on businesses in Malaysia when GST is introduced.

What does GST means for businesses ? 

It is important to know that GST is meant for end consumer where business can deduct their GST tax and pass it on to the next supplier in the business chain. Without being listed a GST company, your business will have to buy supplies and raw materials with Inpux tax while not being able to charge Output tax to your clients.

Register yourself for GST 

Any type of businesses ranging from sole proprietary, company, unions, club, partnership, individuals with more than RM 500,000 taxable sales are required to register for GST. It would be optional for those below RM 500,000 to register voluntarily.

GST will be opened for business registration soon. Registering your business is essential for you to claim GST refund or to pass your GST tax to consumer. Early registration for GST will be opened in May 2014 for testing purpose. Registration can be done manually or online or via post.

Business will receive a GST identification number upon registrations. Companies will have to issue Tax invoices displaying the amount of GST being taxed while supplies or services separately. These items should be clearly displayed invoices with GST

  • Invoice number , date
  • Clear description of GST “tax invoice”
  • Your business name , address and GST identification number
  • Your clients business name and address
  • Quantity of goods or services
  • Total amount without tax
  • Separated amount of tax chargeable and tax rate
  • Gross amount with chargeable tax