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Circulars

 

TITLE: Updates Related to Sales Tax and other Guide on GST

DATE: 08/05/2019

8 May 2019
Circular No. 49/2019

TO ALL ACCOUNTANTS

1. LATEST GUIDE ON SALES TAX DEDUCTION FACILITY
  The Guide on Sales Tax Deduction Facility issued by the Royal Malaysian Customs Department (RMCD) on 19 April 2019 has replaced the same guide that was issued on 13 January 2019. This Guide is provided to assist registered manufacturers in understanding the implementation of the sales tax deduction (formerly known as Credit System during the SST 1.0 era) beginning 1 January 2019. Legislations related to the implementation of sales tax deduction facility are as follows:
 
(i) Sales Tax Act 2018
(ii) Sales Tax (Amendment) Regulations 2018
(iii) Sales Tax (Determination of Sale Value of Taxable Goods) Regulations 2018
  The said guide can be downloaded from the RMCD’s website at the link below:
https://mysst.customs.gov.my/SpecificGuides
   
2. REPORTS TO BE PREPARED FOR EXEMPTION UNDER SCHEDULE B AND SCHEDULE C
  On 22 April 2019, the RMCD announced the reports to be prepared for exemption under Schedule B and C of the Sales Tax (Persons Exempted from Payment of Tax) Order 2018.

Please click on the following links for the announcement and the reports:

https://mysst.customs.gov.my/News

https://mysst.customs.gov.my/SSTForms
   
3. OTHER GUIDES ON GOODS AND SERVICES TAX (GST)
  On 22 April 2019, the RMCD published the following guides:
 
(i) GST Guide on Tax Invoice, Debit Note, Credit Note and Retention Payment After 1st September 2018.

This guide is specifically prepared to assist businesses in understanding matters with regards to the liability of goods and services tax (GST) on the issuance of tax invoice, debit note, credit note and GST treatment on retention payment after the repeal of Goods and Services Tax Act (GSTA) 2014 effective from 1st September 2018. If there is any inconsistency between previous GST decisions and the decisions stated in this guide, the GST decisions in this guide shall prevail.
(ii) GST Guide on Declaration and Adjustment After 1st September 2018.

This guide is specifically prepared to assist businesses in understanding matters with regards to the tax adjustments and declaration after the repeal of GSTA 2014 on 1st September 2018. If there is any inconsistency between previous GST decisions and the decisions stated in this guide, the GST decisions in this guide shall prevail.
  The said guides can be downloaded from the RMCD’s website at the link below:

https://mysst.customs.gov.my/SpecificGuides
 
4. SPECIFIC GUIDE ON SALES TAX EXEMPTION UNDER SCHEDULE C
  On 30 April 2019, the RMCD published the Guide on Sales Tax Exemption under Schedule C. This guide is provided to assist businesses in understanding the items relating to the sales tax exemption under Schedule C, Sales Tax (Persons Exempted from Payment of Tax) Order 2018 that is granted to a registered manufacturer for the purchase of raw materials, components and packaging/packing materials for use in manufacturing of finished taxable goods. This facility is provided to a registered manufacturer to avoid double taxation on manufactured taxable goods.

In addition, the exemption under Schedule C also allows registered manufacturer to send unfinished goods/semi-finished goods to other registered manufacturer (subcontractor) to carry out further manufacturing/to complete its manufacture and subsequently acquire back the semi-finished taxable goods/finished taxable goods without sales tax.

The said guides can be downloaded from the RMCD’s website at the link below:

https://mysst.customs.gov.my/SpecificGuides
 
5. FORMS FOR DECLARATION OF BREACH OF EXEMPTION CONDITIONS
  On 2 May 2019, the RMCD issued the following forms for declaration of breach of exemption conditions:
 
(i) ‘Borang’ SST-ADM
(ii) Declaration Form of Breach of Exemption Conditions (‘Lampiran 1’)
(iii) Statement on Disposal of Taxable Goods (‘Lampiran 2’)
  Please refer to the enclosed forms for more details which can be downloaded from the RMCD’s website at the link below:

https://mysst.customs.gov.my/SSTForms

Please be guided accordingly.

DR. NURMAZILAH DATO' MAHZAN
Chief Executive Officer

Description: Guide on Sales Tax Deduction Facility_19042019_Appendix A.pdf
⇓ Download
Format: PDF
Size: 3.08 MB

Description: News and Reports for exemption_Sch B and C
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Format: ZIP
Size: 156 KB

Description: Issuance of Tax Invoice Credit Note Debit Note_After 01.09.2018
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Format: PDF
Size: 394 KB

Description: GST Guide on Declaration and Adjustment After 01.09.2018
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Format: PDF
Size: 465 KB

Description: Guide on Sales Tax Exemption Under Schedule C
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Format: PDF
Size: 2.65 MB

Description: BORANG SST-ADM
⇓ Download
Format: PDF
Size: 124 KB

Description: PELANGGARAN SYARAT PENGECUALIAN (LAMPIRAN 1)
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Format: PDF
Size: 117 KB

Description: PENYATA PELUPUSAN BARANG-BARANG BERCUKAI (LAMPIRAN II)
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Format: PDF
Size: 77 KB