New Directives : Zero-Rated Goods and Services Tax (GST)

17 May 2018 (Wed), Kuala Lumpur

On 16 May 2018, the Malaysian Ministry of Finance announced that the rate of the Goods and Services Tax (GST) will be reduced from 6% to 0% effective from 1.6.2018. Reference can be made to the Goods And Services Tax (Rate of Tax)(Amendment) Order 2018 (PU(A) 118/2018).

This new amendment applies to all local and imported goods and services. The list of goods and services which are provided under the Goods and Services Tax (Exempt Supply) Order 2014 (PU(A)271/2014 shall remain exempted from GST.

It is pertinent to note that such directives do not abolish the GST regime. All traders and entrepreneurs are required to comply with the current GST procedures regarding invoicing, submissions, claims to the Royal Malaysian Customs Department. All traders shall also ensure that all pricing of the goods and services accord to the Price Control and Anti Profiteering Act 2011.

Such applausable changes will help to improve the consumers’ purchasing powers and standard of living of the people.