Tax Practice e-Law Alert - Issue 1, April 2015

A. Introduction

Goods and Services Tax (GST) is a multi-stage tax on domestic consumption which is charged on all taxable supplies of goods and services in Malaysia and on importation of goods and services into Malaysia, except those specifically exempted under the Goods and Services Tax Act 2014 [Act 762] ("the Act").

A person who is registered under the Act is required to charge GST on his supply of goods and services. He is also allowed to claim input tax credit for GST incurred on the purchase or acquisition of goods and services for the purpose of making a taxable supply in the course or furtherance of his business. In the event where the output tax charged exceeds the input tax incurred, the registered person is required to account for the difference to the Royal Malaysian Customs Department ("RMCD").