On 17 May 2018, The Ministry of Finance Malaysia has released a statement that the following goods and services tax (GST) which are currently subject to the standard rate of 6% will be set at 0% with effect from 1 June 2018:
- All supplies of goods and services that are made in Malaysia
- All supplies of goods and services that are imported from outside Malaysia.
This will be implemented nationwide was made by way of order PU (A) 118 dated 16 May 2018.
The following GST orders were also revoked on the same date which come into operation on 1 June 2018. The orders are as follows
- Goods and Services Tax (Zero-Rated Supplies) Order 2014
- Goods and Services Tax (Relief) Order 2014
- Goods and Services Tax (Application To Government) Order 2014
- Goods and Services Tax (Imposition of Tax for Supplies In Respect of Designated Areas) Order 2014
- Goods And Services Tax (Imposition Of Tax For Supplies In Respect Of Free Zones) Order 2016
At the same time, registered businesses are still subjected to all current regulations, such as issuance of invoice, submission of GST returns and input tax claims. Businesses would need to ensure that the price of goods and services conform to the Price Control and Anti-Profiteering Act 2011 at all times.
Source: Ministry of Finance website and GST-Royal Malaysian Custom Department