Sales tax is a single-stage tax charged and levied:
i. on taxable goods manufactured in Malaysia by a taxable person and sold by him (including used or disposed off) ; and
ii. on taxable goods imported into Malaysia.
2. What are the goods subject to sales tax?
Goods which are NOT listed under the Proposed Sales Tax (Goods Exempted From Sales Tax) Order is subject to sales tax.
3. Who is the taxable person?
Taxable person is a person who manufactures taxable goods and is liable to be registered if the annual turnover has exceeded RM500,000.00 threshold. Such person is required to be registered under MySST system.
4. What is the rate of tax for sales tax?
The proposed sales tax rate is at 5%,10% or on a specific rate.
5. How does the sales tax work?
6. What are the responsibilities of taxable person?
Taxable person is required to be registered, issue invoice and charge sales tax on the sales, maintaining a proper records and account for the tax by submitting bi-monthly returns to RMCD.
7. How do I register for sales tax?
Registration is process online through by MySST system. You will be notified of registration or in the absence of a notification, you may need to apply individually online using MySST system.
8. How do I know that I will be registered?
You will be informed by email. For the existing GST registrant who automatically liable to be registered under sales tax, they will be informed through a letter.
9. Can I submit my sales tax return according to my company’s financial year end?
Yes, you may apply in writing to the Director General.
10. Can I registered under sales tax voluntarily?
Yes, you can register voluntarily provided that you are manufacturing taxable goods.
11. Can I registered my branches separately?
Branch registration is not allowed.
12. Is there any facility for group registration?
Group registration is not allowed.
13. I am GST registrant. Do I need to apply to cancel my registration?
When the GST Act 2014 is repealed, you are automatically ceased to be a GST registered person. You are not required to apply for deregistration. However, you are required to submit the final GST return within 120 days from the Act being repealed.
14. How do I account for credit or debit notes?
You are allowed to make adjustments in your sales tax return for credit or debit notes.
15. On what basis do I account for sales tax?
You are required to account on accrual basis.
16. What is the procedure for submitting sales tax returns?
• Registered manufacturer has to declare sales tax return (SST-01) every two months according to the taxable period. You may apply to the Director General for a specific taxable period e.g. in line with your financial year end.
• sales tax return has to be submitted not later than the last day of the following month after the taxable period ended.
• sales tax return has to be submitted regardless of whether there is any tax to be paid or not.
• sales tax return has to be submitted electronically or by post to SST Processing Centre.
17. How do I make a payment for sales tax?
You can make payment:
a. Electronically; or
b. By cheque, bank draft and posted to SST Processing Centre.
18. Will there be a penalty for late payment?
Late payment penalty is applicable:
■ 10% - first 30 days period.
■ 15% - second 30 days period
■ 15% - third 30 days period
Maximum penalty 40% after 90 days
19. How long should I keep the proper records under sales tax?
You should keep the proper records for 7 years. Records must be kept:
i. in Bahasa Melayu or English
ii. In Malaysia, except permitted by DG to be kept outside Malaysia
iii. In soft or hard copy
20. Is there any relief for bad debts?
Yes. You may claim bad debts:
i. within 6 years from the date the taxable goods is sold
ii. subject to conditions determined by the DG
iii. according to a prescribed formula
21. Special treatment for specific areas
a. Designated Area:
b. Special Area:
You are allowed to claim input tax credit within 120 days after the effective date of SST.
23. Full payment received on the removal of goods on 22 August 2018. However, the goods were only removed on 8 September 2018. What is the tax treatment?
Sales Tax is charged at 10% on the value of the goods removed.
24. What is the treatment for the stock in hand which the input tax has not been claimed belongs to the GST registered person who will be a registered manufacturer during the Sales Tax era?
The registered manufacturer is allowed to claim for input tax on the stock in hand in the final GST-03 return.
25. Subcontract work to be performed from 15 August 2018 to 15 October 2018. However, part of the work was done in GST era and the balance of work to be completed in the Sales Tax era. What is the tax treatment on the subcontract work?
GST is charged at standard rate of 0% on the part of work performed until 31 August 2018. Meanwhile, the balance of the work completed on 15 October 2018 shall be charged with Sales Tax at 10%.
26. What is the SST treatment on goods delivered after 1st September 2018 and payment was received or invoice was issued during tax holiday (GST at 0%)?
You must account for sales tax at 10% when issue an invoice to your customer. In a case where invoice has been issued, you may issue:
i. a credit note to cancel that invoice and subsequently issue a new invoice with sales tax at 10%; or
ii. a debit note bearing the amount of sales tax at 10%
27. Would Customs Department carry on with GST audits after SST comes into effect from 1st September 2018?
After 1st September 2018, audits for closure purposes would be carried out on GST registered entities.
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Edited by: 浪子
Bibliography
Royal Malaysian Customs Department. (2018). Frequently Asked Questions (FAQ) - Sales Tax 2018.
Retrieved from http://gst.customs.gov.my/en/SiteAssets/doc/FAQ28BI29%20Sales%20Tax%202018%2019.07.2018.pdf
Sales Tax FAQ
Reviewed by 浪子
on
July 22, 2018
Rating:
Reviewed by 浪子
on
July 22, 2018
Rating:
