No sales tax is imposed on goods exported.
Manufacture defines as the conversion by manual or mechanical means of organic or inorganic materials into a new product by changing the size, shape, composition, nature or quality of such materials. This activities includes the assembly of parts into a piece of machinery or other products, but does not include the installation of machinery or equipment for the purpose of construction.
In relation to petroleum, manufacture means any process of separation, purification, refining, conversion and blending and/or petrochemical streams.
Taxable person is a registered manufacturer or a manufacturer who is liable to be registered under Sales Tax Act 2018 with sales value exceeds RM 500,000 within the period of 12 months.
Sales tax is an ad valorem tax and the applicable rate is 5% and 10% based on the type of taxable goods.
Issuance of Invoice
Every registered manufacturer who sells any taxable goods shall issue an invoice containing prescribed particulars in the national language or English to the purchaser in respect of the transaction.
All registered manufacturer issuing an invoice shall state thereon the following particulars:
(i) The invoice serial number;
(ii) The date of the invoice;
(iii) The name, address and identification number of the registered manufacturer;
(iv) The name and address of the person to whom the taxable goods is sold;
(v) Description and quantity of the goods;
(vi) Any discount offered;
(vii) For each description, distinguish the type of goods, quantity and amount payable excluding tax;
(viii) The total amount payable excluding tax, the rate of tax and the total tax chargeable shown as a separate amount or total amount payable inclusive of total of tax chargeable;
(ix) Any amount expressed in a currency other than ringgit shall also be expressed in ringgit at the selling rate of exchange prevailing in Malaysia at the time of sale.
Every registered manufacturer is required to account for sales tax based on the accrual basis where tax is required to be accounted for whenever the taxable goods is sold, used or disposed of.
Invoice issued to a person or class of person exempted under Sales Tax (Person Exempted from Payment of Tax) Order 2018, the details of the exemption and the date of approval should be recorded.
Invoice which includes taxable and non-taxable goods, must clearly indicate the goods on which tax is charged.
Sales Tax Return
Every taxable person shall in respect of his taxable period account for the sale tax due in a return as may be prescribed and the return shall be furnished to the Director General in the prescribed manner not later than the last day of the month following the end of his taxable period to which the return relate by using the Form SST-02.
Taxable Period
Odd Financial Year End (FYE) Month. (If your effective date of registration is 1st September 2018).
The SST return is required to be furnished to the DG not later than the last day of the month following the end of the taxable period.
For the purpose of receiving returns of sales tax, if the last day falls on the Federal weekly holiday or Federal public holiday then the last day to receive such return and payment is on the day immediately after the Federal weekly holiday or Federal public holiday.
Submission of SST Return
The registered manufacturer can submit the SST-02 return through any of these means:
(i) Submitting electronically through MySST Portal
(ii) By posting to the Customs Processing Centre (CPC):
(a) Download SST-02 from portal MySST and type in by using capital letter; and
(b) The complete form must be posted to the following address:
Customs Processing Centre (CPC)
Jabatan Kastam Diraja Malaysia
Kompleks Kastam WPKL
No. 22 Jalan SS 6/3,
Kelana Jaya, 47301,
Petaling Jaya, Selangor.
For the return submitted by post, the receipt of the return is acknowledged based on the post-mark date. However, for the return submitted electronically, the receipt of the return is acknowledged based on the received date by the MySST system.
The SST-02 return should be furnished whether there is tax to be paid or not (Nil Return).
The declaration of the SST-02 return shall contain all sales as follows:
(i) Goods (Sales, Disposed, Own Use) and Tax Payable;
(ii) Goods Under Schedule 2, Sales Tax Order (Tax Rate) 2018; and
(iii) Sales Exempted From Sales Tax under the Sales Tax (Goods Exempted From Sales Tax) Order 2018.
The declaration of the SST-02 return shall contain all purchases under the Schedule C, Sales Tax (Person Exempted from Sales Tax) Order 2018.
Notice of Assessment
The DG may assess the amount of tax including the penalty due and payable from the registered manufacturer who fails to furnish his return for any taxable period. The DG may also assess the amount of tax if the registered manufacturer fails to account for goods sold by the manufacturer in the course or furtherance of his business by reason of :
(i) The goods have been sold by the manufacturer;
(ii) The goods have been exported;
(iii) The goods have been disposed of;
(iv) The goods have been used by the manufacturer
Return Amendment
If a registered manufacturer makes an error in any return SST-02 furnished, he shall correct it in such manner and within such time as the officer of customs may require.
Any tax due in respect of a taxable period becomes payable not later than the last day of the month following the end of the taxable period.
Any cheque and bank draft for tax payment is considered received by the DG on the date of the amount is duly paid.
Penalty for Late Payment of Tax
Payment of sales tax can be made electronically through the MySST system (Financial Process Exchange (FPX)) or manually by cheque or bank draft only. Any cash payment is not allowed.
For payment by cheque or bank draft, registered manufacturer must attached the payment voucher and post to:
Customs Processing Center (CPC)
Jabatan Kastam Diraja Malaysia
Kompleks Kastam WPKL
No. 22 Jalan SS 6/3,
Kelana Jaya 47301,
Petaling Jaya, Selangor.
Cheque must be paid to the Ketua Pengarah Kastam Malaysia.
The registered manufacturer needs to send the return and make payment at the same time. Any manual payments made without submitting a SST-02 will not be processed.
The important information that need to provide on the back of check :
(i) Company Name e.g. : Syarikat ABC
(ii) SST Number : e.g. W24-YYMM-XXXXXXXX
(iii) Taxable Period e.g. : 01.09.2018 – 30.09.2018
(iv) Telephone Number e.g : 03-8888 9999
Hours of Payment
The ordinary hours which the sale tax administration offices shall be open for matters relating to sale tax are as follows:
(i) For the state of Malacca, Negeri Sembilan, Pahang, Perak, Perlis, Penang, Selangor, Sarawak, Sabah and Federal Territories (Kuala Lumpur, Putrajaya and Labuan) where the weekly holidays are Saturday and Sunday, the hours shall be from 8.00 am to 5.00 pm on Monday to Friday.
(ii) For the state of Johore, Kedah, Kelantan and Terengganu where the weekly holidays are Friday and Saturday, the hours shall be:
(a) From 8.00 am to 5.00 pm on Sunday to Wednesday; and
(b) From 8.00 am to 3.30 pm on Thursday
For the purpose of receiving payments of sales tax, penalty, surcharge and other payment via electronic service made after 11.30 pm shall be deemed to receive on the following day.
For the purpose of payment of sales tax, if the last day falls on the Federal weekly holiday or Federal public holiday then the last day to make payment is on the day immediately after the Federal weekly holiday or Federal public holiday.
Keeping Documents and Records Relating to Return
A registered manufacturer must keep accurate records relating to all transactions involving sales tax. All business transactions must be kept up-to-date and registered in the national language or English only. The records must be kept for 7 years from the last relevant date of the record.
The basic records that need to be kept are:
(i) Raw Material
(a) Types of raw materials purchased.
(b) Date purchased
(c) Price per unit and purchase price
(d) Quantities purchased
(e) Buyer's name and address
(f) No. invoices and delivery orders
(g) No. referral facility approval approvals and others.
(ii) Production and Sales
(a) Types of goods manufactured
(b) Date sold
(c) Quantity manufactured
(d) Quantity sold
(e) The remaining stocks
(f) Waste and others
Q : Can I submit SST-02 returns manually?
A : Yes. The registered person can submit the SST-02 return manually by posting to the Customs Processing Centre (CPC):
(i) Download SST-02 from portal MySST and type in by using capital letter (handwritten is not allowed) and
(ii) The complete form must be posted to the following address:
Customs Processing Centre (CPC)
Jabatan Kastam Diraja Malaysia
Kompleks Kastam WPKL
No. 22 Jalan SS 6/3,
Kelana Jaya, 47301,
Petaling Jaya, Selangor.
Q : Can the payment made manually at any nearest Customs station?
A : No. Manual payment ONLY can be made by posting to Customs Processing Centre (CPC).
Q : If I choose to make payment manually, what are the documents require to submit?
A : For manual payment method, documents as follows are require to submit:
(i) Copy of Completed SST-02 returns if already submitted online or Completed SST-02 returns that you want to submit manually to CPC
(ii) The important information that need to provide on the back of check :
(a) Company Name – e.g. : Syarikat ABC
(b) SST Number– : e.g. W24-YYMM-XXXXXXXX
(c) Taxable Period – e.g. : 01.09.2018 – 30.09.2018
(d) Telephone Number – e.g : 03-8888 9999
Q : If I choose to make payment online (via FPX), when is my transaction is considered received?
A : For the purpose of receiving payments of sales tax, penalty, surcharge and other payment via electronic service made after 11.30 pm shall be deemed to receive on the following day.
Q : If the last day of the month falls on a weekend, when do I have to make payment?
A : If the last day falls on the Federal weekly holiday or Federal public holiday then the last day to make payment is on the day immediately after the Federal weekly holiday or Federal public holiday.
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Edited by: 浪子
Bibliography
Royal Malaysian Customs Department. (2018). Guide On Return & Payment. Retrieved from
https://mysst.customs.gov.my/assets/document/1.%20Guide%20Sales%20Tax%20Return%20and%20Payment_05092018.pdf
Sales Tax - Guide on Return & Payment
Reviewed by 浪子
on
September 10, 2018
Rating:
Reviewed by 浪子
on
September 10, 2018
Rating:
