Khidmat Umum : Hebahan Mengenai Cukai Barang Dan Perkhidmatan (CBP) / GST

CBP hendaklah dilevi dan dikenakan ke atas pembekalan barang dan perkhidmatan yang dibuat dalam menjalankan perniagaan di Malaysia oleh orang kena cukai. CBP juga dikenakan ke atas pengimportan barang dan perkhidmatan.

Pembekalan bercukai adalah pembekalan yang berkadar standard atau berkadar sifar. Pembekalan dikecualikan dan di luar skop bukanlah pembekalan bercukai.

CBP akan dilevi dan dikenakan pada nilai pembekalan.

CBP hanya boleh untuk dilevi dan dikenakan jika perniagaan itu didaftarkan di bawah CBP. Sebuah perniagaan tidak perlu didaftarkan jika nilai pusingan untuk pembekalan pembekalan bercukai tidak mencapai nilai ambang yang ditetapkan. Oleh itu, perniagaan itu tidak boleh mengena dan memungut CBP ke atas pembekalan barang dan perkhidmatan yang dibuat kepada pelanggan mereka. Bagaimanapun, perniagaan boleh memohon untuk didaftarkan secara sukarela.

Implementation of Goods & Services Tax in Malaysia

The cloud over whether goods and services tax ("GST") will be introduced in Malaysia was finally lifted on 25 October 2013 after the Prime Minister of Malaysia announced the Budget 2014. The idea of introducing GST was first conceived in 2005, but GST's implementation had been deferred subsequently to facilitate public education and consultation. Although the draft GST Bill was read for the first time in Parliament in 2009, the Bill has not been passed into legislation and no clear timeline was set as to GST's implementation.

The uncertainty as to GST's implementation cast many doubts as to whether Malaysia will have a GST regime and if so, when the GST will be implemented. Many businesses were taking a wait-and-see approach before taking any steps to prepare for GST's implementation.

The Budget 2014 announcement ended the speculation and the uncertainties relating to GST's implementation. It is announced that the GST will be implemented in Malaysia with effect from 1 April 2015 at the rate of 6% and will replace the current sales and service tax regime. As such, businesses will have approximately 17 months to prepare for the implementation of GST. Nevertheless, at the time of writing, the GST Bill remains in a draft form and is still subject to further amendments.

GST vs. Current Sales and Services Tax

The only similarity between the GST and the current indirect tax regime is that the Royal Malaysian Customs Department (“Customs”) which is administering the current sales and service tax regime will also be administering the GST regime. Apart from this, the GST regime differs quite substantially compared to the sales and services tax regime.

(a) Multi-Stage Tax

In contrast to the current sales and service tax regime, GST will be a broad-based consumption tax, based on a value-added concept. GST will be levied and charged on all taxable supplies of goods and services made in the course of a trade or business in Malaysia by a taxable person. The imposition of GST on a multiple-stage basis is a key difference from the current sales tax and service tax which is levied at only one stage of the supply chain.

(b) Tax Neutral to Businesses

GST is a multi-stage tax payable by all the intermediaries in the production and distribution chain, with the tax burden ultimately borne by the consumer. Unlike the sales and service tax regime, businesses which are registered for GST purpose, will be allowed to claim input tax credit (i.e. GST it has paid in the course of business) to offset against the GST levied on the goods or services supplied to its customers.

Generally, GST will not be a cost to intermediaries nor will it appear as an expense in their financial statements. However, GST may not be entirely tax neutral for certain businesses making exempt supplies as such businesses are not allowed to claim input tax credit.

(c) Broad-based Tax

GST has a substantially broader reach compared to sales and service tax which is only levied on particular taxable goods and services. All supplies of goods and services will be subject to GST unless they are zero-rated supplies or exempt supplies, or fall within particular special schemes.

(d) Businesses Bear Compliance Burden

As a key feature of the GST is the ability of business to offset GST paid against GST charged, businesses will bear a significant part of the compliance burden of implementing GST. Businesses will play the tax collector of GST, since ultimately the GST will be collected by businesses and remitted to Customs after setting-off the correct amount of input tax credit. Strict rules relating to timing of charging and remitting GST as well as invoicing requirements will need to be adhered to.

(e) GST on Imported Services

Whilst no sales or service tax is imposed on services provided by a foreign service provider to Malaysian entities, under the GST, such imported services will be subject to GST. The reverse charge mechanism is likely to be adopted to ensure that the GST payable are accounted for by the recipient of the services.

Taxable or Exempted?

(a) Standard-rated supplies

Standard-rated supplies are taxable supplies of goods and services which will be subject to the proposed rate of 6%. A taxable person who is registered to collect GST on such supply is also entitled to claim input tax credit on his business inputs in making taxable supplies.

(b) Zero-rated supplies

Zero-rated supplies are taxable supplies of goods and services which are subject to a GST rate of 0%. As such, businesses will not collect any GST on such supplies but are still entitled to claim a tax credit on inputs used in the course or furtherance of the business.

Most basic food items (including poultry, meats, fish, cooking oil, rice, sugar, salt and vegetables), supply of the first 200 units of electricity per month for domestic consumers will not be subject to GST (zero-rated supplies).

(c) Exempt supplies

Exempt supplies are supplies of goods and services which are not subject to GST. Businesses will not collect any GST on the such supplies and no input tax credits can be claimed in respect of exempt supplies.

Based on the draft proposed list of exempt supplies in the Budget 2014 announcement, it appears that certain financial services, domestic passenger transportation, private healthcare services, education services, supply of agriculture land and residential properties will be GST-exempt.

(d) Out of Scope Supplies

Certain supplies which do not fall within the charging provisions of the GST Bill include non-business transactions, the sale of goods from a place outside to another place outside Malaysia and services provided by the Government. Moreover, to promote certain tax-free areas within Malaysia, supplies made in Labuan, Langkawi and Tioman will be disregarded for GST purposes.

Preparing For GST's Implementation

Businesses should take the necessary steps and pro-active measures to be GST ready. Some of the steps which will need to be undertaken include:

(a) Review of Commercial Contracts  and Transactions

All long-term commercial contracts and transactions should be reviewed and reconsidered for GST purposes. The review is important to determine the allocation of the GST burden and the treatment of contracts spanning the implementation of GST. Particular transitional provisions may be applicable to such transactions and contracts. Companies should also consider the impact of irrecoverable GST on their business.

(b) Review of Internal Supplies

Companies should undertake a review of all their internal transactions such as the provision of employee benefits, since such supplies may attract GST. Careful planning of employee benefits may be required taking into account the GST implications.

(c) Updating of Accounting System / Recording Systems

All accounting and recording systems should be updated to allow for the calculation of output tax and input tax claims. Businesses must be prepared to bear the compliance costs associated with the collection and remittance of GST to Customs.

(d) Training of Employees
It is important that employees and staff are prepared and well-equipped to implement GST in the business operations through trainings and awareness programs.

Experience in many countries which have already implemented GST show that early preparation is crucial to ensure a smooth transition to GST. GST preparations should be undertaken as soon as possible so that companies are able to properly manage the implementation of GST.