5 Major Developments in Malaysia

5 Major Developments in Malaysia

• MDEC signs Memorandum of Understanding with IRBM to implement National e-Invoicing Initiative

• Malaysia postpones imposing sales tax on low-value imports until March 2023

• Draft guide on sales tax on “low value goods”

• Bring back GST in 2024, says Federation of Malaysian Manufacturers

• Malaysia Explains New GST Regime For Low-Value Goods, (Jan 5, 2023)

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Digital Services Tax

• Updates regarding tourism tax and departure levy

E-Commerce / Electronic Services

• Malaysia Explains New GST Regime For Low-Value Goods, (Jan 5, 2023)

• Sales Tax (Low Value Goods) Regulations 2022

• Draft guide on sales tax on “low value goods”

• Malaysia postpones imposing sales tax on low-value imports until March 2023

• Malaysia Publishes Draft Guide on New Sales Tax Rules for Low Value Goods

• Proposed Service Tax on Goods Delivery Services

• Low value goods (LVG) guidance updated

• Sales Tax Industry Guides – Low Value Goods

• Malaysia Sales Tax on low-value B2C imported goods delay to March 2023

• Postponed implementation of sales tax on “low value goods”; sales tax exemption on pallets

• Sales tax exemption is available for drop shipment activities

• Service tax exemptions for digital payment services, …

• To impose sales tax on low-value imports

• Selling Digital Services Into Asia Pacific—Tax Compliance (Part 2)

• Malaysia Approves Bill to Impose Sales Tax on Low Value Goods

E-invoicing

• MDEC signs Memorandum of Understanding with IRBM to implement National e-Invoicing Initiative

• Malaysia to launch national e-invoicing initiative

• Malaysia prepares for mandatory e-Invoicing implementation in 2023

• Malaysia’s National e-Invoicing program has stepped forward

• Implementation of E-invoicing in Malaysia

• Malaysia e-invoicing 2023 confirmed in budget

• Indirect tax proposals in budget for 2023 (including implementation of e-invoicing)

Excise

• Malaysia imposes excise duty on premix preparations

Exemption

• Sales Tax (Persons Exempted From Payment Of Tax) (Amendment) Order 2022

• Malaysia Gazettes Order Amending Sales Tax Exemption Rules for Registered Manufacturers

• Postponed implementation of sales tax on “low value goods”; sales tax exemption on pallets

• Service tax exemption for non-bank service providers of digital payment services

• Indirect tax proposals in budget for 2023 (including implementation of e-invoicing)

Export

• High Court case on zero-rating exported goods under GST

Implementation / Reform

• Bring back GST in 2024, says Federation of Malaysian Manufacturers

• Proposed Service Tax on Goods Delivery Services

• Malaysian United Democratic Alliance (Muda): Government should reconsider GST

• No Cabinet discussion on reintroducing GST, says Tengku Zafrul

• No need for govt to reintroduce GST at this point, says Deputy Finance Minister

• Good support for GST comeback

Importation

• Malaysia Explains New GST Regime For Low-Value Goods, (Jan 5, 2023)
• Draft guide on sales tax on “low value goods”
• Malaysia postpones imposing sales tax on low-value imports until March 2023
• Low value goods (LVG) guidance updated

• Malaysia Approves Bill to Impose Sales Tax on Low Value Goods

Legislative Change

• Implementation of E-invoicing in Malaysia

Rate

• High Court case on zero-rating exported goods under GST

Real Time Reporting/Continuous Transaction Controls

• Malaysia’s National e-Invoicing program has stepped forward
• Malaysia e-invoicing 2023 confirmed in budget

Reporting / Compliance

• Amendments to Sales Tax Regulations 2018 in effect

SME (Small and Medium-Sized Enterprises)

• Sales Tax (Persons Exempted From Payment Of Tax) (Amendment) Order 2022

Taxable Transaction

• Service tax exemptions for digital payment services, …

Tax Authorities / Penalties

• SST Act – List of related Sales Tax and Service Tax Laws 2018

• Updates regarding tourism tax and departure levy

• Extension of payment period under second phase of voluntary disclosure program for indirect taxes

• Summary of income and indirect tax developments (September 2022)