Announcement by the Malaysian Ministry of Finance (MOF)
In line with the new Malaysian Government's pledge to abolish the GST regime within 100 days of coming into power, the MOF has issued a statement dated 16 May 2018 to reduce the current GST rate from 6% to 0%, effective from 1 June 2018 onwards (MOF Statement).
In particular, the MOF Statement indicated that goods and services supplied in Malaysia as well as imported goods and services which are currently subject to GST at the standard rate of 6%, will be subject to GST at 0% with effect from 1 June 2018 onwards.
The MOF Statement also clarifies that registered persons shall continue to be subject to all regulations currently in force, including regulations relating to the issuance of tax invoices, submission of GST returns and claiming of input tax credits. Businesses are required to ensure that the prices of goods and services are in compliance with the Price Control and Anti-Profiteering Act 2011.
Further to the MOF Statement, 6 subsidiary legislations have been published in the Federal Gazette, as discussed in further detail below.