SST IMPLEMENTATION BRIEFING SESSION PROPOSED SALES TAX - PowerPoint PPT Presentation

SST IMPLEMENTATION BRIEFING SESSION PROPOSED SALES TAX IMPLEMENTATION MODEL Royal Malaysian Customs Department fppt.com

CO N T E N T O F B R IE F IN G Proposed Legislation • Registration • Returns / Payment Scope And Charge Sales Tax Mechanism • Exemption & Facilities Interpretation Of • Special Rules Manufacture • Accounting Taxable Person • Miscellaneous Taxable Goods Rate Of Tax Sales Tax Valuation Taxable Services

P r o p o s e d Sa le s T a x Le g is la t io n A c t • S a l e s T a x A c t 2 0 1 8 R e g u la t i o n s • Sa le s Tax Re gu la tio n s 2 0 1 8 • Sa le s Tax ( Cu s to m s Ru lin g) Re gu la tio n s 2 0 1 8 • Sa le s Tax ( Ru le s o f Va lu atio n ) Re gu la tio n s 2 0 1 8 • Sa le s Tax ( Co m p o u n d in g o f Offe n ce s ) Re gu la tio n s 2 0 1 8 O r d e r •Sales Tax (Amount Of Sale Value Of Taxable Goods Manufactured) Order 2018 •Sales Tax (Rates Of Tax) 2018 •Sales Tax (Goods Exempted From Sales Tax) Order 2018 •Sales Tax (Person Exem pted From Sales Tax) Order 2018 •Sales Tax (Exemption From Registration) Order 2018 •Sales Tax (Imposition o f Tax In Respect Of Designated Areas) Order 2018 •Sales Tax (Imposition Of Tax In Respect Of Special Areas) Order 2018 •Sales Tax (Appointment o f Date o f Coming Into Operation) Order 2018 V\ 3

S CO P E A N D CH A R G E Sales ta x is a ta x ch a r ge d a n d le vie d - ■ on ta xa b le go o d s m a n u fa ctu r e d in Ma la ysia b y a ta xa b le p e r so n an d sold , u se d or d isp o se d b y h im ; ■ on ta xa b le go o d s im p o r te d in to Ma laysia. Sales ta x is n o t ch a r ge d on: ■ go o d s liste d u n d e r Pr o p o se d Sa les Tax (Good s Exe m p te d Fr om Sales Tax) Or d er ; > ce r ta in m a n u fa ctu r in g a ctivitie s ar e e xe m p te d b y Min iste r o f Fin a n ce th r o u gh Pr o p o se d Sa les Tax (Exe m p tio n Fr om Re gistr ation ) Order. No t e : Malaysia excludes designated area and special area 4

H O W S A LE S T A X W O R K S ? M a n u fa c t u r e r W h o le s a le r Re t a ile r Co n s u m e r H Go v t co lle ct s t a x a t t h e m a n u fa ct u r e r 's le ve l o n ly ______________

IN T E R P R E T A T IO N • M a n u fa c t u r e d e fin e s a s a c o n v e r s i o n o f m a t e r i a ls b y m a n u a l o r m e c h a n i c a l m e a n s in t o a n e w p r o d u c t b y c h a n g i n g t h e s iz e , s h a p e , c o m p o s i t i o n , n a t u r e o r q u a li t y o f s u c h m a t e r i a ls a n d in clu d e s th e a s s e m b ly o f p a r t s in to a p ie ce o f m a ch in e r y o r o t h e r p r o d u ct s . Ho w e ve r , m a n u fa ct u r e d o e s n o t in clu d e th e in s t a lla t io n o f m a ch in e r y o r e q u ip m e n t fo r th e p u r p o s e o f co n s t r u ct io n . • In r e la t io n to p e t r o le u m , a n y p r o ce s s o f s e p a r a t io n , p u r ifica t io n , co n v e r s io n , r e fin in g a n d b le n d in g.

T A X A B LE P E R S O N T a x a b le p e r s o n is a p e r s o n w h o m a n u fa c t u r e s t a x a b le g o o d s a n d is: - lia b le to be r e gis t e r e d ; • r e a ch e d s a le s t h r e s h o ld r M a n u fa c t u r e r - RM 5 0 0 ,0 0 0 .0 0 > Su b -c o n t r a c t o r - RM 5 0 0 ,0 0 0 .0 0 - r e g is t e r e d u n d e r Sa le s T a x Le g is la t io n . • m a n d a t o r ily r e g is t e r e d • v o lu n t a r ily r e g is t e r e d

T AXAB LE GOOD S AN D RAT ES OF T AX Go o d s w h ic h a r e n o t e xe m p t e d b y M in is t e r o f F in a n ce t h r o u g h P r o p o s e d Sa le s Ta x E x e m p t io n Or d e r w ill b e ch a r g e d s a le s t a x a t v a r io u s r a t e s p r e s c r ib e d . Sa le s t a x is a n a d v a l o r e m t a x a n d d iffe r e n t r a t e s a p p ly ( P r o p o s e d 5 % a n d 1 0 % ) b a s e d o n g r o u p o f t a x a b le g o o d s a s in d ica t e d in t h e p r o v is io n . Sa le s t a x fo r p e t r o le u m is ch a r g e d o n a s p e c i fi c r ' ’ ‘ ’ ' d iffe r e n t fr o m o t h e r t a x a b le g o o d s .

S A LE S T A X V A LU A T IO N Sa le s v a lu e o f lo c a lly m a n u fa c t u r e d g o o d s w ill b e d e t e r m in e d b a s e d o n P r o p o s e d Sa le s Ta x ( Ru le s o f Va lu a t io n ) R e g u la t io n s 2 0 1 8 . Sa le s v a lu e o f t a x a b le g o o d im p o r t e d in t o M a la y s ia r e p r e s e n t t h e s u m o f t h e fo llo w in g s : • Th e cu s to m s va lu e ; • T h e a m o u n t o f c u s t o m s d u t y p a id o r t o b e p a id ; • T h e a m o u n t o f e xcis e d u t y p a id o r t o b e p a id . r - X C -- 9 fppt.com

SA LES T A X R EGIST R A T IO N Lia b ility To Re g is te r • Taxable goods m anufacturers are required / liable to be registered when; - SALES VALUE OF TAXABLE GOODS has exceeded RM500,000 for 12 months period; • Manufacturers who carry out sub-contract w ork on taxable goods where the VALUE of w ork perform ed exceeds RM500,000 for 12 months period. - Taxable goods belong to: ❖ Register ed manufacturer, non registered m anufacturer and m anufacturer in special area (FIZ and LMW). m / No te : Re gis t e r e d P e r s o n w ill b e k n o w n a s Re gis t e r e d M a n u fa ct u r e r s fppt.com

SA LES T A X R EGIST R A T IO N Oth e r s R e g is tr a tio n Vo lu n t a r y r e g is t r a t io n - Ta xa b le go o d s - b e lo w t h r e s h o ld . - P e r s o n s w h o a r e e xe m p t e d fr o m r e gis tr a t io n .

SA LES T A X R EGIST R A T IO N D e te r m in a t io n o f T u r n o v e r • Ma n u fa ctu r e r s sh o u ld ca lcu la te th e sa le s va lu e o f ta xa b le go o d s for a p e r io d o f 12 m o n th s u sin g th e fo llo w in g m e th o d s: i. H is t o r ica l M e t h o d ; Th e to ta l va lu e o f ta xa b le go o d s in th a t m o n th a n d th e 11 m o n th s im m e d ia te ly p r e ce d in g th e m on th ; ii. Fu t u r e M e t h o d ; —° Th e to ta l va lu e o f ta xa b le go o d s in th a t m o n t m o n th s im m e d ia te ly su cce e d in g th e m o n th .

SA LES T A X R EGIST R A T IO N Ex e m p tio n fr o m Re g is tr a tio n • Ma n u fa ctu r e r o f n on ta xa b le go o d s * • . • Ma n u fa ctu r e r b e lo w th r e sh o ld . • Su b -co n tr a cto r m a n u fa ctu r e r b e lo w th r e sh o ld . • Ma n u fa ctu r in g a ctivitie s th a t h ave b e e n e xe m p te d fr o m r e gistr a tio n . E.g.: - Ta ilor in g - In sta lla tio n in co r p o r a tio n o f go o d s in to b u ild in g - Jew eller , o p ticia n * N o t e ligib le fo r v o lu n t a r y r e gis t r a t io n

SA LES T A X R EGIST R A T IO N T r a n s itio n a l Re g is tr a tio n M a n u fa c t u r e r w h o is lia b le t o b e r e g is t e r e d is r e q u ir e d t o r e g is t e r b e fo r e 1 st Se p t e m b e r 2 0 1 8 . - R e g is t r a t io n c o m m e n c e m e n t d a t e w ill b e o n 1 st Se p t e m b e r 2 0 1 8 . A u t o m a t ic R e g is t r a t io n - M a n u fa c t u r e r s w h o a r e GST R e g is t e r e d P e r s o n s w h ic h h a v e b e e n id e n t ifie d a n d fu lfille d t h e r e q u ir e d c r it e r ia w ill b e r e g is t e r e d a u t o m a t ic a lly a s R e g is t e r e d M a n u fa c t u r e r u n d e r Sa le s T a x. - R e g is t e r e d M a n u fa c t u r e r n e e d t o c h a r g e t a x b e g in n in g 1 st Se p t e m b e r 2 0 1 8 . P e r s o n s N o t R e g i s t e r e d A u t o m a t i c a l l y - GST r e g is t e r e d p e r s o n w h o fu lfille d t h e r e q u ir e d c r it e r ia t o b e r e g is t e r e d b u t w e r e n o t r e g is t e r e d b y 1 st Se p t e m b e r 2 0 1 8 n e e d to ’1 a p p ly fo r r e g is t r a t io n w it h in 3 0 d a y s fr o m t h e c o m m e n c e m e n t d a t e . 14 fppt.com

R E T U R N o R e g is t e r e d m a n u fa c t u r e r h a s t o d e c la r e SST r e t u r n e v e r y t w o m o n t h s a c c o r d in g t o t h e t a x a b le p e r io d . o SST r e t u r n h a s t o b e s u b m it t e d n o t la t e r t h a n t h e la s t d a y o f t h e fo llo w in g m o n t h a ft e r t h e t a x a b le p e r io d e n d e d . o SST R e t u r n h a s to b e s u b m it t e d r e g a r d le s s o f w h e t h e r t h e r e is a n y t a x t o b e p a id o r n o t . o SST R e t u r n h a s to b e s u b m it t e d e le c t r o n ic a lly SST P r o ce s s in g Ce n t r e . fppt.com

P A Y M E N T o P a y m e n t o f SST h a s to b e m a d e ■ E le ct r o n ica lly ; o r ■ By ch e q u e , b a n k d r a ft a n d p o s t e d t o SST P r o c e s s in g Ce n t r e . o La t e p a y m e n t p e n a lt y o n t h e a m o u n t o f s a le s t a x n o t p a id ■ 1 0 % - fir s t 3 0 d a y s p e r io d . ■ 1 5 % - s e co n d 3 0 d a y s p e r io d ■ 1 5 % - t h ir d 3 0 d a y s p e r io d No t e : M a x im u m p e n a lt y 4 0 % a ft e r 9 0 d a y s