# Tax alert - GST Bill 2014 passed by Dewan Rakyat

The GST 2014 Bill was passed by the Dewan Rakyat, Lower House of the Parliament on 7 April 2014 and will now move to the Dewan Negara, Upper House of the Parliament in its passage to become law for the introduction of GST. Some of the key changes in the 2014 Bill compared to to the GST 2009 Bill as follows:

      Requirement for taxable person to quote GST-inclusive prices in all price displays

      GST will be charged on the value of imported leased goods and not on the leased payments

      Change in penalty regime for late payment of tax due to late registration

      Requirement to issue tax invoice within 21 days from the basic tax point deleted

      Criteria for self-billing arrangements have been legislated

      Late payment penalty of 25% on tax outstanding deleted

      Power granted to Minister of Finance to determine the fixed rate of recovery for input tax claims

      Non-residents making taxable supplies exceeding the registration threshold is required to appoint an agent to account for GST

      Joint venture provisions are restricted only to petroleum based activities

      Free Commercial Zones are recognised as places outside Malaysia
 

      Amendment of transition rules for settlement of service tax

      Relief from GST for supplies spanning effective dates where sales tax and service tax has been received or invoiced

      Goods and services redeemed under vouchers after the effective date will also qualify for transitional relief

      Supply of goods and services under an Islamic Financial Arrangement is to be treated as neither a supply of goods nor services

      Introduction of rules for the taxation of gaming supplies

Please note that the above is just preliminary views which may be subject to change upon clarification from the tax consultant and further analysis.