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.
