Insights

Find out all you need to know about GST and SST and how it affects your tax processing.

Staying Compliant with Malaysia Tax Legislations

GST to SST Transition

5th September 2018


Our Promise to You

At Sage, we aim to equip our customers with the latest information, tools and support they need to stay compliant with the changing tax legislations. With the recent Malaysia parliament changes, we are aware that the upcoming abolishment of Goods and Services Tax (GST) and reinstatement of Sales and Services Tax (SST) will impact you in your tax processing. Rest assured that we will be closely monitoring official announcements and keeping you updated on information you need to know to stay compliant.

Upgrade now to stay compliant with KASTAM GST FAQ dated 30th May

Sage UBS, POS, BSM

  • New tax codes are created (SR-0 and TX-0) to support tax changes!

Sage UBS and POS

  • Change tax codes in bulk with our newly enhanced automated tool!
  • With the same automated tool, you can now amend your selling price in bulk anytime, including deducting 6% GST from GST inclusive prices of your items!

Sage UBS customers with a valid Sage Cover plan# will get the latest product update to stay compliant.

# Note: If you are currently not on valid Sage Cover, do check out other promotional prices.

Renew at a discounted price!

Sales and Services Tax

What is GST and SST?

What is Goods and Services Tax (GST)?

This is a tax on most products and services for domestic consumption at every level in the production process. GST can be claimed as input tax for companies with revenue above RM500k. GST was implemented in April 2015 replacing SST. GST is the most commonly used form of taxation used by 160 / 190 countries globally. GST is also known as Value Added Tax (VAT) in some other countries.

What is Sales and Service Tax (SST)?

SST was originally covered by 2 separate tax laws on a wide variety of goods and services at a single level implemented in 1970s. The Sales Tax Act 1972 is a single-stage tax charged typically at the manufacturer’s level. The Service Tax Act 1975 is a single-stage tax charged at the consumer’s level except at tax free zones. The sales tax was at 10% and service tax was at 6% respectively prior to being replaced by GST in 2015.

Hear from Kamlesh Mahtani, Head of Startups and Small Businesses, Sage Asia as he shares on MalayMail about what you should know about SST.

Tax GST SST
Tax Revenue Estimate
RM45b
RM20b
Tax Base
Narrow
Broad
Transparency & Regulation
High
Low
Tax Rate (%)
0%*
6 - 10%
Tax Stages
Multi stage
Single stage
Business Input Tax Credit
Yes
No
Business Export Tax Relief
Yes
Partial
Business Implementation Cost
High
Low

*Announced to reduce tax rate from 6% to 0% from Ministry of Finance dated 15th May 2018.

Key Takeaways

compliance

Stay compliant with GST and SST updates

updates

Guidance and updates on GST and SST submission

timely

Timely and accurate submission

Key Dates and Activities

Sage is committed in helping you every step of the way to ensure you make a smooth transition in your tax processing with the abolishment of GST and reintroduction of SST.
16th May 2018 First official announcement of upcoming change in GST
31st May 2018

Sage UBS Version 9.9.3.8, Sage POS and BSM Version 9.9.2.4 released with new tax code is enabled

Currently till 1st Jun 2018 No changes to your daily operations and managing of accounts
1st Jun 2018 Amend tax rate from 6% to 0% in your accounting system
8th Jun 2018

Webinar: GST Change from 6% to 0% (Registration closed)

16th Jul 2018 Government to convene on GST abolishment
1st Aug 2018 The Customs Department expects to automatically migrate companies that have registered under the goods and services tax (GST) regime to the sales and service tax (SST) beginning tomorrow and will alert them via email.
8th Aug 2018 Malaysia's Parliament repealed the Goods and Services Tax Act 2014 after its third reading in the House.
17th Aug 2018 Government announced that all GST Registrants are required to submit the GST-03 Return on the final taxable period and make full payment for the amount of tax payable in connection with the supply, for the last taxable period within 120 days from Sept 1, 2018. The non-GST Registrants are required to submit the final GSt-04 Return and make full payment for the amount of tax payable in connection with the supply, for the last taxable period within 30 days by or before Sept 30th, 2018.
20th Aug 2018 Dewan Negara today passed five bills related to the implementation of the Sales and Service Tax (SST), which is set to take effect on Sept 1, 2018. These are the Sales Tax Bill 2018, Service Tax Bill 2018, Goods and Services Tax (Repeal) Bill 2018, Customs (Amendment) Bill 2018 and Free Zones (Amendment) Bill 2018.
23rd Aug 2018 Seminar: Preparing Businesses on new Indirect Tax Landscape
24th Aug 2018 Webinar: Preparing Businesses on new Indirect Tax Landscape
30th Aug 2018 Sage UBS version 9.9.3.9 is 100% SST ready!
Check out user guides for Sage UBS product series here.
1st Sep 2018 Implementation of Sales & Services Tax (SST)
6th Sep 2018 Webinar: Road to Sales & Service Tax
7th Sep 2018 Webinar: Road to Sales & Service Tax
12th Sep 2018 Webinar: Road to Sales & Service Tax
30th Sep 2018 Deadline for Sage Cover Renewal Promotion

The above table content is updated as of 5th Sep 2018.

GST and SST Enablement Resources

We know you want as much information as you can get on SST and GST, so we’ve pulled together some resources for your review. We will continue to monitor further official announcements from the relevant Malaysian authorities and update with more information pertaining to GST and SST.
Updated as of 3rd Sep 2018