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Sage Support FAQ

Staying Compliant with Malaysia Tax Legislations

FAQ – Malaysia GST Change Update 2018 (updated 25th May 2018)

*The information provided herein is as good as press time, some of the instructions given may be out-dated if new announcement made from the government after the updated date.
No. GST is still required, the announcement is to reduce GST from 6% to 0%. Businesses who registered for GST will still need to supply tax invoices to the consumer.
Yes. The GST-03 returns will still be required monthly or 3-monthly, subject to your submission period. According to the official FAQ document from Royal Malaysian Customs Department, Sales of goods/services at 0 % from 1st June, 2018 onwards is to be declared in column 5a in the GST-03 returns.

No. All tax codes remain unchanged for traceability of existing transactions, however, from the 1st of June 2018, based on what the government has announced, we recommend you to create new tax codes set up to address this GST 0 % change separately for clarity and to avoid unknown implications during this transaction period.

Sage UBS customers on a valid Cover plan will receive a product update before 1 June 2018 which will have the new tax code SR-0 which will be mapped to section 5a in the system.

You are strongly advised to consult your Accountant/Auditor/Tax Agent to ensure proper adherence to this new regulation in your accounts.

Detailed screenshots and step-by-step instructions are provided further below.

Refer to the GST TaxCode list by GST Malaysia.

Here are some scenarios of the taxable period that may run over for your reference:

Scenarios Submission GST03 - 5a (taxable amount) GST03 5b (GST value)
Taxable period March-May June March-May 6% (Mar-May)
Taxable period April-June July April-June 6% (Apr-May) + 0% (June)
Taxable period May-July August May-July 6% (May) + 0% (June-July)
Taxable period June-August September June-August 0% (June-Aug)

No. If you skip tax codes, no GST value will be computed on the transactions and thus will not be picked up in the GST-03 returns. Tax codes are required to be applied to transactions for the value to be picked up and declared in the GST-03 returns.

GST registered businesses are still required to submit GST-03 returns until further notice.

Yes. If you are a GST registered person/business, you are required to submit your GST-03 returns and be eligible to get your claimable purchase or expenses.
Yes. The government announced to reduce GST from 6% to 0%. It is not a GST abolishment; hence you will still need to register GST for your business.

No, all small business Sage products allows you to create new tax codes to manage GST rate changes. Please refer to the detailed screenshots and step-by-step instructions from Sage in next questions.

You are strongly advised to consult your Accountant/Auditor/Tax Agent to ensure proper adherence to this new regulation in your accounts.

Please consult your Sage Business partner, respective Accountant/s or contact Sage at 03-22729991 for further GST product details. You can also refer to the official FAQ document from Royal Malaysian Customs Department (English version, Malay version) for more details.

Here are step-by-step screenshots of how you can easily create new tax codes at 0% which you can utilise after consulting with your Accountant/Auditor/Tax Agent on how you should manage this 0% GST change:

  • Sage Accounting (formerly known as Sage One), click HERE.
  • Sage UBS (Accounting,Inventory & Billing), click HERE.
  • Sage POS, click HERE.
  • Sage BSM, click HERE.
  • Sage 300, click HERE.
  • For Sage X3, please contact us.