Sales Tax Legislation (SaTL)

Act

1. Sales Tax Act 2018

Regulations

1. Sales Tax Regulations 2018

2. Sales Tax (Customs Ruling) Regulations 2018

3. Sales Tax (Determination of Sale Value of Taxable Goods) Regulations 2018

4. Sales Tax (Compounding of Offences) Regulations 2018

Order

1. Appointment of Date of Coming into Operation

2. Sales Tax (Person Exempted From Payment Of Tax) Order 2018

3. Sales Tax (Imposition Of Tax In Respect Of Designated Area) Order 2018

4. Sales Tax (Imposition Of Tax In Respect Of Special Area) Order 2018

5. Sales Tax (Exemption From Registration) Order 2018

6. Sales Tax (Goods Exempted From Tax) Order 2018

7. Sales Tax (Rates Of Tax) Order 2018

8. Sales Tax (Total Sale Value Of Taxable Goods) Orders 2018

Taxable Person

Taxable person is a person who manufacturing taxable goods and is:

1. Liable to be registered

   • Reached sales threshold

     • Manufacturer - RM 500,000.00

     • Sub-contractor - RM 500,000.00

2. Registered under Sales Tax Legislation

   • Mandatorily registered

   • Voluntarily registered

Scope and Charge

Sales Tax is a tax charged and levied on:

• Taxable goods manufactured in Malaysia by a taxable person and sold, used or disposed of by them;

• Taxable goods imported into Malaysia

Sales Tax is not charged on:

• Goods listed under Sales Tax (Goods Exempted From Sales Tax) Order 2018;

• Certain manufacturing activities are exempted by Minister of Finance through Sales Tax (Exemption from Registration) Order 2018.

Key Definition:

• Goods refers to all kinds of movable property.

• Taxable goods refers to goods that are not specifically exempted from sales tax; i.e goods which are not listed in Sales Tax (Goods Exempted From Sales Tax) Order 2018.

• Sales includes barter, disposal of goods with a right of purchase or on terms providing that the seller retains an interest in the goods, and delivery of goods under any conditions as to future payment.

note

Malaysia excludes Designated Area (DA) and Special Area (SA).