Effective Date and Scope of Taxation
1 September 2018 (SalesTax)
- Sales Tax is a single-stage tax imposed on taxable goods manufactured locally by a registered manufacturer, and on taxable goods imported by any person.
Section 3 of the Sales Tax Act 2018
Rate of Tax
Registration of Taxable Person
A manufacturer is liable to be registered if the total sales value of his taxable goods for a 12- month period exceeds or is expected to exceed RM500,000.
Any manufacturer of taxable goods who is not liable to be registered (below threshold) or exempted from registration (as below) may apply to the Director General (DG) of Customs for registration as a registered manufacturer.
Exemption From Registration
Taxable Period and Sales Tax Due
2. Sales Tax Due
Offences & Penalties
1. Late Payment Penalty
2. Late Submission Of Return
Liable to a fine not exceeding RM50,000 or imprisonment not exceeding 3 years or both under Section 26(7), Sales Tax Act 2018.
Sales Tax Exemption
Sales Tax (Persons Exempted From Payment of Tax) Order 2018
Sales Tax Deduction Facilities
A registered manufacturer may make an application to the Director General for a sales tax deduction in respect of taxable goods (e.g. raw materials, components or packing and packaging materials) purchased from a person other than a registered manufacturer which is used solely in the manufacturing of taxable goods.
This facility is provided to reduce the burden of a registered manufacturer who purchases manufacturing inputs
from a supplier and not from a registered manufacturer. The sales tax deduction in respect of taxable goods
purchased shall be based on the following rates: