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VAT - in malaysia?

Australia
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VAT - in malaysia?

Do malaysia have a value added tax to the goods and services? If so how much and are the ticketed prices VAT inclusive?

If there is such a thing, is there a refund scheme?

Kuching, Malaysia
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1. Re: VAT - in malaysia?

The concept of VAT is still alien to us. however the govt is debating on GST -general sales tax/goods sales tax(?) next year. but dunno whether they're the same.

Australia
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2. Re: VAT - in malaysia?

oh so there is no sales tax? thats great

Kuching, Malaysia
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3. Re: VAT - in malaysia?

Well, there is a 5% sales tax levied on all bills but only in large restaurant and hotels. Not sure if you mean this. But I do know buying goods like clothings, electronics, sport equipments, etc are not affected by additional tax to their listed price. Maybe someone in the know can elaborate. :-)

Kuala Lumpur...
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for Malaysia
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4. Re: VAT - in malaysia?

There is a 5% Govt Tax on service and you would see this in all the bills in restaurants. Other than this, there is no other tax issue which would be a concern to trourist.

GST was planned to take effect in 2009 but didnt happen and its now planned to be in 2010.

Petaling Jaya...
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5. Re: VAT - in malaysia?

I am not an accountant, but let me take a stab at answering this.

Value Added Tax (VAT), or Goods and Services Tax (GST) as it is known here, has yet to be implemented in Malaysia. However there are plans to change the tax regime and implement GST sometime next year. However they have been talking about implementing it since 2007, so who knows exactly when it will be actually implemented.

Currently, the main indirect forms of taxation in Malaysia are the Sales Tax and the Service Tax.

The Sales Tax is applied on goods and affects mostly the manufacturers and importers, so as a consumer you won’t see this as a separate item in your receipt, however rest assured it has been accounted for in the final selling price of the product. Items with high Sales Tax in Malaysia include alcohol and tobacco which account for the high price of alcohol and cigarettes in Malaysia.

The Service Tax is an item that you will see appearing in your receipts. Service Tax shall be charged on and paid by any taxable person who carries on a business of providing taxable services. The taxable persons are taxed 5% of the value of the services provided by the government, so naturally the 5% is passed on to the consumer in the bill.

Taxable persons include (but not limited to) the following:

i) Operators of hotels with more than 25 rooms

ii) Operators of restaurants, bars, snack bars, coffee houses, food courts with an annual sales turnover of more than RM300,000.

iii) Operators of night clubs, dance halls and cabarets

iv) Operators of health centres and massage parlours

v) Consultants

vi) Hire-and-drive car and car-hire service companies

…and many more other businesses.

.

One caveat, if you do go to either Langkawi and Labuan, you should not be charged any service tax as both islands are duty free areas.

If I got anything wrong, any experts feel free to correct me.

6. Re: VAT - in malaysia?

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