Scope of Goods and Services Tax

A) Goods and Services Tax is charged on:

  • The taxable supply of goods or services
  • Made in Malaysia
  • Made by a taxable person
  • In the course or furtherance of any business

B) Goods and Services Tax is also charged on imposition of goods into Malaysia: S9(4)

However, Goods and Services Tax is not chargeable and applicable to the following:

  • Supply made by a non-taxable person
  • Supply made outside Malaysia
  • Supply made not in the course of furtherance of business e.g. hobbies
  • Business below threshold (< RM 500K)
  • Government supply (except selected prescribed services)