In line with the new Malaysian Government’s pledge to abolish the GST regime within 100 days of coming into power, the MOF has issued a statement dated 16 May 2018 to reduce the current GST rate from 6% to 0%, effective from 1 June 2018 onwards (“MOF Statement”). In particular, the MOF Statement indicated that goods and services supplied in Malaysia as well as imported goods and services which are currently subject to GST at the standard rate of 6%, will be subject to GST at 0% with effect from 1 June 2018 onwards.
The transition from Goods and Services Tax (GST) to Sales and Service Tax (SST), likely in a relatively short time frame, will require careful management. Organizations need to deploy sufficient focus and resources to ensure a smooth transition, avoiding pitfalls and seizing new opportunities.
