Updates On Indirect Tax: Goods and Services Tax & Service Tax

We would like to inform that the Royal Malaysian Customs Department (RMCD) has uploaded the following in the website, MySST recently:-

Subject	Date of Publication	Objective & Salient Points
FAQ Pertaining to GST Refund [available in Malay language only click HERE]	16 June 2020	The RMCD has on 16 June 2020 published the FAQ Pertaining to GST refund [“the GST FAQ”]. The salient points extracted from the GST FAQ are as follows:- Where there is a change to the registration details of GST of a GST registrant such as address of office premises, phone number, bank information and etc., the GST registrant is required to update the relevant information in Taxpayer Access Point [“TAP”]. All applications for GST refund will be subject to verification (i.e. desk review), audit or investigation. Any refund of the GST overpaid will be made within 6 years from 1 September 2018. A registered person may use bank guarantee [“BG”] as an alternative to request RMCD to expedite the processing of the balance of the GST refundable prior to completion of GST audit. The application for BG and letter of undertaking can be made via email: bgrefund@customs.gov.my.
Notification of GST Refund [available in Malay language only click HERE]	16 June 2020	The RMCD has on 16 June 2020 published the Notification of GST Refund [“the Notification”]. For the purpose of expediting the GST refund during/post MCO period, the RMCD will be adopting “pay first, audit later” approach for selected companies as summarised below:- For any claim of GST refund less than RM100,000 The GST refund will be made upon completion of verification process (i.e. desk review). However, the company or claimant will still be subject to GST audit at any time within 6 years from 1 st September 2018. For any claim of GST refund amounted to RM100,000 and above The GST refund will be made if the company or claimant passes the risk assessment review and verification process (i.e. desk review). However, the company or claimant will still be subject to GST audit at any time within 6 years from 1st September 2018. In the event that the company or claimant fails the risk assessment review, the GST refund will not be made until field audit is completed. However, for the purpose of easing the company’s cash flow, the GST refund may be made in full if the following conditions are satisfied:- The verification process (i.e. desk review) is passed; A letter of undertaking declaring that all the information furnished are correct and that any tax (both GST and penalty) underpaid will be made good to RMCD; and A BG at the rate of 10% based on the total GST refundable as at 1st January 2019 is furnished. Upon completion of the field audit, the BG will be returned to the taxpayer after verifying that the company does not have any tax underpaid.   Companies that have yet to receive the GST refund can access the TAP or contact the nearest RMCD office to check on the status of the GST refundable and any information requested by the RMCD.
Service Tax Policy No. 9/2020 (Amendment No. 1) [click HERE]	17 June 2020	The RMCD has on 17 June 2020 published the Service Tax Policy No. 9/2020 (Amendment No. 1). The amendment is made subsequent to the Short-Term Economic Recovery Plan [“PENJANA”] announced by our Prime Minister on 5 June 2020. The amendments are in relation to the following exemptions:- ·        the service tax exemption for hotel related services will be extended from 31 August 2020 to 30 June 2021; and ·        the tourism tax will also be exempted from 1 July 2020 to 30 June 2021.
FAQ Pertaining to PENJANA [available in Malay language only click HERE]	30 June 2020	The RMCD has on 30 June 2020 published the FAQ Pertaining to PENJANA [“the PENJANA FAQ”]. Please refer to the PENJANA FAQ more information.
Specific and Industry Guides		The RMCD has published the following guides:-
	1 July 2020	Guide on Transmission and Distribution of Electricity Services dated 1 July 2020 [click HERE];
	13 July 2020	Guide on Information Technology Services dated 13 July 2020 [click HERE];
	13 July 2020	Guide on Refund on the Acquisition of Services by Foreign Missions and International Organisations dated 13 July 2020 [click HERE]; and
	29 July 2020	Guide on Digital Services by Foreign Service Provider (FSP) dated 1 August 2020 [click HERE].

We will keep you updated on any further guidelines and announcements to be issued by the Royal Malaysian Customs Department or other relevant authorities, if any.