GST Solutions

GST implementation is just the first step in being GST compliant. There will be numerous updates and developments with the new tax regime, and it will be important to stay abreast of these new developments to ensure your business remains GST optimised and GST compliant. The Malaysian GST regime provides the authorities with discretion to impose potentially very harsh penalties for non-compliance.

We provide a broad range GST service offerings to offer you peace of mind with managing and minimising your GST risk. For every piece of work, our approach will be tailored according to your needs and concerns, and based on your business and industry sector. Explore our GST service offerings listed below for more information.

GST Advisory

GST Appraisal (Healthcheck)

Since its implementation in 2015, GST has well and truly become an intrinsic part of running a business in Malaysia. But have you considered whether these changes have been properly implemented, and whether they are sufficient to manage your GST risk?

With input from GST/VAT specialists from Australia, United Kingdom, Singapore and New Zealand, we have created a dedicated “GST Appraisal (Healthcheck)” programme to identify, document, test and evaluate the GST controls and processes put in place within your business during the implementation phase.

With extensive experience working on GST implementation projects for a diverse range of industry sectors, we also aim to identify risk areas which have not been adequately addressed. We can provide practical guidance and recommendations on additional measures that your business can put in place to ensure your business is in the best position possible to minimise the risks of non-compliance.

The service includes:

  • Identification of the risk areas which are relevant to your business
  • Prioritisation of GST risks to identify those which require more extensive testing and evaluation
  • Interviews with your key personnel to determine the currently existing controls and processes
  • Walkthrough tests of controls of common business transactions and operations
  • Report outlining our findings, potential gaps or weaknesses based on the controls and processes reviewed by us, along with other comments and recommendations to address these shortfalls for your consideration

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In-house GST Training

GST is a complex and pervasive tax that will impact every aspect of a business. A good understanding of GST is required not only by your finance team, but also by your sales and marketing, product development / pricing team, procurement, HR and even internal audit functions.

As GST in Malaysia continues to evolve, interpreting and applying the changing laws significantly increases the risks of non-compliance for businesses. Incorrectly charging output tax on sales and/or incorrectly claiming input tax on purchases in everyday business transactions, is a risk that is ever present.

It is vital therefore that you are familiar with the GST rules relating to your business and industry, and keep your staff up to date with the latest developments, to avoid potential errors in GST reporting.

Our basic in-house GST training can help you to:

  • Understand how GST rules are applicable to a number of complex transactions and how to evaluate the impact of GST
  • Identify and deal with major GST issues
  • Understand when transactions qualify for zero rating or exemption or relief
  • Be equipped with knowledge on input tax recovery rules
  • Learn about the common GST errors and issues
  • Identify the changes required for business operations to comply with the GST law
  • Utilise special schemes and rules where applicable

Working with you to tailor the training to your needs

You may already be confident in certain aspects of GST knowledge within your organisation. If you would like a GST course which addresses specific GST areas or specific busines your business, we would be happy to work with you to design a course that addresses your specific requirements.

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Contract Reviews

Entering into new agreements and contracts, or are you unsure as to the full GST implications of pre-existing contracts?

Avoid any unexpected GST consequences, and optimise your contracts from a GST perspective.

Our GST team can provide contract review services to ensure that all GST liabilities will be accounted for correctly with any transactions arising from the contract. Careful structuring of your contract has the potential to save significant sums. A contract review helps you to identify areas of GST liability and exposures in your contract. Doing this before you sign the contract gives you the opportunity to either renegotiate parts of the contract and/or plan how to manage your exposure in advance.

The service includes:

  • A review of the contract to identify the GST liabilities and exposures which arise under the contract. This will cover:
    • the nature of any supply(s)
    • whether and when GST is triggered;
    • the contract terms that are relevant to GST 
    • whether these address the issue of GST
  • A short written report on our findings and suggesting further action to protect your position, including suggested changes to the contract or other risk management strategies
  • A telephone consultation to discuss the report and provide further guidance if required

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Price Control and Anti-Profiteering Act 2011 (PCAPA)

With the implementation of GST, the Price Control and Anti-Profiteering Act 2011 (PCAPA) was amended to prohibit businesses from including input tax credits in the prices they charge for goods and services. Further, businesses are required to reflect any sales tax refunds in the prices of their goods and services.

The penalties for non-compliance can be harsh. The PCAPA provides for fines of up to RM500,000 for a first offence, and up to RM1,000,000 for any subsequent offences.

We can help you to assess your pricing strategies and review your pricing changes to determine whether any price changes could be construed as “profiteering” under this Act. 

Further, we can assist with the preparation of documentation to justify any price increases to manage the risk of being charged under the PCAPA.

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GST Compliance

GST Return Preparation

Do you have finance staff on the ground in Malaysia who are well-versed enough in GST to be capable of preparing GST returns?

We offer GST return preparation services to minimise your GST compliance risks. Whether your finance teams are based locally or abroad, we can work with them to undertake the preparation of the Malaysian GST returns for your business.

This service can be complimented with a GST advisory retainer, so that your finance teams can seek GST advice as needed during the day-to-day running of the business.

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GST Return Reviews

Getting systems and processes in place for GST is one part of the story. The preparation of GST returns by your staff will require your staff to have a firm understanding of the complex rules and to stay up to date with the new developments, to arrive at the correct GST treatment and ensure that these are accurately reported in the GST returns.

We offer GST return reviews to identify erroneous submissions and to help you to take corrective actions. The GST return review should help you identify and address any issues before they are raised as part of an RMCD audit.

The review involves checks for the following:

  • Reasonable of tax treatment based on the sales listings
  • Validity of the tax invoices, credit and debit notes issued
  • Validity of vendor tax invoices received
  • Time of supply has been correctly accounted for

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Certainty and Disputes

GST Appeal Tribunal

The GST legislation provides an avenue for any person aggrieved by the decision of the Director General of Royal Malaysian Customs to lodge an appeal within 30 days from the notification date.

The appeal is to be made via Form B (Notice of Appeal) in 4 copies and a fee of RM200 will be applicable.

Having assisted clients with their appeal to the Customs Appeal Tribunal in the past, we can help you in the following areas:

  • Review of documents and submission of the appeal application to the GST Appeal Tribunal
  • Negotiate with Royal Malaysian Customs to reach a mutual agreed settlement on the dispute matters prior to the hearing
  • Strategise merits of your appeal and add value by reinforcing your grounds
  • Assist you with the preparation of written submissions, witness statement(s) or any other required documentation to ensure a smooth appeal process

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Advance Rulings

The Malaysian GST regime is still new and remains largely untested. As a result there are still many uncertainties and ambiguities in the law, which puts businesses at risk.

We can help give you peace of mind as to the GST treatments adopted by you, particularly with respect to complex or high value transactions by helping your business obtain GST advance rulings from the RMCD.

The service includes:

  • Sitting down with you to understand the nature of the transaction or arrangement
  • Drafting the application on your behalf, and advising on supporting documentation to be submitted with the application
  • Submission to senior level Customs officers with a view to fast-tracking the application

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GST, Sales Tax, Service Tax & Duty Disputes with RMCD

Investigations and tax disputes for GST have already begun with the RMCD. Further, they will continue Sales Tax and Service Tax investigations.

Our specialist indirect tax dispute team can assist you with responding and preparing for investigations or disputes, leveraging our good relationships with senior officials at the RMCD to facilitate the dispute resolution process.

We will work closely with your legal counsel where required to give a comprehensive tax perspective and to assist with liaisons with the RMCD.

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Contact us

Raja Kumaran

Tax Executive Director and Indirect Tax Lead, PwC Malaysia

Tel: +60 (3) 2173 1701

Chan Wai Choong

Tax Executive Director, PwC Malaysia

Tel: +60 (3) 2173 3100

Yap Lai Han

Tax Executive Director, PwC Malaysia

Tel: +60 (3) 2173 1491

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