See what your business would owe if Malaysia brought back the Goods and Services Tax.
Net GST payable each month
RM 1,800.00
Output RM 3,000.00 − input credit RM 1,200.00
Net GST payable each month: RM 1,800.00
Hypothetical. GST was replaced by SST on 1 September 2018. Unlike SST, GST let businesses claim back the tax on their inputs, so the customer bears it. For today’s tax, use the SST calculator.
RM50,000 monthly sales, RM20,000 taxable purchases, 6%
RM3,000 output tax less RM1,200 input tax credit.
Net GST payable: RM1,800 a month
A RM100 item at 6% GST
The consumer bears the tax.
Customer pays RM106
How the figures above are worked out — the rules, rates and reasoning behind every line.
Malaysia charged GST at a standard 6% from 1 April 2015 until it was zero-rated on 1 June 2018 and replaced by SST on 1 September 2018. It was collected by the Royal Malaysian Customs Department.
A registered business charged GST on its sales and claimed back the GST it paid on its purchases, paying only the difference. Some supplies were zero-rated or exempt.
GST was charged at every stage, with credits for the tax paid on inputs, so it did not build up along the supply chain.
SST is charged once: sales tax on taxable goods at manufacture or import, and service tax on listed services. Businesses cannot claim it back in the same way.
The government has discussed it but GST has not been reintroduced. SST is the tax in force today. This tool is a what-if simulator.
If a business's taxable purchases exceed its sales in a period, for example when stocking up, its input tax is more than its output tax and the difference was refundable.
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