GST in Malaysia Essay

In Malaysian levy System, Royal tradition & Excise Department is responsible for all policies related of Goods and Services valuate (GST). Currently, the rate of GST can be category to 3 rates which ar standard rate, zero rate and exempt supplies. (Gst.customs.gov.my, 2014) GST can only be charged on the business was evinceed under the Malaysian Goods and Services cause 2014. The registration exemption is given if the businesss annual perturbation of tax incomeable supplier is downstairs than the GST registration threshold. Thus, such businesses cannot charge GST on their products or services from their customers. (Gst.customs.gov.my, 2014) The GST registration is available from 1st June 2014 for any businesses which pick up reach the GST registration threshold of more than RM500, 000 argon required to register under with Royal Malaysian Customs Department for the Goods and Services appraise (GST) before 31st December 2014.Nevertheless, the business with annual turnover bel ow RM500, 000 may apply for the GST voluntary registration that is because registration GST is voluntary. (HengAnn, 2014) There are no any extra fees charged for GST registration processing. Goods and Services valuate (GST) and Value-Added Tax ( bathing tub) are a type of consumption tax had been invented in 1950s. Both of GST and VAT are based on value added image and it is a multi-stage tax, so GST or VAT will charge at each stage of supplies chain.Currently, there are 160 countries had implemented GST or VAT and from this statistic has shown that GST and VAT are an effective and fair tax system. harmonize to the data shows based on the region, 160 countries had implemented GST or VAT are as the following countries 7 countries in ASEAN, 19 countries in Asia, 53 countries in Europe, 7 countries in Oceania, 44 countries in Africa, 11 countries in South America and 19 countries in Caribbean, Central and northern America.On 7th April 2014, the Goods and Services Tax was passed in D ewan Rakyat Malaysia with 119 votes for and 81 votes against. stick from 1st April 2015, GST will effective at a standard tax rate of 6%. The propose of implementation GST will replace the certain consumption taxes which are Government Sales Tax (10%) and Services Tax (6%).