Malaysian Minister of Finance Grants Relief from GST for Certain Supplies of Services

July 26, 2017 Kaitlyn Smethurst

Effective July 1, 2017, the Minister of Finance in Malaysia announced that four groups of supplies will now be exempt from GST. The supplies that no longer apply GST include:

  1. The supply of services directly in connection with goods for export, to an overseas customer who belongs in a country other than Malaysia (for tax purposes), and who is outside Malaysia at the time the services are performed. 
  2. The supply of services by a company licensed under section 65A of the Customs Act of 1967, or operating in a free zone directly in connection with goods for export to an overseas customer who belongs in a county other than Malaysia, and who is outside Malaysia at the time the services are performed.
  3. The supply of services directly in connection with goods involved in R&D to an overseas customer who belongs in a country other than Malaysia, and who is outside of Malaysia at the time the services are performed. 
  4. The supply of tools or machines and services, directly in connection with such tools or machines, to an overseas customer who belongs in a country other than Malaysia, and who is outside of Malaysia at the time the services are performed. 

More guidelines and information regarding the GST Relief plan, has been published by the Royal Malaysian Customs Department, here

The post Malaysian Minister of Finance Grants Relief from GST for Certain Supplies of Services appeared first on Sovos Compliance.

About the Author

Katie Smethurst is a Junior Regulatory Counsel at Sovos. Within Sovos’ Regulatory Counsel function, Katie focuses primarily on international and U.S. based indirect tax research and analysis. Katie is a member of the Massachusetts and New Hampshire Bars, earned her B.A. from Roger Williams University and earned her J.D. from Suffolk University Law School.

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