Goods and Services Tax

Principles and Mechanics of Goods and Services Tax

6th February, 2010

in Goods and Services Tax

GST

Falling into the family of indirect taxes, the GST is intended to replace the Malaysian service tax and sales tax. GST will be introduced gently and at a rate that would not burden the poor or the middle-class.

It is assumed that the Royal Malaysian Customs would be the authority in charge of administering the GST.

The GST, also known as a consumption tax, is a tax levied on supplies of goods and services. To the man on the street, it is incurred only when money is spent.

If no consumption occurs, no GST is suffered by the individual. This can be contrasted with an income tax which is payable when income is generated.

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What You Need to Know About GST

2nd February, 2010

in Goods and Services Tax

GST

Goods and services tax (GST) is a tax on the final consumption of goods and services. It is also known as value added tax. GST is a multi-stage tax, which imply that the Government will collects taxes at various stages along the delivery process.

GST is ultimately passed to the consumer even though the intermediaries such as manufacturers, wholesalers and retailers paid the taxes during the production and distribution process. Therefore, GST is not a cost to the intermediaries and it will not reflected in their financial statements as an expenditure.

Below are the most commonly use terms in GST.

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