All exports zero-rated in Malaysia

GMT 14:33 2014 Friday ,18 July

Arab Today, arab today All exports zero-rated in Malaysia

Kuala Lumpur, Malaysia
Kuala Lumpur - QNA

To make the export sector in Malaysia more competitive, the government has to zero-rate all supplies of goods and international services exported from Malaysia under the Goods and Services Tax (GST) to be implemented next year, Malaysia News Agency (Bernama) reported.
The zero-rated supplies mean that no GST would be collected as businesses are eligible to claim input tax credit in acquiring supplies, according to the GST industry guide on manufacturing by the Royal Malaysian Customs Department.
With this benefit, the prices of Malaysian exports would become more competitive on the global stage as no GST is imposed on exported goods and services while GST incurred on inputs can be recovered along the supply chain.
In the long run, Malaysia's export industry will strengthen which in the process will help the country's economy to progress even further.
Based on the guide, exporters do not charge GST on their exports but are able to claim input tax credits on GST incurred in their inputs in the cost of business.
However, the guide says that the exporters should keep documentary evidence as proof of exports such as the export declaration forms, invoices and packing list.
At the National GST Conference 2014 here last week, the Royal Malaysian Customs Department's Assistant Director from the GST Division, Annie Thomas, said manufacturers who were export-oriented were eligible for special schemes such as "approved trader scheme".
Under the scheme, she said, the manufacturers could suspend GST payment on imported goods, thus alleviating their cash flow problem on importation.
Other special schemes that were introduced to alleviate negative cash flow impact to business include facilities called the "approved toll manufacturer scheme" (ATMS) and the "warehousing scheme" (WS).
Toll manufacturing is an arrangement in which a company which has a specialised equipment processes raw materials or semifinished goods for another company.

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