A
Agent
A person who acts on behalf of an overseas principal in arranging
taxable supplies in Malaysia
Return to Top
B
Business
Business includes any trade, commerce, profession, vocation or any
other similar activity whether or not it is for a pecuniary profit
Return to Top
C
Consideration
Any payment made or to be made in the form of monetary or non
monetary terms in relation to a transaction or trade
Return to Top
D
Designated Area
An area within the island of Labuan, Langkawi or Tioman
Return to Top
E
Exempt Supply
- Supply of goods or services which is not subjected to GST
- The supplier of an exempt supply not entitled to claim input tax
credit on his business input
- The list of exempt supply to be prescribed by the Minister in an
Order published in the gazette
Return to Top
G
Goods
Any kind of moveable and immovable property but excludes money
Return to Top
I
Imported Services
Any services performed or consumed in Malaysia supplied by supplier
who does not belongs in Malaysia or carry on business outside
Malaysia
Input Tax
Any GST paid on the acquisition of goods or services by the taxable
person for the purposes of carrying on his business
Input Tax Credit
Credit which can be claimed by businesses through an automatic
mechanism by offsetting the input tax against the output tax
collected
Return to Top
O
Output Tax
Any GST collected on the supply of goods or services by the taxable
person
Out of Scope Supply
- Not a supply under GST Act
- The supplier of out of scope supply cannot be registered under
GST
- The supplier is not allowed to claim input tax credit on his
business input
Return to Top
R
Registered Person
Any person who make taxable supply of goods or services in the
course or furtherance of his business in Malaysia
Relief
Power of minister to grant relief to any specific person or class of
persons from the payment of the whole or any part of GST payable in
relation to the taxable supply of goods or services
Return to Top
S
Shadow Economy / Black Economy
Refers to untraceable and untaxable business activity which is not
captured or reflected in the in a gross domestic product (GDP)
computations
Simplified Tax Invoice
An invoice which contains the basic particulars approved by the Director General.
Standard Rated Supply
Supply of goods or services that are subject to GST at 6%.
Supply
All forms of supply of goods or services including the supply of imported services supplied in return for a consideration.
Anything that is not a supply of goods but is done for a consideration is a supply of services.
Return to Top
T
Tax Invoice
An invoice required to be issued by a registered person containing
the prescribed particulars in respect of any taxable supply of goods
or services made in Malaysia
Taxable Person
Any person who is registered or is required to be registered under
GST which includes an individual, sole proprietor, partnership, body
corporate (incorporated or unincorporated), club, society,
association or organization, Federal and States Government Agencies
and local authorities
- Subject to threshold of RM500,000 per annum
- Making a taxable supply
- Carrying on a business in Malaysia
Taxable Period
Regular interval period where a taxable person is liable to account
and pay to the government his GST liability. The standard taxable
period is on quarterly basis
Taxable Supply
Any supply of goods or services made in Malaysia other than an
exempt and out of scope supply
Threshold
Annual business sales turnover of a person which determines the
liability to be registered under GST Act
Tourist Refund Scheme
A scheme which allows any tourist who qualifies to claim a refund on
tax paid on certain goods purchased in Malaysia from an approved
outlet
Return to Top
U
Usual Place of Residence
- The place where a body corporate is incorporated or legally constituted
- The place where an unincorporated body or person has its center
of administration
- The place where an individual usually resides
Return to Top
V
Voluntary Registration
A person who volunteers to be registered even though he is not
required to registered under the law. However, once registered, he
required to remain in the system for at least 2 years
Return to Top
Z
Zero Rated Supply
- Supply of goods or services which is not subjected to GST
- The supplier of a zero rated supply entitled to claim input tax
credit on his business input
- The list of zero rated supply to be prescribed by the Minister
in an Order published in the gazette
Return to Top