North America
July 26, 2017
Malaysian Minister of Finance Grants Relief from GST for Certain Supplies of Services

Kaitlyn Smethurst

Author

Sovos

This blog was last updated on June 26, 2021

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

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Kaitlyn Smethurst
Katie Smethurst is a Regulatory Counsel at Sovos. Within Sovos' Regulatory Analysis function, Katie focuses on global sales tax and VAT issues, supporting both the tax determination and reporting engines. Katie received her B.A. in International Relations and Spanish from Roger Williams University and her J.D. from Suffolk University Law School. She is a member of the Massachusetts and New Hampshire Bars.