GST shall be levied and charged on the taxable supply of goods and services made in the course or furtherance of business in Malaysia by a taxable person. GST is also charged on the importation of goods and services.
A taxable supply is a supply which is standard rated or zero rated. Exempt and out of scope supplies are not taxable supplies. GST is to be levied and charged on the value of the supply.
GST can only be levied and charged if the business is registered under GST. A business is not liable to be registered if its annual turnover of taxable supplies does not reach the prescribed threshold. Therefore, such businesses cannot charge and collect GST on the supply of goods and services made to their customers. Nevertheless, businesses can apply to be registered voluntarily.
Almost all countries collect income tax, which is a percentage of what you earn as an individual. Another way the government gets revenue is by collecting tax from business operations, like sales tax and duties on items that are bought or sold.
We need to pay tax so that the government can operate. GST is one method of collecting taxes which works better than others.
The concept behind GST was invented by a French tax official in the 1950s. In some countries it is known as VAT, or Value-Added Tax. Today, more than 160 nations, including the European Union and Asian countries such as Sri Lanka, Singapore and China practice this form of taxation. Roughly 90 percent of the world's population live in countries with VAT or GST.
Here are some of the tax rates of countries around the world who have implemented GST or VAT.
In Malaysia, our tax system involves several different indirect taxes:
The proposed GST will replace the Government Sales Tax and the Service Tax.
Countries Implementing GST or VAT
Currently, there are 160 countries in the world that have implement VAT/GST. Number of country based on region are as follows:-
Out of 160 countries, eight countries are not United Nation (UN) Member States:-
Number of UN Member States are 193 and out of the 193, only 41 Member States do not implement VAT/GST, as follows:
Latest countries to implement VAT/GST (for the last 5 years) are:
Country working towards a VAT/GST system:-
The detailed list of country are attached.