Amendments made to conditions and goods exempted in relation to persons entering Malaysia

The Sales Tax (Persons Exempted from Payment of Tax) (Amendment) (No 2) Order 2021 has been gazetted and comes into operation on 1 July 2021. The order amends the following:

• • Item 16: Amendments in relation to any persons entering Malaysia (other than designated area) through all modes excluding air. The list of goods exempted and conditions under this item have been amended.
• • Item 16A: A new item has been added in relation to any person entering Malaysia (other than designated area) through air mode.
• • Item 17: Amendments in relation to any person entering Malaysia from designated area. The list of goods exempted and conditions under this item have been amended.

(Note: For further information about our Sales and Service Tax (SST) subscription, contact us at my-sales@wolterskluwer.com (Malaysia).

Approved Major Exporter Scheme (AMES) - report to be prepared for exemption

The Royal Malaysian Customs Department (RMCD), on 9th April 2021 has published the reports that need to be prepared by Manufacturers or traders who are exempted under the Approved Major Exporter Scheme (AMES) are required to prepare the following reports:

• Trader:
  • • AMES — 03: monthly statement for movement of taxable goods by trader under AMES.
• Manufacturer of exempted goods:
  • • AMES — 04: monthly statement for movement of raw materials, components, packaging and packaging materials
  • • AMES — 04A: monthly statement for export/local sales of exempted finished goods.
• Trader or manufacturer — non-compliance:
• • AMES — 02: declaration form to be furnished when making payment of sales tax arising from non-compliance with the AMES conditions.
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• (Note: For further information about our Sales and Service Tax (SST) subscription, contact us at my-sales@wolterskluwer.com (Malaysia).

  
  
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Guide on Accommodation

 The Royal Malaysian Customs Department has recently released a Guide on Accommodation - Version 2. This guide enlights mainly to service providers in the hospitality industry, specifically hoteliers and other providers of sleeping accommodation. 

The Guide illustrates the following:

• Examples of services subjected to service tax
• Imposition and Scope of tax and the service tax due 
• Registration and responsibility of a registered person

It is worth noting that this guide provides clarity on the determination of accommodation services and which services falls under the 'service tax' category. 

Lochana Nanthacumar

Content Management Analyst

Wolters Kluwer Malaysia

(Note: For further information about our Sales and Service Tax (SST) subscription, contact us at my-sales@wolterskluwer.com (Malaysia).

Sales and Service Tax (SST) Updates

The Royal Malaysian customs department issued two new guides/schemes on its web recently:-

• Approved Major Exporter Scheme (AMES)
• Guide on Transmission and Distribution of Electricity Services. 

Approved Major Exporter Scheme (AMES)

This scheme was released under the Sales Tax (Amendment) Regulations 2020 and came into operation on 1 July 2020. The amendment contains a new part, IX A (AMES) which details out the following:-

• Application for Approval
• Validity for Approval
• Exemption from Payment of Sales Tax 
• Goods not eligible for Exemption from Payment of Sales Tax 
• Variations, Suspension and Revocation of Approval
• Sales Tax Due and Payable

Guide on Transmission and Distribution of Electricity Services

This guide was published to help taxpayers in understanding the service tax treatment on the provision of electricity services. This guide contains the following details:-

• Service Tax Treatment on the Provision of Electricity Services
• Treatment of Service Tax Electricity Services in Designated Area and Special Area 
• Registration and Responsibilities of a Registered Person
• Frequently Asked Questions

Lochana Nanthacumar

Content Management Analyst

Wolters Kluwer Malaysia

(Note: For further information about our Sales and Service Tax (SST) subscription, contact us at my-sales@wolterskluwer.com (Malaysia).