UNDERSTANDING MALAYSIA SALES TAX (JULY 2025 ST ORDER)

INTRODUCTION FOR UNDERSTANDING MALAYSIA SALES TAX (JULY 2025 ST ORDER)

The recent Budget 2025 tabled on 18 October 2024 highlighted the expansion of the Sales Tax and Service Tax (SST) scope, notably on revision of the sales tax rates on non-essential goods for most sectors. Previously, items that were exempted from sales tax are now subject to sales tax of 5 to 10%.  

Sales tax exemption was to remain on basic food items. The course will provide comprehensive latest highlights on the expanded scope of new July 1st 2025 Sales tax ruling which affects manufacturing sectors

Who should attend: Business Owners, Entrepreneurs, Accounting/Finance/Billing/Logistics personnel, business operation professionals, all levels of departments managers, senior & junior executives who administer and manage and execute sales tax filing

LEARNING OBJECTIVE 

On completion of the programme, participants will be able to:-

1. Understanding the concept and scope of sales tax under the expanded Sales Tax Amended Order 2025
2. Understanding the sales tax implementation mechanism due to new gazette order
3. Aware and understand the various exemptions and sales tax credit
4. Understand the required administration which include returns submission and payment deadline as per new gazette order for new registered business

TRAINING APPROACH

Where appropriate, online training activities will include the following:

• Online Lecture & Videos
• Online faciliated Group Discussions & Quiz
• Pre and Post Test
• Practical exercises and case studies.
• Hands on navigation on custom website

Prerequisite: Participants need access to laptop and internet access

COURSE CONTENT

The key content of the program includes the following:

MODULE 1:  SALES TAX UPDATE (JULY 2025 GAZETTE ORDER)

• Scope of sales tax charge and concept of Designated Area (DA) and Special Area SA
• Expanded SST scope for sales tax on items effective 1 July 2025 and compliance time line on new items
• Impact on business operation
• Sales tax reporting with e-Invoicing documentation
• Interpretating Transitional provisions before 1 July 2025 – Sales Tax (Rates Of Tax) (Amendment) Order 2025 and various public rulings documents

MODULE 2: SALES TAX ADMINISTRATION

• Registration of sales for new business and requirements
• Deregistration of sales tax when business annual sales falls below required threshold
• Overview of sales tax credit facility available
• How to submit sales tax return via mySST portal
• Overview of mySST website and forms

MODULE 3: MECHANISM – SALES TAX TAX EXEMPTION

• How to apply for sales tax exemption for manufacturers, traders, subcontracted work in customs MySST website
• Understanding Schedule A, B and C Sales Tax Exemption
• Overview of sales tax exemption certificate forms
• Oveview of required CJP reports after sales tax exemption on raw material, components, clean room equipment
• Scenarios, online forms and schedules application for sales tax exemption

MODULE 4: HS CODE AND IMPORTANCE FOR SALES TAX ON IMPORTATION

• Overview of Harmonised System (HS) Code
• How suppliers can identify HS Code via JKDM Explorer
• Calculation of sales tax on imports scenario and methods
• Types of custom forms to be reported under self-billed e-invoice for importation of goods

MODULE 5: PRACTICAL ISSUES AND IMPACTS

• Practical issues and impacts for business who need to charge sales tax which was previously exempted.
• Exemption from Finance Minister – meaning and mechanism
• Navigating compliance challenges like submission of return, payment and late payment penalty
• Assessment Dispute
• Drawback, Refund and Remission of Sales Tax Scenarios