* Goods And Services Tax Act 2014

Original Language Title: * Goods And Services Tax Act 2014

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Laws of MALAYSIA ONLINE VERSION of the PRINT TEXT that UPDATES 762 Act GOODS and SERVICES TAX ACT 2014 As at 1 June 2017 2 GOODS and SERVICES TAX ACT 2014 date of Assent......... 9 June 2014 date of publication in the Gazette......... June 19, 2014 last amended through the 785 Act comes into operation on............ 1 January 2017 3 laws of MALAYSIA Act 762 TAX ACT GOODS and SERVICES 2014 ARRANGEMENT of SECTIONS part I preliminary section 1. Short title and commencement 2. Interpretation 3. The meaning of "business" 4. The meaning of "supply" PART II ADMINISTRATION 5. The Director General and other officers and responsibilities 6. Recognition of post 7. Public servants 8. Confidentiality of information PART III IMPOSITION and SCOPE of TAX 9. Imposition of tax and the scope of goods and services, etc.
10. Tax rate of 11. Time supply of 12. Place of supply 4 laws of Malaysia ACT 762 section 13. Supply of services imported 14. Beradanya service providers place 15. The value of the supply of goods or services 16. The value of imported goods 17. Supply a zero rate 18. Supplying exempt PART IV REGISTRATION 19. Registration of taxable person 20. Obligation to register 21. Notification obligation and registration 22. Termination of obligation to register 23. Instructions for calculating taxable persons as single 24. Voluntary registration 25. Notification of termination of obligations or voluntary registration 26. Cancellation of registration 27. Group registration 28. Registration of partnership 29. The Registrar of societies or similar organization 30. Registration of a branch or Division 31. Personal representatives are deemed to be the taxable person 32. Exemption from registration for a person who makes or intends to make a zero rate supply part V PENGAKAUNAN, assessment, GET, etc.

33. Production Tax Invoice Tax goods and services 5 Section 34. Issuance of tax invoice by computer 34A. Registered persons shall submit the specified information about supply made and payment received 34B. Responsibility not to give, publish or disclose information about a specified device 35. Credit note and debit note 36. Duty to keep records of 37. Basic pengakaunan 38. Input tax credit against the output tax is 39. The amount of the input tax allowed 40. Taxable period 41. Submission of the statement and the payment of taxes 42. Submission of Declaration and payment of tax by anyone other than the taxable person 43. Power to 44 students. Director-General may not take into account or change certain arrangements 45. Offset tax payable against repayment of 46. Get tax, etc., as a civil debt 47. Seizure of goods to get taxes, etc.
48. The power to collect taxes, etc., from the person who owes money to the taxable person 49. Get tax from people leaving Malaysia 50. Power to require assurance 51. Payment by instalments 52. The imported goods cannot be released until the tax paid 53. Liability of Directors, etc.








6 laws of Malaysia ACT 762 PART VI FUND for REPAYMENT of TAX GOODS and SERVICES Section 54. The establishment of a Fund for the repayment of the goods and Services Tax 55. Ketidakbolehpakaian section 14A of the Financial Procedure Act 1957 PART VII RELEASE, repayment and REMISSION of 56. Minister's power to authorize the release of 57. Repayment of taxes, etc., that are overpaid, terkhilaf pay, remitted or forming matter release 58. Bad debt relief 59. Release of goods apply 60. Get tax, etc., repaid in terkhilaf 61. Payback scheme 62 Tourists. Remission of tax, etc.
63. Remission of tax on goods lost, etc., under the control of customs MISCELLANEOUS SPECIAL CASES 64. Disapplication of the 65. Agent 66. Supply beyond the rate changes or description of 67. Contract adjustment to change tax rates 68. Transfer of ongoing efforts 69. A joint venture 70. 71 Warehousing scheme. Approved Trader Scheme to tax goods and services 7 Section 72. Manufacturer's Approved 73 Toll scheme. Jeweler scheme Approved 74. Flat Rate scheme 75. Capital markets DIVISION IX STIPULATIONS TAX GOODS and SERVICES 76. Public ruling 77. Regularity of early 78. Preliminary ruling Kemuktamadan 79. A resolution shall not apply when the provisions of the Act is amended or repealed part X 80 ENFORCEMENT. Powers of enforcement, inspection and investigation of 81. Access to a place or premises 82. Magistrate can issue a search warrant 83. Search can be done without a warrant 84. The power to detain and search carriers 85. Seizure of goods, etc., that is the subject of the offence of 86. The return or disposal of goods can move 87. The power of arrest PART XI OFFENCES and PENALTY 88. Penalty for incorrect statements of 89. Penalties for tax evasion, fraud 90. Penalties to obtain repayment in inappropriate, etc.
8 laws of Malaysia ACT 91 Section 762. Penalties for offences in relation to the goods, invoice and receipts 92. Penalties to prevent, etc., of goods and services tax officers 93. The penalty for refusal to answer questions or give false information 94. Penalties for offences by persons duly authorized and not authorized 95. Trial and pensubahatan 96. General penalty 97. Offences by a group of people, etc.
98. Taxes, etc., shall be payable notwithstanding any proceedings, etc.

PART XII TRIAL and PROCEEDINGS 99. Prosecution 100. Jurisdiction to try the offence of 101. Conviction under the law of the other 102. The burden of proof 103. Provision of evidence 104. The value of the description electronic copy of the notice 105. Evidence through certification, etc.
106. The inspection or testing of the goods seized shall rate received by the Court 107. Production of certificate of analysis of 108. Proof of registration or licensing of vessels and carrier in Malaysia or Singapore 109. Evidence of tonnage or the make a 110 aircraft. Evidence as to the accuracy of the meter or other device for measuring petroleum 111. Imprisonment for non-payment of the fine

112. How seizure cannot be examined in the trial before the Court of appeal or the goods and Services Tax 9 Section 113. 114. The obligation of confidentiality The whistleblower protection from known 115. Forfeiture and release of those goods can be seized 116. There are no costs or damages arising from seizure can be retrieved back unless the seizure made without reasonable cause or reason perhaps 117. The Court shall order the disposal of goods seized 118. Goods seized in respect of which no prosecution, or proceeds, forfeited if not claimed within one month 119. The vesting of the goods at the Federal Government dilucuthakkan 120. Service of summons 121. Compounding of offences 122. Court orders PART XIII REVIEW and of APPEAL 123. Interpretation of 124. Application for review of 125. The establishment of the Tribunal 126. 127. Right to appeal The jurisdiction of the Tribunal for 128. Membership of the Tribunal 129. Temporary exercise of functions of Chairman of the 130. Revocation of appointment of 131. The resignation of 132. Vacation of Office and the appointment of acting 133. The Secretary of the Tribunal and other officers 134. Public servants 135. Hearing of appeal 136. The hearing by a single member of the 137. Disclosure of interest 10 laws of Malaysia ACT 138 Section 762. Exemption from the Court's jurisdiction 139. The notice of appeal and the hearing of 140. Negotiations for the completion of 141. Representation during the hearing of 142. Evidence of 143. The Tribunal may request information 144. The results of the 145. Decisions and resolutions shall be recorded in writing 146. The decision of the Tribunal is binding on 147. The disposal of appeal 148. Appeal to the High Court 149. Tribunal shall adopt procedures 150. Not according to the form of 151. Provisions relating to costs and expenses 152. Disposal of documents, etc.
153. Act or omission made in good faith PART XIV SET 154 SPACES. Interpretation of 155. The supply of goods or services made in a prescribed area or between 156. Goods or services imported into or supplied to or from a specified area of 157. The supply of goods or services in Malaysia, 158. Declaration of goods supplied from Malaysia set to 159. The tax collection area set 160. Minister's power to impose taxation taxation of goods and services 11 SECTION XV of the FREE ZONES Section 161. Interpretation of 162. Goods imported into or supplied in the free zones or between 162A. Goods transferred from a free zone include goods under lease agreements 162B. The supply of goods or services by a taxable person whose principal place of business is located in the free zone 163. Minister's power to impose taxation PART XVI VARIOUS 164. Authorized to collect a sample of 165. The person is bound to produce goods or provide information, etc.
166. the use of electronic services 167. Service of notice of 168. Confirmation notices, etc.
169. Postage free 170. 171 tax agents. The remuneration of the 172. The form you want to use 173. The authority of the Director-General to impose fees 174. Application of customs laws 175. Government protection from liability 176. Protection officer taxation of goods and services from liability 177. The power to make regulations 12 laws of Malaysia ACT 762 PART XVII REPEAL and SAVING the SALES TAX ACT 1972 Section 178. Repeal and saving the sales tax Act 1972 179. Submission of statements for taxable period on 180. Sales tax payment for those not registered PART XVIII REPEAL and SAVING the SERVICE TAX ACT 1975 181. Repeal and saving the Service Tax Act 1975 182. Submission of statements for taxable period on PART XIX TRANSITIONAL PROVISIONS of 183. Payments, invoices and importation prior to the effective date of 184. Registration prior to the effective date of 185. The impact on sales tax and service tax 186. The value of the supply of goods and services 187. Contract without an opportunity to review 188. Staged periodic supply or 189. Rights conferred lifelong 190. Special sales tax refund for goods in 191. Claim for reimbursement of special 192. Offset the tax payable, etc., special repayment of 193. Construction agreements made prior to the effective date of 194. Costs 195 prisoners. Vouchers not redeemed Tax goods and services 13 Section 196. The supply of coin-operated machines, tokens, etc.
197. Things done in anticipation of this Act made the FIRST SCHEDULE SECOND SCHEDULE of the THIRD SCHEDULE of the FOURTH SCHEDULE 15 laws of MALAYSIA Act 762 TAX ACT GOODS and SERVICES 2014 an act to provide for the imposition and collection of taxes goods and services and for matters connected therewith.

[1 July 2014; paragraph (a) P.U. (B) 319/2014 1 April 2015; paragraph (b) P.U. (B) 319/2014 1 April 2015; subsection 1 (3) ―it see P.U. (B) 320/2014]


Enacted by the Parliament of Malaysia as follows: part I preliminary short title and commencement 1. (1) this Act may be cited as the goods and Services Tax Act 2014.

(2) of this Act come into force on such date as the Minister may, by notification in the Gazette and the Minister may set different dates for the commencement of different divisions or different provisions in this Act.

(3) the Minister may, by notification in the Gazette, designate the effective date for the imposition of a goods and services tax under this Act (hereinafter referred to as "effective date").


16 laws of Malaysia ACT 762 interpretation 2. (1) in this Act, unless the context otherwise requires — "this Act" includes any subsidiary legislation made under this Act;

"consideration" in respect of the supply of goods or services to any person, including any payment made or to be made, whether in the form of money or otherwise, or any act or acts of refrain, whether voluntarily or not, respect, response

to, or for the push, the supply of goods or services, whether by that person or any other person: provided that a deposit, may either be reimbursed or not, given in respect of the supply of goods or services should not be used as a payment made for the supply unless the provider using the deposit as consideration for the supply;

"article" means any type of movable and immovable but shall not include money unless — (a) banknotes or coins before they become legal tender in Malaysia or in any other country;
or (b) a popular collectors item, investment articles or items of Numismatic;

"tax" means the goods and services tax;

"input tax" means — (a) tax on any supply of goods or services to a taxable person; Tax and goods and services 17 (b) the tax paid or payable by the taxable person on any importation of goods, and the goods or services used or to be used for the purpose of any business carried on or to be carried out by the taxable person: provided that if the goods or services used or will be used in part for the purpose of any business carried out or will be carried out by the taxable person and partly for other purposes , tax on supply and importation shall be distributed so that only as much as can be dihubungkaitkan with the purpose of its business is counted as tax inputnya;

"the output tax" means the tax on any taxable supply of goods or of services by the taxable person in the course of business or the continuance of its business in Malaysia;

"prescribed" means prescribed by regulations made under this Act;

"document" has the meaning assigned to it in section 3 of the Act Evidence 1950 [Act 56];

"excise" has the meaning assigned to it in section 2 of the Excise Act 1976 [Act 176];

"customs duties" has the meaning assigned to it in section 2 of the Customs Act 1967 [Act 235];

"Electronics" has the meaning assigned to it in section 5 of the electronic Government Activities Act 2007 [Act 680];

"import" has the meaning assigned to it in section 2 of the Customs Act 1967;

"invoice" includes any document similar to an invoice;

18 laws of Malaysia ACT 762 "tax invoice" means an invoice which are required to be issued by the taxable person under section 33;

"excise control" has the meaning assigned to it in section 2 of the Excise Act 1976;

"customs control" has the meaning assigned to it in section 2 of the Customs Act 1967;

"specified area" means the Labuan, Langkawi or Tioman island;

"Director General" means the Director General of customs and Excise under section 3 of the Customs Act 1967;

"computer" has the meaning assigned to it in section 2 of the Act computer crime of 1997 [Act 563];

"Labuan" means the island of Labuan and pulau Rusukan takluknya, that is, Large, Rusukan Kecil, Keraman, Burong, Board and Daat;

"Langkawi" means the island of Langkawi and all islands contiguous to it which is more close to the island of Langkawi from the Mainland;

"Malaysia" means the federal territories of Malaysia, Malaysian territory waters and seabed soil and waters of the province, and includes any area beyond the territorial limits of Malaysia, and seabed and soil under any such area, which has been or may hereafter be prescribed under Malaysian law as against which Malaysia has the right of sovereignty, for the purpose of exploring and exploiting natural resources either in the form of living or non-living;

"Minister" means the Minister charged with the responsibility for finance;

"electronic notice" means any document submitted by the registered users by means of electronic services;

Goods and services tax 19 "registered person" means a person registered under part IV;

"taxable person" means any person who or which is liable to be registered under this Act;

"goods and services tax officer" means any customs officer acting in the exercise of his duties under this Act, whether the obligation specifically conferred upon it or am, or express or implied;

"senior officials from the taxation of goods and services" means — (a) the Director General;

(b) any Deputy Director-General of customs and Excise under subsection 3 (1) of the Customs Act 1967;

(c) any Assistant Director-General of customs and Excise, Director of customs and Excise, Senior Assistant Director of customs and Excise and Customs and Excise Assistant Director appointed under subsection 3 (1) of the Customs Act 1967;

(d) any Senior Superintendent of customs and Excise or Customs and Excise Authority appointed under subsection 3 (4) of the Customs Act 1967; or (e) any goods and services tax officer, authorized a senior officer of the goods and services tax under subsection 5 (4);

"customs officer" has the meaning assigned to it in section 2 of the Customs Act 1967;

"compliance officer" has the meaning assigned to it in section 27 of the Act limited liability partnerships 2012 [Act 743];

20 laws of Malaysia ACT 762 "supply" has the meaning assigned to it in section 4;

"taxable supply" means a supply of goods or services which is the supply of standard rate and supply a zero rate and does not include an exempt supply;

"zero rate supply" means a supply of a zero rate under section 17;

"exempt supply" means a supply exempted as determined under section 18;

"owner" — (a) in respect of goods, includes any person who is or who submit himself as the owner, or person in possession of, or beneficially interested in, or have any control over, or power to dispose of the goods,;

(b) in respect of a carrier, includes any person acting as an agent for the owner of the carrier or who receives freight or other charges payable in respect of the carrier;

"carrier" includes any vessel, vehicle, train,

aircraft or any other means of transport that can transport people or goods;

"service" means anything done or to be done including the grant, assignment or surrender of any right or provision of any facilities or benefits but does not include the supply of goods or money;

"imported services" means any service provider that its place in a country other than Malaysia or the Taxation of goods and services 21 doing business outside Malaysia, to recipients who place in Malaysia, and the service is used in Malaysia;

"electronic services" means services provided by the Director General to registered users under section 166;

"arrangement" means any agreement, contract, plans, understanding, trust, scheme, grant, covenants, disposal or transactions and includes all necessary measures through it it is implemented;

"Islamic financial arrangement" means a written contract that is associated with a supply of finance in accordance with Shariah principles;

"limited liability partnership" has the meaning assigned to it in section 4 of the limited liability partnerships Act, 2012;

"business" has the meaning assigned to it in section 3;

"surcharge" in respect of any default to pay any installment means charges accrued under subsection 51 (2);

"the additional flat-rate" means the additional flat-rate prescribed under section 74;

"place of usual residence" means — (a) in relation to a body corporate, place the corporation incorporated or otherwise established in law;

(b) in relation to the organisation of the person is not a corporation, the Corporation places the Administration Centre;

(c) in relation to an individual, a place that he normally live;

22 laws of Malaysia ACT 762 "taxable period" means any period specified or provided for under section 40;

"Tioman" means Tioman island and Islands Soyak, Rengis, Tumok, coral island, Chebeh, Labas, Sepoi and evil;

"money" includes currency currency either Malaysia or any other country;

"free zone" has the meaning assigned to it in subsection 2 (1) free zones Act 1990 [Act 438].

(2) paragraph 1 of the third Schedule shall apply in relation to any reference in this Act on the "open market value".


The meaning of "business" 3. (1) in this Act, "business" includes any trade, trade, profession, occupation or any other similar activity, whether for profit or not.

(2) without prejudice to the generality of any other provisions of this Act, the following are deemed to be running a business: (a) facilities or benefits available to its members or the owner of the petaknya, as the case may be, by any club, Association, organization, Corporation management, joint management body or organisation (for a fee or other consideration); and (b) a person admission to any premises for a consideration.

(3) anything done in relation to the beginning, termination or termination of the intended Tax calculated Enterprise goods and services 23 as was done in the course of business or continuation of that business.

(4) subject to the second schedule, the disposal of any business as a going concern, or assets or liabilities (whether related to the restructuring or penggulungannya or not), is a supply made in the course of business or continuation of that business.

(5) If any person, in the exercise of any trade, trade, profession, occupation or any other similar activities receive any Office, any services supplied by such person as the holder of the designation shall be calculated as provided in the course of business or continuation of trade, trade, profession, occupation or any other similar activity.


The meaning of "supply" 4. (1) subject to subsection (2) and (3), "supply" means all forms of supply, including the supply of imported services, done for a reply and any supply of goods but which are not carried out for a reply is a supply of services.

(2) the matters to be considered as a supply of goods or a supply of services is as specified in the first schedule.

(3) the matters which shall be treated as not being a supply of goods or a supply of services is as specified in the second schedule.

(4) the Minister may, by order published in the Gazette, amend the first schedule and the second schedule.

(5) any order made under subsection (4) shall be laid before the House of Commons.

24 laws of Malaysia ACT 762 PART II ADMINISTRATION Director-General and other officers and responsibilities 5. (1) the Director General shall have supervision over all matters relating to the taxation of goods and services, subject to the direction and control of the Minister.

(2) subject to the direction and general supervision of the Director General, a senior officer of the goods and services tax shall have and exercise all powers conferred to the Director General under this Act other than those conferred by section 8, 62, 76, 77, 172 and 173.

(3) any person other than the Customs officers may be appointed by or employed with the consent of the Director-General for any tasks or services relating to the taxation of goods and services and the person shall be deemed to be an officer of the goods and services tax.

(4) the Director General may, by authorisation in writing, giving any goods and services tax officer who is not a senior officer of the goods and services tax all or any senior officer goods and services tax for a period not exceeding ninety days in respect of any one of the authorisation.

(5) any goods and services tax officer shall have the duty and the power to enforce and ensure compliance with the appropriate provisions of this Act.


Recognition of position 6. (1) every officer of the taxation of goods and services when discharging its duties shall, upon request by any person, declare his Office and present power or badges prescribed under section 8A of the Customs Act

Goods and services tax 25 1967 to that person or in the case of any officer tax goods and services which are not Customs officers, any card other powers as may be approved by the Director General.

(2) it shall not be an offence for any person who refuses to comply with any demand, claim or order made by any officer of the tax goods and services acting or purporting to act under this Act if the officer refuses to declare his Office and present power or lencananya when required to do so by that person.

(3) any person, who is not an officer of the taxation of goods and services, which are not valid in law wear, use, possess or display, except during a stage show or theater performances, any uniform, badge or card set power referred to in subsection (1), or any clothing that looks like or have distinctive marks are such uniform commits an offence and can be , on conviction, to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.


Public servants 7. All the goods and services tax officer shall be deemed to be public servants within the meaning of the Penal Code [Act 574].


Confidentiality of information 8. (1) every person, that has any official duties or appointed or employed under this Act, shall consider and manage all documents, information, statement or declaration relating to business, the value of the supply of goods or services by any taxable person or the value of goods imported as confidential.

26 laws of Malaysia ACT 762 (2) subject to subsection (4), every person who has possession or control of any document, information, statement or declaration or copies thereof in connection with the business or the value of the supply of goods or services of any person or the taxable value of imported goods, which at any time, except for the purposes of this Act or with the explicit authority Director General — (a) delivering or attempting to deliver the information or anything contained in document , statement or declaration or a copy of it to any person; or (b) let or allow any person to have access to any such information or to anything contained in document, statement or declaration or a copy thereof, commits an offence.

(3) No person shall have any obligation or official appointed or employed under this Act or that referred to in subsection (4) are required to submit in any matter or proceeding in any court or tribunal of any document, information, statement or declaration or to disclose or convey the subject or the proceedings, any matter or thing, which is brought to its knowledge in the implementation of its obligations under this Act except as may be necessary for the purpose of carrying out the provisions of this Act or to commence a prosecution or in the course of a prosecution for any offence committed under this Act.

(4) the Director General may, as he thinks fit, send or deliver any document, information, statement or declaration referred to in subsection (1) or anything contained therein, to the Director General of Inland Revenue or the head of Perangkawan that can be required in carrying out the duties officially.

Goods and services 27 (5) Notwithstanding subsection (4), the Minister may, as he thinks fit, authorize the Director General to transmit or deliver any document, information, statement or declaration referred to in subsection (1) or anything contained within it to any other person.


PART III TAX imposition of IMPOSITION and the SCOPE and the scope of goods and services, etc.

9. (1) a tax called the goods and services tax, shall be charged and levied on — (a) any supply of goods or services made in Malaysia, including anything that counts as a supply under this Act; and (b) any importation of goods to Malaysia.

(2) except as otherwise provided in subsection 13 (3) and 72 (5), tax shall be charged on any supply of goods or services made in Malaysia if it is a taxable supply made by the taxable person in the course of business or continuation of any business carried on by him.

(3) except as otherwise provided in subsection 65 (4) and (5) tax is imposed on any supply of goods or services is the liability of the person making the supply and subject to part V, become due and payable at the time of the supply.

(4) tax on any importation of goods to Malaysia shall be charged, levied and payable as if it a customs duty or excise duties and as if goods imported that is dutiable and may be subject to customs duties or excise duty.

28 laws of Malaysia ACT 762 (5) If any person registered exhibit, advertise, post or mention prices by any other means the price of any supply of goods or services made by him or which he intends to make, such price shall include taxes that may be imposed on the supply unless the Director General approves otherwise under subsection (7).

(6) any person registered may apply to the Director General in the form and manner determined by the Director General to be exempted from the exhibit, advertise, post or mention prices in such a way that price including taxes that can be imposed on the supply of goods or services made by him or which he intends to make.

(7) the Director General may approve in writing an application made under subsection (6) and if an approval was given, the registered person shall display, advertise, post or mention the price excluding tax with the words "price payable does not include CBP".

(8) any person registered who contravenes subsection (5) or (7) commits an offence.


(9) for the purposes of this Act, "the supply of goods or services made in Malaysia" shall be treated as goods or services are supplied in Malaysia.


Tax rate 10. (1) Tax shall be imposed and levied at the rates fixed under this section on the supply of goods or services or on the importation of goods by reference to the value of the supply or importation as determined under this Act.

Goods and services tax 29 (2) the Minister may, by order published in the Gazette — (a) prescribing the rate of tax to be imposed on the supply of goods or services or on the importation of goods; and (b) modify or amend the tax rates prescribed under paragraph (a).

(3) any order made under subsection (2) shall, at the next meeting of the Dewan Rakyat, laid before the House of representatives and shall, upon the expiry of one hundred and twenty days from the date of the order presented or from any extended period as directed by the House of representatives through a resolution, cease to have effect if and to the extent it is not confirmed by a resolution passed by the House of Commons within one hundred twenty days or , if that period has been extended, in any period of extended it.

(4) If an order cease to have effect as a whole or in part as provided in subsection (3), any tax imposed and levied according to the order, as the case may be, for any part of the order cease to have effect shall, subject to subsection (5) and (6), be refunded to the person paying the tax.

(5) unless the Minister otherwise directs, no tax payable under subsection (4) may be reimbursed, unless the people who pay the tax claim in writing to the Director General within one year from the date of the order cease to have effect as a whole or in part and the claim shall contain such particulars as may be required by the Director General.

(6) the Director General may reduce or refuse any tax payable under subsection (4) to the extent that the repayment will be should not pose people paying the tax.
30 laws of Malaysia ACT 762 Time supply 11. (1) this section shall apply in determining the time of the supply of goods or services except as otherwise provided in this Act.

(2) subject to subsection (4), (5), (6) and (7), the time of supply of goods shall be — (a) at the time of removal of the goods if the goods to be moved;

(b) at the time the goods available to the person of the goods supplied to him if the goods are not diverted;

(c) if the goods, sent or taken with the approval of or sale or returned or similar terms, moved before known whether taxable supply will take place, at the time it becomes certain that the taxable supply has occurred or twelve months after removal, as that of any earlier.

(3) subject to subsection (4), (5), (6) and (8), the time of supply of the service shall be at the time the service is performed.

(4) If, before the time applicable under subsection (2) or (3), the person making the supply issue a tax invoice in respect of the supply or if, before the time applicable under paragraph (2) (a) or (b) or subsection (3), he received a payment in respect of the supply, the supply shall, to the extent covered by the invoice or the payment is calculated, as happened in the invoice is issued or the payment received , as the case may be, or in accordance with any earlier.

(5) If, within twenty-one days after the applicable time under subsection (2) or (3), the person making the supply issue a tax invoice in respect of the goods and Services Tax 31 supply that, then, the supply shall, as far as the supply is not considered to occur at the time referred to in subsection (4) shall be calculated as happened in the invoice is issued.

(6) upon request made in writing by the taxable person, in writing, the Director-General may, as he thinks fit, change the time of the supply made by the taxable person is counted as has occurred.

(7) if there is a supply of goods solely by reason of the transfer of title or disposal of business assets under subparagraph 5 (1) of the first schedule, the time of supply is at the time of the goods transferred or disposed of.

(8) if any provision solely by virtue of subparagraph 5 (3) of the first schedule, the time of supply is at the time the goods allocated for use referred to in that subparagraph.

(9) Notwithstanding subsection (1), (2), (3), (4), (5), (6), (7) and (8), if any — (a) the supply of goods or services for a consideration wholly or partly determined or payable on a periodic basis, or from time to time, or at the end of such period;

(b) the supply of goods for a consideration wholly or partly determined at the time the goods allocated for any purpose;

(c) the supply of services by virtue of subparagraph 5 (3) of the first schedule for an extended period of time;

(d) the supply of goods or services under any circumstances set, 32 laws of Malaysia ACT 762 time the supply is made in the course of business or continuation of any business in Malaysia shall be determined in accordance with regulations made under this Act.

(10) in respect of any matter referred to in subsection (9), the regulations may provide that the goods or services were treated as supplied separately and sequentially in time or specified intervals.

(11) this section does not apply to subsection 183 (2) and (4).


The place of supply of 12. (1) this section shall apply to determine, for the purposes of charging taxes, whether goods or services supplied in Malaysia.

(2) if the supply of any article involving pengalihannya from somewhere in Malaysia to a place other items shall be calculated as provided in Malaysia if the items

It was in Malaysia and if supply of goods involves the pengalihannya from a place outside Malaysia to a place outside Malaysia, the goods shall be calculated as supplied outside Malaysia.

(3) if the supply of any article involving pengalihannya from somewhere in Malaysia to a place outside Malaysia, the goods shall be calculated as provided in Malaysia and if supply of goods involves the pengalihannya from a place outside Malaysia to a place in Malaysia, the goods shall be calculated as supplied outside Malaysia.

(4) a supply of service shall be deemed to be made — (a) in Malaysia, if suppliers are in Malaysia; and (b) in other countries, if suppliers are in the other countries.
Goods and services tax provision imported 33 13. (1) if the services imported, which is a taxable supply if made in Malaysia, supplied to a person (hereinafter referred to as "the recipient") for the purpose of any business carried on by him, the supply shall be calculated as a supply made by the recipient in the course of business or the continuance of its business, and the supply is taxable supply.

(2) if the recipient is a taxable person, the provisions of this Act shall apply therefor on the supply of the imported service.

(3) if the recipient is someone other than the taxable person, the tax shall be imposed on the supply of services imported it and he shall be liable for any taxes due and payable on the supply.

(4) Notwithstanding sections 11 and for the purposes of subsection (1), the time of supply of imported service shall be calculated as having been made on the following dates, whichever is earlier: (a) the date when any payment is made by the recipient;
or (b) the date when any invoices received from suppliers that their place in a country other than Malaysia or who carries on business outside Malaysia.
(5) Notwithstanding subsection (1), when goods imported to Malaysia under a leasing agreement from those who place not in Malaysia, the tax shall be levied on the goods.


Free beradanya service provider 14. (1) the service provider shall be considered to be in a country if — 34 laws of Malaysia ACT 762 (a) she had an establismen business or establismen fixed in that country and there is no such establismen elsewhere;

(b) he does not have a business or a fixed establismen establismen in any country but home ranges in that country; or (c) he has a business establismen or establismen fixed in both that country and elsewhere and establismennya the most directly related to the supply is in that country.

(2) for the purposes of this section, a fixed establismen in any country including a branch or agency through it someone running a business in that country.


The value of the supply of goods or services 15. (1) subject to the Third Table, the value of any supply of goods or services shall be determined in accordance with this section.

(2) if the supply is for a consideration of money, the value of the supply shall be taken as an amount, with an additional tax imposed, equal to the consideration.

(3) if the supply is for a consideration not money, the value of the supply shall be taken as an amount, with an additional tax imposed, equal to the open market value of the consideration.

(4) If the supply is for a consideration not as a whole, the value of the money supply should be taken as an amount, with an additional tax imposed, equal to the aggregate of: (a) to the extent that the supply is for a consideration of money, the amount of the money; Tax and goods and services 35 (b) so far as the supply is not for reward money, the open market value of the consideration.

(5) If the supply is not for a consideration, the value of the supply shall be taken as an amount, with an additional tax imposed, equal to the open market value of the supply.

(6) if the supply is not simply a matter of which a return of money is related to, the supply shall be deemed to be part of the consideration that replies as can be dihubungkaitkan accordingly with the supply.

(7) for the purposes of this section, the value of the supply shall include excise duties paid or to be paid if applicable.

(8) the Minister may, by order published in the Gazette, amend the third schedule and allocate for the determination of the value of supply other than in accordance with this section.

(9) any order made under subsection (8) shall be laid before the House of Commons.


The value of imported 16. The value of goods imported to Malaysia shall be the total amount of the following, that is to say — (a) the value of goods for the purposes of customs duties determined in accordance with the Customs Act 1967;

(b) the amount of customs duties, if any, paid or to be paid on the goods; and (c) the amount of excise duty, if any, paid or to be paid on the goods.

36 laws of Malaysia ACT 762 Supply zero rate 17. (1) supply a zero rate is — (a) any supply of goods or services specified as a zero rate supply by the Minister under subsection (4); and (b) any supply of goods if the goods are exported.

(2) if the taxable person supplying goods or services and the supply is zero rate, whether the tax will be imposed on the supply of other this section or not, there is no tax may be imposed on the supply.

(3) supply referred to in subsection (2) shall, in any other case, counts as a taxable supply and the tax rate is calculated as the tax on the supply shall be zero per cent.

(4) the Minister may, by order published in the Gazette, specify any supply of goods or services in Malaysia as a supply of a zero rate.

(5) any order made under subsection (4) shall, at the next meeting of the Dewan Rakyat, laid before the House of representatives and shall, upon the expiry

a period of one hundred and twenty days from the date of the order presented or from any extended period as directed by the House of representatives through a resolution, cease to have effect if and to the extent it is not confirmed by a resolution passed by the House of Commons within one hundred and twenty that day or, if that period has been extended, in any period of extended it.

(6) If an order cease to have effect as a whole or in part provided in subsection (5), any tax imposed and levied in accordance with the order or, as the case may be, for any part of the order which shall cease to have effect, goods and Services Tax 37 subject to subsection (7) and (8), be refunded to the person paying the tax.

(7) unless the Minister otherwise directs, no tax payable under subsection (6) may be reimbursed, unless the people who pay the tax claim in writing to the Director General within one year from the date of the order cease to have effect as a whole or in part and the claim shall contain such particulars as may be required by the Director General.

(8) the Director may reduce or refuse any tax payable under subsection (6) to the extent that the repayment will be should not pose people paying the tax.

(9) If any article is said to have or to be exported and the goods supply is a supply of a zero rate, a non-zero if the supplied goods proportional for the number of local and — (a) the goods available in Malaysia after the date that the items are said to have or want to export; and (b) the existence of the goods in Malaysia after that date is not approved by the Director General, tax should be imposed on the supply but for the rear of zero shall be due and payable immediately by the supplier or by any person who in his possession the goods found in Malaysia and the goods may be seized under this Act.


Exempt supply 18. (1) the supply is exempt the supply of any goods or services which are not subject to the imposition of tax under section 9.

38 the laws of Malaysia ACT 762 (2) the Minister may, by order published in the Gazette, specify any supply of goods or services in Malaysia as an exempt supply.

(3) any order made under subsection (2) shall, at the next meeting of the Dewan Rakyat, laid before the House of representatives and shall, upon the expiry of one hundred and twenty days from the date of the order presented or any extended period as directed by the House of representatives through a resolution, cease to have effect if and to the extent it is not confirmed by a resolution passed by the House of Commons within one hundred twenty days or , if that period has been extended, in any period of extended it.

(4) If an order cease to have effect as a whole or in part as provided in subsection (3), any tax imposed and levied according to the order, as the case may be, for any part of the order cease to have effect shall, subject to subsection (5) and (6), be refunded to the person paying the tax.

(5) unless the Minister otherwise directs, no tax payable under subsection (4) may be reimbursed, unless the people who pay the tax claim in writing to the Director General within one year from the date of the order cease to have effect as a whole or in part and the claim shall contain such particulars as may be required by the Director General.

(6) the Director General may reduce or refuse any tax payable under subsection (4) to the extent that the repayment will be should not pose people paying the tax.





Goods and services 39 PART IV REGISTRATION of taxable person Registration 19. (1) the registration of taxable person under this Act shall comply with the provisions of this section and in the prescribed manner.

(2) in this section — (a) a reference to supply is a reference to supplies made in the course of business or continuation of the business;

(b) a reference to the value of a supply of goods or services is a reference value is determined on the basis that no tax may be imposed on the supply or no additional flat rate is included in the consideration for the supply.


The obligations for registered 20. (1) the Minister may, by order published in the Gazette, declare the amount of taxable supplies to implement the provisions of this section.

(2) any order made under subsection (1) shall be laid before the House of Commons.

(3) subject to subsection (5) and (6), any person who is not registered that make any taxable supply is liable for the registered — (a) at the end of any month, if the total value for all supply bercukainya in that month and eleven months immediately before that month has exceeded the amount of the taxable supply that is determined under subsection (1); or 40 laws of Malaysia ACT 762 (b) at the end of any month, if there are reasonable grounds to believe that the total value for all supply bercukainya in that month and eleven months upon months it will exceed the amount of the taxable supply that is determined under subsection (1).

(4) subject to subsection (5) and (6), if any business conducted by any taxable person transferred to others as a continuous effort under section 68 and the transferee is not registered at the time of the transfer, the transferee shall be liable to register at that time if — (a) the total value for all supply bercukainya within the period of twelve months immediately before the transfer time has exceeded the amount of the taxable supply that is determined under subsection (1); or (b) there are reasonable grounds to believe that the total value for all supply bercukainya within the period of twelve months starting from the time of

the transfer will exceed the amount of the taxable supply that is determined under subsection (1).

(5) in determining the value of the supply of any person for the purpose of paragraph (3) (a) and (4) (a), any supply made at the time he registered earlier shall not be taken into account if — (a) its registration cancelled other than under subsection 26 (3);
and (b) the Director General is satisfied that prior to its registration revoked, he has provided all the information required by the Director General in order to determine whether to cancel the registration.

Goods and services tax 41 (6) in determining the value of the supply of any person for the purpose of subsection (3) and (4), supply the following should be excluded: (a) the supply of goods is the business capital assets in the course of business or its continuation of the goods supplied or to be supplied due to the cessation of business;

(b) supply of services imported;
(c) the supply made by Warehousing Scheme under section 70;

(d) the supply made by a person who is the place in a State other than Malaysia or someone the recipient, in accordance with the manufacturer's Toll Scheme Approved under section 72;

(e) supply made in or between spaces required under section 155 unless the supply is subject to an order under subsection 160 (1); or (f) the supply of products manufactured in or between free zones under section 162 unless the supply is subject to an order under subsection 163 (1).


Notification obligation and registration 21. (1) any person liable to register under subsection 20 (3) shall inform the Director-General of the liability by applying to be registered in the prescribed form within twenty-eight days from the end of the month referred to in paragraph 20 (3) (a) or (b), as the case may be.

42 laws of Malaysia ACT 762 (2) the Director General shall register any person who told liabilities under subsection (1) with effect from the first day of the following month that the collapse of twenty-eight days or from any earlier date as may be agreed between the Director-General with the person but that date shall not be earlier than the date the person became liable to register.

(3) any person liable to register under subsection 20 (4) shall notify the Director-General of the liability by applying to be registered in the prescribed form within twenty-eight days from the time the business is transferred.

(4) the Director General shall register any person who told about liabilities under subsection (3) with effect from the date of the transfer.

(5) If a taxable person fails to comply with subsection (1) or (3) — (a) the Director General shall be mendaftarkannya on the date as determined by the Director General but not earlier than the date of their dependents as registered to known or notified to the Director General; and (b) that person shall be liable to pay a penalty for late registration as may be imposed by the Director General from the date he should have registered up to the date immediately before the date he is registered as such and hereinafter referred to as the period of late registration.

(6) Penalties late registration and late registration period referred to in subsection (5) shall be as specified and subject to an amount not less than one thousand five hundred dollars for an extended period within thirty days and not more than an amount of twenty thousand dollars for a period of more than three hundred and sixty days.

Goods and services tax 43 (7) a reference to registration in this section is a reference to registration in a register kept by the Director General in the form specified by him for the purposes of this Act.


Termination of obligations for registered 22. (1) subject to subsection (2), any taxable person shall cease from liable to register at the end of any month if the Director General is satisfied that the value of all supplies of bercukainya within the start of the twelve months, shall not exceed the amount of the taxable supply that is determined under subsection 20 (1).

(2) a person ceases to be liable for not registered by virtue of subsection (1) if the Director General is satisfied that the reason value for all supply bercukainya shall not exceed the amount of the taxable supply that is determined under subsection 20 (1) is that during the period in question he stopped making the taxable supply, or will stop temporarily from making taxable supply for a period of thirty days or more.

(3) in determining the value of the supply of any person for the purpose of subsection (1), supply the following should be excluded: (a) the supply of goods is the business capital assets in the course of business or its continuation of the goods supplied or to be supplied;

(b) supply of services imported;

(c) the supply made by Warehousing Scheme under section 70;

(d) the supply made by a person who is the place in a State other than Malaysia or someone the recipient, 44 laws of Malaysia ACT 762 according to Manufacturer Toll Scheme Approved under section 72; or (e) the supply made in or between spaces required under section 155 unless the supply is subject to an order under subsection 160 (1).


Instructions for calculating taxable persons as single 23. (1) without prejudice to section 20, if the Director General is satisfied that such an appropriation of business activities was fabricated and that cause avoidance of taxes, he can make an instruction directing that the person named in the direction that will count as a single taxable person carrying out the business activities described in the instructions and that single taxable person shall be liable to register with effect from the date specified in the instructions.

(2) for the purposes of subsection (1), in determining whether such an appropriation of business activities was fabricated, must be taken into account to the extent that different people whose activities the business closely related to each other through

financial relations, economics and organization.

(3) the Director General may make directions to nominate any person if the Director General is satisfied — (a) that the person making or have made a taxable supply;

(b) that the commissioning activities such person makes or has made a taxable supply becomes just part of certain activities in the business and that other activities in the business whether the activities with similar activities carried out by that person are in progress at the same time or earlier or not, or both, by one or more; Tax and goods and services 45 (c) that if all the taxable supply made in a business that is taken into account, people who do business will, at the time of the directive, are required to registered by virtue of section 20.

(4) any direction made shall be communicated to each person named in such directions.

(5) If, after a direction has been given under this section by stating the business description, it appears at the head of the Director that any person who is named in the instructions is making taxable supplies in the course of activities that should be considered as part of the business activities, the Director General can create and deliver to that person a additional instructions that refer to previous instructions and description of business set out in the instructions , and add the person's name to the name of the person named in the previous command with effect from — (a) the date the person first makes a taxable supply; or (b) the date specified in the instructions previously taxable person referred to it was sole registered under subsection (1), whichever is the later.

(6) If, immediately before any direction, including additional instructions, made, any person named in the command is registered in respect of the taxable supply made by him as mentioned in subsection (3) or (5), the registration shall be cancelled by the Director General with effect from the date on which the taxable person single is registered under subsection (1) and as soon as the cancellation of its registration, he along with everyone named in the directive shall be treated as a single taxable person under this section.

(7) in relation to a business specified in a given direction, the person named in such directions as well as 46 laws of Malaysia ACT 762 with the person named in the additional instructions relating to that business as people who together are counted as a single taxable person is referred to as the "constituent Member" in subsection (8) and (9).

(8) where any direction made under this section — (a) the taxable person carrying out the single business specified in such directions shall be registered with a name that will be proposed in association by the person named in the direction by notice in writing given to the Director General not less than fourteen days after the date of the direction or, if the proposal is not made , with the name as specified in the instruction;

(b) any taxable supply made by one of the constituent Member in the course of the activities of the taxable person shall be treated as a single taxable supply made by a single taxable person;

(c) every Member constituent shall be liable in association and several for any tax due and payable by the taxable person single;

(d) without prejudice to paragraph (c), any failure by the single taxable person to comply with any requirements imposed by or under this Act shall be counted as a failure by each constituent Member separately; and (e) subject to paragraph (a) to (d), shall be calculated as a constituent Member of a partnership that carries on the business of the taxable person and any question about the scope of the business activity at any time shall be determined accordingly.

Goods and services tax 47 (9) where it appears at the Director-General that any person who was one of the constituent members should not yet be considered as such for the purposes of paragraph (8) (c) and (d) and Director General of notice in writing to that effect, that person no longer has any liability by virtue of such paragraph for anything made after the date stated in the notice and therefore and due at that date he shall be considered to have ceased a member of a partnership referred to in paragraph (8) (e).


Voluntary registration 24. (1) if any person who is not liable to register to the satisfaction of the Director-General that he carry out a business and he — (a) making taxable supplies include taxable supply that is not taken into account under this Act; or (b) intend to make a taxable supply, in the course of business or continuation of the business, the Director-General may, if that person to apply in the prescribed form and subject to such conditions as he may think fit to impose by the Director-General, register such person from any date specified by the Director General and the person registered shall continue for a period of not less than two years or any other period shorter.

(2) if any person who is not liable to register to the satisfaction of the Director-General that he carry out a business and he — (a) making the supply of outside Malaysia would become a taxable supply if made in Malaysia; or (b) intend to make a supply outside Malaysia would become a taxable supply if made in Malaysia, the 48 laws of Malaysia ACT 762 in the course of business or continuation of the business, and in any case may be he — (A) has a establismen business in Malaysia or habitation usually is in Malaysia; and (B) does not create and is not intended to make the supply taxable in Malaysia, the Director-General may, if that person to apply in the prescribed form and subject to such conditions as he may think fit to impose by the Director-General, register such person from any date specified by the Director General.


(3) the Director General may cancel the registration of a person under paragraph (1) (b) or (2) (b) if he has not started to make a supply as of the date the application or intended in if he contravenes any condition imposed under subsection (1) or (2).

(4) the Director General may refuse any application for registration made under subsection (1) or (2) as he may deem fit.


Notification of termination of obligations or voluntary registration 25. (1) a person registered under section 21 or subsection 24 (1), which stops making or no longer have the intention to make a taxable supply shall notify the Director General of the fact and date in writing within thirty days from the date of cessation or absence of such intention.

(2) a person registered under subsection 24 (2) — (a) stop making or no longer intends to make supply outside Malaysia would become a taxable supply if made in Malaysia; or goods and Services Tax 49 (b) makes or intends to make a taxable supply in Malaysia, should notify the Director General of the fact and date in writing within thirty days from the date they are incurred.

(3) any person who contravenes subsection (1) or (2) commits an offence.


Cancellation of registration 26. (1) where a registered person to make a request in writing to cancel its registration or make notification under section 25, the Director General may cancel the registration of that person from any date specified by the Director-General if he is satisfied that the person can be de-registered.

(2) if the Director General is satisfied that a registered person has been stalled from can be registered, the Director General may cancel its registration with effect from the date he ceased from can be registered or from any later date specified by the Director General.

(3) if the Director General is satisfied that on the day that someone registered person has been registered he is not the person who can be registered, the Director General may cancel its registration effective as of the date of notification in writing by the Director General.

(4) for the purposes of this section, "registrable" means liable to register under section 20 or eligible for registration under section 24.





50 laws of Malaysia ACT 762 Group Registration 27. (1) two or more companies are eligible to count as a member of a group if the company meets the conditions prescribed.

(2) a member of a group may apply to the Director General in the prescribed form to count as a group and every Member shall, in the application, nominate a member to become a member of their representatives.

(3) the Director General may, as he thinks fit, approve or reject any application made under subsection (2) and upon approval, to impose conditions.

(4) the Director General may, as it thinks fit, refuse to register a member nominated by the members of the group as a Member representative.

(5) the registration of a group must be in the name of the representative members.

(6) if the company has been treated as a group — (a) any supply of taxable goods or services by a member of the group to a member of another group shall not be taken into account;

(b) any supply of taxable goods or services by or to a member of the Group shall be treated as a supply of by or to members of the representative;

(c) any business carried out by members of the Group shall be treated as carried out by members of the representative; and (d) any importation of goods or supply of services imported by any Member shall be considered as imported by Member representatives and taxes goods and services 51 any tax paid or due and payable by members of the Group on the importation of goods or supply of services imported shall be counted as paid or due and payable by the Attorney.

(7) all members of the Group shall be liable in association and several for any tax due and payable by the Attorney.

(8) the Director General may cancel the registration of a group or terminate a service company as a member of a group as he may deem fit.


Partnership registration 28. (1) the registration of — (a) persons carrying on business in a partnership shall be in the name of the firm; and (b) the same person who carries on business in a partnership can be the name of the separate firms respectively.

(2) in determining whether the goods or services supplied to or by a person referred to in subsection (1), shall not be taken into account in any changes in the partnership.

(3) any person who ceases to be a partner in a partnership must — (a) to notify the Director-General in writing regarding the termination date within thirty days from the date of termination; and (b) pay the proportion of the liability sharing on any tax due and payable over 52 laws of Malaysia ACT 762 any supply of goods or services by the partnership until the termination date.

(4) If any person ceases to be a partner in a partnership for any taxable period or considered doing so by virtue of subsection (3), any notice, whether of assessment or otherwise, submitted to the partnership and in respect of the taxable period or any other taxable period for the whole or part of which he became a partner in the partnership , shall be deemed to have been duly delivered to him also.

(5) Notwithstanding any law to the contrary, any notice, whether of assessment or otherwise, addressed to a partnership by name whom the partnership registered under this Act, and presented in accordance with this Act shall be deemed to have been duly served should be to the partnership and thus that, if subsection (4) applies, as was presented

properly to any previous partner.

(6) subsection (1) and (4) shall not affect the point, under any other written law, a partner liable for taxes owed by the firm.

(7) If a person is a partner in a firm of time part only a taxable period, liabilities for tax on any supply of goods or services by the firm during the taxable period shall be the proportion of liabilities of the firm as it should.

(8) If any notices are required to be given by a partnership under this Act, shall be the liability of all partners in you jointly and severally to give the notice, except that if a notice given by any one partner, it shall be considered as sufficient compliance for the requirements.

(9) any person who contravenes paragraph (3) (a) or (b) commits an offence.
Goods and services 53 (10) for the purposes of this section, a partnership does not include a limited liability partnerships.


The Registrar of societies or similar organization 29. (1) the registration of any organization or similar organization can be the name of the establishment or organization similar to that and in determining whether goods or services supplied to or by an organization or similar organization that, shall not be taken into account in any changes in its members.

(2) where anything is required to be made under this Act by or on behalf of association or similar organization, which its affairs are managed by a Committee, or a Committee of its members, it shall be the responsibility of the Association and several in person — (a) every Member who holds the position of President, Chairman, Treasurer, Secretary or any similar positions; or (b) in the absence of any such member, every member holding office as a member of a Committee, except that if it is required to be made or fully made by any officer or member of the Committee, it shall be considered as sufficient compliance for the requirements.


Registration of a branch or Division 30. (1) where any business taxable person carried out by one or more branches or divisions, the taxable person may apply to the Director-General for the registration in the prescribed form to any branch or Division to be registered in the name of the Division or branch.

54 laws of Malaysia ACT 762 (2) the Director may approve an application made under subsection (1) subject to such conditions as he thinks fit to impose if he is satisfied that the taxable person that meet the requirements of the following: (a) the taxable person and all branches or divisions made a taxable supply as a whole;

(b) the taxable person that is not a member of a group under section 27;

(c) are likely to cause trouble for the taxable person to submit a single statement with respect to all branches or divisions if not for the separate registration;

(d) each branch or Division maintains a separate accounts in respect of its activities;

(e) each branch or Division can be separately identified by reference to the nature of the activities carried out by or branch locations or parts thereof;
and (f) each branch or Division has the same taxable period.

(3) the Director General may, at any time by notice in writing to the person listed, cancel the registration of approved under subsection (2) in respect of any or all of a branch or Division if he is satisfied that — (a) the registered person has failed to comply with any conditions imposed by the Director General under subsection (2);

(b) any requirement referred to in subsection (2) has been halted to apply;

Goods and services tax 55 (c) of the registered person has provided any declaration or false information, misleading or inaccurate in its application under subsection (1); or (d) it is necessary for the protection of revenue.

(4) if the Director General of the cancel registration in accordance with subsection (3), the revocation shall become effective from the date of cancellation as determined by the Director General.

(5) subject to subsection (6), the taxable person may apply in writing to the Director-General for any branch or Division registered separately under subsection (2) to cease to be registered as such, and the Director General may cancel registration separately is to take effect from the date of the application or from any later date as determined by the Director General.

(6) a taxable person registered under subsection (2) shall continue to be registered for a period of not less than two years or any other shorter period as determined by the Director General.


Personal representatives are deemed to be the taxable person 31. (1) If a taxable person — (a) dies;

(b) is under the company or acceptance;

(c) becomes bankrupt; or (d) cease to be disabled, the Director General can be described any personal representatives who conduct business in the interim period as a taxable person from the date of the personal representatives of the take over until the time 56 laws of Malaysia ACT 762 when a person registered in respect of the business or in the case of inability, until the time the disability ceases.

(2) any requirement to pay tax on personal representatives who conduct business referred to in subsection (1) shall apply therefor to the extent of assets controlled by him.

(3) the personal representatives of business referred to in subsection (1) shall, within twenty one days of he first do so, notify in writing to the Director General of the fact and of the date of death, company, receiving, bankruptcy or the nature of the disability and the date when it started.

(4) Notwithstanding any law to the contrary, the personal representatives of business referred to in subsection (1) shall, before the disposal of any assets of the taxable person, set aside a sum of money from the asset is stated at the Director-General as sufficient to

pay any tax and penalties, if any, or as soon as it becomes due and payable or payable, as the case may be, in respect of any supply of taxable goods or services have been supplied by the taxable person before the personal representatives are deemed to be a taxable person who carries on business in the interim period and the personal representatives shall pay taxes and penalties that.

(5) the personal representatives of business referred to in subsection (1) who fails to comply with subsection (4) shall be liable to pay taxes or penalties that, that or shall thereafter become due and payable or payable, as the case may be.

(6) If two or more personal representatives conduct business referred to in subsection (1), obligations and liabilities of the personal representatives shall be dihubungkaitkan in separate and in association with them, subject to the right of contribution among them as in the case of contracts.

Goods and services tax 57 (7) any person who contravenes subsection (3) commits an offence and shall, on conviction, to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding one year or to both.


Exemption from registration for a person who makes or intends to make a supply of a zero rate 32. (1) Notwithstanding any provision of this Act, if any person who makes or intends to make a taxable supply to the satisfaction of the Director-General that the supply is a supply of a zero rate, the Director-General may, if it thinks fit and upon the request of that person, exclude that person from registration until such exemption is revoked.

(2) where there is a change in the nature of the supply made by the person exempted from registration under subsection (1), he shall notify in writing to the Director General on the changes within the period of thirty days from the date of the occurrence of the change.


Part V PENGAKAUNAN, assessment, GET, etc.

Issuance of tax invoice 33. (1) except as otherwise provided in this section, every person registered who make any taxable supply of goods or services in the course of business or continuation of any business in Malaysia shall issue a tax invoice containing the particulars prescribed in respect of the supply.

(2) any registered person who — (a) shall not issue a tax invoice; or 58 laws of Malaysia ACT 762 (b) issue a tax invoice that does not contain any prescribed, commits an offence.

(3) Notwithstanding subsection (1), the Director-General may, when there is a request in writing and subject to the conditions as he thinks fit to impose, to approve — (a) any one or more of the particulars prescribed for not dikandung in a tax invoice; or (b) a tax invoice to be released if he is satisfied that it is not proper for people registered to issue a tax invoice: provided that in the case of paragraph (a), the registered person shall be entered the name and address of the recipient in the tax invoice on request recipients.

(4) any person registered under subsection (3) who issue a tax invoice that does not contain any prescribed as approved by the Director General under paragraph (3) (a) or refuse to issue a tax invoice that contains the name and address of recipient at the request of the recipient commits an offence.

(5) If a recipient is a person registered to provide to himself a billing invoice, as in respect of a supply of goods or services to it by the person registered to another, the receiver may apply in writing to the Director-General for invoice billing, as such counted as a tax invoice if — (a) the value is unknown by the supplier at the time the supply is made;

(b) the supplier and the recipient are both registered person;

Goods and services tax 59 (c) providers and recipients that agrees in writing to a billing invoice, as well; and (d) the supplier and the recipient agree that the provider does not issue a tax invoice in respect of any supply of which this section applies, and when approved, an invoice billing, as it shall contain the particulars as may be prescribed, and the Director-General may impose such conditions as may be prescribed.

(6) any recipient referred to in subsection (5) which — (a) issue a billing invoice, as without the approval of the Director General;

(b) issue a billing invoice, as that does not contain any prescribed; or (c) fails to comply with any prescribed conditions imposed thereon, commits an offence.

(7) in the case of a billing invoice issued before time, as applicable under paragraph 11 (2) (a) or (b) or subsection 11 (3), such as billing invoice shall be issued with payment and failure to do so, the sender commits an offence.

(8) if the items described in subsection 65 (4) or (7) subparagraph 5 of the first schedule are sold in auction or involuntarily auction, auctioneer or other person who sells goods shall issue a document containing details of tax that may be imposed and the document issued to the buyer shall be considered as a tax invoice provided by the taxable person supplying the goods considered in accordance with subsection 65 (4) or subparagraph 5 (7) of the first schedule.
60 laws of Malaysia ACT 762 (9) any auctioneers or people who sell goods referred to in subsection (8) that does not issue a document or produce a document without the details of the tax may be charged to the buyer commits an offence.

(10) no invoice that shows an amount purporting to be a tax can be issued by any person registered ―it (a) to any supply of goods or services is not a taxable supply; or (b) in respect of any supply of a zero rate.
(10A) any person who is not registered, except those referred to in subsection 65 (4) and (5), cannot produce ―it


(a) an invoice that shows an amount purporting to be a tax or an amount including taxes; or (b) an invoice purporting to be a tax invoice with or without tax.

(11) any person who contravenes subsection (10) or (10A) commits an offence and shall, on conviction, to a fine not exceeding thirty thousand ringgit or to imprisonment for a term not exceeding two years or both penalty and double the amount of tax.

(12) a tax invoice under subsection (1) does not need to be removed if a registered person making the supply of the following: (a) supply a zero rate; or (b) a supply made without consideration subject to tax.
Goods and services tax 61 (13) Notwithstanding subsection (1), no tax invoice can be issued to — (a) any supply of goods applies under section 59;

(b) any supply of services imported; or (c) any supply of goods which are treated or processed that are deemed to have been supplied by the recipient under section 72.

(14) any person who issue a tax invoice in violation of subsection (13) commits an offence.


Issuance of tax invoice by 34 computer. For the purposes of any provision under this Act in respect of a tax invoice, a person registered shall be calculated as the issue a tax invoice to another person although no service of any document equivalent in the form of paper to that person if the particulars required to be recorded in the computer and — (a) transmitted or made available to that person by electronic means; or (b) is issued upon any material other than paper and handed over to the person.


Registered persons shall submit the specified information about supply made and payment received 34A. (1) any person registered as prescribed by the Minister shall forward information on all supplies made and payment received by the registered person to the Director General by using the device and in the manner prescribed by the Minister.
62 laws of Malaysia ACT 762 (2) the Director may for the purposes of this section to approve any person ―it (a) to install, configure and integrate the specified device;

(b) to provide support services and maintenance device set as scheduled or when notified about the failure of a device set to function or operate in normal conditions; or (c) to carry out inspections in the case of any sign of disturbance, destruction, damage, manipulation of data stored or obstacles the use of invalid device specified.

(3) a Person approved under subsection (2) shall, when entering the premises of the registered person prescribed under subsection (1) to carry out its duties under this section, submit, at the request of the registered person, proof of approval.

(4) the registered Person prescribed under subsection (1) shall (a) ―it at any time allow any goods and services tax officer or any person approved by the Director General to install the device, and to configure, integrate or check the device mounted on the business premises of the registered person;

(b) make every effort to ensure that ―it (i) the device, after the supplied and installed is not transferred, manipulated, tampered with or interrupted;
and (ii) the use of the device is not blocked by any person or any other devices; Tax and goods and services 63 (c) inform the Director-General immediately of any failure of the functions and operations of the device specified in normal conditions.

(5) any person who fails to comply with, hinder or prevent the implementation of this section in any case guilty of an offence.


Responsibility not to give, publish or disclose information about a specified device 34B. (1) any person who, for whatever reason, have any means of access to any information about the device fixed under subsection 34A (1) cannot provide, publish or otherwise disclose to any other person the information unless the disclosure is required or permitted ―it (a) under this Act;
(b) by any court; or (c) for the purposes of the implementation of its functions or the exercise of its powers under this Act.

(2) any person who contravenes subsection (1) commits an offence.


Credit note and debit note 35. If any taxable supply made by or to any person registered, involving the issuance and receipt of credit note or debit note under circumstances and conditions that may be prescribed, of the registered person, whether he is a supplier or recipient of the taxable supply, shall make the necessary adjustments in penyatanya accordingly and credit notes and debit notes shall contain the particulars prescribed.


64 the laws of Malaysia ACT 762 obligation to keep a record of 36. (1) every taxable person shall keep records that are complete and true written updates on all transactions affecting or may affect the liabilities to be taxed, including records of the following: (a) all records of goods and services supplied by the taxable person or to include the tax invoice, invoice, receipt, debit note, credit note and the export declaration form;

(b) all records imported goods; and (c) any other records as determined by the Director General.

(2) any records kept under this section shall — (a) is maintained for a period of seven years from the date on which the record relates;

(b) in the national language or English; and (c) be kept in Malaysia, unless approved otherwise by the Director General and subject to the conditions as he thinks fit.

(3) if the record is in the form that can be read electronically, the records shall be kept in such a way that allows the record become available can be accessed and converted into writing.

(4) If the record was originally in the form of manuals and subsequently converted into electronic form, the record shall be maintained in the form originally before the changeover.

Goods and services tax 65 (5) a copy of the record shall be admissible as

evidence in any proceedings to the extent equal to the record itself.

(6) this section shall apply to any person other than the taxable person under subsection 13 (3), section 58, paragraph 65 (4) (b), and subsection 65 (5) and 72 (5).

(7) any person who contravenes this section commits an offence and shall, on conviction, to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.


Basic pengakaunan 37. (1) for the purposes of section 41, every taxable person shall mengakaunkan tax on the basis of an invoice according to the time of the supply under section 11, 13, 70, 72 and 73.

(2) Notwithstanding subsection (1), the Director General may, upon application in writing by any person registered and subject to prescribed conditions, approve the person registered for the mengakaunkan tax on the basis of payment in the prescribed manner.

(3) if the registered person has been approved for mengakaunkan tax on a payment under subsection (2) and choose not to proceed with the payment basis, he may apply in writing to the Director General for mengakaunkan tax in accordance with subsection (1).

(4) the Director General may refuse to approve an application made under subsection (2) or (3) as he may deem fit.

(5) the Director General may, by notice in writing, revoke the approval under subsection (2) under the circumstances specified.

66 laws of Malaysia ACT 762 (6) if there is a change in basic pengakaunan, the registered person shall make an adjustment in the prescribed manner.


Input tax credit against the output tax is 38. (1) any taxable person is entitled to a tax credit as many inputnya as may be allowed under section 39 to be deducted from any output tax due from him.

(2) for the purposes of any tax on a taxable supply of goods or services to a taxable person, any additional flat rate included in consideration for any supplies acquired by the person registered than those approved under section 74 shall be counted as a tax on the supply.

(3) subject to subsection (4) and (5), if — (a) no output tax payable at the end of any taxable period; or (b) the amount of credit that the taxable person is entitled to it by virtue of subsection (1) exceeds output tax, the amount of credit or the amount of credit that exceeds the output tax, as the case may be, shall be refunded to the taxable person by the Director General.

(4) the whole or any part of the input tax due as a credit to any person liable to tax in any taxable period can be held to be credited to any subsequent taxable period or sequentially with it, either on the application in writing the taxable person itself or on any direction given by the Director General.

Goods and services tax 67 (5) If at the end of any taxable period any amount is payable under subsection (3), the Director-General may withhold payment of that amount if — (a) the taxable person does not give the statement under section 41 or provide such information as may be required by the Director General; or (b) the Director has reasonable grounds to believe that the amount is not an amount payable to that person.

(6) no deduction may be made under subsection (1) and there are no any refund can be made under subsection (3), except on a claim made in the prescribed manner and within the time prescribed.

(7) if any person liable to tax does not make taxable supplies in a taxable period or any previous taxable period, any repayment to be made under subsection (3) shall be made subject to conditions imposed by the Director-General as he may deem fit.

(8) subject to subsection (5) and (7), any repayment will be made by the Director General under subsection (3) shall be made within the time prescribed.

(9) except as otherwise authorized by the Director General, if — (a) the taxable person fails to pay its suppliers the consideration or any part of the consideration for the supply of any goods or services made by suppliers to taxable person at the end of the period of six months after the date of the supply; and (b) the taxable person the credit under subsection (1) or has been refunded under subsection (3) the input tax relating to 68 laws of Malaysia ACT 762 replies or part of the consideration that is not paid by the taxable person, the taxable person shall be mengakaunkan an amount equal to the input tax shall be deemed to be tax outputnya.

(10) the taxable Person shall be mengakaunkan the amount deemed to be the output tax under subsection (9) in the taxable period after the expiration of the six-month period and in the manner he is required to use while he was first the input tax credit and he shall reimburse that amount to the Director General at the same time as any tax in respect of a taxable period are due and payable by him.

(11) If the taxable person — (a) has complied with subsection (10); and (b) to pay its suppliers in consideration or any part of the consideration for the supply of goods or services referred to in paragraph (9) (a), the taxable person is entitled to calculate an amount equal to the input tax relating to the payments referred to in paragraph (b) as if that amount is a taxable input tax for the period in which payment is made.

(12) the whole or any part of the tax is imposed on any supply of goods or services or the importation of goods, as may be prescribed, shall be exempted from any credit under this section.


The amount of the input tax allowed 39. (1) the amount of the input tax for which any taxable person is entitled to credit in any taxable period Tax goods and services 69 shall be as many input tax for the period that may be

allowed and reasonable to dihubungkaitkan, as may be prescribed, with the following supply made or to be made by the taxable person in the course of business or continuation of any business in the United Kingdom: (a) any taxable supply, including a taxable supply that is not taken into account under this Act;

(b) any supply made outside Malaysia will be a taxable supply if made in Malaysia; or (c) any other supply as may be prescribed.

(2) input Tax dihubungkaitkan with any supply exempted shall be calculated as dihubungkaitkan input tax with a taxable supply — (a) if the value of all the supply exempted will be less than the amount prescribed and less than a specified proportion of the total value of all the supply; or (b) in circumstances prescribed another.


Taxable period 40. (1) for the purpose of determining the taxable period for a taxable person — (a) in the case where the total value for all supply bercukainya within the period of twelve months is five million dollars or more, the first taxable period shall commence from the date he should have registered under section 21 and ends on the last day of the month that he should have registered and subsequent taxable period shall be a period of one month that 70 laws of Malaysia ACT 762 ended on the last day of any month of any calendar year; or (b) in the case where the total value for all supply bercukainya within the period of twelve months is less than five million dollars, the first taxable period shall commence from the date he should have registered under section 21 and ends on the last day of a period of two months following the month that he should have registered and subsequent taxable period shall be a period of three months ending on the last day of any month of any year calendar.

(2) a taxable person may apply in writing to the Director General for a taxable period other than a period as determined under subsection (1).

(3) the Director General may, upon receipt of any application under subsection (2), allow or refuse the application and, if the Director-General — (a) allowing the application, the taxable period shall be the period as requested; or (b) refuse the application, the taxable period shall remain as determined under subsection (1) or such period as it thinks fit by the Director General to directed.

(4) the Director General may, as he thinks fit, reset the taxable persons to in any taxable period other than the period specified in the preceding under subsection (1) or provided under subsection (3) or (5).

(5) Notwithstanding subsection (1), the Director-General may, by application in writing, amend any taxable period or the date of the commencement or completion of any taxable period if it considers necessary in the circumstances of any particular case.


Goods and services tax 71 Production statement and tax payment 41. (1) every taxable person shall, in respect of the period of bercukainya, mengakaunkan tax in the statement as may be prescribed and such statements should be submitted to the Director-General in the prescribed manner not later than the last day of the following month after the end of the taxable period the taxable persons in relation to the statement.

(2) if the taxable period has been changed under subsection 40 (5) and notwithstanding subsection (1), the statement shall be submitted not later than the last day of the period of thirty days from the end of the taxable period changed that.

(3) any person who — (a) cease liable to register under section 20; or (b) cease to be registered under section 24, shall, not later than thirty days after such a halt or any later date as permitted by the Director-General, submit a statement containing the particulars specified by the Director General in respect of portions of a taxable on it in which the person is registered.

(4) any person liable to tax are required to submit a statement under this section shall pay to the Director General the amount of tax due and payable by him in respect of the taxable period in relation to the statement not later than the day on which he is required to submit the statement.

(5) the statement referred to in subsection (1), (2) and (3) shall be submitted whether there is tax payable or not.

72 the laws of Malaysia ACT 762 (6) any person who fails to submit the statement required under subsection (1), (2) or (3) commits an offence and shall, on conviction, to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

(7) any person who fails to pay to the Director General the amount of tax due and payable under subsection (4) commits an offence and shall, on conviction, to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

(8) where any tax due and payable not paid in full or in part by any taxable person after the day on which it is due and payable under subsection (4) and no prosecution commenced, the taxable person shall pay — (a) for a period of thirty days the first tax is not paid in full or in part after the expiry of the period specified under subsection (4) , a penalty of ten percent of the amount of the tax which has not been paid;

(b) for a period of thirty days the latter that the tax is not paid in full or in part after the expiry of the period specified under subsection (4), an additional penalty of fifteen per cent of the tax amount which has not been paid; and (c) for a period of thirty days the third that the tax is not paid in full or in part after the expiry of the period specified under subsection (4), an additional penalty of fifteen per cent of the tax amount which has not been paid.

(9) subject to subsection (11), a prosecution for

offences under subsection (7) may be commenced after the expiry of the period specified in paragraph (8) (c).
Goods and services 73 (10) the Court may order that any taxable person who is convicted under subsection (7) shall pay the penalty as set out in subsection (8).

(11) no prosecution for an offence under subsection (7) shall be instituted against a person liable to tax has paid the amount of tax due and payable and penalties specified in subsection (8) within the period specified in subsection (8).


Submission of Declaration and payment of tax by anyone other than the taxable person 42. (1) if any person other than a person taxable person is liable for tax under subsection 13 (3), subsection 56 (5), paragraph 65 (4) (b), subsection 65 (5) and 72 (5), that person shall — (a) mengakaunkan tax in a Declaration and the Declaration should be submitted to the Director General; and (b) pay to the Director General the amount of tax due and payable by the person, not later than the last day of the month of consecutive months that the supply is made or calculated occurred or the payment received under the provisions of.

(2) any person who contravenes subsection (1) with respect to paragraph (a) commits an offence.

(3) any person who contravenes subsection (1) with respect to paragraph (b) commits an offence and shall, on conviction, to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

74 laws of Malaysia ACT 762 (4) where any tax due and payable not paid in full or in part by any person other than the taxable person after the day on which it is due and payable under subsection (1) and no prosecution commenced, the person shall pay ―it (a) for a period of thirty days the first tax is not paid in full or in part after the expiry of the period specified in subsection (1) , a penalty of ten percent of the amount of the tax which has not been paid;

(b) for a period of thirty days the latter that the tax is not paid in full or in part after the expiry of the period specified in subsection (1), an additional penalty of fifteen per cent of the tax amount which has not been paid; and (c) for a period of thirty days the third that the tax is not paid in full or in part after the expiry of the period specified in subsection (1), an additional penalty of fifteen per cent of the tax amount which has not been paid.

(5) subject to subsection (7), a prosecution for an offence under subsection (3) shall be instituted after the end of the period specified in paragraph (4) (c).

(6) the Court may order that any person other than the taxable person who is convicted of an offence under subsection (3) shall pay a penalty as specified in subsection (4).

(7) no prosecution for an offence under subsection (3) shall be instituted against any person other than the taxable person who has paid the amount of tax due and payable and penalties specified in subsection (4) within the period specified in subsection (4).


Goods and services and the usage of 75 power to 43. (1) where any taxable person — (a) did not apply for registration under section 21;

(b) did not submit a statement under section 41;
or (c) submit a statement that turns out at the Director-General is incomplete or incorrect, the Director-General can best consideration by assessing the amount of tax and penalties under subsection 41 (8), if any, due and payable by the taxable person and shall immediately inform the person in writing of the assessment.

(2) If an amount has been paid to any person as a refund of tax under subsection 38 (3) and part VII which should not be paid to him, the Director-General may be assessing that amount as a tax due and payable by it and shall immediately inform the person in writing of the assessment.

(3) an assessment under subsection (1) and (2) shall not be made more than six years from the date the tax was due and payable or from the date of the repayment has been made, as the case may be, unless in the opinion of the Director General any form of fraud or default intentionally was done by or on behalf of any person in respect of or in connection with the tax , The Director General may, for the purpose of accommodating any tax loss or tax refund associated with fraud or default intentionally it, make at any time an assessment.

(4) where any person has been provided with taxable or has acquired control of any article or have imported any goods in the course of a business, or continuation of the 76 laws of Malaysia ACT 762 Director-General may requires it to mengakaunkan them.

(5) If the taxable person does not mengakaunkan under subsection (4) by reason of — (a) the goods were supplied by him;

(b) the goods are to be supplied by him;

(c) the goods have been exported or transferred through the supply; or (d) the goods have been lost or destroyed, the Director-General and the usage according to the best judgement can be the amount of tax that may be imposed in respect of the supply of the goods if the goods have been supplied by it and shall immediately inform in writing the taxable person about the assessment.

(6) if — (a) the Director-General has made an assessment under subsection (1) in respect of paragraph (1) (a) or (b);

(b) the assessed tax was paid but no statement has been made for the period in relation to the assessment; and (c) such person did not submit a statement for any subsequent taxable period, the Director General may, as he thinks fit, assessing an amount of tax is higher compared to the amount he will consider as reasonable if not for that.

Goods and services tax 77 (7) if it appears at the Director-General that the amount

should have been assessed in an assessment under this section in excess of the amount assessed so, he may be — (a) under the same provision as that assessment is made; and (b) during the period in which such assessment should have been made, make an additional assessment of the amount in advance and shall immediately inform the person in writing accordingly.

(8) If an amount has been assessed and communicated to any person under subsection (1), (2), (5) or (7), that amount shall be deemed to be an amount of tax due and payable by him and may be obtained accordingly and the amount of tax and penalties, if any, shall be paid by such person, whether or not such person to appeal against the assessment , to the Director General unless or except to the extent of assessment revoked or reduced.

(9) the Director General may make any alteration or addition to an assessment made under this section as it thinks fit to ensure using of assessment and shall immediately inform the person in writing.


Director-General may not take into account or change certain arrangements 44. (1) if the Director General is satisfied that the purpose or effect of such arrangements is directly or indirectly — (a) change what happens or postpone the due date of any tax due and payable by or otherwise have been due and payable by any person;
78 laws of Malaysia ACT 762 (b) relieve any person from any liability to pay taxes or to submit a statement;

(c) reduce or avoid any liability imposed or that will otherwise imposed on any person by this Act;

(d) obtain any credit or refund of input tax or any pertambahannya for any person who otherwise therefore could not be obtained; or (e) obstruct or prevent the implementation of this Act in any case, the Director General may, without prejudice to any validity of the arrangement in any other matters or for any other purpose, without taking into account or change the arrangement and make any adjustment it deems fit to overcome any tax benefits obtained or may be obtained by the person of or under the arrangement.

(2) for the purposes of this section the Director General can be described — (a) any person other than a taxable person to be a party to or participated in any arrangement, as a taxable person;

(b) any supply of goods or services, whether a taxable supply or not, affected by or is part of any arrangement, made to and made by any taxable person or person deemed to be a taxable person under paragraph (a), as a taxable supply;

(c) any supply of goods or services, if not due to any arrangement that moved by Goods and services this section 79, which is the period the taxable supply is made, as happened in any taxable period;

(d) any supply of goods or services, affected by or is part of any arrangement, has been made, or consideration for the supply is given, at open market value.

(3) this section shall not apply to any arrangement which is carried out by reason of the commercial bona fide and has as one of its main purpose, the acquisition of any tax benefits.

(4) for the purposes of this section, "tax benefits" includes — (a) any avoidance or reduction in the liability of any person to pay taxes;

(b) any increase in the eligibility of a person for a credit or refund of input tax;

(c) any reduction in the total consideration payable by any person in respect of any supply of goods or services; or (d) any delay the time when the tax is due and payable.


Offset tax payable against repayment of 45. Notwithstanding any provision of this Act, if any person fails to pay the whole or part of — (a) any amount of tax due and payable, any accrued surcharges, or any penalties, fees or any other money payable under this Act;

80 laws of Malaysia ACT 762 (b) any amount of sales tax that is due and payable, any accrued surcharges, or any penalty or any other money payable under the sales tax Act 1972 [Act 64];

(c) any amount of service tax due and payable, or any applicable surcharges accrued, any penalties or any other money payable under the Service Tax Act 1975 [Act 151]; or (d) any amount of customs duty or excise duties, the Director-General can offset, of the amounts remaining unpaid referred to in paragraph (a), (b), (c) or (d), any amount or any part of any amount that can be reimbursed in addition to special repayment under section 190 to that person and the Director-General shall calculate the amount to be balanced as payment or part payment received from that person.


Get tax, etc., as a civil debt 46. (1) without prejudice to any other remedy and notwithstanding any appeal against any decision of the Director-General under section 126, any tax due and payable, any surcharges accrued, or any penalties, fees or any other money payable under this Act can be obtained by the Minister as a civil debt due to the Government.

(2) If an invoice showing a supply of goods or services as has occurred with the tax levied on the supply, then it should be can be obtained from the person who issued the invoice an amount equal to — (a) indicated on the invoice as tax; or goods and Services Tax 81 (b) if the tax is not shown separately, of which the total amount shown as due to be taken as a tax on the supply.

(3) subsection (2) shall apply whether or not — (a) the invoice is a tax invoice issued in

pursuant to section 33;

(b) supply indicated on the invoice is actually occurring or has occurred or the amount shown as tax or any amount of tax is or has been can be imposed on the supply; or (c) the person issuing the invoice is a taxable person, and any amount that can be obtained from the person under subsection (2) shall be of such databases and shall otherwise can be retrieved as a civil debt due to the Government.

(4) in any proceedings to get the taxes, penalties, surcharges, fees or other moneys under subsection (1), the production of a certificate signed by the Director General that any taxes, penalties, surcharges, fees or other monies and the amount shown in the certificate as payable in any statement, assessment or notice made under this Act from the person named in the certificate and stating the address of the person and purporting to be a copy of or extract from any notice of assessment shall be conclusive evidence of the making of the assessment and shall be sufficient authority for the Court to give judgment for that amount.

(5) any penalties, surcharges, fees or other moneys levied under this Act shall, for the purposes of this Act and acts within the time limit, 1953 [Act 254], time limits Ordinance Sabah [Sabah Cap. 72] and time limits Ordinance Sarawak [Sarawak Cap. 49], whichever 82 laws of Malaysia ACT 762 may be, can be retrieved as if penalties, surcharges, fees or other money is tax due and payable under this Act and therefore subsection 6 (4) of the Act Time limit, 1953, section 3 of the Ordinance the time limit and time limits Ordinance section 3 Sarawak, as the case may be, shall not apply to penalties, surcharges, fees or other monies.


Seizure of goods to get taxes, etc.

47. (1) without prejudice to section 43, any article belonging to the person referred to in section 43 can be in control of the excise or customs control or at the place of business may be seized until the taxes, penalties, surcharges, fees or other money, or the lack of taxes, penalties, surcharges, fees or other monies have been paid, or repayment of the paid terkhilaf paid to him again.

(2) Notwithstanding section 51, Director-General may seize or sell any items that belong to the person liable to pay tax, penalties, surcharges, fees or other monies in order to obtain the amount due and payable under section 43 and accruing under section 51 or any outstanding balance on that amount.

(3) if the taxes, penalties, surcharges, fees or other money or the lack of it, or refund payable again has not been paid, as the case may be, the Director-General may — (a) after notice in writing not less than thirty days notice to the owner or his agent if the name and address of the owner or the agent known by him;
or (b) after appropriate notice in the Gazette if the name and address of the owner or the agent is not known by it, sell it.

Goods and services tax 83 (4) results of the sale of any goods shall be used for the payment of taxes, penalties, surcharges, fees and other money or the lack of taxes, penalties, surcharges, fees or other moneys due or repayment in terkhilaf or other charges which may be payable in respect of the sale of any article that and redundancies, if any, shall be paid to the owner of the goods and if the owner could not be located within one month from the sale of the , any surplus shall be paid into the Federal Consolidated Fund.

(5) if at the time the sale of any goods that no sufficient be obtained to pay the taxes, penalties, surcharges, fees or other moneys due or lack of taxes, penalties, surcharges, fees or other moneys due or refund paid in terkhilaf, as the case may be, goods shall be dilucuthakkan to the Government and shall be disposed of in such manner as may be directed by the Director General.

(6) every auction sale under this section — (a) must be handled by or before a senior officer goods and services; and (b) can be operated electronically in the manner determined by the Director General.


The power to collect taxes, etc., from the person who owes money to taxable persons 48. (1) where any tax is due and payable, surcharges are accrued, or penalties, fees or other moneys are payable by any taxable person, the Director-General may, by notice in writing of the card shall be forwarded to the taxable person in the place of his last known address, requires — 84 laws of Malaysia ACT 762 (a) any person who has any money due or accrued or may become due and payable to the taxable person;

(b) any person who holds or who can then hold money for or on account of the taxable person;

(c) any person who holds or who can then hold money for or on account of someone else to payment to the taxable person; or (d) any person who has the power of any other person to pay money to the taxable person, to pay to the Director General immediately, or within the time allowed by the Director General, money that is not salary or wages payable or accrued to the taxable person or as many of them enough to pay the tax due and payable the surcharge, accrued, or penalties, fees or other monies payable, if any, by the taxable person as referred to earlier.

(2) all payments made pursuant to any notice under this section shall be deemed to have been made on behalf of the taxable person and by the authority of the taxable person and of all others concerned.

(3) for the purposes of this section, the Director-General may require any person to give information about any money, funds or assets held by that person to or for any monies due and payable by him to any of the others.





Goods and services tax of 85 Get people leaving Malaysia


49. (1) If the Director-General has reason to believe that any person is to be or is likely to leave Malaysia without pay — (a) any tax due and payable by him;

(b) any penalty payable under section 21, 41 and 42;

(c) any surcharges accrued under section 51;

(d) any fees payable under section 77, 170 and 173;
or (e) any other money that can be obtained from it under this Act, the Director General may issue to any Immigration Director a notice containing details of the person and offence committed by him with the request that the person is prevented from leaving Malaysia unless and until he pays the taxes, penalties, surcharges, fees or any other money, or submit a guarantee the satisfaction of the Director-General for payment thereof.

(2) subject to any order issued or made under any written law for the time being in force relating to immigration, Immigration to any Director who receives notice under subsection (1) in respect of a person shall exercise all necessary measures can include the transfer and detention of any certificate of identification, passports, permits out or other travel documents relating to such person as may be necessary to give effect to the notice.

(3) the Director General shall cause notice issued under subsection (1) or 86 are communicated, as laws of Malaysia ACT 762 by registered post to the person to whom the notice is related to: provided that the non-receipt of the notice by the person cannot menidaksahkan anything done under this section.

(4) if the person in respect of which a notice has been issued under subsection (1) submit on or after the date of the notice a written statement signed by the Director-General stated that any taxes, penalties, surcharges, fees or any other specified in the notice have been paid or that a guarantee has been given for payment thereof, the statement shall be sufficient authority to allow that person to leave Malaysia.

(5) no legal proceedings shall be instituted or maintained against the Federal Government, the State Government or any public officer in respect of anything lawfully incurred under this section.

(6) for the purposes of this section, "Immigration Director" means the Director of Immigration who are appointed under section 3 (1A) of the Immigration Act 1959/1963 [Act 155].

The power to require a guarantee of 50. If it turns out at the Director General needs to do so for proper compliance with provisions of this Act and generally for the protection of the revenue, the Director-General may require any person to provide warranty or guarantee for any amount in such manner as determined by the Director General for the payment of any tax or may become due and payable by him.

Payment by instalments 51. (1) the Director General may allow any tax or penalty paid by instalments, under the circumstances specified Goods and services 87 in such amounts and on such date as may be determined by the Director General.

(1A) if the tax allowed to be paid by instalments, the penalty under subsection 41 (8) or 42 (4) shall cease to be calculated from the date the Director General allow payment by instalments that.

(2) in the event of default in payment of any one instalment at the date due for payment of the balance of the amount due and payable or due, the entire outstanding amount shall become due and payable or due at that date and shall, without any further notice to the person liable to pay the amount due , be subject to a surcharge equal to ten per cent of the balances and surcharges shall be can be retrieved as if a surcharge that is due and payable or payable under this Act.


The imported goods cannot be released until the tax paid 52. Any article imported cannot be released from customs control until the tax on the goods have been fully paid except as otherwise authorised by the Director General.


Liability of Directors, etc.

53. (1) Notwithstanding any law to the contrary, but subject to subsection (2) in relation to a company which is being wound-up, if the tax is due and payable, surcharges are accrued, or penalties, fees or any other money payable under this Act by any companies, limited liability partnerships, firms, associations or other group of persons — (a) the Director of the company;

88 the laws of Malaysia ACT 762 (b) compliance officers who are appointed from among the partners limited liability partnerships or if there is no compliance officer appointed as such, any partner or all partners;

(c) partner to the firm; or (d) officers or members of the Committee organisations or other group of persons, as the case may be, shall together with companies, limited liability partnerships, firms, associations or other group of people that you jointly and severally liable personally for taxes, surcharges, penalties, fees or any other money.

(2) in relation to a company which is being wound-up, a Director of the company shall only be liable if the company's assets, it is not sufficient to explain the amount due, upon payment of any sums which have priority under  the companies Act 1965 [Act 125] with respect to the use of the company's assets in liquidation that compared to taxes, surcharges, penalties, fees or any other money.


PART VI FUND for REPAYMENT of TAX GOODS and SERVICES the establishment of a Fund for the repayment of Tax goods and services 54. (1) a fund known as the Fund for reimbursement of Goods and services (in this section referred to as "the Fund") was established to be  NOTE — the companies Act 1965 [Act 125] has now been removed by the companies act 2016 [Act 777] m.b.p. 31 January 2017.


Goods and services 89 and combined in the second schedule of the Act Procedures

Financial 1957 [Act 61].

(2) there shall be paid into the Fund the amount of tax collected under this act as may be authorized by the Minister.

(3) moneys in the Fund shall be used to make any repayment under section 38 and part VII.

(4) the Fund shall be administered by the Accountant General of Malaysia.

(5) Notwithstanding subsection (2) and the provisions of the financial Procedure Act 1957, the Minister may authorize payment to the Consolidated Revenue Account in the Federal Consolidated Fund for all or part of the money in the Fund.


Ketidakbolehpakaian section 14A of the Financial Procedure Act 1957 55. Section 14A of the Financial Procedure Act 1957 shall not apply to any repayment under section 38 and part VII.


PART VII RELEASE, repayment and REMISSION of Minister's power to authorize the release of 56. (1) the Minister may, by order in the Gazette and subject to such conditions as he thinks fit to impose, let go of any person or class of persons from the payment of the whole or any part of the tax that may be imposed and levied on any taxable supply of goods or services or any imported goods or classes of goods.

90 laws of Malaysia ACT 762 (2) any order made under subsection (1) shall be laid before the House of Commons.

(3) the Minister may, in any particular case and subject to such conditions as he thinks fit to impose — (a) the discharge of any person or class of persons from the payment of the whole or any part of the tax that may be imposed and levied on any taxable supply of goods or services or any imported goods or classes of goods; or (b) the release of any person or class of persons the taxable taxable from the imposition and collection of tax on any taxable supply of goods or services.

(4) If a taxable person supplying goods or services to a person or a class of persons referred to in subsection (1) or paragraph (3) (a), the taxable person shall be discharged from the imposition and collection of taxes due and payable on the supply.

(5) If any person granted relief under subsection (1) or paragraph (3) (a) fails to comply with conditions that are subject to it release is given or the release is cancelled, any tax has become a matter of such release shall become due and payable by the person at the time the requirements cease to be met or the release is revoked.

(6) If a recipient is a taxable person who has not been paying tax on the acquisition or importation of the taxable person by reason of — (a) exemption from payment of the tax under subsection (1) or paragraph (3) (a); or (b) a taxable person making a taxable supply other him discharged from taxed under paragraph (3) (b) goods and Services Tax, 91 such recipient shall be deemed to have been bear and claim tax input on the supply.

(7) If a person who has been granted exemption under subsection (1) and (3) have paid any taxes relating to the release and was given approval by the Minister for repayment of the amount of tax paid, the person is entitled to the refund.


Repayment of taxes, etc., that are overpaid, terkhilaf pay, remitted or forming matter release 57. (1) any person who (a) ―it overpaid or terkhilaf have to pay any taxes, surcharges, penalties, fees or other moneys; or (b) is entitled to a refund of tax under subsection 56 (7) or repayment of tax, penalty or surcharge under subsection 62 (3), may make a claim therefor in the prescribed form.

(1A) a claim under subsection (1) shall be made to the Director General within six years from the time ―it (a) payment more or the terkhilaf payment occurs; or (b) the repayment entitlement under subsection 56 (7) or 62 (3) occurs.

(1B) the Director General may make the repayment of taxes, surcharges, penalties, fees or any other moneys, as the case may be, after being satisfied that the person has to prove the claim properly.

(2) the Director General may reduce or refuse any refund payable under this section to the extent that 92 laws of Malaysia ACT 762 repayment it will with should not pose the person referred to in subsection (1).

(3) a claim under this section shall be supported by any evidence required by the Director General.

(4) except as provided by this section, the Director-General shall not be liable to repay an amount payable to the person referred to in subsection (1) in the form of taxes due to the fact that the amount that was not tax due and payable to the person.

(5) this section shall not apply to a claim repayment under section 10, 17 and 18.


Bad debt relief 58. (1) subject to the regulations made under this Act, any person who is or has ceased to be a taxable person can make a claim to the Director General for a discharge for bad debts over the whole or any part of the tax paid by it in respect of the taxable supply if — (a) that person has not received any payment or part of the payment in respect of the taxable supply from the debtor six months from the date of the supply or the debtor has become not insolvency before the end of the period of six months; and (b) sufficient efforts have been made by him to obtain the debt.

(2) if the person referred to in subsection (1) — (a) has not received any payment in respect of the taxable supply, such person can claim the tax paid for the whole of it; or goods and Services Tax 93 (b) has received a portion of the costs in respect of the taxable supply, that person can make a claim for an amount calculated according to the following formula: A1 x C B i.e. A1 is the payment is not received in respect of the taxable supply;

B is consideration of taxable supply; and


C is the tax that is due and payable on taxable supply.

(3) If a discharge for bad debts has been made by the Director General to a person and any payment in respect of a taxable supply on the tax was due and payable is then received by that person, that person shall pay back to the Director-General of the amount calculated according to the following formula: A2 x C B i.e. A2 is payment received in respect of the taxable supply;

B is consideration of taxable supply; and 94 laws of Malaysia ACT Release of goods apply 762 59. (1) any taxable person may get a reduction of any taxes that may be imposed on any supply of goods laid down in the case on the previous supply related items that — (a) no taxation; or (b) tax may be imposed in accordance with this section.

(2) the Tax chargeable on the supply of goods referred to in subsection (1) shall be reduced over tax imposed as if the supply of those goods is specified for a consideration equal to the excess of the X-Y, that is, X is the consideration for the goods supplied; and Y is the consideration of the items given, and if there is no surplus, taxes not applicable.

(3) this section shall be extended in the case of prior importation or sale of the goods specified have been taxable under the sales tax Act 1972.

(4) for the purposes of this section, a reference to a supply of goods as prescribed in the absence of a duty includes a reference to a matter under paragraph 4 of the second schedule.


Get tax, etc., repaid in terkhilaf 60. If any taxes, surcharges, penalties, fees or any other money paid back after paid in terkhilaf to any person, that person shall pay a refund paid in terkhilaf to him when a claim is made by the head of Taxation of goods and services 95 Director within six years from the date of the repayment is made.

Payback scheme 61 Tourists. (1) there shall be a scheme known as "Payback Scheme Tourists" that allow any tourists who are eligible to claim a refund on tax paid on certain goods purchased in Malaysia of an approved shop.

(2) the Minister may appoint any person to be the agent of repayment approved subject to conditions laid down as he may deem fit to impose.

(3) implementation of a Payback Scheme Tourists shall be as determined by the Minister.

Remission of tax, etc.

62. (1) the Minister may remit the whole or any part of the tax due and payable under this Act if it sees fit.

(2) the Director General may remit the whole or any part of the penalty due or accruing surcharges under this Act if it is fair and equitable to do so.

(3) If a person who has been granted remission under subsection (1) and (2) has been paying any taxes, surcharges or penalties that are in touch with him remission, he is entitled to a reimbursement of the amount of tax, penalties or surcharges that have been remitted it.

Remission of tax on goods lost, etc., under the control of customs 63. (1) where any article imported — 96 laws of Malaysia ACT 762 (a) lost, damaged or destroyed because of an accident cannot be avoided; or (b) is lost due to theft or evaporation, at any time after the arrival of imported goods in Malaysia but before the transfer of customs control, the Director-General may remit the whole or any part of any tax due and payable on the imported goods.

(2) after the transfer of such goods from customs control, no reduction of any tax imposed on the importation of goods that may be allowed to — (a) for loss or damage; or (b) for any claim that the weight, size, volume or value as determined by the Director General for the purpose of determining the tax on goods, or any other factors affecting the goods, it is not correct, unless notice in writing of the claim has been given to the Director General by any person studying at or before the time of the transfer.


SPECIAL CASE of disapplication of PART VIII to 64. (1) this Act does not apply in respect of any supply of goods or services made by the goods and Services Tax — 97 (a) of the Federal Government and the State Government, unless directed otherwise by the Minister in  order published in the Gazette; or (b) any local authorities and statutory bodies with respect to the regulatory and enforcement functions.

(2) for the purposes of subsection (1), local authority or statutory body is calculated to carry out the functions of regulation and enforcement if — (a) a local authority or a statutory body that is authorised by any law which is expedient for or in connection with the implementation of regulatory and enforcement functions; and (b) the supply made by the local authority or statutory body is not the same type of or similar to a taxable supply made by any other person in the course or continuation of a business.


65 agents. (1) If goods or services are supplied by an agent acting on behalf of a person's principal, the supply shall be deemed to be made by the principal and not by the agent.

(2) If goods or services are supplied to an agent acting on behalf of a person's principal, the supply shall be deemed to be made to the principal and not to the agent.

(3) if the goods or services provided through someone agents acting in his own name, supply the  NOTE ―it adoption for the Federal Government and State Governments – see order of Goods and services (Application to the Government) 2014 [P.U. (A) 185/2014] which comes into operation on 1 July 2014.
98 laws of Malaysia ACT 762

counts as a supply to the agent and as a supply by the agent.

(4) Notwithstanding subsection (3), where an agent acts in his own name as an auctioneer and the goods are not goods described under subparagraph 5 (7) of the first schedule — (a) the supply by a principal who is a taxable person to the auctioneer is not taken into account; and (b) the supply made by the auctioneer shall be calculated as a supply made by the auctioneer and the principal whether he is a taxable person or not shall be liable for any taxes due and payable on the supply.

(5) if the items to be deemed to be supplied by a taxable person in accordance with subparagraph 5 (7) of the first schedule, any person, whether he is a taxable person or not, who sold them to settle any indebtedness owing by the taxable person, shall be liable for any taxes due and payable on the supply.

(6) If a person place not in Malaysia make taxable supplies in Malaysia and liable to register under section 20 or intends to register under section 24, he shall appoint an agent to act on his behalf and such agents, whether he is a taxable person or not, shall be liable for taxes and comply with any other requirements imposed under this act as if the agent is the person who the place is not in Malaysia.

(7) where an agent has been appointed under subsection (6), the Director-General may, with reasonable cause, direct the person place not in Malaysia, by giving written notice to appoint an agent to act on his behalf.
Goods and services tax 99 (8) for the purposes of subsection (6), a person shall be considered as the place not in Malaysia if — (a) he is no establismen business or other fixed establismen in Malaysia;

(b) he nothing establismen business or other fixed establismen in any country and place of residence are usually not in Malaysia; or (c) he has a business or establismen establismen other fixed both in Malaysia and elsewhere and establismennya the most directly related to the supply that's not in Malaysia, and for the purposes of paragraph (a), (b) and (c), a permanent establismen or in any other countries include a branch or agency through it a person is running a business in Malaysia or in other countries of the , as the case may be.

(9) if the goods imported and supplied by an agent who is a taxable person acting on behalf of a principal who is a person other than the taxable person shall be deemed to be, goods imported and supplied by the agent.


Supply beyond the rate changes or description 66. (1) Notwithstanding section 11, this section shall apply where there is a change in — (a) the tax rates prescribed under section 10;

(b) a description of the supply of goods or services specified as zero rated supply under section 17; or 100 laws of Malaysia ACT 762 (c) description of the supply of goods or services the supply is determined to be exempt under section 18.

(2) if there is a change in the tax rates prescribed under section 10, the tax rate may be charged on any supply resulted in a change in the tax rate shall be as follows: (a) the tax shall be charged at the old tax rates on higher amounts of the following: (i) full payment or partial payment received before the date of the change in the tax rate; or (ii) the value of the supply of the goods if the goods are transferred or available as a whole or in part or the service implemented in whole or in part before the date of the change in the tax rate; and (b) tax shall be charged at the new rate of tax on the difference, if any, between the total amount of the supply an amount referred to in paragraph (a).

(3) if there is a change in the description of the supply of goods or services specified as zero rated supply under section 17, the tax rates may be imposed on the supply that spans the changes in the description should be as follows: (a) in the case of the supply of a zero rate changed to supply standard rate and reach out to those changes — (i) no tax shall be imposed on the higher amount of the following goods and Services Tax: 101 (aa) full payment or partial payment received before the date of the change in the description; or (bb) the value of the goods supply zero rate if the goods are transferred or available as a whole or in part or the service implemented in whole or in part before the date changes in the description; and (ii) tax shall be charged on the difference, if any, between the total amount of the supply an amount referred to in subparagraph (a) (i);

(b) in the case of the supply of standard rate changed to supply zero rate and reach out to change — (i) the tax shall be charged on the amount of the higher of the following: (aa) full payment or partial payment received before the date of the change in the description; or (bb) the value of the goods supply standard rate if the goods are transferred or available as a whole or in part or the service implemented in whole or in part before the date changes in the description; and (ii) no tax shall be levied on the difference, if any, between the total amount of the supply an amount referred to in subparagraph (b) (i).

102 the laws of Malaysia ACT 762 (4) If there is a change in the description of the supply of goods or services is determined to be an exempt supply under section 18, the tax rate on taxable supply beyond changes in the description should be as follows: (a) in the case of an exempt supply of a taxable supply and converted into spans changes — (i) no tax shall be imposed on the amount of the higher of the following :


(aa) full payment or partial payment received before the date of the change in the description; or (bb) the value of the supply of the goods is excluded if the goods are transferred or available as a whole or in part or the service implemented in whole or in part before the date changes in the description; and (ii) tax shall be charged on the difference, if any, between the total amount of the supply an amount referred to in subparagraph (a) (i);

(b) in the case of a taxable supply are converted to supply excluded and reach out to change — (i) the tax shall be charged at the old tax rates on higher amounts of the following: (aa) full payment or partial payment received before the date of the change in the description; goods and Services Tax or 103 (bb) the value of the taxable supply of the goods if the goods are transferred or available as a whole or in part or the service implemented in whole or in part before the date changes in the description; and (ii) no tax can be levied on the difference, if any, between the total amount of the supply an amount referred to in subparagraph (b) (i).

(5) for the purposes of this section — (a) any supply beyond the changes in tax rates or a description that refers to any supply if — (i) full payment is received before the date of the changes in tax rates or description and the goods transferred or available as a whole or the service is implemented as a whole beyond that date;

(ii) full payment is received after the date of the changes in tax rates or description and the goods transferred or available as a whole or the service is implemented as a whole before that date;

(iii) full payment is received before the date of the changes in tax rates or description and the goods transferred or available partly or partially implemented in the service before and after that date;

(iv) full payment is received after the date of the changes in tax rates or description and the goods transferred or available partly 104 laws of Malaysia ACT 762 or the service implemented in part before and after that date;

(v) the goods transferred or available as a whole or the service is implemented as a whole before the date of the changes in tax rates or description and costs part received before and after that date;

(vi) the goods transferred or available as a whole or the service is implemented as a whole after the date of the changes in tax rates or description and costs part received before and after that date;

(vii) costs part is received prior to the date of changes in tax rates or description and costs part received after that date;

(viii) payment received before the date part to changes in tax rates or description and the goods transferred or available partly or partially implemented in the service after that date;
(ix) the goods transferred or available partly or partially implemented in the service prior to the date of changes in tax rates or description and costs part received after that date; or (x) the goods transferred or available partly or partially implemented in the service prior to the date of changes in tax rates or description and the goods transferred or Goods and services available in 105 or partly implemented in the service partly after that date;

(b) "new tax rate" means the rate of tax applicable at the date of change in tax rate is to take effect;

(c) "the old tax rate" means the rate of tax applicable immediately before the date of change in tax rate is to take effect;

(d) "supply of proportional standard" means any provision of applicable tax rates prescribed under section 10.

(6) any person who contravenes this section commits an offence.


Contract adjustment to change tax rate 67. If after making any contract for any taxable supply of goods or services and before the goods supplied or the services are performed, there is a change in the rate of tax levied on the supply, unless there is a clear provision for exclusion of any changes to taxation contained in the contract or if a change in tax rate was taken into account, the contract shall be deemed to be adjusted as follows : (a) If changes to the tax rates make the supply taxable or liable to raise the amount of any tax imposed or that may be imposed in respect of the supply, the supplier can add to the price agreed in the contract amount of tax or the tax on the increase;

(b) If changes to the tax rates make the supply tax exempt or reduce the amount of any tax imposed or that can be 106 laws of Malaysia ACT apply in respect of the supply of 762 it, suppliers can cut of the price agreed in the contract or reduction of the amount of tax on the tax.


Continuous efforts to transfer 68. (1) if any person liable to tax (hereinafter referred to as "pemindah") to transfer its business to another person (hereinafter referred to as "the transferee") as a continuous effort — (a) for the purposes to determine whether the transferee is liable to register under this Act, the transferee shall be considered to have carried out the business before and after the transfer and any supply by pemindah shall be calculated as provided by the transferee; and (b) pemindah shall transfer to the transferee, unless otherwise authorized in writing by an officer of the taxation of goods and services at the request of the pemindah, all records relating to the business as required under section 36 and the transferee shall retain the record in accordance with section 36.

(2) If a business or part of it carried out by a taxable person are transferred as a continuous effort to

a transferee, that is or will be a taxable person or taxable are due to transfer business assets with — (a) any right of pemindah to the input tax credit or tax refund shall be the transferee's rights either still exists or not during the transfer date and when the pemindah had made a claim input tax credits or tax refund Tax goods and services 107 before the date of transfer , it shall be deemed to have been claimed by the recipient transfers; and (b) any liability by pemindah exists at the date of transfer to submit a statement or is meant or pay tax under section 41 shall be the liability of the transferee and any statement made or be banked or tax paid by pemindah shall be calculated as having been made by the transferee.

(3) If a business carried on by the pemindah, which was approved for payment on the basis of tax is, moved in the circumstances if subsection 20 (4) applies, the transferee shall continue to is and pay taxes on the supply made and received by it on or after the date of transfer as if he is the pemindah who have been granted approval for the tax is on the basis of payment.

(4) Pemindah and transferee can claim any input tax incurred incidental to the transfer of that ongoing effort.


Joint venture of 69. (1) where two or more registered to participate in an activity relating to petroleum under an effort, evidenced in a written contract, for the purpose of making a taxable supply (hereinafter referred to as "operators"), the operator may apply to the Director-General to be deemed to be a joint venture.

(2) the Operator shall, in the application under subsection (1), nominates one of the entrepreneurs to become operator effort or appoint a joint operating company to become operator effort.

108 the laws of Malaysia ACT 762 (3) a joint operating companies appointed under subsection (2) shall be deemed to be the taxable person for the purposes of the joint venture.

(4) If a joint venture under subsection (1) was approved, joint ventures shall be registered as a person registered and the registration shall be in the name of the operator.

(5) where a joint venture has been registered under subsection (4) — (a) the operator effort shall maintain a separate account for the joint venture;

(b) any supply of taxable goods or services for the purpose to conduct business joint ventures between an entrepreneur with operator effort is not taken into account;

(c) if — (i) every operator who earn any taxable supply of goods or services for the joint venture, the entrepreneurs should claim deduction of input tax on earnings made by him in respect of the joint venture;

(ii) the operator's efforts to acquire any taxable supply of goods or services for the joint venture, the operator shall claim deduction of input tax on earnings made by him in respect of the joint venture;

(d) each operator shall is meant and pay taxes on the supply made by him in respect of the joint venture.

Goods and services tax 109 (6) the Director General may cancel the registration of a joint venture under subsection (4) if it sees fit for the protection of revenue.

(7) all operators of joint venture shall be liable in association and several for any tax payable of operator effort.

(8) if the Minister establishes any other activities deemed to be a joint venture under section 177, this section shall apply mutatis mutandis for the prescribed activities.

(9) for the purposes of this section — (a) "efforts" means a contractual arrangement which two parties or more pursuing an economic activity which is subject to joint control but does not include jointly controlled entities;

(b) "activities relating to petroleum" means an upstream activities that began with exploration activities including seismic and drill and ends when the outcome (crude oil, natural gas or condensate) is assigned to operators;

(c) any activity relating to petroleum is served out to third parties shall be taken as an activity that is conducted and managed by the third party and not an activity that is conducted and managed by the joint venture;

(d) "operator" means a party to a joint venture and has joint control over the joint venture;

(e) "operator effort" means the persons who operate or manage the joint venture.

(10) any person who contravenes subsection (5) in relation to paragraph (d) commits an offence.
110 laws of Malaysia ACT 762 Warehousing Scheme 70. (1) in relation to goods which have been approved by the Customs officers the right to deposited in the warehouse, there shall be a scheme known as "Warehousing Scheme" which allows — (a) the tax that is due and payable on the imported goods is suspended when the goods deposited in the warehouse; and (b) tax imposed on any supply of taxable goods made in or between warehouses is not taken into account.
(1A) Warehousing Scheme under subsection (1) shall not apply to goods that are prescribed.

(2) Tax shall be due and payable on all goods transferred from a warehouse for all purposes as if the transfer was imported into Malaysia unless the goods are transferred to export, to another warehouse, deposited into a free zone or a specified area with the approval of the Customs officers ' rights.

(3) (Cut by the Act 785).

(4) No person shall transfer any goods subject to tax from a warehouse unless — (a) after the payment of the tax together with the duties, if any;

(b) if the goods are in warehouse, under such conditions as he thinks fit by the Director General, to apply to another warehouse in deposited; or (c) in accordance with such conditions as may be deemed by the Director-General should to apply, to be exported from Malaysia to transfer to an area or to a free zone,


111 goods and services tax and any article will not be transferred from a warehouse.

(5) (Cut by the Act 785).

(6) a reference to goods that are subject to international best practices in this section is a reference to goods stored in a warehouse or transported between warehouse without the payment of any tax or duty and a reference to the transfer of goods from a warehouse shall be construed accordingly.

(7) for the purposes of this section — (a) "customs warehouse" has the meaning assigned to it in section 2 of the Customs Act 1967;

(b) "duties" means customs duties or excise duties or both of each;

(c) "duty free shops" has the meaning assigned to it in section 2 of the Customs Act 1967;

(d) (Cut by the Act 785);

(e) "inland clearance depot" has the meaning assigned to it in section 2 of the Customs Act 1967;

(f) "licensed warehouse" has the meaning assigned to it in section 2 of the Customs Act 1967; and (g) "warehouse" means — (i) any customs warehouse;
(ii) any licensed warehouse;
(iii) any duty free shops;

(iv) any relief depot Interior.
112 laws of Malaysia ACT 762 (8) any person who contravenes subsection (4) commits an offence.


Approved Trader Scheme 71. (1) subject to the prescribed conditions, there shall be a scheme known as "Approved Traders Scheme" which allows the Director-General to suspend the payment of a tax imposed on goods imported by any taxable person eligible at the time of importation provided that the goods were imported in the course of business or the continuance of its business.

(2) any taxable person granted an approval under the scheme Approved Traders shall tax payment is suspended in the statement for the period of the suspension that is tax related to it.


Toll Manufacturer scheme Approved 72. (1) there shall be a scheme known as "Toll Manufacturers Scheme that allows approved" any taxable person eligible for not taking into account the provision containing the treatment or processing of goods for and to someone who place in a country other than Malaysia, subject to prescribed conditions (hereinafter referred to as "toll manufacturer").

(2) any person who place in Malaysia and receive goods that have been treated or processed from the manufacturer toll (hereinafter referred to as "the recipient") shall is meant and pay taxes as if the receiver itself has been supplying and acquiring the goods in the course of business in Malaysia or continuation of its business and as if the supply is taxable supply.

(3) Notwithstanding section 11, the supply of goods that have been treated or processed shall be considered as goods and Services Tax occurs 113 according to any time earlier than the time of the following: (a) when a payment in respect of the supply is made; or (b) when the recipient receives an invoice relating to that supply.

(4) if the recipient is a taxable person, he shall enter the tax due and payable in the penyatanya.

(5) if the recipient is a person other than a taxable person, the tax shall be charged on a supply made by him and he shall be liable for any taxes due and payable on the supply.

(6) this section shall not apply to a person who is not its place in Malaysia and has appointed an agent to act on his behalf under subsection 65 (6).

(7) for the purposes of this section, a person should be place in any country if — (a) he has lived usually in that country if the supply is made to him as an individual and accepted by it other than for the purpose of any business carried on by him; and (b) in the case where paragraph (a) shall not apply — (i) he has a business establismen or establismen fixed in that country and there is no such establismen elsewhere;

(ii) he has no business or establismen fixed establismen in any country but home ranges in that country; or 114 laws of Malaysia ACT 762 (iii) he has a business establismen or establismen fixed in both that country and elsewhere and establismennya the most directly related to the supply is in that country.

(8) for the purposes of subsection (7), a permanent establismen in any country including a branch or agency through it someone doing business in that country.


Jeweler scheme Approved 73. (1) there shall be a scheme known as "scheme Approved Jeweler" that allows any taxable person (hereinafter called "the jeweler approved") is eligible for tax on the supply of goods accepted by him in specified course or continuation of the business of the taxable person to another subject to the conditions specified (hereinafter referred to as "supplier").

(2) Notwithstanding section 9, if suppliers make any supply of goods assigned to jeweler approved and prescribed goods the supply is a taxable supply — (a) the provider shall impose a tax and is not liable to tax in respect of the supply; and (b) approved jeweler is not required to pay tax imposed in paragraphs (a) to the provider but is tax in the penyatanya.

(3) Notwithstanding section 11, the supply of the goods prescribed shall be considered to have been made according to any time earlier than the time the following: goods and Services Tax 115 (a) when a payment in respect of a specified supply of goods is made; or (b) where goldsmiths approved receive a tax invoice relating to that supply.


Flat Rate scheme 74. (1) there shall be a scheme known as "Flat-Rate Scheme" which allows any person eligible and do business involving prescribed activities (hereinafter referred to as "approved person") to include an additional flat rates set out in the consideration of any taxable supply of the goods made by him

of prescribed activities to any person registered in the course of business or the continuance of its business.

(2) a person approved cannot be — (a) the additional flat-rate is prescribed it; and (b) be entitled to input tax credits against the output tax under section 38.

(3) a person approved shall issue an invoice on a taxable supply of the goods made by him of the prescribed activities to the people registered in the course of business or the continuance of its business.

(4) a registered person shall be entitled to the input tax credit of the output tax under section 38 on any taxable supply of goods obtained from those who approved of the activities prescribed under the Flat-Rate Scheme equal to the additional flat-rate prescribed on the supply.

(5) a person approved shall not enter an additional flat rates set out in the consideration of any supply of goods made by him — 116 laws of Malaysia ACT 762 (a) from any activity other than the prescribed activities;
or (b) to any person other than the registered person.

(6) a person approved in violation of subsection (3) or (5) commits an offence and shall, on conviction — (a) to a fine not exceeding fifteen thousand ringgit or to imprisonment for a term not exceeding two years or to both; and (b) bears a penalty of additional flat-rate amount fixed as shown so.

(7) any person other than the person who is approved to issue an invoice or receipt showing the amount of flat-rate addition set or as an extra that can be dihubungkaitkan with flat rates set commits an offence and shall, on conviction — (a) to a fine not exceeding fifteen thousand ringgit or to imprisonment for a term not exceeding two years or to both; and (b) bears a penalty of additional flat-rate amount fixed as shown so.


Capital markets 75. (1) a holder of a capital markets services licence and the holder of a capital markets Services Representative Licence shall be calculated as a single entity for the purposes of registration under this Act: provided that the holder of a capital markets services licence is a taxable person.

Goods and services tax 117 (2) the registration of a single entity shall be the name of the holder of a capital markets services licence and the holder of a capital markets services licence shall be head of personnel for the single entity.

(3) if the holder of a capital markets services licence and the holder of a capital markets Services Representative Licence has been registered as a single entity — (a) the holder of a capital markets Services Representative Licence shall be a member of the single entity that;

(b) any supply of taxable goods or services in the exercise of a business dealing in securities or that deal with issues between members with the head of personnel for the single entity shall be disregarded;

(c) any business dealing in securities or that deal with the issue of ditransaksikan by a single entity shall be treated as supplies made by the head of the Member;

(d) any supply of goods and services in furtherance of a business dealing in securities or that deal with the issue made to members of a single entity shall be treated as supplies made to the heads of the Member;

(e) the members of a single entity shall maintain separate accounts for each Member of the sole entity;

(f) the members of a single entity shall be liable for any taxable supply made by a single entity that in carrying out its business of dealing in securities or that deal with the issue;

118 laws of Malaysia ACT 762 (g) any input tax allowed to any member of the single entity in conducting the business dealing in securities or that deal with the issue is to be claimed by the Member on behalf of the members of a single entity.

(4) for the purposes of this section — (a) "capital markets services licence" has the meaning assigned to it under the capital markets and Services Act 2007 [Act 671];

(b) "capital markets Services Representative Licence" has the meaning assigned to it under the capital markets and Services Act 2007.


PART IX STIPULATIONS TAX GOODS and SERVICES 76 public ruling. (1) the Director General may, at any time, make a public ruling on the application of any provision of this Act in relation to any person or class of persons, or any kind of arrangement.

(2) the Director General may withdraw, either whole or in part, any public ruling made under this section.

(3) Notwithstanding the provisions of this Act, if a public ruling in subsection (1) apply to any person in respect of an arrangement and the person using it in the manner set out in the resolution, the Director-General shall use the provisions in relation to people and the arrangement on the basis of that.


Goods and services tax Ruling early 119 77. (1) subject to this section and any regulations made under this Act, upon application made by any person, the Director General shall make an initial ruling on the application of any provision of this Act for the person and the arrangements for which the ruling the ruling applied for and shall have effect from the date specified in the resolution.

(2) an application under subsection (1) shall be made in the manner and form determined by the Director General and subject to the prescribed fee.

(3) Notwithstanding the provisions of this Act, if a preliminary ruling shall apply to any person in respect of an arrangement and the person using it in the manner set out in the resolution, the Director-General shall use the provisions in relation to people and the arrangement on the basis of that.

(4) a preliminary ruling made under subsection (1) shall not apply to any person in respect of an arrangement if — (a) the arrangement is materially different from the arrangements set out in the resolution;


(b) there is an omission or misrepresentation of a material in, or in connection with the adoption of the resolution;

(c) the Director-General make the notion of a future event or any other material to the ruling, and the impression was later proven incorrect; or (d) the person does not meet such conditions as may be determined by the Director General.

120 laws of Malaysia ACT 762 (5) the Director General may, at any time, revoke any preliminary ruling made under subsection (1) by giving written notice of such withdrawal to the resolution of the case.

(6) if the Director-General to withdraw a resolution early resolution of such early shall not apply to any arrangement or carried out on or after the date of the withdrawal of the earlier ruling but shall continue to apply in relation to any arrangements which still remained for the remainder of the period specified in a resolution early resolution of the initial used has been made or executed before the date stated in the notice of the withdrawal.


Kemuktamadan a resolution early 78. (1) a preliminary ruling issued to any person for the purpose of any arrangement shall be final.

(2) no appeal may be lodged by any person against any early resolution.


A resolution shall not apply when the provisions of the Act is amended or repealed 79. A resolution is not applicable from the date of a provision of this Act is amended or repealed so far as amendments or repeal of that change the way the provisions applicable in the ruling.


Part X of the ENFORCEMENT powers of enforcement, inspection and investigation of 80. For the purposes of this Act, a senior officer of the goods and services tax shall have all the powers of an officer Tax goods and services 121 police whatsoever rank as provided in the criminal procedure code [Act 593] in relation to enforcement, inspection and investigation, and such powers shall be in addition to the powers provided for in this Act and not pengurangannya.


Access to a place or premises 81. (1) any senior officer goods and services shall be for the purposes of this Act at all times have full access and freely to any place or premises where any person conducts business.

(2) where any officer senior tax goods and services exercise of its powers under subsection (1), the person who conducts business or any of the other people who were in the place or premises at the time of admission shall provide to him all reasonable facilities and assistance and assistance for him to carry out his duties under this section.

(3) if any senior officials from the taxation of goods and services entering any place or premises in accordance with the provisions of this section, he may be — (a) requires the taxable person or any other person to produce any goods, documents or things relating to the business of the person and, if he is a taxable person, any records required to be kept under section 36;

(b) examine any article, document or thing;

(c) seize and detain any article, document or thing if in its opinion it can provide evidence of the Commission of any offence under this Act;

122 laws of Malaysia ACT 762 (d) require such person to answer any questions relating to any article, document or thing;

(e) require any container, envelope or container load to another in the place or premises to open;

(f) at the risk and expense of the owner of the business, open and inspect any package, or any article or substance in the place or premises it; or (g) take samples of any goods or materials and make a copy or extract of any document, if it thinks necessary.

(4) where any officer senior tax goods and services cannot obtain access to be fully and independently to the place or premises under subsection (1) or to any freight containers that are in place or premises that, he may, at any time, enter into a place or premises that and open place the load by using force, if necessary.

(5) any person who refuses to allow any senior officials from the taxation of goods and services to enter any place or premises in accordance with this section commits an offence and shall, on conviction, to imprisonment for a term not exceeding seven years or to a fine not exceeding one hundred thousand ringgit or both.


A magistrate may issue a warrant 82. (1) where it appears to any Magistrate, based on information given in writing and after such inquiry as he thinks necessary, that there is reasonable cause to believe that in any place, premises or the carrier, there is any article, document or thing to be hidden or stored which can provide evidence of goods and Services Tax in respect of the conduct of the 123 of an offence under this Act , a magistrate may issue a warrant empowering any officer tax goods and services named it, at any time and with or without the help of — (a) to enter a place, premises or the carrier and to search and seize goods, documents or things;

(b) to arrest any person that are in place, premises or the carrier of the goods in his possession, document or the thing found or suspected with reasonable as hide or store, documents, or the thing.

(2) goods and services tax Officer authorized under subsection (1) may, if necessary to do so — (a) break open any door or the door of the place, premises or the transporter and enters every part thereof, if necessary by force;

(b) remove by force any barriers to entry to search or seize as he is authorized to do so; and (c) detain every person found in the place, premises or the carrier until the search is completed.


Search can be done without a warrant 83. When it appears on senior officers of the taxation of goods and services that there is reasonable cause to believe that in any place, premises or

carriers have hidden or stored any article, document, or thing can give evidence in connection with the Commission of any offence under this Act and if he has 124 laws of Malaysia ACT 762 reasonable grounds to believe that by reason of the delay in obtaining a search warrant articles, documents or things that may be moved, he can run inside, above and with regard to public , premise or the carrier, all powers under section 81 by the same way as-by he was authorized to do so by a warrant issued under that section.


The power to detain and search the carrier 84. (1) goods and services tax Officers can detain and inspect any carrier for the purpose of determining whether any article in respect of which he has reason to believe that an offence under this Act has been committed therein and those who control or keep the carrier shall, if required to do so by an officer of the goods and services tax — (a) discontinue the carrier and allow tax officer for goods and services can inspect them;

(b) transfer to another place on the carrier for inspection; and (c) shall not proceed until permission to do so given by the goods and services tax.

(2) those who control or care of carrier inspected under this section shall, upon demand of goods and services tax officer, open all parts of the carrier for inspection by an officer of the goods and services tax and take all necessary steps to enable the examination as may be deemed necessary to be made by an officer of the goods and services tax.



Goods and services tax 125 Seizure of goods, etc., that is the subject of the offence of 85. (1) all goods, documents or thing in respect of which goods and services tax officer has reasonable cause to suspect that there has been any offence under this Act or any breach of any provision of this Act and any freight containers, packaging or carrier (if the carrier is a vessel, the vessel shall not exceed two hundred tons net registered tonnage capacity or if the carrier is an aircraft , the aircraft shall not aircraft involved in international transport) in which the goods, documents or the thing found or has been used in connection with the offence or breach, and any article, document, or other thing which is reliably as having to do with the case, can be seized by the goods and services tax in any place either on land or in the waters of the region.

(2) when any of the items, documents, objects, container freight, packaging or carrier seized under this Act, goods and services tax officer shall forthwith give notice in writing of the seizure and the reasons thereof to the owner of the goods, documents, freight containers, packaging or the carrier, if known, whether by submitting the notice to him in person or by post to the place of residence , if known.

(3) of this section relating to seizure — (a) any article, document or thing shall apply to all content on any packaging or container load, in which carriers of goods, documents or objects that have been found and for any article that is used to hide the goods, documents or the thing; and (b) any carrier shall apply to takar, fittings and equipment the carrier and if the carrier vehicle is an animal, for any animals that attract the carrier.
126 the laws of Malaysia ACT 762 (4) any goods of a type of perishable or any animal seized under this section may be immediately sold and the proceeds of sale shall be held to be bound by the results of any prosecution or claims.


The return or disposal of movable goods 86. (1) for the purposes of the investigation, if any removable items were seized under this part, senior officials from the taxation of goods and services may, in its absolute discretion: (a) return the goods can move it temporarily to the owner or to the person of the ownership, custody or control it seized, or to any person who thinks by senior officers of the goods and services tax as is entitled over the movable goods subject to the terms and conditions as may be imposed by senior officers of the taxation of goods and services, and, subject in any circumstances, to the production of sufficient assurance officer senior tax goods and services that the goods can move that will be submitted to senior officials tax goods and services upon request made by the senior officers of the taxation of goods and services and any terms and conditions of the , if any, should be applied;

(b) return the goods can move it to the owner or to the person from whom the possession, custody or control it seized, or to the person who thinks by senior officers of the goods and services tax as is entitled over the movable goods, with freedom for the person to whom the goods can move that returned to dispose of it, return it subject to production guarantee the satisfaction of senior officers of the goods and services tax in an amount not less than an amount , in the opinion of the senior officer of the goods and services tax, indicating the goods and Services Tax — 127 (i) portable goods value, at the date of the goods returned; and (ii) tax due and payable therefor, for the payment of the guaranteed amount to the Director General in the circumstances if the Court makes an order of forfeiture under section 117; or (c) sell or destroy goods can move, as the appropriateness of the circumstances, if it is a living things or if, in the opinion of the senior officer of the goods and services tax, it is a type of perishable or dangerous or may deteriorate quickly in terms of quality or value, and if it is sold, he shall hold the proceeds of sale to comply with the decision of any prosecution or claims.

(2) whenever any removable items returned or

disposed of under subsection (1), a document purporting to be a certificate in accordance with subsection 105 (2) shall be issued by senior officers of the taxation of goods and services.

(3) any person who — (a) does not deliver on request to the senior officers of the taxation of goods and services goods can move temporarily returned to him under paragraph (1) (a); or (b) fails to comply with or contravenes any term or condition imposed under paragraph (1) (a), commits an offence and shall, on conviction, to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding one year or to both.

(4) Criminal Liability of any person under subsection (3) is in addition to any other liability 128 laws of Malaysia ACT 762 that person or any other person may incur under the terms and conditions relating to the return of goods can move under paragraph (1) (a).

(5) subsection (3) shall not apply to the person, if any, be penggerenti or the guarantor the person to the goods returned under paragraph (1) (a).

(6) the Minister may, either generally or in any particular situation or class situation, give any direction to the Director General as he may deem necessary or expedient in connection with the exercise of the powers granted to the senior officers of the taxation of goods and services under subsection (1).

(7) No person shall be entitled to take any action for any act done or any decision taken by or on behalf of the Minister or by or on behalf of the senior officers of the taxation of goods and services under this section, and no court has jurisdiction to hear any such action.

(8) for the purposes of this section, "article can move" includes anything description removable items seized under this Act.


Power to catch 87. (1) any goods and services tax officer can arrest without warrant — (a) any person who is found committing or attempting to commit, or employ or assist any person to commit or aiding and abetting in the Commission of, an offence under this Act;

(b) any person who he suspects with reasonable has in his possession any article, document or thing which may be seized under this part;
Goods and services tax 129 (c) any person who he suspects with reasonable cause to have committed an offence under this Act, and the goods and services tax can inspect or cause to be inspected any person so arrested: provided that — (A) any person so arrested calling for him to be examined in the presence of a senior tax goods and services could not be inspected except in the presence and under the supervision of the officer , but that person may be detained until the arrival of the officer, or brought to any Office or police station where the officer can be found;

(B) goods and baggage any person asking him to be present during the inspection of goods and baggage and he presented himself in a reasonable time shall not be inspected except by its presence;

(C) No person shall be searched except by another person of the same sex, and such inspection shall be carried out taking into account the strictly be modesty.

(2) any goods and services tax officer who made the arrest under subsection (1) shall, without unnecessary delay is not necessary, bring the person arrested to the nearest police station, and thereupon such person shall be dealt with according to the law relating to criminal procedure currently in force.

(3) if any person who may be arrested under this Act is not captured at the time he committed such offence which he liable therefor, or after he was arrested he let go of him, he may at any time thereafter arrested and 130 laws of Malaysia ACT 762 treated as if he has been arrested at the time he committed such offence.

(4) senior officials tax goods and services can cause taken photographs, traces of fingers, thumbs and any other forms of identification which may be required under any other written law any person charged with an offence against this Act.

(5) every person arrested may be discharged from custody — (a) when he deposited a sum of money which is reasonable as required by senior officials from the taxation of goods and services;

(b) when he execute a bond, with sureties or guarantors, as required by the senior officers of the taxation of goods and services; or (c) when he deposited a sum of money which is reasonable as required by senior officials from the taxation of goods and services and to execute a bond, with sureties or guarantors, as required by the senior officers of the taxation of goods and services.

(6) any person who has been released from custody under subsection (5) may be arrested without warrant by any officer of the tax goods and services — (a) if the officer has reasonable grounds to believe that any of the conditions or subject to him which the person to be discharged or otherwise allowed to guaranteed has been or is likely to be breached; or (b) when notified in writing by the guarantor the person that the person is likely to become in default under any conditions upon or which Goods and services 131 subject such person has been released and that the guarantor wishes to be released from its obligations as guarantor.


PART XI OFFENCES and PENALTIES the penalty for incorrect statements 88. Any person who — (a) makes an incorrect statement by leaving the statements of any information;

(b) assessing any output tax less than actual or stated any input tax berlebih-surplus in a statement; or (c) provide any incorrect information in relation to any matters that affect their own tax liabilities against or liability against tax any other person, commits an offence and shall, on conviction —


(A) a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both; and (B) liable to a penalty equal to the amount of tax being under charged or likely to become so if under-charged statements or information that have been accepted as correct.





132 laws of Malaysia ACT the penalty for tax evasion 762, fraud 89. (1) any person who with intent to prevent or assist any other person to evade tax — (a) leave from a statement any information relating to any matter that affects the amount of tax to be imposed thereon or such other person;

(b) make any statement or a false entry in any statement;

(c) provide any false answer whether in writing or otherwise to any questions asked or request for information made under the provisions of this Act;

(d) to prepare or maintain or permit the provision or maintenance of any fraudulent account book, false or fraudulent record invoices, or falsify or permit the falsification of any books of account, invoices or records; or (e) make, use or permit the use of any fraud, deception or tricks, commits an offence and shall, on conviction — (A) for the first offence, to a fine not less than ten fold and not more than twenty times the amount of tax or to imprisonment for a term not exceeding five years or to both; and (B) for a second or subsequent offence, to a fine of not less than twenty times and not more than forty times the amount of tax or to imprisonment for a term not exceeding seven years or to both goods and Services Tax: 133 provided that if the tax amount could not be determined, the person can be fined not less than fifty thousand dollars and not more than five hundred thousand dollars or to imprisonment for a term not exceeding seven years or to both.

(2) any person who assists in, or advise in respect of, the provision of such statement if the statement resulted in a pengurangnyataan against the tax liability of another person shall, unless the person to satisfy the Court that the aid or advice was given with reasonable observations, commits an offence and shall, on conviction, liable to a fine of not less than two thousand dollars and not more than twenty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

(3) any reference in this section in respect of a person who makes, uses or permits the use of any fraud, deception or tricks includes a reference to a person who, without the authority of an officer of the taxation of goods and services — (a) destroy, damage, delete, alter or manipulate data stored in, or used in connection with, a computer; or (b) enter into, or to record or store in a computer in such a way that data for the purposes of — (i) destroy, damage, delete, amend or manipulate data stored in, or used in connection with, a computer; or (ii) tamper with, interfere with, or inhibit the use of legitimately on that computer, or data stored in it, or used in connection with, a computer; or (c) otherwise use the computer, 134 laws of Malaysia ACT the purpose or effect 762 was to avoid taxes.

(4) for the purposes of subsection (3), the "data" includes any computer program or part of a computer program.

(5) any reference in this section relating to the avoidance of taxation including a reference to any of the following: (a) credit for input tax on the output tax under section 38;

(b) relief for bad debts under section 58; and (c) a claim under the Payback Scheme under section 61 Tourists, if the person concerned is not entitled to credit, relief or the claim.

(6) in any prosecution under this section or section 95, any avoidance of tax shall be deemed to be in the knowledge of the accused unless the contrary is proved by the accused.


Penalties to obtain repayment in inappropriate, etc.

90. Any person causing or attempting to cause a refund under subsection 10 (4), 17 (6), 18 (4), 38 (3), 57 (1), 61 (1), 190 190 (1) or (2) or the eligibility for relief under subsection 58 (1) to any person by the Director General for any amount in excess of the amount that should be refunded or released to him commits an offence and can be conviction — (a) a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both; goods and Services Tax and 135 (b) penalty doubled the amount paid back or entitled to as an excessive discharge of the amount that should have been reimbursed or entitled to a release.


Penalties for offences in relation to the goods, invoice and receipts 91. (1) any person who obtains possession or dealing with any article, or receive the supply of any service, which has reasonable cause to believe that the tax on the supply of goods or services or for the importation of goods have been or are to be avoided, commits an offence and shall, on conviction — (a) a fine not exceeding thirty thousand ringgit or to imprisonment for a term not exceeding two years or to both; and (b) penalty doubled the amount of tax it.

(2) in any prosecution under subsection (1), any tax evasion shall be deemed to be in the knowledge of the accused unless the contrary is proved by the accused.

(3) any person other than the registered person issuing an invoice or a receipt that shows an amount as tax credits or as can dihubungkaitkan with tax commits an offence and shall, on conviction — (a) a fine not exceeding thirty thousand ringgit or to imprisonment for a term not exceeding three years or to both; and (b) penalty doubled the amount of tax shown so.



136 the laws of Malaysia ACT 762 Penalties to prevent, etc., of goods and services tax officer of 92. Any person who — (a) by any means mengamang, menggalang or stop tax goods and services officer in the execution of his duties under this Act; or (b) does not give reasonable assistance or facilities to any officer of the tax of goods and services in the implementation of its obligations under this Act, commits an offence and shall, on conviction, to imprisonment for a term not exceeding seven years or to a fine not exceeding one hundred thousand ringgit or both.


The penalty for refusal to answer questions or give false information 93. (1) any person, who is required under this Act to provide any information reasonably required by the taxation of goods and services that is in his power to give, refuse to provide such information or produce as true information which he knows or has reason to believe as false commits an offence.

(2) when any information proved to be untrue or incorrect in whole or in part shall not be a defence to say that the information or any part of the information has been submitted by mistake or without the intention of crime or fraud, or disalahtafsirkan or not defined solely by an interpreter provided by the informant.


Goods and services tax Penalties for offences by 137 people authorized and not authorized 94. Any person who — (a) is a person appointed to carry out the proper administration of this Act or any assistant employed in connection with the assessment and collection of taxes — (i) hold for his own use or otherwise of any part of the amount of tax or penalty that has been collected it;

(ii) other than in good faith, ask than any person in an amount in excess of the allowed tax assessment;

(iii) submit any statement, representation or false reports, whether in writing or otherwise, the amount of tax or penalty collected or received by him; or (iv) memfraud any person, black out any money or otherwise use its position to deal incorrectly either by the Director-General or any other person; or (b) not authorized under this Act to do so collecting or attempting to collect any taxes or penalties under this Act, commits an offence and shall, on conviction, to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.




138 the laws of Malaysia ACT 762 trial and pensubahatan 95. Any person who attempts to commit any offence punishable under this Act, or aiding and abetting in the Commission of that offence, shall be punished by the punishment provided for the offence.


General penalty 96. Any person who commits an offence under this Act for which no penalty expressly provided shall, on conviction, to a fine not exceeding thirty thousand ringgit or to imprisonment for a term not exceeding two years or both of each.


Offences by a group of people, etc.

97. (1) If a corporation, limited liability partnerships, firm, organization, association or other group of persons guilty of an offence under this Act, any person who at the time of the Commission of the offence was a Director, compliance officer, partner, Manager, Secretary or other similar officer of the company, limited liability partnership, firm, organization, association or other group of persons or purporting to act on the property or in any way or up to any extent is responsible for the management of any Affairs company, limited liability partnership, firm, organization, association or other group of persons or assist in its management, shall be deemed to be guilty of such offence unless, having regard to the type of functions on the properties and all the circumstances, he proves — (a) that the offence was committed without the knowledge, consent or pembiarannya; and (b) that he took all reasonable steps and has undertaken all reasonable efforts to prevent the Commission of the offence.
Goods and services tax 139 (2) if any person under this Act shall be liable to any punishment, penalty or forfeiture in respect of any act, omission, neglect or default, he shall be liable to punishment, penalty or forfeiture that is the same for every act, omission, neglect or default by any employee or agent, or employee of the agent, provided that the Act, omission, neglect or default that was done by — (a) the employee is in the course of his employment;

(b) the agent when acting on behalf of that person; or (c) an employee of the agent while acting in the course of his employment in such circumstances if the Act, omission, neglect or default that was done by the agent, principals will be charged under this section.


Taxation, etc., shall be payable notwithstanding any proceedings, etc.

98. The beginning of the proceedings or the imposition of a penalty, fine or imprisonment under this Act or the compounding of an offence under section 121 shall not relieve any person from liability to pay the tax, penalty or surcharge imposed under this Act.


PART XII TRIAL and Prosecution PROCEEDINGS 99. No prosecution for an offence under this Act shall be instituted except by or with the written consent of the public prosecutor.


140 laws of Malaysia ACT 762 jurisdiction to try the offence of 100. Notwithstanding any law to the contrary, the sessions Court shall have jurisdiction to try any offence under this Act and impose a sentence full of them.

Conviction under other law 101. There is nothing in this Act shall prevent prosecution, conviction and punishment of any person under the provisions of any other written law for the time being in force.

The burden of proof 102. If in any prosecution in respect of any

goods seized because no tax payment or for any reason forfeiture or for the recovery of any penalty under this Act, any dispute arising whether tax was paid in respect of the goods, or whether the supply of goods or services or the importation of goods that are exempted from or is not liable to any tax that may be imposed under this Act or subject to tax at the rate of zero per cent or any value thereon taxation under
This Act, or any amount of tax that may be imposed under this Act shall be subject to any deduction or set-off or any amount should have been deducted as input tax, or whether the goods or services are supplied or goods imported legally, or in respect of the goods of these places were taken, the burden of proof of every such case shall be accused in prosecution or on the person making the claim.

Provision of evidence 103. (1) in any proceedings under this Act any statement purporting to have been signed by the head of Taxation of goods and services 141 Director or a person authorized by him officers forming part of or attached to information, complaints or statements of such claims, shall be prima facie evidence of the facts stated therein.

(2) a transcript of any particulars contained in a statement or other document relating to tax, if it is certified with signed by the Director General or an officer authorized by him as a true copy of the particulars, shall be prima facie evidence of the facts stated therein.

(3) no statement made or documents submitted by or on behalf of any person can be received in evidence against the person in any proceedings against him which this section applies, solely by reason of the fact that he has or may have been driven to make a statement or submitting documents by any inducement, threat or promise made by any person who has any official duties under this Act , or appointed for proper administration of this Act.

(4) there is nothing in this Act affects the implementation of Chapter IX of the evidence Act 1950 part III.

(5) If in any proceedings proved that any statement or a false entry has been made in any statement that is provided under this Act by or on behalf of any person or in any books of account or records of any person — (a) such person shall be deemed, until the contrary is proved, to have made a false entry or statement or has caused a false entry or statement is made or has allowed it to be made with intent to avoid payment of tax or to obtain a refund of tax such person shall not be entitled to it, as the case may be; and 142 laws of Malaysia ACT 762 (b) any other person who makes any false entry or statement shall be deemed, until the contrary is proved, to have made a false entry or statement with the intention to help the person who first mentioned to avoid payment of tax or to obtain a refund of taxes he shall not be entitled to it.

(6) if any of the goods and services tax officer has acquired any documents or other evidence in the exercise of its powers under this Act, a document or a copy of the document or other evidence, as the case may be, shall be prima facie evidence of the facts stated therein, notwithstanding anything to the contrary in any written law.

(7) if any document to be used in any proceedings against any person for an offence under this Act is in a language other than the national language or in English, the translation of the document in the national language or English shall be admissible in evidence if the translation accompanied by a certificate of the person who translates the document stating that the translation is accurate translation , true and correct and the translation was made by that person on the requirement of any goods and services tax officer.

(8) subsection (7) shall apply to a document translated, regardless of whether the document was made in or outside Malaysia, or whether the translation was made in or outside Malaysia, or whether ownership of the document was obtained by any officers of the taxation of goods and services within or outside Malaysia.


An electronic copy of the notice description value 104. (1) for the avoidance of doubt, any electronic notice or any electronic records on an electronic notice or any copy or cetakannya cannot be not accepted in evidence Tax goods and services 143 just on the basis that it was filed, presented or sent by electronic service, without penghantarserahan any document or similar kaunterpart in the form of paper.

(2) Notwithstanding any other written law, in any proceeding under this Act, any electronic notice or any electronic records on an electronic notice or any copy or cetakannya that — (a) certified by the Director General to contain all or any of the information filed, presented or sent by electronic services in accordance with this part; and (b) duly authenticated in the manner specified in section 168 or otherwise authenticated in the manner provided in the Act Evidence 1950 for the confirmation of documents produced by a computer, shall be prima facie evidence of the facts stated therein.


Evidence through certification, etc.

105. (1) any certificate signed by the Director-General stated that — (a) any person is or is not, at any date, registered under this Act;

(b) any statement has not been submitted or has not submitted at any date;

(c) any taxes shown as due in any statement or assessment has not been paid;

144 the laws of Malaysia ACT 762 (d) any penalty and its recoverable amount shown as due from a person named therein; or


(e) any public ruling made under section 76 or initial ruling made under section 77 shall be prima facie evidence of the facts stated therein without evident signature on the certificate.

(2) in any proceedings in respect of any offence under this Act in which the existence, description, akitek, composition, quantity, quality or value, or any other matter in connection with, any removable items returned, sold or destroyed under section 86 issue, any documents submitted by the prosecution purporting to be a certificate in respect of any matter that is provided and signed by — (a) "analyst" within the meaning of subsection 107 (3);

(b) the senior officer of the goods and services tax; or (c) any person, regardless of whether or not he is a public officer, authorized by or on behalf of the Minister either generally or in any particular case, for the purposes of this section, shall be received in evidence and kemuktamadannya cannot be challenged on the ground that removable items in respect of which the certificate was given have not been presented before the Court either in part or in whole , and such certificate shall be evidence of its contents, including the facts stated therein, without evident signature on the certificate.




Goods and services tax Inspection or test 145 rate goods seized shall be accepted by the Court 106. (1) when any article which may be seized under the provisions of this Act have been seized, it is sufficient to open and examined five percent for each description of the package or container load in it the goods therein.

(2) if any article seized under this Act need to be tested, it is sufficient to examine only a sample of not more than five percent in the volume or weight of the goods be inspected under subsection (1).

(3) the Court shall presume that the goods contained in the package or container load not open that is the same type, quantity and quality with items found in the packaging or container of the load of its kind was opened.


Production of certificate of analysis 107. (1) in any prosecution under this Act, a certificate of analysis purporting to be signed by an analyst shall, when given by the Prosecutor, be sufficient evidence of the facts stated in it unless the accused requires that the analyst, called as a witness in the case therefore he shall give notice of the matter to the Prosecutor not less than three clear days before the hearing begins kept up to date: provided that in such circumstances the public prosecutor intends to give evidence of any certificate of analysis he shall deliver a copy of the certificate of analysis to the accused not less than ten clear days before the hearing begins.

(2) the Analyst is bound to state the truth in the self-signed certificate of analysis by them.

146 the laws of Malaysia ACT 762 (3) for the purposes of this section, "analyst" means — (a) any person employed as a Chemist in the Chemistry Department, or as a Chemist or an Assistant Chemist at the Institute of medical research;

(b) a Senior Chemist at the Department of Agriculture;

(c) a person employed as a Chemist or Geologist in Mineral and Geoscience Department;

(d) any member of the chemistry in the service of the Government of Malaysia or Singapore;

(e) any other person or class of persons declared by the Minister charged with the responsibility for the Department of chemistry, by notification in the Gazette, as an analyst or analyst-analyst;

(f) any police officer or customs officer declared by the Minister by notification in the Gazette as an analyst;

(g) any person appointed by the Minister under section 399 criminal procedure code as an Examiner documents;

(h) any weights and measures Inspector appointed under any written law relating to weights and measures; and (i) any person or class of persons declared by the Minister may, by notification in the Gazette, for which the provisions of this section shall apply.

(4) where an analyst called by the accused under subsection (1), he shall be called at the expense of the accused unless the Court otherwise directs.

Goods and services 147 (5) for the purposes of subsection (3), "Minister" means the Minister responsible for matters relating thereto the pronunciation is made.


Proof of registration or licensing of vessels and carrier in Malaysia or Singapore 108. If in any prosecution under this Act, is relevant for determining the particulars of the registration or licensing of any vessel or carrier that is registered or licensed in any port or place in Malaysia or Singapore, a certificate purporting to be signed by the officer in charge under any written law in Malaysia or Singapore for registration or licensing shall be prima facie evidence of all the details in respect of registration or licensing contained therein , and the burden to prove the inaccuracy of any of the particulars specified in the certificate was is on the person who denies it.


Evidence of tonnage or the make a 109 aircraft. (1) where in any prosecution under this Act, is relevant for determining the tonnage or artificial or any other details in describing the identity of an aircraft, and if any of the details relating to the identity of the aircraft in question, then any documents submitted by the prosecution purporting to be a certificate in respect of any matter that is provided and signed by any officer who is responsible for the certificate under any written law shall be prima facie evidence of the facts stated therein without evident signature to the certificate.

(2) this section shall apply notwithstanding anything contained in any other written law or other evidence to the contrary method.


148 laws of Malaysia ACT 762 Evidence about the accuracy of the meter or other device for measuring petroleum 110. If in any proceedings under this Act, it is necessary to prove the accuracy of a meter or any other device for measuring petroleum, a certificate purporting to be signed by any officer in charge under any written law for being measured shall constitute prima facie evidence of the facts stated therein.


Imprisonment for non-payment of a fine 111. Notwithstanding the provisions of the criminal procedure code, the period of imprisonment imposed by any court in respect of the absence of payment of any fine which is not payable under this Act, or in respect of a default of sufficient distress to pay any such fine, is any period for such a description which, in the opinion of the Court will achieve justice for the case, but may not in any case exceed the maximum period prescribed according to the following scale : If the fine is the maximum Period does not exceed five thousand dollars two months exceeds five thousand dollars but not more than ten thousand dollars four months more than ten thousand dollars but not more than twenty thousand dollars six months Tax goods and services 149 with an additional two months for every ten thousand ringgit after twenty thousand dollars first the fine up to a maximum period of six years.


The way the seizure could not be examined in the trial before the Court or appeal 112. In any proceedings in any court or in any proceedings on appeal, relating to the seizure of goods subject to forfeiture under this Act, the Court shall proceed with the trial or hearing of the appeal on the merits of the case only, without examining the manner or form of the making of any seizure, except so far as the manner and form of the seizure could be evidence on the merits.


Obligations of secrecy 113. (1) except as provided under section 114, name, identity card number, passport number, address someone whistleblowers or any other information that may lead to the identity of informers and information materials received from a whistleblower shall be kept confidential and shall not be disclosed by any officer of the tax goods and services or any person who in the ordinary course of his duties own or have control or access to information to any person except a tax officer prescribed goods and services authorised by the Director General.

(2) any person who contravenes subsection (1) commits an offence and shall, on conviction, to imprisonment for a term not exceeding seven years or to a fine not exceeding one hundred thousand ringgit or both.





150 laws of Malaysia ACT 762 whistleblower protection from known 114. (1) Save as otherwise provided, then no witness in any legal proceedings or criminal obliged or permitted to disclose your name, address or any information about the informer or the information received from it or to declare any matter that may lead to whistleblower known.

(2) if any books, documents or papers which constitute or which may be inspected in any civil or criminal proceedings whatsoever contains any entry in which any informer is named or described or which might lead to him are known, the Court shall cause all the quotes are hidden out of sight or deleted to the extent necessary to protect whistleblowers from unknown.

(3) if in proceedings for any offence under this Act the Court after full examination of the case believe that the informant made intentionally in aduannya a material statement or knowingly false or not he as he as true, or if in any other proceedings the Court is of the opinion that justice cannot be fully implemented between the parties in the proceedings without known the informant , it shall be lawful for the Court to require production of the original complaint, if in writing, and allowing inspections, and require full disclosure, with respect to the informant.


Forfeiture and release of those goods can be seized 115. (1) all goods can be seized under this Act is can dilucuthakkan and dilucuthakkan all goods shall be disposed of according to the instructions of the Director General and any revenue collected shall be paid into the Federal Consolidated Fund.

Goods and services tax 151 (2) Notwithstanding subsection (1), the Director General or any officer senior tax goods and services may, if he thinks fit, at any time direct any article which may be seized under this Act so that discharge to the person of the possession, custody or control the goods were seized.


There are no costs or damages arising from seizure can be retrieved back unless the seizure made without reasonable cause or reason perhaps 116. No person shall in any proceedings before any court in respect of the seizure of any goods seized in the exercise or purported exercise of any power conferred under this Act, is entitled to the costs of the proceedings or for any damages or other relief in addition to an order for the return of goods or the payment of a value unless the seizure is made without reasonable cause or reason perhaps.


The Court shall order the disposal of goods seized 117. (1) an order for forfeiture or for releasing anything that can dilucuthakkan under this Act shall be made by the Court before which the prosecution thereof were held, and an order for the goods melucuthakkan to be made if it is proved to the satisfaction of the Court that an offence under this Act has been committed, and that the goods that matter is or was used in the offence even though none has been convicted of the offence.

(2) the guaranteed Amount under paragraph 86 (1) (a) or (b)

or the amount obtained through sale under paragraph 86 (1) (c) shall be dilucuthakkan by the Court if it is proved to the satisfaction of the Court that an offence under this Act has been committed and that removable items in respect of which the amount guaranteed or obtained through sales, 152 laws of Malaysia ACT 762 as the case may be, is a matter or was used in the offence even though none has been convicted of the offence.

(3) all goods must be returned to dilucuthakkan tax goods and services and shall be disposed of in accordance with the directions of the Director General and any revenue collected shall be paid into the Federal Consolidated Fund.


Goods seized in respect of which no prosecution, or proceeds, forfeited if not claimed within one month 118. (1) If no prosecution is made in respect of any article seized under this Act, the proceeds of sale of goods or the goods held pursuant to paragraph 86 (1) (c) shall be taken and deemed to be dilucuthakkan upon the expiry of one calendar month from the date of seizure of the goods unless, before the expiry of such period: (a) a charge on the goods or proceeds of sale of the goods is made under subsection (2);

(b) an application in writing made for the return of the goods under paragraph 86 (1) (a) or (b); or (c) the goods returned under paragraph (a) or (b).

(2) any person who asserts that he is the owner of the goods or proceeds of sale of goods, as the case may be, and that the goods or proceeds of sale of goods shall not be dilucuthakkan may, in person or by his agent authorized in writing, by written notice to any senior officials from the taxation of goods and services that he demands goods or proceeds of sale of the goods.

(3) on the expiration period referred to in subsection (1), or, if a decision made earlier that no prosecution goods and Services Tax in respect of the item 153, when making the decision, senior tax goods and services shall, if the goods or proceeds of sale of the goods is not taken and deemed to be dilucuthakkan under that subsection, refer the claim to the Director-General may direct that the goods or proceeds of sale of the goods or guarantees submitted under
paragraph 86 (1) (a) or (b), as the case may be, is released or the senior officer may direct, in such form and manner as may be determined by the Director General to refer the matter to the Court of Session.

(4) the sessions Court shall issue a summons requiring the person who pointed out that he is the owner of the goods or proceeds of sale of the goods, and the person from whom the goods were seized, to appear before him, and when they attend or defaults to appear, after appropriate delivery thereof is proved, the Court shall proceed with examination Sessions on the matter, and when there is evidence that an offence against this Act has been committed and that the goods that is a matter that , or used in the Commission of that offence, shall order the goods or proceeds of sale of the goods or the guaranteed amount under paragraph 86 (1) (a) or (b), as the case may be, to dilucuthakkan, or in the absence of such proof, may order the release of the goods or proceeds of sale of the goods or guarantees submitted under paragraph 86 (1) (a) or (b), as the case may be.

(5) in any proceedings under subsection (4), section 102 shall apply to the person who pointed out that he is the owner of the goods or proceeds of sale of the goods and for the person from whom the goods seized as if the owner or the person is accused in a prosecution under this Act.


The vesting of dilucuthakkan items 119 at the Federal Government. (1) where any article dilucuthakkan under the Act, the goods shall be vested in the Federal Government are free from any right, interest or burden of any person 154 laws of Malaysia ACT 762 except right, interest or burden held by a good faith purchaser with valuable consideration and who does not otherwise null and void under any written law.

(2) if any person holding any burden to which goods the subject demands that he hold the burden of it as a good faith purchaser with valuable consideration and that the burden is not otherwise null and void under any written law, and the Federal Government dispute the claim, the Prosecutor may apply to the Court Sessions so that the question and the Court decides may decide the question after giving an opportunity to be heard to those who hold the burden of that and listen to the answer of the Prosecutor Raya of any representations made in front of the Court by the person who holds the burden of it.

(3) if any goods vested in the Federal Government under subsection (1), the vesting of shall become effective without any transfer of title, transfer of rights, deed or other instrument and if any registration or the vesting of is required under any law, the authorities authorized to carry out the registration shall do so in the name of the public officer, the authorities , the person or body specified by the public prosecutor.

(4) If goods that vested in the Federal Government under subsection (1) is the vesting of immovable goods, shall, when submitted to the Registrar of Land Titles or the administrator, as the case may be, in Peninsular Malaysia, or to the Registrar of titles or collector of land revenue, as the case may be, in Sabah or Registrar of titles or the Director of lands and surveys, as the case may be , in Sarawak, the court order melucuthakkan the immovable goods, or in the case of goods dilucuthakkan under section 117, a certificate of the public prosecutor confirmed that the goods have been dilucuthakkan, shall be registered in the name of federal lands Commissioner.


Goods and services tax service of summons 155 120. (1) every summons issued by a court against any person who in connection with any proceeding

civil or criminal under this Act shall be served on the person named in it — (a) by menghantarserahkan the summons to such person or any adult member of his family or any pekhidmatnya who live with him at the shelter normally or last known;

(b) by leaving the summons at the place of residence or business or normally or last known in an envelope addressed to the person;

(c) by sending the summons by registered post addressed to such person to a residence or business normally or last known; or (d) if the person is a corporation, limited liability company, partnership, firm, organization, association or other group of persons — (i) by menghantarserahkan thereof to the Secretary or other officer of such company, limited liability partnership, firm, organization, association or other group of people at the registered office or principal place of business; or (ii) by sending the summons by registered post addressed to companies, limited liability partnerships, firm, organization, association or other group of persons the registered office or principal place of business.

(2) any summons sent by registered post to any person in accordance with subsection (1) or by menghantarserahkan the summons to such person or to any 156 laws of Malaysia ACT 762 which Member of his family who are adults or any pekhidmatnya who live with him shall be deemed to have been delivered to that person accordingly.

(3) If a summons issued by a Court delivered, a delivery affidavit purporting to have been made in the presence of an officer duly authorised to operate the oath shall be admissible in evidence.


Compounding of offences 121. (1) goods and services tax Officer may, with the written consent of the public prosecutor, compound any offence committed by any person under this Act and designated as an offence that could compound with make an offer in writing to the person suspected of having committed such offence to compound the offence to pay to the Director General such amount of money not exceeding fifty per cent of the amount of the maximum fine for the offence within the time stated in the offer.

(2) an offer under subsection (1) may be made at any time after the offence, but before what – what prosecution thereon commenced, and if the amount specified in the offer is not paid within the time stated in the offer or within such extended period as may be provided by the Director General, a prosecution for the offence may be commenced at any time after that to the person to whom the offer is made.

(3) If an offence has been compounded under subsection (1), no prosecution shall be instituted subsequently in respect of offences against the person to whom an offer to compound is made.





Goods and services tax court order 157 122. (1) if any person found guilty of an offence under this Act, the Court before which the person found guilty shall order that person to pay to the Director General the amount of tax or any penalties due and payable under this Act, if any, as may be certified by the Director General and taxes or penalties shall be recovered in the manner similar to a fine as provided under section 283 criminal procedure code.

(2) in addition to subsection (1), the Court has legal jurisdiction to the extent of that amount and the order can be enforced in all circumstances as a final decision of the Court in favour of the Director-General.

(3) if any person found to be guilty of an offence under this Act, and if he has to pay the amount of tax due and payable under this Act in accordance with section 98, in respect of the offence charged, the Court may order that the amount paid is refunded to the person if no notice of appeal is filed.


PART XIII REVIEW and APPEAL Interpretation 123. In this section, unless the context otherwise requires — "Chairman" means the Chairman of the Tribunal appointed under paragraph 128 (1) (a);

"Deputy Chairman" means any Deputy Chairman of the Tribunal appointed under paragraph 128 (1) (a);

158 the laws of Malaysia ACT 762 "Secretary" means the Secretary of the Tribunal appointed under subsection 133 (1);

"Tribunal" means the Tax Appeals Tribunal goods and service established under section 125.


Application for review 124. (1) any person may apply to the Director General within thirty days from the date that person be informed of any decisions made by the taxation of goods and services for review of the decision and provided no appeal over the same thing has been made to the Tribunal or the Court.

(2) where an application has been made under subsection (1), the Director General shall make a decision and notify the person within sixty days from the date the application is received or within the practice.

(3) an application under subsection (1) shall be made in the prescribed manner and in the prescribed form.


The establishment of the Tribunal for 125. A tribunal known as the "Tribunal of appeal Tax goods and services" was established.


The right to appeal against 126. (1) subject to section 127, any person aggrieved by the decision of the Director-General may appeal against the decision.

(2) the appeal shall be made to the Tribunal within thirty days from the date of the decision in dispute is notified to the person aggrieved or in any goods and Services Tax 159 such extension of time period can be given by the Tribunal in the prescribed manner together with the prescribed fee.


The jurisdiction of the Tribunal for 127. (1) the Tribunal shall have jurisdiction to determine the appeal relating to the taxation of goods and services except as to the matters specified in the fourth schedule.

(2) the Minister may, by order published in the Gazette, amend the fourth schedule.


(3) any order made under subsection (2) shall be laid before the House of Commons.


Membership of the Tribunal 128. (1) the Tribunal shall consist of the following members who shall be appointed by the Minister: (a) a Chairman of the Tribunal and so the number of Deputy Chairman from amongst the members of the judicial and legal service; and (b) not less than five other members as the Minister thinks fit, than among those who, in the opinion of the Minister has extensive knowledge of or experience in any field of activity relating to the goods and services tax, customs or taxation.

(2) the Chairman, Deputy Chairman and members of another Tribunal shall hold office for a term not exceeding three years, after which they shall be eligible for reappointment upon the expiry of their term of Office but they cannot be appointed for more than three consecutive period.
160 the laws of Malaysia ACT 762 (3) the Minister shall determine the remuneration and other terms and conditions of appointment of the Chairman, Deputy Chairman and members of the other Tribunal.


Temporary exercise of functions of Chairman of the 129. If for any reason the Chairman is unable to perform his functions or for such a period of vacancy the Chairman, a Deputy Chairman shall perform the functions of the Chairman.


Revocation of appointment of 130. The Minister may revoke the appointment of a member of the Tribunal appointed under paragraph 128 (1) (b) where — (a) his actions, whether related to its obligations as a member of the Tribunal or otherwise, has been polluting the good name of Tribunal;

(b) he becomes unable to perform his duties properly as a member of the Tribunal;

(c) has been proved against him, or he has been convicted of, a charge or charge-charge in respect of — (i) an offence involving fraud, dishonesty or moral turpitude;

(ii) an offence under any law relating to corruption;

(iii) an offence under this Act, the Customs Act 1967 or Excise Act 1976; or goods and Services Tax 161 (iv) any other offence punishable with imprisonment for more than two years;

(d) adjudged bankrupt;

(e) he was found or declared as not of unsound mind or is otherwise incapable of managing its affairs; or (f) he did not attend the trial Tribunal three times consecutive-also without the permission of the Chairman.


The resignation of 131. A member of the Tribunal appointed under paragraph 128 (1) (b) may at any time resign by giving three months notice in writing to the Minister.


Vacation of Office and acting appointment 132. (1) the position of any member of the Tribunal shall be vacated by — (a) death;

(b) resignation by giving notice in writing; or (c) the expiration period of his appointment.

(2) the Minister shall appoint any person in accordance with section 128 to replace the Chairman, any Deputy Chairman or any member of that other current vacancies Chairman, Deputy Chairman or member of the other.

162 the laws of Malaysia ACT 762 (3) the exercise of the powers or performance of the functions of the Tribunal are not compromised just because there is a vacancy in the membership of the Tribunal.


The Secretary of the Tribunal and other officers 133. (1) there shall be appointed a Secretary and an Assistant Secretary of the Tribunal and so the number of officers as may be necessary to carry out the functions of the Tribunal.

(2) the Chairman shall have general control over the Secretary, Assistant Secretary and officers of the Tribunal.

(3) for the purposes of this Act, the Secretary and Assistant Secretary of the Tribunal shall be deemed to be an officer of the Tribunal.


Public servants 134. All members, officer, Secretary and Assistant Secretary Tribunal while performing their duties shall be deemed to be public servants within the meaning of the Penal Code.


Hearing of appeal 135. (1) the hearing of every appeal shall consist of a panel that has three members.

(2) in every Appeal Tribunal shall be chaired by the Chairman or Deputy Chairman.

(3) the decision of the panel shall be decided in accordance with the opinion of the majority of the members that make up the panel.

(4) If a member of the panel other than the Chairman or Deputy Chairman under subsection (1) dies or becomes unable to perform his functions as a member of the goods and Services Tax, 163 such proceedings shall be continued in the future, and the decision shall be given by, a member of the panel who lives, shall not be less than two people, and the panel shall, for the purposes of the proceedings, be deemed to be formed accordingly even with the death or disablement of the aforesaid members.

(5) in the case under subsection (4), the results shall be determined in accordance with the opinion of the majority of the members of the panel are left, and if there is no majority, the Chairman or the Deputy Chairman who chaired the proceedings shall have a second or casting vote.

(6) if the Chairman or the Deputy Chairman who chaired any proceedings in respect of an appeal dies or becomes incapacitated, or for any other reason unable to resolve or membereskan the proceedings, the appeal shall be heard again, unless the parties agree that the appeal be continued by another Deputy Chairman.

(7) if the duration of the appointment of any member of the panel the expiration for any proceedings pending in respect of an appeal, the duration of appointment shall be deemed to be extended until the final disposal of the appeal.

(8) the Tribunal may meet in one session or more at any day and time and at any place as shall be determined by the Chairman.


The hearing by a single member of the 136. Notwithstanding section 135, if the Chairman thought it should be in the interest of achieving a speedy appeal handling and efficient proceedings of appeal shall be chaired by any person the following sitting all alone: (a) the Chairman;

164 the laws of Malaysia ACT 762 (b) any Deputy Chairman; or (c) any other Tribunal members as determined by the Chairman.



Disclosure of interest 137. (1) a member of the Tribunal who has, directly or indirectly, by itself or through a member of his family, any interest in an appeal brought before it as a member, the Member shall forthwith disclose the fact and the nature of his interest to the Chairman.

(2) when disclosure of interest under subsection (1) is received, the Chairman shall appoint other members to hear and membereskan the appeal.


Exemption from the jurisdiction of the Court 138. (1) where an appeal is submitted to the Tribunal and the appeal was within the jurisdiction of the Tribunal, the issue in dispute in the appeal, whether as indicated in the appeal first or as arising in the course of the hearing, may not be the case proceedings between the same parties in any court unless — (a) the proceedings before the Court have been instituted before the appeal submitted to the Tribunal; or (b) appeal in front of the Tribunal has been withdrawn, abandoned or cancelled.

(2) if paragraph (1) (a) applies, the issue in dispute in the appeal the proceedings related to it, whether as indicated in the appeal first or arising during a trip the hearing, may not be the goods and Services Tax 165 case proceedings between the same parties before the Tribunal unless the proceedings before the Court have been withdrawn, abandoned or cancelled.


The notice of appeal and the hearing of 139. When an appeal is lodged under section 126, the Secretary shall give notice of the details about the day, time and place of the hearing in the prescribed form to the Director General and the appellant.


Negotiations for the settlement of 140. (1) the Tribunal shall, in respect of every appeal within its purview, evaluating whether, in all the circumstances, it is proper for the Tribunal to assist the parties to the proceeding to negotiate an agreed solution in relation to the appeal.

(2) without limiting the generality of subsection (1), the Tribunal shall make an assessment take into account any factors which in the opinion of the Tribunal, may disfigure the ability of one or both parties to negotiate an agreed solution.

(3) if the parties reach a settlement of the dispute, the Tribunal shall approve and record the solution and the solution shall become effective as the solution is-by the decision of the Tribunal.

(4) where — (a) turned out at the Tribunal that it is not proper for the Tribunal to assist the parties to negotiate an agreed solution in relation to the appeal; or 166 laws of Malaysia ACT 762 (b) the parties are not able to reach an agreed solution in relation to the appeal, the Tribunal shall proceed to decide the appeal.


Representation of hearing 141. Subject to section 170, for the purpose of an appeal is — (a) any party to the appeal may handle the case himself or be represented by any person who may be appointed by him for that purpose; and (b) the Director may be represented at any hearing of an officer or attorney duly appointed by it.


Evidence of 142. (1) any proceedings before the Tribunal shall be conducted without regard to the formalities and technical matters and the Tribunal may — (a) seek and receive evidence in swear or declaration, whether written or verbal, and examine any person as a witness, as deemed by the Tribunal have to be obtained, received or inspected;

(b) require the production of books, papers, documents, records and things in his presence;

(c) operate the oath, declaration or a statutory declaration, in accordance with the requirements of the State;

(d) seek and accept any evidence and make such other inquiry as he may deem fit;
Goods and services tax (e) 167 calling party to the proceedings or any others that appear before it to give evidence or to produce any document, record or other thing in his possession or otherwise to assist the Tribunal in pertimbangtelitiannya;

(f) receiving expert evidence; and (g) generally direct and do all things necessary or expedient in order to speed up the determination of the claim.

(2) a summons issued under this section shall be communicated and enforced as if it a summons issued by the Court Sessions.


The Tribunal may request information 143. (1) the Tribunal may request any information which it considers necessary for the purpose of exercising any of the powers and functions under this Act.

(2) any person who refuses to comply with requests by the Tribunal commits an offence.


144 results. (1) the Tribunal shall make its decision without delay and if practicable, within sixty days from the first day of the commencement of the hearing before the Tribunal.

(2) the Tribunal shall have power — (a) to confirm the decision of the Director General;

(b) to vary the decision of the Director General; or 168 laws of Malaysia ACT 762 (c) to set aside the decision of the Director General and replace it with a new one.

(3) the Tribunal shall give reasons for its decision in any appeal heard before him.


Decisions and resolutions shall be recorded in writing 145. The Tribunal shall make or cause to be made a written record of the terms — (a) every agreed solutions reached by the parties under section 140; and (b) every decision made by him under section 144.


The decision of the Tribunal is binding on 146. (1) a decision of the Tribunal is — (a) shall be binding on all parties to the proceedings; and (b) be deemed to be an order of the Court Sessions and enforced properly by the parties to the proceedings.

(2) for the purposes of paragraph (1) (b), the Secretary shall send a copy of the decisions made by the Tribunal to the sessions court having jurisdiction in the place in relation to the decision or in the place of the decision has been made and the Court shall cause a copy of the note.





Goods and services tax the disposal of 169 147 appeal. Tribunal shall be membereskan an appeal by way of — (a) an agreed solution achieved by parties and the solution should be recorded as if it was announced by the Tribunal;

(b) the withdrawal by the appellant; or (c) an order by the Tribunal, in the prescribed form.


Appeal to the High Court 148. Any party aggrieved by the decision of the Tribunal shall have the right of appeal on the decision of the Tribunal to the High Court on questions of law or fact and mixed law.


Tribunal shall adopt the procedure 149. Tribunal shall adopt such procedures as he may deem fit and proper.


Not in the form of 150. No proceedings, award or other documents Tribunal can set aside or cancelled because no such form.


Provisions relating to costs and expenses 151. Tribunal shall only provide an award of costs and expenses and shall have full power to 170 laws of Malaysia ACT 762 determines by whom and the extent of the costs and expenses payable — (a) against the appellant, if it is satisfied that he had handled his case in junk or inconvenience;
and (b) against any party to the appeal, if it is satisfied that in all the circumstances of the case are not fair and not fair not to do so.


Disposal of documents, etc.

152. (1) the Tribunal may, at the conclusion of the proceedings before it, order that any article, documents, records, materials, objects or other property submitted during the proceedings submitted to the legitimate owner or disposed of in such manner as it thinks fit.

(2) if there are no people take delivery of the goods, documents, records, materials, objects or other property referred to in subsection (1) after a period of six months, the ownership of the goods, documents, records, materials, objects or other property shall be deemed to have been transferred to and be vested in the Government.


Act or omission made in good faith 153. No action or suit shall be instituted or maintained in any court against — (a) a member of the Tribunal; or (b) any person authorized to act for or on behalf of the Tribunal, the goods and Services Tax 171 for any act or omission done in good faith in the performance of its functions and exercise of its powers under this Act.


PART XIV of the PRESCRIBED AREA 154 Interpretation. For the purposes of this part, "Malaysia" does not include the specified area.


The supply of goods or services made in a prescribed area or between 155. Notwithstanding section 9, no taxation on any taxable supply of goods or services made in or between the specified area unless the Minister otherwise directs in an order under section 160.


Goods or services imported into or supplied to or from a specified area of 156. Notwithstanding any provisions of this Act — (a) the tax shall be due and payable on all goods including any article under any lease agreement which transferred from the set to a prescribed area through Malaysia or from other area set to Malaysia for all purposes as if the transfer was imported into Malaysia;

(aa) the payment of tax under paragraph (a) shall be suspended on any article that has been transferred from an area determined through Malaysia to a 172 laws of Malaysia ACT 762 spaces set to another, to a free zone or to a warehouse under section 70, unless the Minister otherwise directs in an order under section 160.

(b) the tax shall be imposed on the taxable supply of services by any taxable person from set to or from Malaysia to set but not including a supply of a service includes the use of the goods under any lease agreement from an area set to Malaysia;

(c) no tax can be levied on any importation of goods or supply of services imported into the specified area unless the Minister otherwise directs in an order under section 160.


The supply of goods or services in Malaysia 157. Notwithstanding any provision of this Act, the tax shall be levied on all goods or services supplied in Malaysia by a taxable person whose principal place of business located in the area specified.


Declaration of goods supplied from Malaysia set to 158. Person in charge of any vessel or aircraft for which the goods are supplied from the set to Malaysia shall make a declaration at substantially in such form as may be prescribed under the Customs Act 1967 and any other written laws applicable for the time being in force.




Goods and services tax Collection 173 in the area specified 159. Notwithstanding any provision of this Act, collection of tax due and payable shall be made in an area specified in respect of goods supplied or to be supplied from the fixed to Malaysia.


Minister's power to impose a tax of 160. (1) the Minister may, by order published in the Gazette, designate ―it (a) any supply of goods or services in or between the spaces prescribed taxable;

(b) any goods imported into a specified area, or transferred from an area determined through Malaysia to an area set to another, to a free zone or to a warehouse under section 70 taxable; or (c) any service imported into taxable specified area.

(2) any order made under subsection (1) shall be laid before the House of Commons.


SECTION XV of the interpretation of 161. In this section, unless the context otherwise requires — 174 laws of Malaysia ACT 762 "commercial activity" has the meaning assigned to it under section 2 of the free zones Act 1990 [Act 438];

"Malaysia" does not include the free zones;


"manufacturing" has the meaning assigned to it in section 2 of the free zones Act 1990.


Goods imported into or supplied within or among the 162. Notwithstanding any provisions of this Act and unless the Minister otherwise directs in an order under section 163 — (a) no tax shall be due and payable on any importation of goods into free zones except for goods imports for use or used in the free zones, in addition to the goods for the purpose of trading activities, manufacturing or retail trade approved under the free zones Act 1990; and (b) no tax may be imposed on any supply of taxable goods in free zones or between.

(c) (Cut by the Act 785).


Goods transferred from a free zone include goods under lease agreements 162A. (1) the Tax shall be due and payable on all goods transferred from a free zone to a zone free through Malaysia or from a free zone to Malaysia including any article under the lease agreements as though the transfer was imported into Malaysia.

Goods and services tax 175 (2) unless the Minister otherwise directs in an order under section 163, the payment of tax under subsection (1) shall be suspended on any article that has been transferred from a free zone through Malaysia ―it (a) into a free zone;
(b) to a specified area; or (c) to a warehouse under section 70.

The supply of goods or services by a taxable person whose principal place of business is located in the free zone 162B. Tax shall be imposed by a taxable person whose principal place of business is located in a free zone to bear on any taxable supply of goods or services made in Malaysia.


Minister's power to impose a tax of 163. (1) the Minister may, by order published in the Gazette, designate ―it (a) any goods imported into, supplied in or between the taxable;
and (b) any article that has been transferred from a free zone through Malaysia to an other free zones, to an area or to a warehouse under section 70 that are subject to the payment of taxes.

(2) any order made under subsection (1) shall be laid before the House of Commons.



176 the laws of Malaysia ACT 762 PART XVI VARIOUS authorized to collect a sample of 164. (1) the Director General or any officer of the tax goods and services may, if his duties requires so, take samples of any article to see whether it is goods of the description that can be taxed or to ensure that the tax due and payable on such goods, or for other purposes as it may deem necessary, and samples may be disposed and accounted for in such manner as may be directed by the Director General.

(2) no payment may be made for any sample taken under subsection (1), but goods and services tax officer shall give a receipt for the samples.


The person is bound to produce goods or provide information, etc.

165. (1) every person who has information of any thing be the duty of a goods and services tax officer to investigate shall, when required by him to do so, provide such information.

(2) every person required by an official tax goods and services to produce any goods, documents, articles or things that are in the person's power to raise, and which is the item, document, article or thing required under this Act or items, documents, articles or anything used in any transaction or other matter relating to tax or items , document, article or thing be the duty officer of the taxation of goods and services to investigate under this Act, shall submit articles, documents, articles or the thing.

Goods and services tax 177 (3) if any information, goods, documents, articles or anything not in the national language or English, the Director General or any goods and services tax officer may by notice in writing require the supplier or, on default of suppliers, any other person, to submit, within a reasonable period, a translation thereof in the national language or English as determined by the Director General or the officer.

(4) any person who contravenes this section commits an offence.


The use of electronic services 166. (1) Notwithstanding any other provisions of this Act and subject to the regulations made under this Act, the Director-General may provide an electronic service to any registered user to — (a) the filing or submission of any application, statement, declaration or any other document; and (b) service of any notice, order, orders, permits, receipts or any other documentation.

(2) If an electronic notice made and sent to the Director General, the Director-General shall not be liable for any loss or damage incurred by the registered user for any error or omission in any nature or how complacent look arising in any electronic notice obtained by the registered user under electronic service if the error or omission made in good faith and in the course of normal implementation of duties as Director General or incurred or arising as a result
of any defect or failure of the service or the equipment used for the provision of such services.

(3) any electronic notice made and submitted by the registered user shall be deemed to have been filed, 178 laws of Malaysia ACT 762 submitted or communicated at the time the electronic notice is received by the Director General.

(4) for the purposes of this section, "registered user" means any person authorised in writing by the Director General for accessing and using the electronic service.


Service of notice 167. (1) every notice, order or any other document required by this Act to be communicated to any person may be served —


(a) in person to that person;

(b) by sending it to that person by registered post; or (c) through the electronic services.

(2) a notice, order or other document is sent by registered post to the person shall be deemed to have been delivered to that person at the time that it would dihantarserahkan to that person in the ordinary course of the post where the notice, order or other document is addressed — (a) in the case of a limited liability company, partnership, firm, organization, association or other group of persons — (i) to the registered office;

(ii) to his last known address; or (iii) to any person authorized by him to receive service of process;
and (c) in the case of an individual, to his last known address.
Goods and services tax 179 (3) where a person has given consent for a notice to be served upon him through the electronic service, the notice shall be deemed to have been served at the time when the electronic notice sent to his account through electronic services.


Confirmation notices, etc.

168. (1) subject to subsection (2), every notice or any other document presented for the purposes of this Act by the Director General or an officer authorized by him is confirmed with sufficient if the name and Director General printed, stamped or otherwise written on it.

(2) If this Act does provide for a notice or any other document in the name of any goods and services tax officer, notice or other document shall be signed in manuscript by the goods and services tax.

(3) a notice or other document to be served for the purposes of this Act and purporting to be signed in manuscript by the Director General or an officer authorized by him shall be deemed, until the contrary is proved, to be signed in such a way.


Postage free 169. All statements and remission of tax and any correspondence arising from or in connection with any statements or remission may, if posted in Malaysia, delivered by post free of charge to the Director General in an envelope marked "Taxation of goods and services".


170 tax agents. (1) No person shall be allowed to act on behalf of any person for any matter under this Act unless he is an agent of tax provided that the 180 laws of Malaysia ACT 762 this subsection does not preclude any other person to represent any party to an appeal under section 141.

(2) an individual who has lived usually in Malaysia can apply to the Minister for approval as a tax agent as per the conditions prescribed.

(3) the Minister may approve an application under subsection (2), and if the application is approved, the approval shall, unless cancelled in advance, valid for — (a) a minimum period of twenty-four months; or (b) any other period that is less than twenty-four months as determined by the Minister, starting from the approval date.

(4) a tax agent may apply for renewal of an approval to the Minister before the expiry of the approval required under subsection (3) If an application for renewal of the approval, renewal is, unless cancelled in advance, valid for the period as may be determined by the Minister.

(5) a fee as may be prescribed by the Minister by order published in the Gazette shall be paid upon application for an approval under subsection (2) or renewal of an approval under subsection (4).

(6) a tax agent carries on business on behalf of any person for any matter under this Act shall — (a) submit a letter of authorisation from the person who represents; and (b) if any of the prescribed forms are required to be submitted for the purpose of things ditransaksikan, submit form signed by Tax goods and services 181 person represents, unless permitted otherwise by the Director General.

(7) Notwithstanding subsection (1), any person who is given permission to act as an agent under section 90 of the Customs Act 1967 shall be allowed to act on behalf of any person for any matter under this Act with respect to the importation or exportation of goods, including migration.

(8) for the purposes of this section, "tax agent" means any professional accountant or any other person authorized by the Minister to act on the behalf of any person for any matter under this Act.

(9) any person who contravenes subsection (1) or (6) commits an offence.


Rewards of 171. The Director-General may direct any reward as he considers should be paid to any person for services rendered in connection with the detection of any offence against this Act or any tax to be obtained under this Act.


Form 172 you want to use. (1) where any form prescribed under this Act, no person shall, for the purposes of this Act, use any form that are not printed or issued by the authority of the Director-General: provided that the Director-General may, at his discretion and subject to such conditions as he thinks fit to impose, permit any person to use a form that is not printed or produced 182 laws of Malaysia ACT 762 as aforesaid or the use of any forms submitted through the electronic services.

(2) any person who contravenes subsection (1) commits an offence.


The authority of the Director-General to impose fees 173. The Director-General may impose such fees as may be prescribed in respect of any act or service performed or provided by it or any of its officers and you do not want to do or given under this Act and that no fees prescribed for him by any written law.


Application of Customs Law 174. (1) subject to subsection (2), this Act shall be construed as a multi-function room with Customs Act 1967 or Excise Act 1976 in respect of the exportation or importation

items included in the transit and movement of goods under customs control.

(2) where there is any inconsistency between the provisions of the Customs Act 1967 or the Excise Act, 1976 with the provisions of this Act, the provisions of this Act shall apply.


Government protection from liability 175. The Government is not liable to pay any loss with respect to any goods caused by fire, theft, damage or other reasons while the goods are in any of the customs warehouses or in his custody or control any legal officer tax goods and services unless such loss is caused by neglect or default inflicted by an officer tax goods and services or by persons employed by the Taxation of goods and services of the Government in the course of implementation of 183 of its obligations under the Act this.


Protection officer taxation of goods and services from liability 176. There are no goods and services tax officer or other person employed by the Government in the course of the implementation of its obligations under this Act is liable to pay any loss with respect to any goods caused by fire, theft, damage or other reasons while the goods are in any of the customs warehouses or in his custody or control lawfully the officer or any officer of the tax of goods and other services or a person employed by the Government in the course of the implementation of its obligations in under this Act unless the losses caused by neglect or default inflicted by him.


Power to make rules 177. (1) the Minister may make regulations as are necessary or expedient for the purpose of carrying out the provisions of this Act.

(2) without prejudice to the generality of subsection (1), regulations may be made for the following purposes: (a) to prescribe anything required under this Act that may be prescribed;

(b) to change the rules for determining where a provision is made for the purposes of the place of supply under section 12;

(c) to set up the Office for the administration of the goods and services tax and for day and time when Office to be opened;

184 the laws of Malaysia ACT 762 (d) to determine the time of delivery in the case when subsection 11 (9) and 11 (10) applies;

(e) to prescribe matters relating to registration or a registered person;

(f) to prescribe matters relating to fundamental pengakaunan under section 37;

(g) to prescribe the following matters in respect of input tax credits against the output tax under section 38: (i) the manner and circumstances — (aa) a taxable person can calculate the tax on the supply of goods or services to it, or tax paid or payable by him on the importation of goods as tax inputnya;

(bb) one can calculate the tax on the supply of goods to him, or tax paid or payable by him on the importation of goods as tax inputnya in the case of that person is not a taxable person at the time when the supply or importation is made; and (cc) any person who has been, but no longer a taxable person, shall be paid by the Director General any amount of any tax on the supply of services made to him while he is a taxable person;

(ii) the time limit for a taxable person to claim the whole or any part of the goods and Services Tax 185 any input tax as input tax may be allowed;

(h) to prescribe matters pertaining to the amount of input tax that is deductible and to allocate in order to obtain a tax input interfaces that are reasonable for the supply under section 39 includes — (i) determine a rating by referring to the input tax for any taxable period to be temporarily dihubungkaitkan to the supply;

(ii) adjust, as a proportion of which is determined in the manner of its kind for a period that consists of two or more taxable period or part thereof, linkages while for any period;

(iii) the making of adjustments in the event of an estimate of the base a correlation has been made is not accurate;

(i) to prescribe matters relating to bad debt relief under section 58;

(j) to prescribe different provisions for the imposition and pengakaunan tax for collaboration and for any other activities that are deemed to be a joint venture under section 69;

(k) to prescribe the conduct of Approved Traders Scheme under section 71;

(l) to set the operation of Toll Manufacturers Scheme Approved under section 72;

186 laws of Malaysia ACT 762 (m) to set the operating scheme of Jeweler Approved under section 73;

(n) to set the Flat-Rate Scheme operating under section 74;

(o) to prescribe matters relating to capital market under section 75;

(p) to set the following in relation to any ruling made under section 76 or 77: (i) the scope and procedures apply in relation to any resolution; and (ii) the scale of costs and fees payable in respect of application for early resolution;

(q) to prescribe the manner of forwarding the statement and Declaration and other matters relating to the statement and Declaration;

(r) to set the mode of payment of tax;

(s) to set the following in relation to the Tax Appeal Tribunal goods and services under part XIII: (i) the manner of any matter may be referred to the Tribunal;

(ii) the Tribunal held way and the place where the Tribunal carry out sidangnya;

(iii) the scale of costs and fees payable in respect of any investigation or proceeding before the Tribunal;

(iv) responsibilities of the members of the Tribunal;

Goods and services tax 187 (v) forms for use in the proceedings;

(vi) fees and way for collection and payment of fees;

(vii) costs and expenses relating to any matter before the Tribunal;

(viii) generally have a better exercise of the functions conferred upon the Tribunal through this Act;

(t) to prescribe matters relating to the approval of the tax agent under section 170;


(u) to prescribe offences can be compounded;

(v) to prescribe matters relating to electronic services.

(3) regulations made under subsection (2) may prescribe any act contrary to the regulations to be an offence and may prescribe penalties for a fine not exceeding thirty thousand ringgit or to imprisonment for a term not exceeding two years or to both.


PART XVII REPEAL and SAVING the SALES TAX ACT 1972 Repeal and saving the sales tax Act 1972 178. (1) the sales tax Act 1972 abolished.

(2) Notwithstanding the repeal of the sales tax Act 1972, any liability incurred, sales tax payable, which overpaid or terkhilaf have to pay under the Act may be collected, repaid, diremit or enforced as if the Act were not repealed.

188 the laws of Malaysia ACT 762 Submission statement for taxable period on 179. (1) Notwithstanding subsection 178 (1), any person who is licensed under the sales tax Act 1972 shall submit to the Director-General a statement as required under the sales tax Act 1972 for the taxable period on not less than twenty-eight days or any longer period as may be determined by the Director General from the effective date.

(2) the person referred to in subsection (1) shall state and paying the amount of sales tax imposed under paragraph 6 (a) the sales tax Act 1972 which become due during the period of tax on.

(3) for the purposes of this section, "tax on period" means a period of two calendar months or part thereof which ended at the effective date.


Payment of sales tax for unregistered people 180. (1) Notwithstanding subsection 178 (1), any person who is licensed under the sales tax Act 1972 and not registered under this Act is required for is and pay sales tax on the goods held at the effective date of — (a) obtained without sales tax under section 9 sales tax Act 1972;

(b) which are exempted from sales tax under section 10 sales tax Act 1972; or (c) If a sales tax deduction had been made for goods purchased under section 31A sales tax Act 1972.

(2) the person referred to in subsection (1) is required for is and pay sales tax on finished goods and semi ready held at the effective date.
Goods and services tax 189 (3) If a sales tax is required to be referred to in subsection (1) and (2), he shall state the amount of the sales tax required to be paid in the statement under subsection 179 (1).


PART XVIII REPEAL and SAVING Service Tax Act 1975 Repeal and saving the Service Tax Act 1975 181. (1) the Service Tax Act 1975 repealed.

(2) Notwithstanding the Service Tax Act 1975 repealed, any liability incurred, service tax payable, which overpaid or terkhilaf have to pay under the Act may be collected, repaid, diremit or enforced as if the Act were not repealed.


Submission of statements for taxable period on 182. (1) Notwithstanding subsection 181 (1), any person who is licensed under the Service Tax Act 1975 shall submit to the Director-General a statement as required under the Service Tax Act 1975 tax on for a period of not less than twenty-eight days or any longer period as may be determined by the Director General from the effective date.

(2) the person referred to in subsection (1) shall — (a) stating — (i) the amount of service tax, for the whole or any part of the payment for any taxable service provided, which is 190 laws of Malaysia ACT 762 is not received within a period of twelve calendar months prior to the taxable period on; and (ii) the amount of service tax on all taxable services provided in respect of the taxable period on; and (b) pay the tax in accordance with section 14 Service Tax Act 1975.

(3) for the purposes of this section, "tax on period" means a period of two calendar months or part thereof which ended at the effective date.


PART XIX PROVISIONS TRANSITIONAL payments, invoices and importation prior to the effective date of 183. (1) Tax shall not be imposed and levied on any supply of goods or services or importation of products manufactured before the effective date.

(2) If, before the effective date — (a) any payment received relating to a supply of goods or services shall be made on or after the effective date; or (b) an invoice is issued in relation to a supply of goods or services shall be made on or after the effective date, for the purpose of determining the taxable period which output or input tax taxation, payment of the dihubungkaitkan can be taken as the invoice was received or taken as was released on the effective date.

Goods and services tax 191 (3) for the purposes of determining the value of the supply under subsection (2), payment received or any amount stated in the invoice issued shall be calculated as including tax.

(4) Notwithstanding subsection (2), if any person licensed under the sales tax Act 1972 or the Service Tax Act 1975 is an person taxable under this Act and before the effective date — (a) has issued an invoice to the sales tax imposed on the sale of any taxable goods or service tax imposed on the provision of taxable service; or (b) has received the payment of sales tax or service tax, no tax may be imposed on the supply of such goods or services made on or after the effective date to the extent covered by the invoice.

(5) where any goods at the effective date not released from customs control, it shall be counted for the purposes of this section as imported at the time when the goods released by Customs officers.

(6) any person who contravenes subsection (1) commits an offence.


Registration prior to the effective date of 184. (1) for the purposes of this section, any person who shall make a taxable supply is liable to

registered under this section if there is reason to believe that the value of the total supply of bercukainya in the month of the effective date and eleven months immediately after that will exceed the amount of the taxable supply as specified in an order under subsection 20 (1).
192 the laws of Malaysia ACT 762 (2) any person who is liable to be registered under subsection (1) shall apply to the Director General to be registered and the application shall be made three months before the effective date.

(3) the Director may register the person under subsection (1) on or from the effective date.

(4) any person who contravenes subsection (2) commits an offence.


The impact on sales tax and service tax 185. With effect from the effective date of — (a) sales tax shall not be imposed on any sales, use, disposal or importing goods taxable under the sales tax Act 1972; and (b) service tax shall not be imposed on any taxable service under the Service Tax Act 1975.


The value of the supply of goods and services 186. If a supply of goods or services considered to have occurred on or after the effective date, the value of the supply is the amount determined under section 15, as, in the opinion of the Director General, not dihubungkaitkan reasonably with any part of the goods supplied or the services performed before the effective date.


Contract without an opportunity to review 187. (1) this section shall apply if the goods and Services Tax — 193 (a) a contract in writing identifies specifically a supply and the consideration for the supply; and (b) any supply made pursuant to any contract without an opportunity to review made not less than two years before the effective date.

(2) If a supply is made before the earlier of the following, that is to say — (a) five years after the effective date; or (b) there is an opportunity to review, supply made pursuant to a contract without the opportunity to review shall be calculated as a proportional supply zero: provided that — (A) the supplier and the recipient of the supply is the person registered;

(B) the supply is a taxable supply;
and (C) the recipient of a taxable supply made as a whole.

(3) for the purposes of this section — (a) "contracts without the opportunity to review" means any contract or written agreement which does not have a provision for a general review of the consideration for the supply is for a period of up to an opportunity for such a review arises;
(b) "the opportunity to review" means an opportunity has arisen for a provider under contract, acting 194 laws of Malaysia ACT 762 either alone or with the consent of a party to the contract or more, to — (i) change the reply directly or indirectly caused by the imposition of tax;

(ii) conduct, on or after the effective date, a general review, renegotiation or alteration to the replies; or (iii) conduct, before the effective date, a general review, renegotiation or alteration to the consideration that takes into account the imposition of the tax.


Staged periodic supply or 188. (1) where any supply made under an agreement for an extended period or in stages for a period of either at lat-fixed intervals or not and the period commencing before the effective date and ends on or after the effective date, part supply dihubungkaitkan with portions of it on or after the effective date is taxed.

(2) If a supply under subsection (1) is a supply of services, the supply shall be taken as made continuously and evenly over the term of the agreement.

(3) Notwithstanding subsection (1), if the supply is made under a warranty in respect of the goods or services whether it appears, implied or required by law and the value of the warranty included in the price of goods or services that, no tax shall be imposed upon such delivery.

(4) subsection (1) and (2) shall not apply to — (a) a sale of goods if sales tax was paid on the sales of goods to the extent covered by the invoice;
Goods and services tax 195 (b) a provision of services if the service tax paid on services to the extent covered by payment or invoice; or (c) any contract there is no opportunity to reviewed under section 187.


Rights conferred lifelong 189. (1) this section applies if — (a) a taxable person, who is a club or other similar body, make a supply of services under an agreement;

(b) the agreement provides for either expressly or implicitly that a right is to be granted or can be used over the life of that person or for a period of not less than thirty years; and (c) the rights given or first time can be used before the effective date.

(2) where any consideration for the rights granted or that can be used throughout the life of that person or for a period of not less than thirty years paid by existing or new members for a club or other similar body for any right to use the club facilities or other similar bodies, the supply of the service for which any payment is made — (a) before the effective date , shall not be subject to tax; and (b) on or after the effective date, shall be taxed.




196 the laws of Malaysia ACT 762 special sales tax refund for items on hold 190. (1) a person shall be entitled to a special refund equal to the amount of sales tax in respect of the goods on hold subject to the following conditions: (a) the claimant is a person registered under section 20 on the effective date;

(b) students at the effective date of holding of the goods for the purpose of making a taxable supply;

(c) goods that are taxable under the sales tax Act 1972 sales tax and has been charged to and paid by students; and (d) the students shall hold the supplier invoice

the prove that the student was the recipient for which sales tax has been charged or import documents which proved that the claimant is the importer, recipient konsain or owner for which sales tax has been paid.

(2) in the case if — (a) the item is purchased from a supplier other than a licensed manufacturer;

(b) goods that are taxable under the sales tax Act 1972; and (c) the invoice held by that person in respect of goods purchased does not indicate that sales tax was imposed, he shall be entitled to a special refund equal to twenty percent of the value it holds that on the effective date as verified from the invoice sales tax rate multiplied by the applicable subject to the following conditions: goods and Services Tax 197 (A) student is a person registered under section 20 on the effective date;

(B) students at the effective date of holding of the goods for the purpose of making a taxable supply; and (C) students have paid the amount as shown on the invoice.

(3) If a claim special repayment has been made under subsection (1) or (2) and then the students return the goods to the supplier, the students shall is meant the amount of special payments as tax statement for the period outputnya in taxable goods is returned.

(4) special refund shall not apply to — (a) goods that have been capitalised under the accounting principles adopted;

(b) goods used partly or merged into other articles;

(c) goods held for rent, goods held for other than business use and not for sale or Exchange;

(d) goods on the sales tax has been paid under the sales tax Act 1972 before the effective date and thereafter to be exported on or after the effective date of the a claim repossession over sales tax payable shall be made under section 29 of the same Act; or (e) of goods thereon students are allowed to claim a deduction of sales tax under section 31A sales tax Act 1972.



198 the laws of Malaysia ACT 762 Claims for reimbursement of special 191. (1) any person who is entitled to a special refund under section 190 is eligible to claim only once and the claim shall be made to the taxation of goods and services in a form as determined by the Director-General not later than six months from the effective date.

(2) if the amount of special payments under subsection (1) shall — (a) less than ten thousand dollars, students shall submit to tax goods and services the audit a certificate signed by a chartered accountant verifying the amount of the special repayment; or (b) ten thousand dollars or more, students should submit to the taxation of goods and services the audit a certificate signed by an approved company auditor under section 8 of the companies Act 1965  confirming the amount of the special refund.

(3) if any information on the claims provided by claimants found to be false, inaccurate, misleading or disalahnyatakan — (a) he shall not be entitled to a special refund and goods and services tax officer may refuse such claim; or (b) he shall be considered as not entitled to a special refund and it shall be lawful for the Director General to seek any reimbursement paid to claimants.
 NOTE — the companies Act 1965 [Act 125] has now been removed by the companies act 2016 [Act 777] m.b.p. 31 January 2017.

Goods and services tax 199 (4) subject to subsection (3), the special refund shall be repaid quarterly in equal instalments for a period of two years or any shorter period as determined by the Director General.

(5) If a claim has been made under subsection (1), the goods shall be deemed to have been given credit for input tax and all the provisions of this Act shall apply accordingly.


Offset the tax payable, etc., special repayment of 192. Notwithstanding any provision of this Act or any other written law, if any person fails to pay, in whole or in part — (a) any amount of tax due and payable, any surcharges accrued, or any penalties, fees or any other money payable under this Act;

(b) any amount of sales tax that is due and payable, any surcharges accrued, or any penalty or any other money payable under the sales tax Act 1972;

(c) any amount of service tax due and payable, any surcharges accrued, any penalties or any other money payable under the Service Tax Act 1975; or (d) any amount of customs duty or excise duties, the Director-General can offset, of the amounts remaining unpaid referred to in paragraph (a), (b), (c) or (d), any amount or any part of any special payments to that person who is entitled under this Act and the amount that shall be deemed to be balanced as 200 laws of Malaysia ACT 762 payment or part of the payment received from the person.


Construction agreements made prior to the effective date of 193. (1) this section shall apply in so far as a supply of goods or services relating to construction, reconstruction of large, manufacturing or the addition of a building or a civil engineering works by operators, and goods or services the construction that is — (a) supplied pursuant to a written agreement made before the effective date; and (b) available to the recipient on or after the effective date.

(2) the value of all work and materials are combined or installed permanently on the site of construction or civil engineering works in accordance with the agreement shall be determined at the beginning of the effective date.

(3) the Tax shall be due and payable on the supply to the extent of the value of the supply exceeds the value determined under subsection (2).


(4) for the purposes of determining value under subsection (2), a taxable person shall submit to the goods and services tax officers a certificate signed by any authorized person as provided under any written law, confirming the value of all work and materials are combined or installed permanently on the site of construction or civil engineering works.

(5) this section shall apply only in so far as the value referred to in subsection (2) shall be determined: (a) in the manner determined by the Director General; and goods and Services Tax 201 (b) at or before the end of the first taxable period after the effective date of provider or such later date as may be allowed by the Director General.


Costs 194 detainees. If any contract for the supply of goods or services before the effective date set aside for the detention of any part of the consideration of a person pending the implementation of the contract in full and satisfactory, or any part thereof, by suppliers, costs of detention in respect of any supply made on or after the effective date shall be subject to tax.


Vouchers not redeemed 195. Subject to section 183, goods or services provided on or after the effective date with redemption of vouchers issued before the effective date shall be subject to tax.


The supply of coin-operated machines, tokens, etc.

196. a supply of goods or services from any machine or device that is operated with a coin, token or similar is calculated as follows: (a) the first collection within one week starting on the effective date shall not be subject to tax and any subsequent withdrawals within one week starting on the effective date shall be deemed to include the tax; and (b) any production collection after one week starting on the effective date shall be deemed to include the tax.
202 the laws of Malaysia ACT 762 thing done in anticipation of this Act made 197. (1) all such acts and things done by and on behalf of the Director General in preparation for or in anticipation of the Act this Act and any expenses incurred in connection therewith shall be deemed to have been authorized under this Act, provided that such acts and things done that is in line with the intent and purpose of this Act is General, and all rights and obligations acquired or incurred as a result of the Commission of the Act or the thing include any expenses incurred in connection therewith shall Act This effect are deemed to be rights and obligations of the Director General.

(2) if any approval in respect of registration under part IV of the given and if any appointment in respect of repayment agent approved under section 61 or agent under section 65 or tax agent under section 170 is allowed before the effective date of such appointment, registration or deemed to be made under this Act.

(3) an approval given or permitted such appointment under subsection (2) shall take effect as from the effective date only.


The FIRST SCHEDULE [section 4] MATTERS to BE TREATED AS a SUPPLY of GOODS or a SUPPLY of a transportation service 1. (1) any transfer of the whole of the rights belonging to the goods move is a supply of goods subject to subparagraph (2) transfer of — (a) any part of the rights that belong to the unappropriated for move; goods and Services Tax or 203 (b) possession of the goods over, is a supply of services.
(2) If possession of goods over transferred — (a) under an agreement for the sale of goods over; or (b) under an agreement stipulating expressly that the rights belonging to it for moving will be moved to a future, it is a supply of goods.


The land 2. (1) in the case of land, any transfer of — (a) the whole of the rights belonging to the land;
(b) land under an agreement for the sale of such land;
(c) land under an agreement that stipulates expressly that belong to the land shall be transferred to a future;
(d) any interest under a deed of Assignment; or (c) any strata titles, is a supply of goods.
(2) any lease, rental, iseman, licence or transfer land that cannot be broken for part of the land is a supply of services.
(3) where there is a default in payment a securities transactions relating to land, transfer of the land shall be treated as a supply of goods.





204 laws of Malaysia ACT 762 Treatment or processing 3. Any processing or treatment that applies to goods of others is a supply of services.


Utilities, etc.

4. The supply in any form of power includes electricity and gas supply, water, cooling, air conditioning or moving air is a supply of goods.


Transfer, etc., of the assets of the business 5. (1) subject to subparagraph (2), if the items forming part of the assets of a business is transferred or disposed of by or under the direction of people who conduct business that will no longer be part of the assets, whether for a consideration or not, transfer or disposal of the goods supply is by that person.
(2) subparagraph (1) shall not apply if transfer or disposal is — (a) a gift of goods made in the course of or continuation of the business that are made to the same person in the same year that the total cost to donors is not more than five hundred dollars; or (b) a gift, to a real or a potential customer for the business, in the form of an industrial or commercial samples in the form of which is usually not available for sale to the public.
(3) if through or under the direction of a person who carries on a business, goods held or used for the purposes of that business to be worn for any personal use or used, or made available to any person to use, for any purpose other than business purposes, whether for a consideration or not, use or provision of

the item is a supply of services.
(4) subparagraph (1) and (3) cannot be described any made without a return as a supply unless the person running a business is entitled to a credit under section 38 on the supply or importation of the goods.
(5) supply of items in subparagraph (1) or the supply of services in subparagraph (3) is considered to be made in the course of or continuation of the business, and in the case of a business carried on by an individual — Goods and services 205 (a) subparagraph (1) shall apply to any transfer or disposal of the goods in favour of himself; and (b) subparagraph (3) shall apply to goods that are used or made available for use by himself.
(6) Notwithstanding paragraph (1), where a taxable person who is in the business of making a taxable supply of the goods has been claiming input tax under section 38 and there are changes to the use of the goods and the goods are exempted from any credit under subsection 38 (12), the use of the goods by him, either by return or not, shall be treated as a supply of goods.
(7) if any article, forming part of the business assets of a taxable person, sold by any other person having authority to do so to get any indebtedness owed by the taxable person, the goods shall be deemed to be supplied by the taxable person in the course or the continuance of its business.
(8) subject to subparagraph (9), if any person ceases to be a taxable person, any article forming part of the assets of any business conducted by him shall be deemed to have been supplied by it in the course of its business or continuation immediately before he ceased to be a taxable person, unless — (a) the business transferred as a going concern to another person under section 68; or (b) the business carried out by a representative of the self that are deemed to be a taxable person under section 31.
(9) subparagraph (8) shall not apply to any article if the person ceases to be a taxable person can show to the satisfaction of the Director-General — (a) that there is no input tax credit in respect of the supply or importation of the goods was allowed to him and the goods were not acquired by him as part of the business assets transferred to it as ongoing efforts by another taxable person; or (b) that the goods acquired by him from someone other than the taxable person.



206 laws of Malaysia ACT 762 provision to persons connected 6. Subject to subparagraph 5 (3), if a provision is made not for a consideration by a taxable person to someone who has to do as is mentioned in the third schedule, the supply to the person who has to do it is a supply of services.


SECOND SCHEDULE [section 4] THING SHALL BE TREATED AS NOT BEING a SUPPLY of GOODS or a SUPPLY of SERVICES going concern Transfer 1. Supply of business assets to a person under section 68 is counted as non-delivery of goods or supply of services if the asset will be used by the transferee in the same type of business, whether or not as part of any existing business, performed by pemindah or if the supply to which he moved was in relation to part of its business just as a continuous effort , part of the business can operate separately and transferee has, or immediately becomes a taxable person, as a result of the transfer.


Pension Fund, savings or social security 2. Any contributions made to the Pension Fund, savings or social security under any written law shall be treated as not being a supply of goods or a supply of services.


Supply by any body or similar organization 3. The supply of any goods or services by any of the organizations or similar organization registered under any written law shall be treated as not being a supply of goods or a supply of services if — (a) supply to its members is in relation to the purpose and objective and available without payment of a fee in addition to the membership and the value of the supply that is nominal; goods and Services Tax or 207 (b) supply to a donor or sponsor does not have commercial value.


Supply exempt from any credit 4. If the whole or any part of the tax that is imposed on any supply or importation of the goods exempted from any credit under subsection 38 (12), supply the following for the same goods shall be treated as not being a supply of goods or a supply of services.


The supply of goods or services under Islamic financial arrangements 5. If any person makes a supply of goods or services under Islamic finance arrangements, any supply made in such other provision of financing arrangements should be considered as not being a supply of goods or a supply of services.


The settlement of the insurance indemnity 6. Any supply of goods between an insurer or the takaful operator and a person insured in continuation to solve a claim under the insurance policy or contracts shall be treated as not being a supply of goods or a supply of services.

Diplomatic and consular service 7. Any diplomatic or consular service delivery by a foreign representative shall be treated as not being a supply of goods or a supply of services.


The supply of land to meet the requirements of the law, the Government or local authority 8. (1) any provision of land by the developer or owner of the land to the Federal Government, State Government, local authority or any other person to comply with the requirements of any law, the Federal Government, the State Government or local authority for the purposes of

provide public facilities and utilities either without consideration or at the nominal value shall be treated as not being a supply of goods or a supply of services.

208 laws of Malaysia ACT 762 (2) for the purposes of subparagraph (1), public facilities and public utilities and utility facilities means provided in the layout plan for a project that has been approved by the local authority concerned.
THIRD SCHEDULE [section 15] VALUE of the SUPPLY of GOODS or SERVICES open market value 1. (1) open market value for any supply of goods or services is the supply offered openly and made between people who do not have relevance should be in order the following: (a) the open market value of any supply of goods or services shall be equivalent to a response in the form of money that will be obtained normally for the supply of goods or services if it is a supply offered independently and made between the person who is not the person who has to do and is supplied fully under the same conditions at the same time or at approximately the same in Malaysia;
(b) if the open market value of any supply of goods or services could not be determined under subparagraph (a), the open market value shall be the value of the supply of similar in Malaysia, which is a supply offered independently and made between the person who is not the person who has to do;
(c) if the open market value of any supply of goods or services could not be determined under subparagraph (a) or (b), the open market value shall be determined based on data and information available in Malaysia which provides an estimate of adequate objectives for a reply in the form of money that can be obtained for the supply of goods or services.

(2) If a taxable person making the supply associated with the person to whom the supply is made, and — (a) the value of a supply made by a taxable person for a return in the form of money or for a consideration which is not on the whole made up of money for less than the market value of its outdoor; and (b) the supply is a taxable supply and the person to whom the supply is made shall not be entitled to a credit under Tax goods and services 209 section 38 for the whole or any part of the tax on the supply, the value of the taxable supply of goods and services shall be taken as the market value of its outdoor.
(3) for the purposes of subparagraph (1) (b), "supply of similar" means any supply of goods or other services virtually is assessed with respect to the supply of materials, components, parts and features and interchangeable in terms of its function and commercially with the supply has been assessed taking into account the quality and the reputation of other supply and supply that are rated it.
(4) for the purposes of this Act, "open market value" shall be taken as an amount, with an additional tax that may be imposed.


People who have to do 2. (1) a person shall be deemed to have a relevance if — (a) they are officers or directors of business for each other;
(b) they are legally recognized as a partner in the business;
(c) one of them directly or indirectly have, controlling, or holds five percent or more of the shares or the voting shares issued for both of them;
(d) any of them directly or indirectly controls the other one;
(e) both of them are directly or indirectly controlled by a third person;
(f) them together directly or indirectly control a third person; or (g) they are members of the same family.

(2) a person shall be deemed to be members of the same family if — (a) they are related through blood relations in the fourth generation;

210 laws of Malaysia ACT 762 (b) they marry each other or if a person married to a person who has to do the fourth generation in a relationship with another person; or (c) a person who has been appointed as the son of another person or as a child to a person who is in a relationship with a third generation to another.
(3) a trustee in a solution is related to — (a) any person in respect of the solution is a setlor;
(b) any person related to that individual; and (c) a body corporate which is associated with the solution.


Tokens, stamps (in addition to postage stamps) or 3 vouchers. If a right to receive goods or services for a stated monetary value for any token, stamp (in addition to postage stamps) or voucher provided as a reply, the reply shall be excluded except to the extent, if any, it exceeds the value of the money.


Business assets 4. If there is a supply of goods by virtue of — (a) subparagraphs 5 (1) of the first schedule, which is not a consideration;
or (b) subparagraph 5 (8) of the first schedule, the value of the supply shall be the open market value.


Foreign Exchange 5. If any sum of money that are relevant for determining the value expressed in a currency other than dollars, it shall be converted into ringgit at rates of Exchange applicable sales in Malaysia at the time of the supply or in the case of the importation of goods, at the exchange rate determined by the head of Taxation of goods and services the Director 211 shall apply to the calculation of customs duties or excise duties and evaluation.


Value of supply based on retail price under certain circumstances 6. (1) where — (a) the whole or part of the business carried out by a taxable person consists of making the supply to a number of persons goods to be sold, whether by them or others, by retail; and (b) the person is a non-taxable person, the Director General may by notice in writing to the taxable person direct that the value of such supply by him – what is after the notice or after the later date as may be specified in the notice shall be taken as the market value of its outdoor on sale in retail.

(2) a notice under subparagraph (1) may be changed, withdrawn or cancelled by the Director General by a further notice is given in writing.


The value of the supply of goods from a person licensed under section 65A of the Customs Act 1967 or operating in the free industrial zone under paragraph 10 (1) (b) the free zones Act 1990 7. If a taxable supply of the goods made by a person licensed under section 65A of the Customs Act 1967 or someone operating in a free industrial zone under paragraph 10 (1) (b) the free zones Act 1990 to any person who is not licensed under section 65A of the Customs Act 1967 or any person who is not operating in a free industrial zone under paragraph 10 (1) (b) the free zones Act 1990 , the value is the value as determined under section 16.


Value of supply of betting and gambling 8. (1) If a taxable supply of services made by a person licensed under any written law involves betting, take the tagan, lottery, gambling machine or game complaining of fate, the value of the supply shall be determined according to the following formula: 212 laws of Malaysia ACT 762 100 X (A – B) 100 + C that is, A is the total amount received for the reduced supply of any tax or duty under any other written law except excise duties;

B is the amount of money, if any, payable to any person involved in betting, take the tagan, lottery, gambling machine or game complaining of fate; and C is the tax rates prescribed under section 10.


(2) if the value of the supply determined under paragraph (1) is negative, the value shall be deemed vacant.



FOURTH SCHEDULE [section 127] HE CANNOT APPEAL Tribunal Appeal Tax goods and services do not have jurisdiction to hear appeal against — (a) any existing thing as statutory restrictions under this Act;
(b) any direction to treat someone as a single taxable person under section 23;
(c) any refusal of registration voluntarily under section 24;
(d) any rejection of the Group's registration under section 27;
(e) any other matter relating to the taxable period reset under subsection 40 (4);
(f) the balancing of tax refund under section 45;
(g) any seizure and sale of any article for any amount under subsection 47 (2);
(h) any rejection of payment by instalments under section 51;
(i) any decision to reduce or reject any repayment under subsection 57 (2);
Goods and services tax 213 (j) any refusal to refund an amount paid by any person under subsection 57 (5);
(k) any refusal to meremit any penalty or surcharge under subsection 62 (2);
(l) any refusal to approve any application for any scheme under part VIII;
(m) any initial ruling made under section 77;
(n) the exercise of the powers under part X;
(o) compounding of offences under section 121;
(p) any other matter relating to the approval of the remuneration by the Director General under section 171; and (q) any other matter relating to special repayment under section 190, 191 and 192.


214 laws of MALAYSIA Act 762 TAX ACT GOODS and SERVICES 2014 LIST AMENDMENT of laws that amend the short title effect from 773 Finance Act Act Act 2015 01-01-2016 785 Finance Act 2016 01-01-2017 215 Law 762 of MALAYSIA Act GOODS and SERVICES TAX ACT 2014 LIST SECTION AMENDED Section of the powers to amend with effect from 2 785 01-01-2017 13 773 Act Act Act 785 785 01-01-2017 33 01-01-2016 01-01-2017 20 Act Act 785 785 01-01-2017 01-01-2017 34A 34B Act Act 785 01-01-2017 41 773 Act Act Act 785 785 01-01-2016 01-01-2017 42 01-01-2017 43 01-01-2016 49 773 Act Act 01-01-2017 51 785 773 Act Act Act 01-01-2016 01-01-2017 56 01-01-2017 57 785 785 785 01-01-2017 216 Act laws of Malaysia ACT powers to amend Section 762 effect from 70 773 Act Act Act 01-01-2016 01-01-2017 72 01-01-2017 73 785 785 785 Act Act Act 01-01-2016 94 01-01-2017 86 773 773 01-01-2016 103 01-01-2017 122 785 Act Act 773 01-01-2016 156

785 785 Act Act 01-01-2017 160 01-01-2017 section XV 01-01-2017 161 785 785 Act Act Act 01-01-2017 162 01-01-2017 785 785 162A 162B Act Act 01-01-2017 Act 01-01-2017 163 01-01-2017 785 785 785 01-01-2017 Table Second Act