Source from http://gst.customs.gov.my.

Code

Rate

Description

TX

6%

Direct Tax GST Purchase

  •  This refers to goods and/or services purchased from GST registered suppliers.
  •  The prevailing GST rate is 6% will commence on 1/04/2015. As it is a tax on final consumption, a GST registered trader will be able to claim credits for GST paid on goods or services supplied to them.
  •  The recoverable credits are called input tax. Examples include goods or services purchased for business purposes from GST registered traders.

IM

6%

Import Goods with GST

  • All goods imported into Malaysia are subjected to duties and/or GST.
  • GST is calculated on the value which includes cost, insurance and freight plus the customs duty payable (if any), unless the imported goods are for storage in a licensed warehouse or Free Trade Zone, or imported under Warehouse Scheme, or under the Approved Trader Scheme.
  • If you are a GST registered trader and have paid GST to Malaysia Customs on your imports, you can claim input tax deduction in your GST returns submitted to the Director General of Custom.

IS

0%

Import Goods Special Scheme

  • This refers to goods imported under the Approved Trader Scheme (ATS) and Approved Toll Manufacturer Scheme (ATMS), where GST is suspended when the trader imports the non-dutiable goods into Malaysia.
  • These two schemes are designed to ease the cash flow of Trader Scheme (ATS) and Approved Toll Manufacturer Scheme (ATMS), who has significant imports.

BL

6%

Not Claimable GST Purchase

  • This refers to GST incurred by a business but GST registered trader is not allowed to claim input tax incurred. The expenses are :-
  1. The supply to or importation of a passenger car, the hiring of passenger car.
  2. Club subscription fees (including transfer fee) charged by sporting and recreational clubs.
  3. Medical and personal accident insurance premiums by your staff.
  4. Medical expenses incurred by your staff. Excluding those covered under the provision of the employee’s Social Security Act 1969, Workmen’s Compensation Act 1952 or under any collective agreement under the Industrial Relations Act 1967.
  5. Benefits provided to the family members or relatives of your staff.
  6. Entertainment expenses to a person other than employee and existing customer except entertainment expenses incurred by a person who is in the business of providing entertainment.

NR

0%

Non Registered Supplier

  • This refers to goods and services purchased from non-GST registered supplier/ trader.
  • A supplier / trader who is not registered for GST is not allowed to charge and collect GST.
  • Under the GST model, any unauthorized collection of GST is an offence.

ZP

0%

Zero Rated Purchase

  • This refers to goods and services purchased from GST registered suppliers where GST is charged at 0%.
  • This is also commonly known as zero-rated purchases.

EP

0%

Exempted Purchases

  • This refers to purchases in relation to residential properties or certain financial services where there no GST was charged (i.e. exempt from GST).
  • Consequently, there is no input tax would be incurred on these supplies.

OP

0%

Out of Scope Purchase

  • This refers to purchase of goods outside the scope of GST.
  • An example is purchase of goods overseas and the goods did not come into Malaysia, the purchase of a business transferred as a going concern.
  • For purchase of goods overseas, there may be instances where tax is imposed by a foreign jurisdiction that is similar to GST (e.g. VAT).
  • Nonetheless, the GST registered trader is not allowed to claim input tax for GST/ VAT incurred for such purchases.
  • This is because the input tax is paid to a party outside Malaysia.

TX-E43

6%

Direct GST Purchase of Incidental Exempt Supplies

  • This is only applicable to GST registered trader (group and ATS only) that makes both taxable and exempt supplies (or commonly known as partially exempt trader).
  • TX-E43 should be used for transactions involving the payment of input tax that is directly attributable to the making Incidental Exempt Supplies.
  • Incidental Exempt Supplies include interest income from deposits placed with a financial institution in Malaysia, realized foreign exchange gains or losses, first issue of bonds, first issue of shares through an Initial Public Offering and interest received from loans provided to employees, factoring receivables, money received from unit holders for units received by a unit trust etc.

TX-N43

6%

Direct GST Purchase of Non-Incidental Exempt Supplies

  • This is only applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader).
  • TX-N43 should be used for transactions involving the payment of input tax that is directly attributable to the making Non-Incidental Exempt Supplies.
  • Example for this tax code are your company bought wall paper for your residential apartment rented to others and purchase costs are already included 6% GST, but you are not eligible to claim the amount of input tax as it would be applied directly to make exempt supply (rental of resident apartment).

TX-RE

6%

Indirect GST Purchase of Incidental Exempt Supplies

  • This is only applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader).\
  • This refers to GST incurred that is not directly attributable to the making of taxable or exempt supplies (or commonly known as residual input tax).
  • Example includes operation over-head for a development of mixed property (properties comprise of residential & commercial).

GP

0%

Disregarded Purchase under GST

  • Purchase within GST group registration, purchase made within a Warehouse Scheme etc.
AJP

6%

Input Tax Adjustment

  • Any adjustment made to Input Tax such as bad debt relief & other input tax adjustments.

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