Some of Persons Exempted From Sales Tax 2018 As Listed in SALES TAX (PERSONS EXEMPTED FROM PAYMENT OF TAX) ORDER 2018

The SALES TAX (PERSONS EXEMPTED FROM PAYMENT OF TAX) ORDER 2018 which came into effect on 1 Sept 2018 is a list of persons who are exempted from payment of Sales Tax. The exemption is not automatic but is subject to the person complying with conditions specified in column (4) of Schedule A, Schedule B and Schedule C whichever is relevant to him.

The conditions also means that the person will be held accountable for keeping records and payment of Sales tax of goods procured and disposed.

Schedule A applies to goods purchased by Yang di-Pertuan Agong, Rulers of States including Ruling Chiefs and Governors, Federal or State Governments, Local Authorities (ie City Councils or Municipal Authorities) and also to persons appointed to purchase and supply on their behalf. Approved Universities and Public Higher Education Institutions may also procure goods exempted from Sales tax.

JADUAL A/SCHEDULE A

(1)

(2)

(3)

(4)

(5)

Item No.

Persons

Good Exempted

Conditions

Certificate to be signed by

1.

The Yang di-Pertuan Agong

All goods excluding petroleum

That it is proved to the satisfaction of the Director General that the goods are imported or purchased from a registered manufacturer for the personal or official use of the Yang di-Pertuan Agong.

The Controller of the Household

2.

The Ruler of any State including the Ruling Chiefs of Negeri Sembilan and the Yang di-Pertua Negeri of Melaka, Pulau Pinang, Sabah and Sarawak

All goods excluding petroleum

(a) That it is proved to the satisfaction of the Director General that the goods are imported or purchased from a registered manufacturer for the personal or official use of the Ruler, Ruling Chiefs or Yang di-Pertua Negeri; (b) that in respect of motor cars, the quantity does not exceed in number from those decided by the Rulers in Council.

The officer designated by the Ruler, Ruling Chiefs or Yang di-Pertua Negeri

3.

Federal or State Government Department

All goods excluding petroleum and imported motor cars

(a) That the goods are imported or purchased from a registered manufacturer by the Department concerned; (b) that they are used solely by the Department concerned; (c) that their cost is charged to a departmental vote appearing in the Federal or State Estimates and are not purchased out of a any other funds.

The Head of Department or such other officer nominated by him as the Director General may approve

4.

The Importer

All goods excluding petroleum and motor cars

(a) That the goods are imported for supply to any Federal or State Government Department; (b) that they will be used solely by the Government Department concerned; (c) that their cost is charged to a departmental vote appearing in the Federal or State Estimates and are not purchased out of any other funds; (d) that every application for exemption is accompanied by a certificate from the Head of the relevant Department that the goods are authorised to be imported on his behalf. (e) that the goods are to be purchased and supplied to Federal and State department at a price exclusive of sales tax in accordance with the term of contract.

The Head of Department or such other officer nominated by him as the Director General may approve

5.

Any person approved by the Director General

All goods excluding petroleum and motor cars

(a) the goods are purchased from a registered manufacturer for supply to any Federal or State Government Department in Malaysia; (b) that the Head of Department certifies in writing to the Senior Officer of Sales Tax— (i) that the goods are to be purchased and supplied to his department at a price exclusive of sales tax in accordance with the terms of contract; (ii) that they are used solely by the Government Department concerned and are not sold or otherwise disposed of except as sanctioned by him; (iii) that their cost is charged to a departmental vote appearing in the Federal or State Estimates and are not purchased out of any other funds.

The Head of Department or such other officer nominated by him as the Director General may approve

6.

Any local authority

All goods excluding motor cars and petroleum

(a) That the goods are imported or purchased from a registered manufacturer by the local authority concerned; (b) that they are used solely by the local authority concerned and are not sold or otherwise disposed of except after payment of sales tax; (c) that their cost is charged to a vote appearing in the Local Authority's Estimates and are not purchased out of any other funds.

The Head of the Local Authority or any officer nominated by him and approved by the Director General

Except for the King and Rulers, the exemption on Sales Tax to other mentioned does not extend to procurement of motor cars and petroleum. The exemption applies to local as well as imported goods. As Govt depts. and Local Authorities ie City or Municipal Councils seldom import or purchase directly but appoint another entity either a private Company or Agent to purchase and supply, the Exemption Order authorizes Exemption for Intermediary (Co or Agent) appointed. There is a certificate or Form that needs to be produced for this purpose and model of Certificate is included in the Exemption Order. 

The term ‘Motorcars’ can become a matter of contention as some local authorities(LA) or Federal or State Govt depts. purchased Vans and Pick-up Vehicles and claimed exemption. Does ‘motorcar’ include Vans, 4WD Pick-Ups or other vehicles or as commonly understood applies strictly to cars.

The condition iii. is column (4) states “..the cost is charged to a vote appearing in LA’s estimates” Local Authorities can purchase vehicles (Vans or 4WD Pick-up vehicles or Other vehicles) by using other means eg. loan financing from Banks or Financial Institutions or Special grants from Federal or State govts but my belief is this clause is included as liberal purchases could lead to abuse and  ultimately burden being borne by rate-payers or the Federal or State Govts.

Item 14 in the list applies to Diplomatic and Consuls and International Organisations which have a presence in Malaysia. The Exemption applies to all goods including vehicles excluding petroleum.

14.

Persons accorded with— (a) diplomatic privilages under— (i) the Diplomatic Privilages (Vienna Convention) Act 1966 [Act 636]; or (ii) the Consular Relations (Vienna Convention) Act 1999 [Act 595]; or (b) privileges and immunites under the International Organization (Privileges and Immunites) Act 1992 [Act 485].

All goods excluding petroleum

(a) That the goods are purchased, imported or acquired from a registered manufacturer or from a licensed warehouse approved by the Director General; (b) that the goods are imported, purchased or acquired for the official use for embassy, consular office and international organization.

The officer designated by such diplomatic missions.

Item 16 and 17 are worthy of note. Item 16 is the eligibility of Malaysians who have been overseas for more than 3 days and are returning. It lists the type and quantity of goods that may be brought in with being charged Sales tax. A similar list under Customs (Exemption…) also exempts Import duty. Item 17 applies to visitors returning from Designated areas ie Labuan, Langkawi or Tioman  and the time limit is shorter -24 hrs in case of Labuan or minimum 2 days in Langkawi or Tioman.

16.

Any person entering Malaysia (other than designated area)

(a) Wine, spirits, beer or malt liquor not exceeding 1 litre in all; (b) Tobacco not exceeding 225 grams (equivalent to 200 cigarettes); (c) new apparels not exceeding 3 pieces; (d) new footwear not exceeding one pair; (e) food preparations to a total value not exceeding RM150.00; (f) new portable electrically or battery operated appliances for personal care and hygiene not exceeding 1 unit each; (g) all goods other than that specified in this column, excluding tyres and tubes, to a total value not exceeding RM500.00; (h) goods listed under Schedule A of the Sales Tax (Goods Exempted From Sales Tax) Order 2018.

(a) That the articles are imported on or in the baggage of the importer; (b) that the importer satisfies the proper officer of customs that he is either— (i) not normally resident in Malaysia and intends to visit Malaysia for a period of not less than 72 hours; (ii) normally resident in Malaysia and is returning after an absence from Malaysia of not less than 72 hours (c) that in respect of items (a) and (b) in column (3), if the person imports in excess of the quantity or value of goods exempted, he shall be liable to pay customs duty on the excess only based on the prevailing rate imposed; (d) that in respect of items (c) to (f) in column (3), if the person imports in excess of the quantity or value of goods exempted, he shall be liable to pay tax on the excess only at a flat rate of 10% ad valorem.

Certificate not required

17.

Any person entering Malaysia from designated area

(a) Wine, spirit, beer or malt liquor not exceeding 1 litre in all; (b) tobacco product not exceeding 225 grams (equivalent to 200 stick of cigarettes); (c) new apparels not exceeding 3 pieces; (d) new footwear not exceeding one pair; (e) food preparations to a total value not exceeding RM150.00; (f) new portable electrically or battery operated appliances for personal care and hygiene not exceeding 1 unit each; (g) all goods other than that specified in this column, excluding tyres and tubes, to a total value not exceeding RM500.00; (h) goods listed under Schedule A of the Sales Tax (Goods Exempted From Sales Tax) Order 2018.

(a) That in the case of Labuan, the person satisfies the proper officer of customs that he has visited Labuan for a period of not less than 24 hours; (b) that in the case of Langkawi or Tioman, the person satisfies the proper officer of customs that he has visited Langkawi or Tioman for a period of not less than 48 hours; (c) that in respect of items (a) and (b) in column (3), if the person imports in excess of the quantity or value of goods exempted, he shall be liable to pay tax on the excess only; (d) that in respect of items (c) to (g) in column (3), if the person imports in excess of the quantity or value of goods exempted, he shall be liable to pay tax on the excess only at a flat rate of 10% ad valorem.

Certificate not required

Malaysian who are thinking of buying cheap cars in Langkawi and bringing them over to the mainland should note there is a limit of 90 days(in a year) for use in mainland ie outside Langkawi. This is stated in item 20.

20.

The driver or rider

One motor vehicle of any description, registered in and transported from Labuan or Langkawi and subsequently returned to Labuan or Langkawi

(a) That the motor vehicle has been registered by the Road Transport Department of Malaysia; (b) that the motor vehicle is registered by the proper officer of customs at Labuan or Langkawi at the time of transportation; (c) that the motor vehicle may only be landed at a customs port in the Principal Customs Area; (d) that the motor vehicle may remain in the Principal Customs Area for a period not exceeding 90 days in a year. (e) that immediately on its return from the Principal Customs Area the motor vehicle shall be produced to the proper officer of customs at Labuan or Langkawi, as the case may be; (f) that the Director General may impose any other conditions as he may deem fit and security as determined by the Director General is furnished to Customs for the return of the motor vehicle to Labuan or Langkawi.

The driver or rider and to be approved by the Director General

 This is not a complete liist. Others in the list includes Approved Universities and Higher Learning Institutions, Persons eg those purchasing and Exporting or Registered Manufacturers. This Exemption Order is designed to avoid incidences of Sales Tax being charged cumulatively or being embedded in the cost of products that ought not to be taxed. 

FREQUENTLY ASKED QUESTIONS SALES TAX 2018

(FAQ) – SALES TAX 2018

1. What is Sales Tax?

Sales Tax is a single stage tax which is levied:

i. on taxable goods manufactured in Malaysia by a taxable person and

is sold by him (including disposed or used by him); and

ii. on taxable goods imported into Malaysia  

2. Which goods are subject to Sales Tax?

Goods subject to Sales tax are those goods not listed in the Sales Tax (Exemption) Order as proposed

3. How is Manufacturing defined?

Manufacturing is defined as : i. the conversion by manual or mechanical means of organic or inorganic materials into a new product by changing the size, shape or nature of such materials and includes the assembly of parts into a piece of machinery or other products, but does not include the installation of machinery or equipment for the purpose of construction

ii. in relation to petroleum, any process of refining, purification, and compounding

4. Who is a taxable person?

Taxable person is a person manufacturing taxable goods with an annual sales turnover above the threshold of RM 500,000.00 and is required to be registered. The person is required to register through MySST system.

5. What is the rate of sales tax levied?

The rates proposed are 5%, 10% or a specific rate.

6. How do I know I am required to register under Sales tax?

See diagram :

7. How is Sales tax levied?

Sales tax is levied at manufacturer’s level and is explained in the following diagram below :

     

8. What is the responsibility of a taxable person?

Taxable person is required to :

i. register under sales tax, ii. Issue invoice, iii. Levy sales tax on sales, iv. Account for sales tax in a return submitted every two months to the Customs dept., v. maintain required records

REGISTERING UNDER SALES TAX

9. How do I register for sales tax?

Registration can be done online through system MySST (look for link in JKDM portal). Registered person will receive confirmation of registration through MySST System. If however you do not receive any such confirmation you are required to submit an application individually online through MySST system.

10. How do I know I am to be registered?

You will be informed through email. Persons registered under GST who are required to be registered under Sales tax will be automatically registered by the Customs dept and registered manufacturer will be informed in writing.

11. Can I voluntarily register under Sales tax?

You can voluntarily register if you are manufacturing taxable goods.

12. Can I register co. branches under Sales tax separately?

Registration of branches separately is not allowed

13. I am a GST registrant. Should I apply to cancel my registration?

No, with the revocation of the GST Act 2014 you are automatically deregistered. However you are required to submit your last return within 120 days from the date the Act was revoked.

INVOICE, RETURN AND PAYMENT

14. What is the condition regarding issuance of invoice?

Registered manufacturer when selling taxable goods is required to issue an invoice for a transaction. Invoice should be in Bahasa Malaysia or English and should contain all particulars required. Invoice can be in hardcopy or electronic

15. How to account for credit note or debit note?

Reconciliation can be done on Sales tax return at the time credit note or debit note is issued.

16. How is sales tax to be accounted for?

Sales tax is accounted for on accrual basis.

17. When are Sales tax returns to be submitted?

• Registered manufacturer is to submit Sales tax return (SST-01) every two months taxable period.

• Returns are to be submitted not later than the last day of the month following the end of the taxable period.

• Returns are to be submitted immaterial whether sales tax is payable or not.

• Sales tax return are to be submitted electronically or by post to SST Processing centre...

18. How is sales tax to be paid?

Sales tax can be paid:

a. By electronic transfer; or b. By cheque,  or Bank draft and posted to SST Processing Centre

19. Is penalty imposed for later payment?

Late payment of sales tax will be subject to penalty as below ;

■ 10% - for first 30 days

■ 15% - for next 30 days

■ 15% - for following 30 days

Maximum penalty is 40% after 90 days.

20. What are the exemptions or facilities under Sales tax?

Exemption provisions are as below:

A. Exemptions on goods and persons:

• Goods – Proposed Sales tax (Goods Exempt from Sales Tax) Order 2018.

• E.g, Live animals, unprocessed foodstuff, vegetables, medicines, machinery, chemical products and the like.

• Persons – Proposed Sales tax (Exemption of persons) Order 2018.

• Schedule A: class of person, e.g. Ruler of States, Federal or State Government Department, Local Authority, Inland Clearance Depot, Duty Free Shop

• Schedule B: Manufacturer of specific non taxable goods - exemption of tax on the acquisition of raw materials, components, packaging to be used in manufacturing activities

• Schedule C: Registered Manufacturer - exemption of tax on the acquisition of raw materials, components, packaging to be used in manufacturing of taxable goods (replacing CJ5, CJ5A, CJ5B)

B. Exemption from registration:

• manufacturing activities exempted from registration immaterial of sales value.

> e.g, tailors, manufacturing of jewellery, optician, carving,

vanishing table top

C. Special treatment of certain areas

1. Areas:

Designated Area (DA)

(not deemed outside Malaysia)

Labuan, Langkawi and Tioman

Manufacturing activities

in DA

Proposed Sales Tax Act does not apply to DA except for petroleum

Importation into DA

(world to DA)

Exemption from Sales Tax except: - Langkawi: Importation of marble, petroleum and

anchovies - Tioman: Importation of petroleum and motor vehicles - Labuan: Importation ofpetroleum

Removal of Goods - From PCA to DA - deemed export, no sales tax

- From DA to PCA - deemed import, subject to sales tax - To/from DA to DA - no sales tax - To/from DA to SA* - no sales tax

2. Special Areas:

Special Area (SA)

(not deemed outside Malaysia)

Free Zone, Licensed Warehouse, Licensed Manufacturing Warehouse and Joint Development Area (JDA) "

Manufacturing activities in

SA

Proposed Sales Tax Act does not apply to SA

Importation into SA

(world to SA)

Generally not subject to Sales Tax except for goods in the free zone which may be subjected to Sales Tax provided in the Proposed Special Area Order

Removal of Goods - From PCA to SA - deemed export, no sales tax

- From SA to PCA - deemed import, subject to sales

tax - To/from SA to SA-no sales tax - To/from SA to D A -n o sales tax

OTHER

Sales of taxable goods

21. What is the sales tax treatment for goods transferred after 1 September 2018 and payment has been received and invoice issued during the period GST was zero rated?

You have to account for sales tax on the invoices issued. You may also issue a credit note to cancel the invoice and issue a new invoice which includes sales tax or issue a debit note stating sales tax charged.

Audit

22. Would Customs dept carry on GST auditing when Sales tax comes into effect on 1 Sept 2018?

Audit for purpose of closure of cases would be continued on GST Registered persons

Note : The above questions and answers are adapted from the Official website of the Customs Dept, Malaysia https://www.mysst.customs.gov.my/

PROPOSED NEW TAX LEGISLATION-SST TO REPLACE GST ACT 2015

Service Tax 2018 and Sales Tax 2018 Draft Bills (in Bahasa Malaysia)

Following the election of the new government in GE14 on 9 May 2018, decisions had been made to repeal the GST legislation that had been effective since 1 April 2015.
The govt has since proposed reviving the previous tax legislation : Sales Tax and Service Tax laws as a measure to recoup lost revenue from the suspension and proposed revocation of the Good and Services Tax Act 2014.
The draft legislation of the new Service Tax Bill and the new Sales Tax Bill had been forwarded to parliament. Attached below is the draft legislation pertaining to the new Service Tax Bill and the Sales Tax Bill (Both are in Bahasa Malaysia), look up D.R.11/2018 : RUU Cukai Perkhidmatan, D.R.10/2018 : RUU Cukai Jualan. Also look up D.R.12/2018 : RUU Kastam(Pindaan)2018 as amendments have been made on relevant Customs laws pertaiining to agent and composition of Customs Tribunals.

>parlimen.gov.my

Shared publicly

Identifying Smuggled and Genuinely Imported/Locally Manufactured Cigarettes

MENGENALI ROKOK YANG SAH DAN YANG TIDAK SAH (Genuinely Imported/Locally manufactured with taxes paid vs Contraband cigarettes)

.   1. Yang dimaksudkan “Sah” atau “Tidak Sah” ialah sama ada diluluskan untuk dijual di pasaran Malaysia. Rokok yang “Sah” adalah rokok sama ada diimport atau dikilang tempatan yang telah berbayar duti import (jika diimport), duti eksais (untuk rokok dikilang tempatan atau diimport) dan Cukai Barangan dan Perkhidmatan (“GST”) (untuk rokok yang diimport atau dikilang tempatan)

2  2. Rokok yang dikilang tempatan ertinya dikeluarkan oleh kilang Eksais dan rokok yang diimport perlu mematuhi beberapa syarat sebelum dibenarkan untuk edaran di pasaran tempatan. Syarat-syarat ini ditetapkan pada lesen Eksais yang dikeluarkan oleh Jabatan Kastam atau dalam Perintah Kastam (Larangan Mengenai Import) 2017.  

3   3. Berikut adalah syarat yang ditetapkan dalam Perintah Kastam (Larangan Mengenai Import) 2017:

A. All importers shall comply with the health warning on cigarette packaging:

(1) Packet of cigarette:

(a) On each packet of cigarette there shall be printed a health warning consisting of any one of the following set texts and images:

(b) the set texts and images shall be printed with fifty percent coverage area to be positioned from the top on the front panel and with sixty percent coverage area to be positioned from the top on the back panel

(c) the images shall be printed with resolution not less than 300 dpi (“dpi” or “dot per inch” means the degree of resolution of printing images expressed in terms of number of printed dots per linear inch)

(d) the set texts and images shall be printed using not less than four colour printing

    (e) the set texts shall be printed, in lettering of Arial of 10 points for each packet, in pure white on a     

    Matt Black background, except the words “AMARAN and “WARNING” which shall be printed, in bold-faced 

    lettering of Arial of 12 points for each packet, in yellow on a Matt Black background

 HEALTH WARNING 1

  

HEALTH WARNING 2

HEALTH WARNING 3

HEALTH WARNING 4

 HEALTH WARNING 5

HEALTH WARNING 6

HEALTH WARNING 7

HEALTH WARNING 8

HEALTH WARNING 9

HEALTH WARNING 10

HEALTH WARNING 11

HEALTH WARNING 12

4.    Syarat-syarat yang sama ditetapkan untuk dipamerkan pada karton iaitu bungkusan yang 

          mengandongi peket-peket rokok

(2) Carton of cigarette:

(a) on each carton of cigarette there shall be printed a health warning consisting of any one of the following set texts and images:

(Imej-imej sama seperti di atas)

B.   Health information on cigarette packaging:

(1) Packet of cigarette:

(a) on each packet of cigarette there shall be printed the following health information, sale restriction and particulars on its panel:

(b) Cartoon of cigarette:

(a) on each packet of cigarette there shall be printed the following health information, sale restriction and particulars on its panel:

(b) the health information shall be printed in lettering of Arial not less than 26 points for each packet.

C. Tax stamp:

(a) on each packet of cigarette there shall be affixed a tax stamp as approved by the Director General.

    (b) the tax stamp shall not visually obstruct the health warning and health information

5     5.     Syarat-syarat seperti di atas telah ujud sejak 2008 iaitu seperti ditetapkan dalam    Perintah Kastam (Larangan Mengenai Import) 2008 yang telah berkuatkuasa pada 1  Apr 2008 sehingga digantikan dengan Perintah Kastam (Larangan Mengenai Import)  2012 pada April 2013.

      6. Perintah Kastam (Larangan Mengenai Import) 2008 mempunyai syarat berbeza    untuk kawalan Rokok sama ada diimport atau dikilang tempatan iaitu:

That there shall be clearly and conspicuously printed in a prominent position on every container of cigarettes imported the following words:

(a) 'AMARAN OLEH KERAJAAN MALAYSIA-MEROKOK MEMBAHAYAKAN KESIHATAN'; and

(b) 'TIDAK MELEBIHI 20 MG TAR, 1.5 MG NIKOTINA'.

Where the container is a packet which is rectangular block in shape, the words shall be printed on either of the side panels of the packet. Every packet of cigarette must also be affixed with tax stamp approved by the Director General of Customs

(lihat Jadual ke-4 Bahagian II, item 1.)

Excise laws are another indirect taxation legislation administered by the Customs department. Commonly referred to as excise duty instead of tax, this applies to goods manufactured in the country (referred to in the Act as Federation).
Excise duty is applicable to a limited number of goods and these are listed in the Excise Duties Order 2012, Schedule. There are only four type of goods subject to excise duty, rates being different to each of these goods. They are 4 categorys :1. Beer, Wines and Spirits, Fermented beverages, Undenatured Ethyl alcohol; 2. Tobacco products like Cigars, Cigarettes, Smoking tobacco including Water pipe tobacco; 3. Motor vehicles for transport of people, motorcycles and 4. Playing cards and Mahjong tiles.
Excise duties are quite common in other countries too but mostly are applicable to goods that are considered harmful to health, products that relatively wealthy members of society can afford and would contribute to the coffers of the govt or products that need to be controlled for the well being of family and society.

See Wikipaedia on Excise duty : As a deterrent, excise is typically directed towards three broad categories of harm:

- health risks from abusing toxic substances (thus making it a kind of sumptuary tax); typically this includes tobacco and alcoho.l
-environmental damage (thus acting as a green tax); this usually includes fossil fuels (such as petrol).
-socially damaging / morally objectionable activity (thus making it a type of vice tax or sin tax); usually this includes gambling, and can include prostitution (including solicitation and pimping) in places where it is legal.

Monies raised through excise may be earmarked for redress of specific social costs commonly associated with the product or service on which it is levied. Tobacco tax revenues, for example, might be spent on government anti-smoking campaigns, or healthcare for cancer, heart-disease, vascular disease, lung disease, and so on.
Targets of taxation : 1. Tobacco, Alcohol and Gasoline; 2. Narcotics; 3. Gambling; and 4. Prostitution.

Definition of 'VALUE' in Malaysian Customs Laws

Understanding what is considered 'Value' of a product is important as it has implications on the calculation of import duty, Excise duty and GST on goods that are imported or some goods that are locally produced and subject to excise controls.
Customs Act 1967 considered the principal Act defines Value (in Section 2 under the heading :Interpretation) as:
"value" in relation to imported goods means customs value as determined under Section 142 (35B).
Section 142(35B) is a provision in the Act that empowers the Minister to make regulations and the following Regulations were enacted with effective date of enforcement 1 Jan 2000:
CUSTOMS (RULES OF VALUATION) REGULATIONS 1999(P.U.(A) 507/99)
These Regulations were a replacement of the traditional system that was in practice throughout much of the World that is the Brussels Definition of Value ("BDV" or "Definition"). The new system of Valuation principles had been defined in the General Agreement of Tariffs and Trade ("GATT Agreement"). The new principles incorporated elements of the Definition to a greater or lesser extent. The principles of Valuation under GATT is one of the measures adopted aimed to reduce or eliminate non tariff measures with restrictive effect on international trade. Value under BDV value was a notional concept whilst GATT used a positive concept. Notional concept means there is a single, theoretical, standard of value: the normal price of the goods, that is 'the price the goods would fetch on a sale in the open market under specified conditions. With the positive concept the primary method of establishing the Customs value is the transacted value of the imported goods that is the price actually paid or payable for the goods being valued when the sale meets specified conditions. When there is no sale or the specified conditions are not met, one has to move to secondary methods, each precisely defined and set out in a hierarchical order.

The Excise Act defines "Value" in Section 2 under Interpretation as below:
"value" means –

a. in relation to locally manufactured goods, the price which a buyer would give for the goods on purchase in the open market at the time when duty is payable but will exclude any excise duty, costs, charges and expenses of transportation and storage immediately after removal from the place of manufacture; and

b. in relation to imported goods -
(i) the value of such goods for the purpose of customs duty determined in accordance with the Customs Act 1967; and

(ii) the amount of customs duty, if any, payable on such goods.

GST Act 2014 defines Value of goods imported into Malaysia as :
Section 16. The value of goods imported into Malaysia shall be the sum of the following amounts, namely-
(a) the value of the goods for the purposes of customs duty determined in accordance with the Customs Act 1967;
(b) the amount of customs duty, if any paid or is to be paid on the goods; and
(c) the amount of excise duty, if any, paid or is to be paid on the goods.

no plus ones

no comments