Indirect Tax Regulations and Orders 2023

The following Indirect Tax (Amendment) Regulations have been gazetted on 29 December 2023 (except where otherwise stated).

These Amendments to Regulations come into operation on 1 January 2024.

(a) Sales Tax (Amendment) (No 2) Regulations 2023 

• The prescribed circumstances and conditions when a registered manufacturer can issue a credit note or debit note has been updated, to be in line with the prescribed circumstances and conditions in the other indirect tax Regulations.
• Updated to reflect that the form and manner is to be determined by the Director General.

(b) Sales Tax (Low Value Goods) (Amendment) Regulations 2023

• A new Regulation 6A has been added to allow registered seller to issue prescribed credit note or debit note under specific circumstances and conditions.

(c) Sales Tax (Customs Ruling) (Amendment) Regulations 2023

• Updated to reflect that the form and manner is to be determined by the Director General.

(d) Service Tax (Amendment) (No 2) Regulations 2023 

• The Form JKDM No 2 is no longer in use.
• Updated to reflect that the form and manner is to be determined by the Director General

(e) Service Tax (Customs Ruling) (Amendment) Regulations 2023

• Updated to reflect that the form and manner is to be determined by the Director General.

(f) Service Tax (Digital Service) (Amendment) Regulations 2023

• Updated to reflect that the form and manner is to be determined by the Director General.

(g) Customs (Amendment) (No 4) Regulations 2023 (gazetted on 28 December 2023)

• Amendments are made to Regulation 6 Prescribed ports

(h) Tourism Tax (Amendment) (No 2) Regulations 2023

• Updated to reflect that the form and manner is to be determined by the Director General.

The following Indirect Tax New and Amendment Orders have been gazetted on 29 December 2023 (except where otherwise stated).

These Orders come into operation on 1 January 2024.  

(a) Sales Tax (Persons Exempted from Payment of Tax) (Amendment) (No 3) Order 2023 

Items 1 and 2 of Schedule B 

• Allow the goods exempted to include goods transported from a licensed warehouse, licensed manufacturing warehouse or a free zone.
• Included ‘any other conditions as the Director General may deem fit to impose’.
• The certificate is updated to be signed by the manufactured approved by the Director General.

Item 4 of Schedule B

• The goods exempted now covers ‘raw materials, components, manufacturing aids, cleanroom equipment and, packing and packaging materials'.
• Allow the goods exempted to include goods transported from a licensed warehouse, licensed manufacturing warehouse or a free zone.
• For manufacturing aids and cleanroom equipment, the goods are to be specified by the Director General.
• Included ‘any other conditions as the Director General may deem fit to impose’.
• The certificate is updated to be signed by the manufactured approved by the Director General.

Items 1 and 3 of Schedule C

• The goods exempted now covers ‘raw materials, components, manufacturing aids, cleanroom equipment and, packing and packaging materials'.
• For manufacturing aids and cleanroom equipment, the goods are to be specified by the Director General.
• The list of milk products manufactured which qualify for exemption has been updated, to be in line with item 3 of Schedule B.
• Goods damaged, destroyed due to unavoidable accident or does not meet the specified quality may still qualify for the exemption by applying in writing to the Director General. 

Items 2 and 4 of Schedule C

• The goods exempted now covers ‘raw materials, components, manufacturing aids, cleanroom equipment and, packing and packaging materials'.
• For manufacturing aids and cleanroom equipment, the goods are to be specified by the Director General.
• Allow the goods exempted to include goods transported from a licensed warehouse, licensed manufacturing warehouse, petroleum supply base or a free zone.
• Goods damaged, destroyed due to unavoidable accident or does not meet the specified quality may still qualify for the exemption by applying in writing to the Director General.

(b) Sales Tax (Goods Exempted from Tax) (Amendment) (No 2) Order 2023  (gazetted on 28 December 2023)

• Amendments are made in relation to heading 90.25 Hydrometers and similar floating instruments, thermometers, pyrometers, barometers, hygrometers and psychrometers, recording or not, and any combination of these instruments.

(c) Sales Tax (Rate of Tax for Low Value Goods) Order 2023 

• The rate of Sales Tax for LVG is 10%.

(d) Sales Tax (Determination of Low Value Goods) Order 2023  (gazetted on 28 December 2023)

• The Minister has determined that Low Value Goods (LVG) is all goods which are sold at a price not exceeding RM500 and brought into Malaysia by land, sea or air. Notwithstanding this, the Minister also determines the goods specified in a Schedule as not to be LVG.

(e) Excise Duties (Amendment) (No 3) Order 2023

• The Excise Duty rate for goods falling under Chapter 20 (Heading 20.09) and Chapter 22 (Heading 22.02) is increased from RM0.40 per litre to RM0.50 per litre.
• Chewing and sucking tobacco (Subheading 2403.99.50 00) is now subject to Excise Duty at RM27 and 5% per kg.