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Malaysia rejects reintroduction of GST

Prime Minister rules out return to Goods & Services Tax to replace Sales and Services Tax

PM Anwar this week confirmed there are no plans to return to Goods & Services Tax (‘GST’). Following a review to scrap the existing Sales and Services Tax for a second time, the government has shelved the idea due to inflation fears. Instead, the short term focus will be on cutting governmental subsidies.

June 2022: Government evaluating reintroduction of Goods and Services Tax to replace Sales and Services Tax

Last year, Malaysia was facing calls to reintroduce a Goods and Services Tax to replace its turnover-based Sales and Services Taxes.  GST was first introduced in April 2015 to replace SST, but was withdrawn in July 2018 and SST reimplemented. Any GST reintroduction could happen by 2023.

In 2021, the government confirmed “A study being carried out also covers the impact on the economy, cost of living, cost of goods, as well as ability to address the shadow economy (or black market),”

This follows recommendation from the Organisation for Economic Cooperation and Development (OECD) that GST would broaden and stabilise the tax base, and help the government cope with the economic shock of the COVID-19 crisis. It would also limit the cascading – compound taxation – effect on businesses of the current irrecoverable SST.

174 countries have a VAT or GST regime.

How Malaysia fell out of love with GST the first time (2015 to 2018)

SST applies to less than 100,000 companies, but GST covered almost half a million traders, giving a more reliable and larger tax base. However, final sale-only SST was felt to be simpler to administer than mult-stage GST. GST also failed to stop the rising government debt problem – a promise for its introduction. As a result, the new GST become unpopular and was blamed for rising prices following its 2015 introduction. This led to its withdrawal in June 2018 following election commitments by Pakatan Harapan.

Future global VAT / GST changes

Date Country VAT / GST  changes (click for details)
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2024 Europe 2024 European VAT & Intrastat thresholds
1 Apr 2024 UK VAT registration threshold rise
1 Apr 2024 Greece myData live invoice reporting via ERPs
1 Apr 2024 Poland Food VAT rate cut ends
1 Apr 2024 Poland Cut to 8% VAT cosmetic services
1 Apr 2024 Kenya End grace period on e-invoicing
1 Apr 2024 Senegal VAT on non-resident digital services
1 Apr 2024 New Zealand 15% GST on gig and sharing economies digital platforms
1 Apr 2024 Japan Marketplace deemed supplier obligations e-commerce
1 Apr 2024 Japan Non-resident Consumption Tax registration changes
1 Apr 2024 Paraguay Small company e-invoicing mandate
1 Apr 2024 Ecuador 3% VAT rise
1 Apr 2024 Bolivia Sixth wave of B2B e-invoicing
Apr 2024 Laos VAT rises to 10%
1 May 2024 Cyprus Temporary VAT cut on essentials ends
1 May 2024 Thailand VAT on low-value consignments for B2C
1 May 2024 Uruguay End of reduced VAT rate on tourism
1 May 2024 Uruguay Extension of e-invoicing regime
5 May 2024 Israel mandatory pre-clearance e-invoicing
15 May 2024 Mauritius Mandatory pre-clearance e-invoicing
1 Jun 2024 Austria SAF-T reboot
1 Jun 2024 Saudi Arabia 9th wave of e-invoicing
1 Jul 2024 Spain Certified electronic invoice software
1 Jul 2024 Spain Basic foods temporary VAT rate cut ends
1 Jul 2024 Greece Ends COVID-19 temporary reduced rates
1 Jul 2024 Romania Full mandatory B2B e-invoicing
1 Jul 2024 Bulgaria End tourism VAT rate cut
1 Jul 2024 Slovakia VAT registration threshold rise
1 Jul 2024 Zambia Mandatory e-invoicing
1 Jul 2024 Vietnam 2% temporary VAT cut ends
1 Jul 2024 Bhutan Implementation of VAT
14 Jul 2024 Philippines E-commerce 1% withholding tax
1 Aug 2024 Malaysia Mandatory B2B e-invoicing
1 Sep 2025 Finland Standard VAT rate rise
1 Oct 2024 Saudi Arabia 10th wave of e-invoicing mandate
1 Oct 2024 Thailand VAT rise to 10%
1 Oct 2024 Oman Mandatory e-invoicing
1 Nov 2024 Ireland End of temporary VAT cut on energy
1 Dec 2024 Botswana Mandatory e-invoicing rollout
2025
1 Jan 2025 EU Single VAT Registration in the EU - extension of OSS
1 Jan 2025 EU Marketplaces deemed supplier for EU sellers' VAT
1 Jan 2025 EU Accommodation & travel platforms deemed supplier for VAT
1 Jan 2025 EU EU IOSS mandated for marketplaces
1 Jan 2025 EU Call-off stock VAT simplification ends
1 Jan 2025 EU Harmonisation of B2B Reverse Charge rules
1 Jan 2025 EU Increased VAT rate setting freedoms
1 Jan 2025 EU VAT rate thresholds change foreign companies
1 Jan 2025 EU EU VAT rule changes on cross-border virtual events
1 Jan 2025 Switzerland Business must accept structure e-invoices
1 Jan 2025 Switzerland Place of supply travel and event services
1 Jan 2025 Sweden VAT registration threshold rise
1 Jan 2025 Belgium VAT return rule changes
1 Jan 2025 Germany Structured E-invoicing adoption
1 Jan 2025 Finland Reduced VAT rate changes
1 Jan 2025 Greece Potential e-invoice mandate
1 Jan 2025 Greece Domestic VAT reverse charge B2B construction
1 Jan 2025 Portugal Food VAT rate cut ends
1 Jan 2025 Portugal SAF-T Accounting becomes mandatory
1 Jan 2025 Portugal Qualified Electronic Signature mandatory
1 Jan 2025 Latvia B2B e-invoices mandated
1 Jan 2025 Estonia Accommodation and press publication VAT rise
Jan 2025? Estonia Suppliers must offer customers e-invoicing option
1 Jan 2025 Romania Final wave of SAF-T taxpayers
1 Jan 2025 Bulgaria Phased introduction of SAF-T
1 Jan 2025 Bulgaria End catering VAT rate cut
1 Jan 2025 Ukraine SAF-T for large taxpayers
1 Jan 2025 Switzerland Deemed supplier for marketplaces on goods
1 Jan 2025 Switzerland Various VAT changes
1 Jan 2025 Israel 1% VAT rate increase
1 Jan 2025 Tajikistan VAT cut to 13%
1 Jan 2025 Japan Consumption Tax on non-resident app stores
1 Jan 2025 Indonesia VAT rate to rise 1% to 12%
1 Jan 2025 Malaysia 2nd phase of e-invoices mandate
1 Jan 2025 New Zealand 3% Digital Services Tax
1 Jan 2025 Paraguay Last wave of mandatory e-invoicing taxpayers
15 Jan 2025 Dominican Republic 2nd wave of mandatory e-invoicing
1 Apr 2025 Croatia Heating VAT returns to 25%
1 Apr 2025 Japan Deemed supplier VAT on marketplace e-commerce
1 Jul 2025 Spain Potential mandatory B2B e-invoicing
1 Jul 2025 Spain Certified electronic invoicing requirements
1 Jul 2025 Malaysia 3rd phase of e-invoicing mandate
1 Nov 2025 Singapore E-invoicing rollout starts
2026
1 Jan 2026 EU DAC8 harmonised crypto asset reporting
1 Jan 2026 Belgium Peppol-based mandatory B2B e-invoices
1 Jan 2026 Switzerland Potential VAT rise to 8.5%
1 Jan 2026 Croatia Mandatory B2B e-invoicing
1 Jan 2026 Brazil VAT implementation begins
1 Jan 2026 India Potential B2C e-invoicing
15 Jan 2026 Dominican Republic 3rd wave of mandatory e-invoicing
1 July 2026 UAE Mandatory e-invoicing
1 Sept 2026 France E-invoice and e-reporting for B2B and B2C
2027
1 Jan 2027 Germany Large companies e-invoicing compulsory
1 Jan 2027 Ukraine SAF-T for all taxpayers
1 Jan 2027 UK Introduction of CBAM levy
1 Sep 2027 France Phase 2 mandatory e-invoicing
2028
1 Jan 2028 Germany Small companies e-invoicing
Jan 2028 EU EU Customs reforms
1 Mar 2028 EU €150 import consignment threshold removed
1 Mar 2028 EU IOSS mandated for marketplaces
2030
1 Jan 2030 EU Digital Reporting Requirements including e-invoicing harmonisation
1 Jan 2030 EU Structured e-invoices supersede paper invoices
1 Jan 2030 EU EC Sales lists replaced by Digital Reporting Requirements

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