Malaysia proposes to apply GST on digital imports

21 December 2017

The Malaysian tax authorities have announced that they propose to amend their current GST legislation in order to apply GST to online services supplied by non-resident (foreign) companies.

At present, foreign businesses providing digital services in Malaysia do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage this gives to non-resident companies over Malaysian resident providers, the Malaysian government are proposing that GST at 6% will be applied on these types of transactions.

If implemented this new tax will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.

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