Dear DXN Members, we would like to share the general information on GST and its

implication to your business with us. This information is extracted from GST guidelines
and strictly use for illustrative to DXN members only. For further information, please
refer to www.gst.customs.gov.my

FREQUENTLY ASKED QUESTION

PART A: GST – GENERAL INFORMATION AND REGISTRATION

1. What is GST?
GST is Goods and Services Tax. It is charged on all taxable supplies of goods and services made in
the course or furtherance of business by a taxable person in Malaysia, except those goods and services
listed in the Goods and Services Tax (Exempt Supplies) Order 2014. GST is also charged on importation
of goods and services into Malaysia.

GST is a multi-stage tax on domestic consumption. Manufacturers, wholesalers and retailers who are
registered for GST charge GST to his customers based on the value of supply, and claim back the GST
paid on the cost of making the taxable supply.

Standard rated supply

If you are registered
for GST

On the other hand, manufacturers, wholesalers and retailers who are not registered for GST cannot
claim back the GST paid to their suppliers, and cannot charge GST to their customers.

If you are NOT

registered for GST

RETAILER
CANNOT claim back GST; &
CANNOT charge GST to consumer 1
]
 Dear DXN Members, we would like to share the general information on GST and its
implication to your business with us. This information is extracted from GST guidelines
and strictly use for illustrative to DXN members only. For further information, please
refer to www.gst.customs.gov.my

2. When is the effective date of GST?

GST will be effective from 1st April 2015.

3. Do I need to register for GST?

You are required to be registered for GST if you make taxable supplies where the annual taxable
turnover excluding amount of GST exceeds RM500,000.

You may also apply for voluntary registration even though the value of your taxable supplies does not
exceed the prescribed threshold of RM500,000. However, once registered, you shall remain registered
for at least two (2) years.

4. How to determine the threshold of RM500,000?

The threshold of RM500,000 should be calculated on all taxable supplies (standard rated and zero rated
supplies) made by any person, for a period of twelve months excluding the value of:-
a. Capital assets disposed,
b. Imported services, and
c. Disregarded supplies made in relation to Warehousing Scheme or disregarded supplies made
within or between designated areas.

For GST registration purposes, the method to use for computing taxable turnover depends on the
category of person, e.g. sole-proprietorship, partnership or company.

Category of Person Taxable Turnover

A company the value of all taxable supplies made by that company
A sole proprietor / individual the value of all taxable supplies of his business
A partnership the value of all taxable supplies by the partnership

Example:
An individual stockist may have more than one businesses with the following income for 12 months:

DXN Business
Stockist Cash bills sales (excluding GST): RM350,000
Stockist Commission RM 15,000
Total stockistship income RM365,000
Member bonus RM 70,000
Total income from DXN Business RM435,000
Other business income RM 70,000
Total taxable income RM505,000

The individual stockist has to register for GST as his total taxable supplies has exceeded the threshold
of RM500,000.

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 Dear DXN Members, we would like to share the general information on GST and its
implication to your business with us. This information is extracted from GST guidelines
and strictly use for illustrative to DXN members only. For further information, please
refer to www.gst.customs.gov.my

5. When do I need to register?

You shall register within twenty-eight (28) days from the end of the month in which your annual turnover
exceeds RM500,000.

Example:
Your turnover from April 2015 to February 2016 is RM450,000. On 3 March 2016, you make another
sales of RM80,000. You are liable to be registered in March 2016 as your turnover from April 2015 to
March 2016 has exceeded RM500,000. You are liable to register for GST by 28 April 2016.

6. How can I register for GST?

Application for GST registration may be made in the following manner:
(a) Apply electronically through www.gst.customs.gov.my
(b) At the registration kiosk made available at any Customs office
(c) Manual submission by post

7. What are my responsibilities after register for GST?

(a) Account for GST on taxable supplies made
(b) Submit GST return and pay tax by the due date
(c) Issue tax invoice on taxable supply made
(d) Inform Customs of the cessation of your business within thirty (30) days from the date of
cessation
(e) Inform Customs on any changes of address, taxable activity, accounting basis and taxable
period
(f) Keep adequate records of your business transactions relating to GST in the national or English
language for seven (7) years

8. When do I start to charge GST after I register for GST?

If you are registered before the GST effective date of 1 April 2015, you should start charging GST from
1 April 2015 onwards.

If you are registered after the effective date of 1 April 2015, you should start charging GST on the first
day of the month following the month in which you are liable to be registered.

Example:
Your annual turnover has exceeded the threshold of RM500,000 on 28.2.2016. You are not allowed to
charge GST from this date because you have yet to be registered. You must take the following actions:
• 1.3.2016 – 28.3.2016 – Apply for registration with Royal Malaysian Customs Department. Your
registration may take few days to process.
• 1.4.2016 – You should start issuing tax invoices on your taxable supplies made.

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 Dear DXN Members, we would like to share the general information on GST and its
implication to your business with us. This information is extracted from GST guidelines
and strictly use for illustrative to DXN members only. For further information, please
refer to www.gst.customs.gov.my

9. When should I inform DXN of my GST registration?

Please provide us with a copy of your GST registration confirmation letter immediately after you have
registered for GST. Please note that you must start issuing tax invoice and collect GST on all taxable
supplies from 1 April 2015, or from the first day of the following month of your GST registration if you
register after 1 April 2015. Penalties may be imposed on you for any late compliance of GST.

PART B: FILING OF GST RETURN (FORM GST-03)

1. When is the due date to submit GST return form (Form GST-03)?
The due date to submit GST return form depends on your taxable period, which in turn depends on your
annual taxable income.
Category Annual turnover Taxable Period
A RM5 million and above One month
B Below RM5 million Three months

GST return is required to be submitted not later than the last day of the month following the end of
taxable period.

Example:
The first taxable period for Mr. A is April 2015. He is required to submit his first GST return by 31 May
2015.
The first taxable period for Mr. B is April to June 2015. He is required to submit his first GST return by
31 July 2015.

2. Where to get the GST return form (Form GST-03)?

The GST return form can be obtained through: -
(a) GST portal at www.gst.customs.gov.my
(b) Request for a printed copy of the GST-03 form from the nearest GST office or by contacting
Customs Call Center

3. How to submit GST return form (Form GST-03)?

GST return can be submitted: -
(a) Electronically, or
(b) By posting of completed GST return form to the GST Processing Center.

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 Dear DXN Members, we would like to share the general information on GST and its
implication to your business with us. This information is extracted from GST guidelines
and strictly use for illustrative to DXN members only. For further information, please
refer to www.gst.customs.gov.my

4. Will DXN assist members on the GST information requirements?

A GST summary report will be uploaded to DXN Customer Support System every month to all the GST
registered stockists and members. The report will contains the following GST information:

Category GST Information

Stockist 1. Amount of cash bills sales for the month
2. Amount of purchase for the month
3. Amount of stockist commission
4. Amount of member bonus
5. Amount of bonus processing fee
6. GST output tax on cash bills sales
7. GST input tax on the purchases
8. GST output tax on stockists commission
9. GST output tax on member bonus
10. GST input tax on bonus processing fee
11. MSIC codes for the retail sales
Members 1. Amount of member bonus
2. Amount of bonus processing fee
3. GST output tax on member bonus
4. GST input tax on bonus processing fee
5. MSIC code for the member bonus

PART C: BONUS AND COMMISSION

1. What is the GST implication on member bonus and stockist commission?

Member bonus and stockist commission are taxable supplies. If the stockist or member is registered
under GST, the member bonus and stockist commission are subject to GST.

Example:
Member bonus for Mr. A is RM1,000. If Mr. A is not registered under GST, he will receives RM1,000.

If Mr. A is registered under GST, he will charge GST and receives total payment of RM1,060 (i.e.
RM1,000 + GST of 6%). The RM60 received by Mr. A is his output tax which he will account in his GST
return and pay to the Customs. He must also issue a tax invoice to DXN. However, DXN has applied to
the Customs to issue tax invoice on behalf of the members. This invoice is called ‘Self-billed invoice’.
Please refer to Question 2 for more information.

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 Dear DXN Members, we would like to share the general information on GST and its
implication to your business with us. This information is extracted from GST guidelines
and strictly use for illustrative to DXN members only. For further information, please
refer to www.gst.customs.gov.my

2. How DXN assist me on the tax invoice on member bonus and stockist commission?
Your convenience to receive your member bonus and stockist commission is always our priority. We
have applied to the Customs for a Self-billed scheme. Under this scheme, DXN will issue tax invoice on
behalf of the members so that members who are registered under GST will receive their bonuses
without issue a tax invoice to us.

The tax invoices issued under this scheme will be uploaded to DXN Customer Support System so that
you may download it for your records purposes.

It is the requirements of the GST Act that members who wish to be under this scheme must sign a
contract with DXN, and that they will not issue any tax invoice in respect of the same taxable supply.

We recommend all stockists and members who are registered under GST to sign this contract with DXN.

3. If I do not opt for the self-billing scheme with DXN, what should I do?
If you are a GST registered person and do not opt for the self-billing scheme, you will still receive your
bonus payment from us. You need to issue a tax invoice to us. You may refer to the bonus statement
uploaded to DXN Customer Support System for the amount and submit the tax invoice to any of our
branches. We will release your member bonus once we receive the tax invoice from you.

4. How would GST affect my bonus payment if I am not registered under GST?
If you are not registered under GST, you will continue to receive your bonus payment according to
current practice.