VAT Registration in Malaysia

At a rate of 5% on non-essential consumer goods, value added tax (VAT) implementation in Malaysia came into effect from 1st January 2018. However, VAT registration was already started by the Federal Tax Authority (FTA) from October 1, 2017.

All the details regarding Malaysia VAT laws are available online on the official portal, but, it’s overwhelming for businesses as the legislation is still in its infancy. SCBC Enterprise is aware of all the registration formalities related to VAT and can ensure your business is registered and in compliance with all the laws and regulations.

Who Needs to Register for VAT?

January 1, 2018, marks the introduction of VAT in Malaysia. All businesses with an annual turnover of Dh375,000 or more fall under Malaysia VAT tax, and are required to submit their VAT registration applications by 4th December 2017.

As per the regulatory authority FTA, all businesses in Malaysia must ensure that their financial transactions are recorded and ledgers updated timely to skip penalties.

• Mandatory Registration needs to be done if yearly revenue of goods or services supplies exceeds MYR 375,000
• Voluntary or Optional Registration needs to be done if yearly supply and imports exceeds MYR 187,500, but are less than MYR 375,000

As per the guidelines, all VAT registered businesses should:

• Charge the appropriate VAT on their taxable goods and services (VAT = Input Tax – Output Tax)
• Maintain proper business records to ensure its auditable for the government or auditor
• Regularly report charged VAT and the corresponding VAT amount paid to the government

VAT Registration Process

VAT registration process is simple and businesses can register themselves on the online portal of ministry of finance. However, if they need professional assistance, team at SCBC Enterprise can log into the e-services account on the behalf of applicants, and click on the ‘Register for VAT’ button to start their 6-step VAT registration process.

• Carefully read each section of the ‘VAT Getting Started Guide
• Complete and fill mandatory information in all 8 sections
• Keep saving your progress
• Submit your VAT registration application for approval
• Click on the dashboard to review the progress of your VAT registration application
• Read important on-screen tools and tips thoroughly

Documents Required for VAT Registration

• Banking details of the applicant
• Documents identifying the authorized signatory, like passport copy, Emirates ID, etc.
• Trade license
• Proof of business
• Documents authorizing business activity in Malaysia, like, POA, MOA, etc.
• Description of business activities
• Turnover details for last 12 months
• Projected turnover figures
• Expected value of imports and exports
• Whether planning to deal with GCC suppliers and customers or not
• Customer Authority Registration details, if possible

Details Required to Fill VAT Registration Application form

There are many details which need to be filled in order to complete the VAT registration application form. SCBC Enterprise, a prominent VAT consultancy in Malaysia can help you sail through the entire process with ease by filling out each and every detail on your behalf. The general details include:

• Applicant details including type of registration, trade license, legal details, bank details, etc.
• Contact and Banking details of the applicant
• Business relationships of the applicant
• Details about business activity followed by a declaration

Be VAT Compliant. Contact SCBC Enterprise for VAT Registration in Malaysia

Online portal of FTA allows companies to set up an online account, register, and fill up the online VAT registration form. However, as VAT compliance will directly hit the balance sheets and business bottom lines, companies prefer working with experienced service providers to be prepared for this new tax regime.

SCBC Enterprise has an experienced and knowledgeable team of accountants VAT consultants, certified auditors, and tax specialists who help companies meet the required VAT compliance requirements and fulfill all VAT registration formalities.