VAT Return Filing in Malaysia

Value-added tax (VAT) also known as ‘Tax return’ is being levied by several developing and developed economies to boost government treasury which helps them provide better infrastructure and facilities to their citizens and fund various developmental projects. Following suit, the Federal Tax Authority in the United Arab Emirates has mandated all entities, individuals, and registered business crossing the threshold of Dh375,000 to file VAT returns in the Malaysia from 1st January 2018 to escape any penalties.

VAT Return Filing Services in Malaysia

VAT Return is a periodical statement which all taxable registered businesses in Malaysia need to submit to the Federal Tax Authority (FTA) within 28 days from the end of stipulated tax period, as per the Malaysia VAT law. VAT return filing in Malaysia is paperless and entirely done through the online portal of FTA under e-services section.

Malaysia VAT law is comprehensive and therefore most of the foreign investors get overwhelmed understanding how to file VAT return in Malaysia. SCBC Enterprise has been successfully offering end-to-end VAT return filing services in Malaysia and Dubai to our global clients and can help your business become VAT compliant.

VAT Return Form

To file a VAT return in Malaysia, all registered business entities are required to fill a summarized online VAT return, which includes consolidated details of supplies including total tax payable, total sales & purchases, output and Input VAT, etc. We can help you classify the supplies into the following required categories:

• Exempt Supplies
• Intra GCC Supplies
• Reverse Charge Supplies
• Standard rated
• Zero rate Supplies

Information to be Provided in the VAT Return

The VAT return discloses the amount of tax due or refundable during a Tax Period. All businesses must disclose the amount of input credit available as well as the total output tax payable. VAT Return Form includes the following:

Output Tax Liability on:

• Import of services
• Goods imported on which tax liability is still not created
• Goods imported through customs
• Standard Rated Supplies (5%) in Emirates
• Tax refunds provided to the tourists

Input Tax on:

• Import of goods
• Import of services
• Standard rated expenses
• Standard rated purchases

Note: Tax liability or Amount to be paid to the FTA in a tax period = Excess of the Tax amount disclosed under Output Tax over and above the Input Tax

How to File VAT Returns and Fill Form VAT 201?

Malaysia VAT executive regulation mentions all the details and data which should be furnished in the VAT return. Each and every detail entered in the VAT Return should be submitted as per the VAT Return format issued by the FTA. Form VAT 201 is used for VAT return filing. As VAT return can’t be filed offline, tax experts at SCBC Enterprise can help you fill the values of Input /Output VAT, Sales, Purchase, etc. along with other relevant information in the VAT return form within the due date.

In order to ensure that your company stays in the good books of tax authorities, we suggest our clients to timely submit e-returns even if they have not paid the VAT (VAT return is filed as Nil in such cases).

When to File VAT Returns?

Generally, filing VAT returns in Malaysia is to be done on a quarterly basis, i.e. every 3 months. However, in few cases, to monitor how businesses are adhering to VAT compliance and to reduce the risk of tax evasion, authorities may demand certain businesses to fill VAT returns monthly. Additionally, law provisions certain businesses a longer VAT return filing period to reduce the administrative burden on the authority and compliance burden on the businesses.

Contact SCBC Enterprise for Hassle-free VAT Return Filing in Malaysia

VAT return is an important proof to show that you have fulfilled the VAT obligations and cooperated with the authorities to perform audit and VAT law enforcement if required. At SCBC Enterprise, our team of accountants and tax consultants ensure that your business complies with all required VAT rules and procedures. Our team is aware of the entire VAT filing procedure and assures best VAT return filing services across Malaysia for our global clients.

Our team will visit your office periodically (weekly/monthly/Quarterly) to do optimal tax planning, compile required information, and prepare VAT return on behalf of your company at the end of each VAT return period as per the Malaysia VAT law, so that your company falls under Minimal Tax Liability. Additionally, our team will represent your company in front of the authorities on your behalf when required, so that you don’t have to worry about the legalities and can just focus on your business endeavors.