Sales Tax (Exemption from Registration) (Amendment) Order 2022

Sales Tax (Exemption from Registration) (Amendment) Order 2022

The Royal Malaysian Customs Department has issued the Sales Tax (Exemption From Registration) (Amendment) Order 2022 on 1st September 2022 to replace the 2018 Order. 

Don’t worry, let us summarize it for you. 

Amendment # 1: Definition on Paragraph 2  

2018 Order 

  • Whose only have one of the manufacturing operations listed in Schedule A are exempted from registration. 

2022 Order  

  • Whose only have one of the manufacturing operations out of several operations in a manufacturing chain to produce a good and that operation is specified in Schedule A is exempt from registration.; and 

  • The person who operates more than one manufacturing operation in Schedule A and manufacturing operations that do not relate in producing a goods is exempt from registration.  

Amendment # 2: Schedule A 

Removed Order 

  • The incorporation of goods into buildings. 

  • The installation of air conditioners in motor vehicles. 

  • The manufacture of jewellery and goldsmiths wares. 

  • The extraction of gold from mineral ores. 

  • The recovery of gold from jewellery and / or the refining of gold. 

New Order  

  • A cleaning operation by removing dirt or dust without any further operation. 

Amendment Order 

  • The developing, printing of photograph, production of film slides or any forms or combination of any of those activities.  

  • Engraving, printing, drawing, writing, embossing or any other similar activities on taxable goods with a description relating to the sports record or other circumstances under which the taxable goods was donated or awarded.  

  • The preparation of foods or drinks by —  

(i) any person who provide services under Group B, First Schedule, Service Tax Regulations 2018 or 

(ii) central kitchen for distribution to its premises which provide services under Group B, First Schedule, Service Tax Regulations 2018 

  • Printing, sewing or pasting of logo, knitting, crocheting or embroidering on ready made garments.  

Sources:  

  1. Sales Tax (Exemption from Registration) (Amendment) 2022 [PUA277] 

  2. Sales Tax (Exemption From Registration) Order 2018 

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