Malaysia announced a plan in October 2013 to replace its sales and services tax, a single-stage tax, with a goods and services tax (GST), a multi-stage tax similar to value added tax. Draft legislation for the implementation of GST was recently published and is under review by Malaysia's Parliament.
The standard rate for Malaysia's current sales and services tax is 10%, with a 5% rate for certain goods, such as basic foodstuffs. A 6% rate applies for services. Under the new GST system…