The Sales Tax (Persons Exempted from Payment of Tax) (Amendment) (No. 2) Order 2023 [P.U. (A) 332, gazetted on 02/11/2023] introduced the following changes:
- The amendment order came into operation on 1 December 2023.
- In Schedule A of the Sales Tax (Persons Exempted from Payment of Tax) Order 2018 [P.U. (A) 210/2018], the words “approved by the Minister” were deleted concerning item 5A in column (2).
- New items and particulars were inserted after item 5A, which include conditions such as the goods being used solely by the approved institution or organisation under subsection 44(6) of the Income Tax Act 1967, the goods being new, and the requirement for the goods to be registered with the Road Transport Department of Malaysia in the name of the institution or organisation.
- Additional conditions were specified for Village Development and Safety Committees (JPKK or JKKK in Sabah or Sarawak), such as the goods being new, not used for commercial purposes, and the requirement for written notification to the Senior Officer of Sales Tax when the goods are purchased from a registered manufacturer.
- Specific conditions were also outlined for school bus operators, including the need to obtain a valid permit from the Land Public Transport Agency (APAD) or Commercial Vehicle Licensing Board (LPKP) and the goods being used solely by the person specified in column (2).
- The amendment order also included provisions for stage bus operators and franchise holders, distributors, or dealers of motor vehicles, with conditions related to the type of vehicles exempted and the Customs Duties Order.
These changes reflect the government’s adjustments to the exemptions from sales tax under the Sales Tax Act 2018.
