KUALA LUMPUR: Some 30,000 online businesses have come under the scrutiny of the Customs Department for not registering for Goods and Services Tax (GST).
Customs director general Datuk Seri Khazali Ahmad said the department is gathering more information on these businesses before embarking on an operation.
“Say if you import something which is less than RM500, then it is not subjected to tax. But if it is more than that amount, then you are subjected to GST and import duty,” said Khazali at a press conference after attending the National GST Conference 2016 here Tuesday.
The two-day conference, jointly organised by the department and the Chartered Tax Institute of Malaysia, was opened by Finance Minister II Datuk Seri Ahmad Husni Hanadzlah.
Khazali also said that online transactions will usually go through postal or banking services, so there are ways for his department to keep track.
He said small online businesses that do not have an annual revenue of RM500,000, however are exempt from being registered under GST.
Khazali added that action can be taken under Section 41 of the GST Act 2014 against those eligible but have yet to register for GST.”We are ready to go after these people as we want them to register and make the right GST claims,” said Khazali.
Meanwhile, Khazali said less than RM200mil in GST special refunds has been disbursed back to businesses. This, said Khazali, is despite the Government allocating close to RM1bil for the purpose.”We are not sure why, maybe they are not interested to claim,” he added. The special refund for GST-registered businesses is to avoid double taxation.
