Zero-Rated Supply means goods and services sold by the companies are free from Goods and Services Tax (GST). No GST will be charged on these goods & services.
For company and business, GST paid on the assets, purchases or expenses for their businesses can be claimed as Input Tax Credit.
Even though the persons who are running the businesses under the list of Zero-Rated Supply do not have annual sales of more than RM500,000, they are still eligible to register with Customs Department and to claim back the GST they paid.
List of Zero-Rated Supply
- Agricultural products – paddy, fresh or chilled vegetables, certain provisionally preserved vegetables
- Essential foodstuff – oils, salt, flour, etc
- Livestocks and livestock supplies or poultry – live animals and unprocessed meat
- Fish – live, fresh, frozen and dried
- First 200 units of electricity for domestic use
- Water for dosmestic users
- Goods supplied to designated areas from Malaysia – Labuan, Langkawi & Tioman
- Exported goods
- Exported services – for example, archiecture services in connection with land outside Malaysia
- Services in Malaysia – for example, pilotage, salvage or towage services
- International services – for example, transport of passengers or goods from a place in Malaysia to a place outside Malaysia
For full list of Zero-Rated Goods & Services, please download here: P.U. (A) 272 – Goods and Services Tax(Zero Rated Supplies)