The revised 2010 Tax Compliance Country Guide V33 includes a new chapter for Malaysia. As with previous versions, these updates were written and signed by KPMG. Ariba has now made 11 country specific updates or additions in calendar year 2010.
What is interesting about Malaysia is as follows:
- Malaysia currently does not have a GST or a VAT regime.
- Instead, Malaysia has a Sales Tax which is a tax on imported taxable goods and taxable goods that are manufactured in Malaysia and a Service Tax which tax on the provision of prescribed taxable services by taxable persons. The Malaysian Government is proposing to implement GST by mid 2011 and the law was scheduled for second tabling in the Parliament in March 2010. However, the Malaysian government has postponed the second reading of the GST Bill indefinitely on 21 March 2010 and as at to date, there is still no rulings or guidelines issued in respect of e-invoicing in Malaysia.
- For now, all forms of e-Invoicing are allowed in Malaysia, provided that the Director General of Customs (“DG”) has given its approval in writing and subject to any conditions as determined by the DG.
To supplement a customer's need to obtain DG approval, see the following blog entry "What confirmation is available that the Ariba process and infrastructure are tax compliant?" We attached a sample letter sent to a Tax Authority which can be retooled for Malaysia or any other country.....
Depending on what the Malaysian Tax Authority wants to do after receiving letter, Ariba provides the following additional tools to support the DG's review process:
- 2010 Tax Compliance Country Guide V33
- CEN Compliance Matrix - Another tool, that helps customers communicate the controls in place with the Ariba soltuoin is CEN Compliance Matrix. Having a compliant solution is ultimately about having the right control points as part of a customer’s end to end solution. The CEN did a great job pulling together a framework and standards for defining these types of controls. In the matrix, we defined the control points and cross reference specific chapters of the Country Guide where more elaborate explanation is necessary in this matrix. Although these are standards are defined by Europe, I think the structure for defining control points is a good one and the work can be leveraged for any geography. See http://www.cen.eu/cen/News/PressReleases/Pages/eInvoicing.aspx for more information on the CEN.
See Ariba's Country Guide for more details on how the Ariba solution maps to the Malaysian requirements.
If you are interested in e-Invoicing in Malaysia, please contact your Ariba representative for the latest version of Ariba's Country Guide or to obtain the Ariba control points as defined in the CEN Compliance Matrix.