FAQs for 0% Goods and Services Tax (GST) effective 1st June 2018

FAQs for 0% Goods and Services Tax (GST) effective 1 June 2018



As many of you may already be aware, the Government has announced that Goods and Services Tax (GST) will be rated at zero percent (0%) effective 1 June 2018. Essentially, all items consumed in Malaysia which are standard rated at 6% will be revised to 0% from 1 June 2018 until further notice, while all items specifically zero-rated or exempted by the Government remain unchanged.

So, how will GST impact you as a customer? Below are some of the key things you need to know:

Postpaid

  1. Effective 1 June 2018, when I register for a new line, will I be charged GST?
    Any fees for new registrations subjected to 6% GST previously will be rated as 0% GST effective 1 June 2018 until further notice.
  2. Are there any changes to the items that are subjected to GST, and those which are exempted from GST?
    All telecommunication usages are subjected to GST and it will be rated at 0% effective 1 June 2018.
  3. How do you charge GST for the products and services which I have used prior to 1 June 2018?
    For all usages prior to 1 June 2018, GST of 6% is charged via normal postpaid billing based on a customer's bill cycle. GST for all usages from 1 June 2018 onwards will be rated at 0%.
  4. How much GST will I need to pay when signing up for a new device contract effective 1 June 2018?
    Effective 1 June 2018, when you purchase a device, 0% GST will apply for device price/device upfront payment and device advance payment (if any) until further notice.
  5. I bought my phone in May 2018. If I return the device after 1 June 2018 and would like to be refunded, will GST also be refunded?
    We do not accept any returns of devices after purchase. Any fault on the devices will be treated as repair and maintenance. Customers are advised to walk in to the service centre of the respective device manufacturer for repair and maintenance of your phone.
  6. If GST is 0% effective 1 June 2018, how will GST be shown in bills or how is GST calculated if my bill cycle is from 21 May 2018 – 21 June 2018?
    All telecommunication charges are subjected to GST. Your postpaid bill will still indicate items which are subjected to GST with (Y) and (N) for items which are not. The standard GST rate of 6% will apply to all usages prior to 1 June 2018. GST for all usages from 1 June 2018 will be rated at 0%.

Integrated / Home Fibre

  1. When I register for the service, will it be subjected to GST and how much do I save since GST is 0% effective 1 June 2018?
    You will not be charged GST when you register for a new fibre service, as there is no registration fee.
  2. If I decide to terminate my contract early and I'm charged a penalty fee, will the fee be subjected to GST?
    No, the termination charges will not be subjected to GST, therefore there is no change to the amount payable for penalty.

Enterprise

  1. I am a business customer who is billed on an annual/bi-annual/quarterly basis. If I paid my annual/bi-annual/quarterly bill before 1 June 2018, will I be eligible for a tax rebate on the 6% GST paid for the period applicable from 1 June 2018?
    • In accordance to Section 66 of the Goods and Services Tax Act 2014, where goods are delivered/services are provided after 1 June 2018, but payment is received before 1 June 2018 to the extent covered by the payment, the supply is subjected to GST at 6%.
    • Having said this, any company that is GST registered is able to claim GST. This can be done upon receiving the tax invoice from Maxis and claiming the GST as input tax during the GST submission to Customs. This way, the GST charged by Maxis would not be a cost to you as a company.

Prepaid

  1. From 1 June 2018 onwards, when I register for a new prepaid SIM pack, how much do I have to pay?
    You will not have to pay anything as there is no registration fee.
  2. How much will a prepaid SIM pack cost, now that GST is 0%?
    The price of a SIM pack remains RM10 inclusive of 0% GST. However, when you activate the SIM, you will receive a credit of RM6 instead of RM5, which means you will get RM1 or 20% more value now.
  3. What are the prepaid products and services that are subjected to GST?
    All telecommunication charges are subjected to GST.
  4. Are all type of top-ups subjected to 0% GST from 1 June 2018 onwards? With this, if I top up RM10, how much credit will I get?
    Yes, for all physical top-up tickets and top-ups via digital channels, GST will be at 0%; if you top-up RM10, you will receive RM10 credit.
  5. Since GST is 0% from 1 June 2018 onwards, will my calls, SMS & Internet passes be cheaper?
    For prepaid, GST is charged on activation of each top-up; all top-ups sold will be inclusive of 0% GST from 1 June 2018 onwards. Therefore, you will get more credit from your top-up, which you can use for more calls, SMS or buying passes.
  6. If I purchase the top-up ticket before 1 June 2018 and only activate the top-up ticket after 1 June 2018, how much airtime/credit will I get?
    If you purchase a RM10 top-up ticket before 1 June and activate the top-up ticket after 1 June 2018 when GST is 0%, you will get RM10 credit.
  7. Currently, I receive a GST refund after roaming usages (call, SMS or data). What will happen to this?
    Roaming charges will be subjected to 0% GST effective 1 June 2018. With the implementation of 0% GST, no amount will be deducted for GST upon top-up and there will be no GST refund upon any roaming usage.
  8. Will I get a receipt or be issued a tax invoice for purchasing top-ups at retailers?
    As at 1 June 2018, GST is not abolished but rated as 0%, which is applied upon activation of top-up tickets and can be verified via e-statement. Therefore, there is no tax invoice issued upon any purchase of top-up tickets. Instead, a receipt is issued to the customer.

    There is no requirement for the GST registration number of Maxis to be stated on the receipt. To claim for input tax credit for top-ups before 1 June 2018, you may use your Hotlink e-statement which will record the GST deducted at the point of activation. You may download your Hotlink e-statement via your MyHotlink account at www.hotlink.com.my or the Hotlink RedApp.

General

  1. I am residing in a duty-free zone (Langkawi, Labuan and Tioman). Will I be impacted with the revision of GST from 6% to 0%?
    Customers in designated areas such as Langkawi, Tioman and Labuan are charged GST when they use telecommunication services. With this revision, you also enjoy 0% GST. Purchase of goods such as devices and device accessories in these areas are not subject to GST and this remains unchanged.
  2. I am a foreigner residing in Malaysia. Will the revision of GST to 0% affect me?
    All telecommunication charges are subjected to GST. Effective 1 June 2018, GST will be rated at 0% and this is applicable for both Malaysians and foreigners.

    For foreigners, a deposit will be collected when you sign up for a postpaid line. The deposit is not subject to GST and this remains unchanged effective 1 June 2018.
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