Goods purchased under ATS scheme

What is Approved Trader Scheme

Basically, all exports are zero-rated, meaning exporters do not collect output tax on their supplies. All major re-exporters will have positive input tax refund as they do not have collection or have only minimum collection of output tax to help them offset against the GST paid on their imports. This would create a cash flow problem for them because they would have to pay GST upfront. Hence, a suspended GST under the Approved Trader Scheme (ATS) was introduced to alleviate the cash flow problem faced by importers who mainly re-export their supplies.

Performing ATS transaction using EMP

• Transactions involved are Good Received Note, Manual Supplier Invoice, Supplier Credit Note, Purchase Return, Supplier Debit Note.
• During the transaction, user need to chose IS tax code as specified by Royal Customs of Malaysia.
• Tax Rate for IS is 0%

Effect on GST-03 Return form

• Total amount of the transaction will contribute to number 14 (Total Value of Goods Imported under Approved Trader Scheme)
• 6% of the total amount will contribute to number 15 (Total Value of GST Suspended under item 14)