Goods and Services Tax

This FAQ should only be used as a general guide and does not constitute tax advice. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in information contained in this FAQ. However, Mahkota Medical Centre (“Mahkota”) is committed to providing you with general information that will assist you in understanding of GST and its impact on you.

This FAQ is subject to changes / updates from the Royal Malaysian Customs Department. You can also visit www.mahkotamedical.com from time to time to obtain the latest updates on the FAQ.

Goods and Services Tax (GST) is a multi-stage tax on consumption of goods and services. It is also known as value added tax in other countries. It shall replace the current Sales Tax and Service Tax.

GST is chargeable on all taxable supplies of goods and services in Malaysia except for those specifically exempted and not within the scope of GST. GST will be implemented from 1 April 2015.

A person who is registered under the GST Act 2014 is required to charge GST on his taxable supply of goods and services to his customers.

The GST Act 2014 requires Mahkota Medical Centre Sdn Bhd as a GST-registered company, to charge GST on its taxable supplies of goods and services.

Standard Rated Supplies are taxable supplies of goods and services which are subject to charge customers at standard rate 6%. Any input tax paid by businesses can be claimed as tax credit.

Zero Rated Supplies are taxable supplies which are subject to a zero rate (0%). The supplier does not collect any GST but is regarded as making a taxable supply and is eligible to claim GST incurred on its inputs.

Exempt Supplies are non-taxable supplies which are not subject to GST at the output stage that is, when supplied to the customers. However, the GST paid on input by the businesses cannot be claimed as tax credit.

Generally, all supplies made by GST registered person are subject to GST at 6% unless otherwise stated in the GST (Zero Rated Supply) Order 2014 or the GST (Exempt Supply) Order 2014.

Based on GST (Zero Rated Supply) Order, basic food items, the export of goods and services, as well as medicaments and medical gases included in the National Essential Medicines List (“NEML”) issued by Ministry of Health are categorised as Zero Rated Supplies.

Based on GST (Exempt Supply) Order, certain financial services, private healthcare services, private education services, domestic passenger transportation and the supply of land used for residential or agricultural purposes or general use are categorised as Exempt Supplies.

Generally, healthcare services are treated as Exempt Supplies under GST if they are supplied by the private healthcare facility registered or licensed under the Private Healthcare Facilities and Services Act 1998 (“PHFSA”).

Mahkota is registered under the PHFSA, therefore the healthcare services, in general, provided by us are exempted from GST.

Mahkota is a mixed supplier under GST as we provide Exempt Supplies, Standard Rated Supplies (6%) and Zero Rated Supplies (0%).

Consultation fees, treatment and procedure charges, drugs, medical supplies and consumables which are integral to the provision of healthcare services to patients are exempted from GST.

 

Taxable supplies made by Mahkota Zero Rated (0%) Standard Rated (6%)
All drugs listed under the NEML    
Registration fees (e.g.: Admission Fee, Visit Fee, Patient Card)    
Food & beverages sold in Cafeteria & Bakery    
Over-the-counter products and non-NEML drugs sold in Retail Pharmacy    
Accommodation and food & beverages provided to other than patient    
Rental of deck chair    
Rental of medical aids/equipment for home use (e.g.: wheelchair, oxygen tank)    
Non healthcare related services (e.g.: parking, laundry, transport services, telephone charges)    
Rental and leasing of floor space for booth, clinics, retail shop etc.    

(The above list is not exhaustive and subject to change from time to time in accordance to regulations)

If you are admitted before 1 April 2015 and will only be discharged after 1 April 2015, an invoice (“Pre-GST invoice”) will be generated on 31 March 2015 at 5pm, in order to capture all charges up to 31 March 2015 including any Service Tax payable on room charges.

The Pre-GST invoice is deemed as final bill up to 31 March 2015. Any cancellation of the Pre-GST invoice is not allowed after 1 April 2015.’

On or after 1 April 2015, when you are discharged, a tax invoice (“Post-GST tax invoice”) will be generated to include all charges incurred from after the cut off time on 31 March 2015 onwards. If GST is chargeable on any of the charges incurred thereafter, you will see the GST amount in the post-GST tax invoice.

In conclusion, you will be expecting multiple invoices for the same hospital admission.

Manual registration begins on 31 March 2015 at 9pm. Patient will be registered into the system after 12pm and charged accordingly.

If the patient is registered into the system before 9pm and is unable to complete the visit by 11pm, a Pre-GST invoice will be generated and the account will be closed.

The Pre-GST invoice is deemed as final tax invoice up to 31 March 2015. Any cancellation of the pre-GST invoice is not allowed after 1 April 2015.

If there are any additional charges after 11pm, the patient will be registered again into the system and charged accordingly. If GST is chargeable on any of the charges incurred thereafter, you will see the GST amount in the post-GST tax invoice.

In conclusion, you will be expecting multiple invoices for the same hospital visit.

If the Post-GST tax invoice involves any changes in consideration, a Credit Note (“CN”) will be issued to adjust for any decrease in consideration and a Debit Note (“DN”) will be issued for any increase in consideration.

In conclusion, you will be expecting multiple document(s) (CN or DN), in the event if there is any amendment to the Post-GST tax invoice after it has been finalised.

If the Service Tax has already been paid before 1 April 2015 for a period that extends to 1 April 2015 and beyond, GST will not be chargeable for that period

GST will only be chargeable on the tax invoice finalised on or after 1 April 2015.

Depending on your insurance coverage, you may be required to pay for GST, where GST is incurred. Please check with your insurance agent on the terms and conditions on GST for your insurance policy.

For general information about GST, you may refer to the official GST website at http://gst.customs.gov.my/

For healthcare related GST Guides, you may refer to http://gst.customs.gov.my/en/rg/Pages/rg_ig.aspx and click on “Healthcare Services”.