GST and private doctors

The dateline for GST registration for companies expired in December 2014. Come 1 April, GST is to be launched. For the healthcare sector there is confusion not least because of the complicated way it is being implemented and changing goal posts in the interpretation. For specialists working in the private sector providing solely medical consulting, it was originally deemed as GST exempt, then late in 2014, Customs re-interpreted it as an “outsourced service” to the private hospital and made it a GST chargeable service.

For private GPs, many thought that they did not have to register until Customs begun circulating this letter to clinics which has caused some confusion:

GST Letter

The letter basically says the GP has not yet registered with Customs, and demands a reply by Feb 25th with proof that the GP concerned does not need to register. So now the onus is on the doctor and the letter ends with a threat of an RM30,000 fine or jail sentence of 2 years or both.

So GPs do you have to register?
It depends on what type of practice you have and does not matter if you are a sole proprietor or Sdn Bhd. If your practice is solely as a healthcare provider in a PHFSA setting  providing GST exempt services, our understanding is you don’t have to, no matter what your annual turnover is. If however your practice provides GST applicable goods and services (non-exempt drug sales may come under this category) above RM500K turnover a year, then our understanding is you have to register.
For more clarification, the Dobbs forum has a recap in the thread on GST is no cup of tea on what constitutes GST exempt healthcare services. (Malaysian doctors who are not members of the Dobbs forum are invited to join for free)

How to register with Dobbs

Registration in Dobbs is free for all Malaysian doctors.

1) Automatic sign-up*
2) After signing, up, Login
3) Submit verification details
*Please note that you will be sent an activation email after you sign up. Please click on the link in the email to activate your account otherwise you cannot log in. In case you don’t receive the activation email in 1-2 minutes, please check your bulk or spam email folder. If you still have problems please contact support
Dobbs on Facebook
If you are on Facebook, you can also ask to join our closed Facebook group exclusively for Malaysian doctors. Please look out for a message in your Facebook Inbox (including the Other section) as you may be required to provide your MMC number.
The shortcut to the Dobbs Facebook group is
Related postings on GST

Malaysian physician, haematologist, blogger, web and tech enthusiast