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:
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.
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