Malaysia GST - New Requirement - Mandatory POS System to Issue Tax Invoice with effective from 1 October 2015

#GST25  New Requirement - POS System to Issue Tax Invoice 

If you are running any of the businesses below, you need to be aware that starting 1 October 2015 all Tax Invoices must be generated from a Point of Sales System or Cash Register Machine.

The announcement came from RMCD - GST (Royal Malaysia Custom Department) website.

The use of Point of Sale System or Cash Register machine for issuing tax invoice is mandatory for the following categories of business (Retailers).

1. Hardware Store
2. Restaurant including coffee house
3. Mini market and grocery store
4. Book Store
5. Pharmacy
6. Entertainment Center

Other than the categories mentioned above, such businesses may issue computer generated or pre-printed tax invoices.

Malaysia GST: How to File Your GST 03 Form?

How to File Your GST 03 Form?

#GST 24

All GST registered Companies have to file their GST03 form to the Custom based on the time frame below.

source from: http://gst.customs.gov.my/en/ib/Pages/ib_ftr.aspx

Basically there are 2 ways to file the forms:

1) Online: Go to TAP (https://gst.customs.gov.my/TAP/_/) and login using the Company ID

2) Offline: Manually submit the GST 03 Form to the Custom before the deadline

Malaysia GST - How do you know if a Company is GST Registered?

#GST23

How to check whether the Companies you are dealing are GST registered?

Here are the steps to check:
1) Login to http://gst.customs.gov.my/front.html

2) Click on TAP

3) Under Search - Lookup GST Status

4) Type in the Company Name you are finding at the Business Name field.


5) Then the result will display the GST ID of the Company, Commencement Date and the Status

Malaysia GST - Blocked Input Tax

There are goods and service or importation of goods may be denied to claim their credit.(S38(12) GST Act).

It is further guided based on Regulation to prescribe on the items that are excluded:

1) The supply to or importation by him of a passenger motor car;

2) The supply of goods or services relating to repair, maintenance and

3) Refurbishment of a passenger motor car;Passenger Motor Car

4) Club Subscription Fee

5) The hiring of passenger motor car

6) Any Payment or contribution towards any insurance contracts or takaful certificates

7) Any medical expenses incurred in connection with the provision of all forms
of medical treatment to any person employed by a taxable person

8) Any Family Benefits

9) Entertainment Expenses

- for further guidance on the insurance, please refer to the regulation

Malaysia GST - Retailer Gifts

Gifts

#GST22

6 Promotion Items:

i)   Discounts 

ii)  Samples

iii) Purchase with Purchase

iv) Tie-In Goods

v)  Gifts

vi) Monetary Vouchers


It is common business practice that the Retailers give gifts to its employees or business associates during special season like Deepavali, Hari Raya, Chinese New Year etc.

This is the rule whether you need to account for GST:

1) <= RM 500 per person per year 

If the gift amount is given to a person for less than RM500.00 then there will be NO GST

2) >RM 500 per person per year then 6% GST will apply

For both the situations above, retailers are entitle to claim their INPUT TAX.

Note:

No GST has to be charged if the gift is in the form of services (not a supply).

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Hope it will help in your implementation and a have a smooth transition on 1 April 2015. 

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Malaysia GST - Retailer Tie-In Goods

Tie-In Good

#GST21

6 Promotion Items:

i)   Discounts 

ii)  Samples

iii) Purchase with Purchase

iv) Tie-In Goods

v)  Gifts

vi) Monetary Vouchers

Beli nasi lemak (RM5.00) dapat air minuman percuma

Note: nasi lemak is principal goods and air minuman (drink) is tie-in goods 

atau

Beli berus gigi (RM8.00) dapat ubat gigi 

Note: berus gigi is principal goods and ubat gigi is tie-in goods

How do you account your GST?

2 scenarios can take place:

Scenario 1: If both tie-in goods and the principal goods are standard rate (6%)

Price (inclusive of GST) of Principal Goods Item = RM100

6% of GST                                                              = RM100 X 6/106

Scenario 2: 

If the ‘tie-in goods’ is standard-rated and the principal goods is zero-rated. 

Principal goods is Zero Rated e.g. rice = RM30.00

Note: Tie-in goods is Standard Rate

GST                                                       = RM0.00 *

* Since the principal good is a zero rated supply, GST is not chargeable on the supply.

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CUKAI BARANG DAN PERKHIDMATAN (lebih dikenali sebagai GST)

Malaysia GST - Retailer Purchase with Purchase

Purchase with Purchase

#GST20

6 Promotion Items:

i)   Discounts 

ii)  Samples

iii) Purchase with Purchase

iv) Tie-In Goods

v)  Gifts

vi) Monetary Vouchers

Do you like shopping? If yes, then this piece of information is meant for you. 

If you purchase a Polo Shirt of ABC Brand for an amount of RM100, the retailer will offer you to purchase a second item at a special price say RM50.00 (normal price is RM70 if you buy the first piece). What do you think, do you need to pay GST or Not for the second purchase? If yes, how much?

Note: GST charged on second purchase based on Net Price.

Answer:

First Polo = RM100 X 6/106

Second Purchase = 50 X 6/106

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Hope it will help in your implementation and a have a smooth transition on 1 April 2015. 

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CUKAI BARANG DAN PERKHIDMATAN (lebih dikenali sebagai GST)