Malaysia GST - Myth - GST will burden Consumers

GST will BURDEN Consumers?

#GST13

Are you one of them, who still think that GST will actually burden you once it is implemented? Is it really burden or not?

In this blog, I will try to provide you some information and you may have a second view about it.

Personally I think GST will ease consumers instead if you were to look at it in bigger perspective. For example, all our basic needs like rice, meats etc are either treated as Exempt Supply or Zero Rated supply. I will do a further research on this and will include an extensive list of all the exempt, 0% rated, Standard Rated supply items for your reference in my coming blog.

I got a more details answer from RMC website to answer to the above question. Please visit to their website for more Q&A.

Malaysia GST - Inclusive or Exclusive of GST in the Price Tag

S9(5) of GST ACT

#GST12

According to S9(5) of GST Act, where any registered person displays, advertises, publishes or quotes in any manner the price of any supply of goods or services he makes or intends to make, such price shall include the tax that is chargeable on the supply unless the Director General approves under S9(7) of GST Act.

So what is the element of GST if the price tag is shown as RM1,000.00. 

[Formula for GST: 6/106 * Price shown in the Price Tag ]

The GST amount is:

6/106 * 1000 = RM56.60

Your business income is 943.40 (RM1000 - 56.60) or 100/106 * Price Tag

[Formula for Business Income: 100/106 * Price shown in the Price Tag]

For a FREE TRIAL ACCESS to SAP Business One Cloud

CUKAI BARANG DAN PERKHIDMATAN (lebih dikenali sebagai GST)

Malaysia GST - Do you want to do business with NON REGISTERED GST person?

REGISTERED vs NON REGISTERED GST BUSINESSES

#GST11

Ask yourself now, if you are a GST Registered Company, do you prefer to do businesses with a non GST registered Company or better with GST one?

If your answer is NO, do you have the same answers like me:

I will not do businesses with them because:

1) If a purchase is made from a NON-GST company, they will not issue TAX INVOICE to me therefore I as a Company cannot claim INPUT TAX with RMC. My costs will be higher if that is the case.
2) Immediately comes to my mind, if you are not a registered Company then I will know that your annual turnover is below RM500,000.00. The impression is not good from the beginning, you are a small companies or you may have other opinions on this.

So what now, do you want to register with RMC?

Don't rush, please consider the following points as well?

1) Do you want to go through the hassle for all the quarterly administration work where you need to submit your GST_03 form to RMC?
2) Do you want to spend money to upgrade your existing accounting system?
3) Additional costs to spend on new stationery maybe. I am referring to those who needs to send to printer to print pre-printed forms.
4) Do you sell exempt supply? If yes, then do not waste time on it as you will not be able to claim in any case.

For a FREE TRIAL ACCESS to SAP Business One Cloud

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

Contact me:

Kon Wai Cheong

SAP Senior Project Manager
Mobile: 012-6989356

sap.wckon@gmail.com

For a FREE TRIAL ACCESS to SAP Business One Cloud

CUKAI BARANG DAN PERKHIDMATAN (lebih dikenali sebagai GST)

Malaysia GST - What is GST?

WHAT IS GST?

#GST10

General Information

Good and Services Tax or well known as GST will replace the current Sales Tax & Service Tax (SST)

Sales and Service Tax will be abolished from 1 April 2015.

GST is charged on goods and services that are:

• Supplied in Malaysia
• Imports

It is also known as Value Added Tax (VAT)

GST is a consumption tax. Simply means that the consumers will be the one who bears all the tax. All the taxes will be passed on to the consumers. Let me stop here for now. I will find opportunity to explain this again in my next blog.

GST will take effect from 1 April 2015.

One has to register with Royal Malaysian Custom (RMC) if one taxable annual turnover is more than RM500,000.00 by 31 December 2014. The registration has begun since 1 June 2014.
Note: If you are selling exempt supplies and more than RM500,000.00 turnover, you do not have to register. Kindly confirm this with your tax accountant on this. Please let me know if my understanding is wrong.

The annual sales turnover can be determined based on either:

• The total value of taxable supplies of the current month and the previous 11 months, or
• The total value of taxable supplies of the current month and the next 11 months.

Late registration with RMC are subject to penalty and it will compute based on number of days late. Try to avoid paying any penalty by making sure that you registered before the deadline. The maximum amount of penalty charges will be Ringgit Malaysia 20,000.00


For a FREE TRIAL ACCESS to SAP Business One Cloud

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

For a FREE TRIAL ACCESS to SAP Business One Cloud

CUKAI BARANG DAN PERKHIDMATAN (lebih dikenali sebagai GST)

Malaysia GST - SAP Business One on Cloud - Simplified Tax Invoice

AR TAX INVOICE (Simplified Tax Invoice)

#GST9

Attached herewith a sample AR TAX INVOICE (Simplified) created in SAP Business One Cloud by the AGS team. (Note: This is a customized form found in our standard SBOC system). 

Company do not need to issue Full Tax Invoice (with more details like address etc) if the transaction amount not more than Ringgit Malaysia 30.00.

For a FREE TRIAL ACCESS to SAP Business One Cloud

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

For a FREE TRIAL ACCESS to SAP Business One Cloud

CUKAI BARANG DAN PERKHIDMATAN (lebih dikenali sebagai GST)

Malaysia GST - SAP Business One on Cloud - AP Tax Invoice

AP TAX INVOICE

#GST8

Attached herewith a sample AP TAX INVOICE created in SAP Business One Cloud by the AGS team. (Note: This is a customized form found in our standard SBOC system).

For a FREE TRIAL ACCESS to SAP Business One Cloud

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

For a FREE TRIAL ACCESS to SAP Business One Cloud

CUKAI BARANG DAN PERKHIDMATAN (lebih dikenali sebagai GST)

Malaysia GST - SAP Business One on Cloud - AR Tax Invoice

AR TAX INVOICE

#GST7

Attached herewith a sample AR TAX INVOICE created in SAP Business One Cloud by the AGS team. (Note: This is a customized form found in our standard SBOC system).

For a FREE TRIAL ACCESS to SAP Business One Cloud

Sample tax invoice: Line by line

GST amount in your tax invoice can be shown either:
1) Line by line item - meaning every single item will show its tax code and the GST amount; or
2) Lump sum - meaning you will only show the GST amount at the bottom row or line item.

Tax Invoice will be issued within 21 days from the date of delivery of goods. Failure to issue within 21 days, RMC will deem that the invoice has been issued on the date of delivery.

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

For a FREE TRIAL ACCESS to SAP Business One Cloud

CUKAI BARANG DAN PERKHIDMATAN (lebih dikenali sebagai GST)