SST Compliance & Advisory
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| Our services of GST function including:
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| SST accounting
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| SST review - checking on the correctness of SST-01 return
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| SST advisory on certain contemporary issues
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| GST closure audit
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| SST audit review to "better prepare for custom SST Tax Audit" as follows:
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GST is repealed on September 1, 2018
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GST is implemented in Malaysia on 1 April 2015. GST is a form of value added tax ("VAT") in Malaysia, which is levied on the consumption of goods and services and upon importation of goods. Moreover, GST is not a cost to a GST registered business which they are entitled to claim for input tax credit ("ITC") except for blocked input tax. However, GST is mainly tax on the consumer/end user upon consumption of goods and services.
The scopes of GST are:
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| Tax on any supply of goods and services
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| Made in the course of business
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| Made by a taxable person, in which
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| Consumed or used in Malaysia
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| And upon importation of goods into Malaysia
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Who is liable to be register?
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| A registered person for businesses that have their annual turnover exceeding RM500,000 is compulsory to register under the GST Act 2014.
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When to report GST-03 return?
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- Annual turnover more than RM5 million – monthly submission
- Annual turnover not exceeding RM5 million – quarterly submission
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General concepts:
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| GST output tax arise when you issue sales invoices and charged 6% GST. GST input tax is those of purchase invoices received from suppliers with 6% GST from a registered person. Registered person should charge and claim GST based on invoice basis. Time of supply is the earlier of payment received or issue invoices.
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| Input tax credit mechanism
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Exception is the block input tax:
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- Purchase and rental of passenger motor vehicles (including costs of repairs)
- Club subscription fee
- Medical and personal accident insurance premium
- Medical expenses
- Family benefits
- Entertainment other than to existing clients and staff
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According to GST Act 2014, a valid tax invoice shall contain the following particular:
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- The words “tax invoice” in a prominent place
- Serial tax invoice number
- Date of issuance of invoice
- Name, address and GST identification number of supplier
- Name and address of the person to whom the goods or services are supplied
- A description sufficient to identify the goods or services supplied
- For each description, distinguish the type of supply for zero rate, standard rate and exempt
- For each description, the quantity of goods or to the extent of the services and the amount payable, excluding tax
- Any discount offered
- The total amount payable excluding tax, the rate of tax and the total tax chargeable shown as a separate amount.
- The total amount payable including the total tax chargeable
- Any amount expressed in a foreign currency other than Ringgit Malaysia (“RM”) should be retranslated to express in RM.
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Penalty - Failure/
Late payment of GST
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| In accordance with the amendments made to Section 41 of GST Act 2014, with effective from 1/1/2016, penalty will be imposed for failure to pay GST within the period specified. Imposition of penalties will start for the taxable period for which tax payments are due & payable on 31/1/2016. The penalty rate will increase according to number of days due & not paid.
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| Due within 1 to 30 days
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| 5% penalty
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| Due within 31 to 60 days
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| 15% penalty
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| Due within 61 to 90 days
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| 25% penalty
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| Due more than 90 days
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| 25% (maximum)
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| The rate of penalty are imposed on the original amount of tax due and payable. It shall begin after the due date.
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