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SST Compliance & Advisory [消售与服费税]

Our services of GST function including:
  • SST accounting
  • SST review - checking on the correctness of SST-01 return
  • SST advisory on certain contemporary issues
  • GST closure audit
  • SST audit review to "better prepare for custom SST Tax Audit" as follows:

         




 

 
GST is repealed on September 1, 2018

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:
  • Tax on any supply of goods and services
  • Made in the course of business
  • Made by a taxable person, in which
  • Consumed or used  in Malaysia
  • And upon importation of goods into Malaysia
 
Who is liable to be register?
A registered person for businesses that have their annual turnover exceeding RM500,000 is compulsory to register under the GST Act 2014.
 
When to report GST-03 return?
  • Annual turnover more than RM5 million – monthly submission
  • Annual turnover not exceeding RM5 million – quarterly submission
 
General concepts:
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.
 
Input tax credit mechanism
  • A registered person is entitled to claim input tax credit when he hold a valid tax invoice under the name of the GST registered person/entity, within 6 years from the date of supply.
  • Exception is the block input tax: 
 
  • 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
 
According to GST Act 2014, a valid tax invoice shall contain the following particular:
  • 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. 

Penalty - Failure / Late payment of GST

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.

There are as follows:
- Due within 1 to 30 days   : 5% penalty
- Due within 31 to 60 days : 15% penalty
- Due within 61 to 90 days : 25% penalty
- Due more than 90 days   : 25% (maximum)

The rate of penalty are imposed on the original amount of tax due and payable. It shall begin after the due date.

Latest amendments
The minimum penalty is 10% for the first 30 days, an additional 15% for the second 30 days and an additional 15% for the third 30 days. The maximum of 40% will be imposed after the 90th day.
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GOODS AND SERVICES TAX (AMENDMENT) REGULATIONS 2017 – AMENDMENT OF FIFTH SCHEDULE IN RELATION TO FORM GST-03
Please be informed that, with effect from 1 January 2018, details in item 15 of GST-03 return will be amended from "Total Value of GST Suspended under Item 14" to "Total Value of Other Supplies". Other supplies in this item refer to ALL SUPPLIES OTHER THAN SUPPLIES DECLARED IN ITEM 5, 10, 11, 12, 13, 14, 16, 17, 18 in the GST-03 return. Other supplies also include disregarded supplies and out of scope supplies. Details of other supplies will be updated in the Accounting Software Guide.
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Description View in PDF
Goods and Services Tax Act 2014 View
Finance Bill 2015 View
GST Guide on Amendment Return (GST-03) View
Guide on Payment of Tax View
Guide on Furnishing of Returns View
Guide on Tax Invoice and Records Keeping View