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NATIONAL CONFERENCE ON GST NATIONAL CONFERENCE ON GST “PREPARING FOR MALAYSIA GST “PREPARING FOR MALAYSIA GST

IMPLEMENTATION 2015”IMPLEMENTATION 2015”

WHAT BUSINESS SHOULD DO TO PREPARE FOR GST

Venue : MATRADE Convention & Exhibition Centre, K.LDate : 15 May 2014

Presenter:Teh Kheng Ean

Establishing GST committeeModification to accounting systemPreparing bills and invoicesUtilising GST PortalGST Forms

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WHAT BUSINESS SHOULD DOWHAT BUSINESS SHOULD DO

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ESTABLISHING GST COMMITTEE

To implement a GST compliant system

GSTProject Team

Develop implementation plan

Post implementation

1st phase 2nd phase 3rd phase

Implementation and execute

Key areas requiring attention

Tax regulatory

compliance

Documentation and system

Legal and transitional

issues

Education and training

Vendor and supplier

communication

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BUSINESSES’ PREPARATION

GST Implication on Prices identify existing suppliers

talk to small suppliers to get them registered

review procurement policy to avoid tax cascading

negotiate prices with suppliers to pass on savings

review sales price

pass on savings

absorption of GST

Price Control and Anti Profiteering Act 2011

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GST Implication on Stock Management monitor business stocks

procurement policy

registration and deregistration

special refund

physical stock take on hand

documents to support refund

audit certificate

BUSINESSES’ PREPARATION

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GST Implication on Cash Flow need to analyze cash flow impact

cash recover from customer before GST is due

assess the need to provide for one time fund to cater for GST payment upfront

review credit terms to customers

review requirement to apply for special schemes

BUSINESSES’ PREPARATION

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GST Implication on Bad Debts ensure a proper matching of GST payment to

government and payment received from customers monitor payment from customers understand evidence of ‘sufficient efforts’

BUSINESSES’ PREPARATION

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GST Implication on Invoicing identify whether standard rate, exempt, zero rate or

out of scope supply issuance of full and simplified tax invoice requirement not to issue tax invoice for imported

services and second hand goods under margin scheme

21 days rule self billed invoice

BUSINESSES’ PREPARATION

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GST Implication on Output Tax gifts > RM500 subject to GST commercial samples in a form not ordinarily

available for sale to the public not subject to GST deemed supply e.g, private use and disposal of

business assets subject to GST supplies to connected persons

BUSINESSES’ PREPARATION

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GST Implication on Input Tax blocked inputs not claimable

incidental financial supplies

Simplified tax invoice – claim tax amount more than RM30 to be supported by a tax invoice containing name and address of recipient

De minimis rule

BUSINESSES’ PREPARATION

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GST Implication on Contracts avoid long term contract without legal review

absorption of GST

pricing strategy to pass on savings

GST Implication on Human Resource enhance staff understanding of GST

avoid unnecessary mistakes

false information may open to audit case

review policy on employee benefits

BUSINESSES’ PREPARATION

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GST Implication on System review system and processes

perform complete mapping of transactions to identify required changes

GST liability on every transaction

use of online submissions to the Customs

computerized system

ready made software

upgrading present system

BUSINESSES’ PREPARATION

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GST -01 Name of form : Application for goods and

services tax registration. Application to be a GST

registered person Type of registration:

NormalSingle taxable personSingle entityBranch / division

GST FORMS

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GST-03 Name of form : Goods and

services tax return. Document Identification No:

generated by the system if GST-03 is submitted electronically.

Given by officer in charge if GST-03 is submitted manually.

GST FORMS

Thank Thank YouYou

Thank Thank YouYouGST UnitGST Unit

Royal Malaysian Customs DepartmentRoyal Malaysian Customs Department