250 GST Accounting Training

Proposed GST Model

What is GST?

How does GST work?

What is GST?

Consumption tax in the form of value added tax

Also known as Value Added Tax (VAT)

GST incurred on inputs is allowed as a credit to the registered person

Sales Tax & Service Tax (SST)

GST

5%, 6%, 10% & specific rate

Various threshold

Rate = 6 %

Threshold = RM500,000

To replace current tax system

Proposed GST Model Standard-rated

What is GST?

INPUT OUTPUT

Business

Raw materials

Rent

Utilities

Goods

Services

Claimed input tax

GST on inputs

= Input tax

GST on outputs

= Output tax

When your output tax is more than input tax, you are in a ____________ position.

Output Tax

Input Tax

Payable to Custom

Payable

What is GST?

When your input tax is more than output tax, you are in a ____________ position.

Output Tax

Input Tax

Refund from

Custom

Refundable

What is GST?

Type of Supply

TYPE OF SUPPLY OUTPUT TAX INPUT TAX

Taxable

Standard-rated (6%)

6% Claimable

Zero-rated 0% Claimable

Non-Taxable

Exempted No GST Charged

Not Claimable

Out of Scope

GST disregard

Not claimable

Manufacturer

Wholesaler

6%

Claim Back

GST AT 6%

Retailer

Consumer

How Does GST Work? Standard-Rated

Manufacturer

Wholesaler

0%

Claim Back

GST AT 0%

Retailer

Consumer

How Does GST Work? Standard-Rated

0% Exported Goods

& Services

First 300 units (Domestic Users)

How Does GST Work? Zero-Rated

Supplier Private hospital

NO GST

GST AT 6% NO GST

Consumer

How Does GST Work? Exempt

Rail Buses

Water transportation

Taxi/ Hired car

Highway toll

Residential property

General use/ agriculture land

Financial services Private health & education

Funeral in package

Proposed GST Model Exempt

Federal & State Government Local Authority & Statutory Body

Out of Scope All supplies by Federal & State Government

Supplies made in the regulatory and enforcement (R&E) functions e.g. Assessment rate collection, issuance

of licenses, penalty

Subject to GST Supplies that have been directed by Minister in the GST (Government Taxable Supply) Order e.g. Supply made by RTM, Prison Department

Non R&E functions i.e. Business activities e.g. Rental facilities

Proposed GST Model Out of Scope

Slide 14

Acquisitions Need to pay GST on their acquisitions Relief on selected goods

Need to pay GST on their acquisitions Relief on selected goods

Special Refund

Entitled to special refund if

claimant is registered (mandatory) person

hold goods on 1 April 2015 for making taxable

supply

goods are subject to sales tax

holds relevant invoices or import document to

show sales tax has been paid

Special Refund

Goods not eligible for special refund

capital goods e.g. building and land

goods used partially or incorporated into other goods e.g.

raw materials, work in progress

goods for hire e.g. cars, generators

goods not for business e.g. personal use

goods not for sale or exchange e.g. containers, pellets,

stationeries, moulds, manufacturing aids

goods entitled to drawback

goods allowed sales tax deduction under credit system

Special Refund

Reduce special refund to 20%

(20% method)

purchase goods from non licensed manufacturers

goods are subject to sales tax

holds invoices which does not show sales tax has

been charged

claimant is a registered (mandatory) person

hold goods on 1 April 2015 for making taxable goods

Special Refund

20% method

reduce the actual purchase price by 80% for goods held

on hand on 1 April 2015

Special refund = actual price x 20% x sales tax rate

Example:

Purchase RM15,000 of raw materials but holds RM10,000 on

1 April 2015

Special refund = RM10,000 x 20% x 10%

= RM200

Special Refund

Manner to claim special refund

claim within 6 months from 1 April 2015

for special refund < RM10,000 require audit certificate

signed by a chartered accountant

for special refund RM10,000 require audit certificate

signed by an approved company auditor

use special form to claim refund (manual or online)

to be given in 8 equal instalments over a period of 2 years

Panel Decision 2/2014

v) The value of the goods held on hand on 1/4/2015 for purposes of the special

refund can be ascertained as follows:

a) Specific identification

If the goods held on hand on 1/4/2015 can be attributed to invoice or Customs

Form No. 1, based on specific description, series, no products, brands or other

specific identification, such invoice or Customs Form No.1 shall be used.

Example:

Goods with serial number ABC123 and the related invoices are invoices issued on

3rd February 2014 as the serial number of ABC123 appeared on the invoices. The

value in such invoices can be used for the special refund.


b) First in First out (FIFO)

If the goods held on hand on 1/4/2015 can be directly associated with many

invoices due to general product description, value on the latest invoice before the

1/4/2015 shall be used.

If the quantity of goods held on hand exceeds the quantity stated in such

invoice, the value for the remaining number of goods should be based on the

quantity that can be covered in the previous invoices issued in sequence prior to

the final invoice before the 1/4/2015.


Example:

Total goods held on hand

on 1st April 2015

Related Invoice

Sales Tax Paid

Description Quantity

Date Quantity Price per

unit (RM)

Per unit (RM)

Sandal 3000 unit 1st March 2015 800 unit 2.00 0.20

15th Dec 2014 1,500 unit 1.80 0.18

1st Jun 2014 2,500 unit 1.70 0.17

The value for claiming special refund

(800 X RM0.20) + (1,500 X RM0.18) + (700 X RM0.17) = RM549

vi) The value determined as in sub (v) can only be used when payment to the supplier

has been made.

Example:

From the above example, If the latest invoice before 1st April 2015 (1st March 2015)

has not been paid by a taxable person, the value for claiming special refund will be -

(1,500 X RM0.18) + (700 X RM0.17) = RM389

Malaysia GST

Accounting Training

Malaysia GST

Accounting Training

1. Installation

1. Installation

Before installation or upgrades, always backup your existing

database.

Install AutoCount Accounting version 1.8 (32/64bit) or AutoCount

Express 1.8 (32/64bit).

A separate new program folder (Accounting 1.8) and short cut

icon will be created. Your existing folder and shortcut of version

1.3/15/1.6 will remain untouched.

For existing user who upgrades from earlier version (1.3, 1.5 or

1.6), you need to request for new license code that can be

worked on version 1.8. For education purpose, license code is

not needed.

For learning purpose, create a new account book with company

name: AutoCount GST Exercise.

AutoCount Backup Server:

.

1. Installation

Upon saving the newly created account book, the following screen

add this account book into the list of scheduled backup, click Cancel.

In order for the scheduled backup to work, you must install

AutoCount Backup Server. By default, during installation, if you have

chosen Standalone Installation OR Network Installation > Server

Installation, AutoCount Backup Server will be automatically installed.

Should it not been installed, just look for the installer (AutoCount

Backup Server Setup.exe) on the DVD and double click to install it.

1. Installation

Task Name: Assign a name for this scheduled backup task. A Task

ID will be auto generated. Server Backup Directory: The path of

backup destination. E.g. D:\AutoCount Backup\ Backup File Prefix:

Set the prefix for the name of backup file to be generated. E.g. ACSB

Apply password to your Backup File: this is to set password for

the backup file to be generated. This password will be needed when

restoring the backup file.

Backup Start Date/Time: set the date/time for the very first backup

file to commence Repeating: set if you want to repeat the backup

task.

1. Installation

Repeat Type: choose how you would like the backup task to be

repeated: Every Hour, Every Day, Every Week Day or Every Month.

Notify on failed/success: check the checkbox so that you will be

notified of the failure/success of the scheduled backup task via the

email address provided by you.

Email: key in the email address if you have chosen to be notified on

failed/success. Backup Service Port: set the backup server service

port. Usually this is auto-set. Backup Service Host: this is the host

PC where backup server is installed.

1. Installation

Save: to confirm adding the task of scheduled backup for this account

book.

Cancel: to choose not to add the task of scheduled backup for this

account book. The service will then keep prompting a reminder

message such as: Warning: Database xxx does not exist in Scheduled

Login to the newly created account book: AutoCount GST Exercise

Malaysia GST

Accounting Training

2. Activate GST Malaysia

1. General > Goods and Services Tax

Check this if most of your sales are tax inclusive

To copy GST setting from another account book

3. Set GST start month and year (it should be 04-2015 or later)

4. Set taxable period (usually 3 or 1 month)


Tools >Options > General > Goods & Services Tax

Use Goods & Services Tax: check this checkbox to activate a GST

menu on the main menu bar. GST Rate: set the GST rate to 6.00

Rename Tax to: key in GST. In some countries, it may be named VAT.

Must specify Tax Code: this checkbox if checked will make it

compulsory to assign a tax code for each of

value is allowed.

Tax Reporting Currency Code: This feature is used in Singapore

version.


Enable Tax Document Number Management: This feature is used in

other countries where the government controls the tax document

numbers.

Allow Different Tax Currency Rate: This is used in Singapore version.

Use Inclusive GST for all Sales documents: Check this if most of your

sales pricing are inclusive of GST. You may, however, change the

Inclusive to become Exclusive (or vice versa) during transaction entry.


GST Setting From Other Account Book: this is used to import settings

from another account book. Items can be imported are: customized

reports, GL accounts (including account type, journal type and currency,

default tax code.

GST Start Date: the earliest start date (month) will be the effective date

of GST in Malaysia i.e. 04-2015. In actual case, your start date will

depend on your registration date. Just follow the instructions as shown

on your registration approval letter.


GST Taxable Period (months): In most cases, taxable period will be 3

(months). Some companies (e.g. whose annual turnover is > 5 million)

may have monthly taxable period. However the taxable period will be

assigned by Royal Malaysian Customs Department (RMCD) upon your

registration as GST company. Just follow the instructions as shown on

your registration approval letter.

For learning purpose, use current month as GST Start Date, and set

taxable period to 1 (month).

How to implement GST setting for existing AutoCount Accounting

users? The

and use of GST features before effective date. You may make the GST

setting in advance and have a try run.

Create a backup file for existing account book (e.g. Account Book 1)

Restore the backup file onto a new account book (e.g. Account Book 2).

Perform GST setting in this account book. Including update/insert GL

Accounts, assign MSIC Codes, GST Code Maintenance, set


users? The

default Tax Code by Debtors/Creditors/Stock Items, Customize

cycle of GST processes.

When getting close to the effective date, logon to your real account book

(Account Book 1), go to Tools > Options > General > Goods & Services

Tax, click on GST Setting From Other Account Book.

1. define the Server name and Database to be copied from.

any customized reports.

3. select contents to be copied..

4. Click to start copy.


users? The

Define the Server Name, select the Database to copy from (in this case

it means Account Book 2), select the options to be copied. Click Copy.

Now your account book is equipped with GST settings, you may perform

entries/transaction records involved GST.

Malaysia GST

Accounting Training

3. Update Company Profile


General Maintenance > Company Profile Key in the Tax/GST Registration No

Key in GST ID and Self-Billed Approval No (if any)


Click on the tab of Logo & Report Header Click on Set Default Report Header

1. Click this tab

2. Click to set the default report header

3. You may rearrange the layout and change the font type/size/color.

Malaysia GST

Accounting Training

4. Tax Code Maintenance

GST Tax Code - Purchase

Tax Code Tax Rate Description

TX 6% Purchases with GST incurred at 6% and directly attributable to taxable

supplies.

IM 6% Import of goods with GST incurred

IS 0% Imports under special scheme with no GST incurred (e.g. Approved Trader

Scheme, ATMS Scheme).

BL 6 % Purchases with GST incurred but not claimable (Disallowance of Input Tax)

(e.g. Medical expenses for staff).

NR 0% Purchase from non GST-registered supplier with no GST incurred.

GST Tax Code - Purchase

Tax Code Tax Rate Description

ZP 0% Purchase from GST-registered supplier with no GST incurred. (e.g. supplier

provides transportation of goods that qualify as international services).

EP 0% Purchases exempted from GST. E.g. purchase of residential property or

financial services.

OP 0% Purchase transactions which is out of the scope of GST legislation (e.g.

purchase of goods overseas).

TXE43

6% Purchase with GST incurred directly attributable to incidental exempt

supplies.

Documents

250 GST Accounting Training