GST Malaysia: Are you ready for GST?
What is GST?
GST is a tax on consumption, not production. It is an indirect tax charged on imports and on the value added goods and services by one business to another or to the end consumer.
The Malaysian Government announced in the 2014 Budget that Goods & Services Tax (”GST”) will be implemented in Malaysia by 1 April 2015.
WHY and HOW do you prepare yourself for GST?
GST will replace the current Sales and Services Tax but not the Income Tax or Customs Import Duty or Excise Duty.
Your business will not only pay for the sale of goods or services but also be able to claim for the consumption of the goods and services if you are registered for GST.
If your business earns revenue more than RM500,000 per annum, it is compulsory to register for GST. This does not only apply to companies but enterprises and individuals. For instance, if you as an individual own commercial properties and the income from the commercial properties exceeds RM500,000, you will need to register for GST. You can register on voluntary basis if your revenue is less than RM500,000.
WHY register for GST?
(1) Compulsory to register if you have revenue > rm500k a year – a fine and jail term if you are not registered.
(2) Claim back the GST paid on your goods and services purchased
(3) Good impression to your customers – business perceive to have large scale
WHY prepare for GST?
(1) GST will affect your business cash flow
(2) GST will affect your pricing of your products
(3) GST will affect how you deal with your suppliers and customers
(4) GST will affect your entertainment with clients
(5) Submit GST return on monthly or quarterly basis
(6) Sales tax refund for goods purchased before 1 April 2015
(7) Fine and jail term if do not submit or wrongly submit GST return
(8) Accounts will have to be up to date or prepared monthly
(9) You need to purchase software that is GST compliant (software must be approved by customs)
HOW to prepare for GST?
(1) Attend GST introductory course to understand how GST affects your business, pricing of products, cash flow and additional resources required
(2) All your marketing, sales, production, accounting, legal and all other departments in the value chain will need to understand the impact of GST
(3) Perform full stock take from 1 April 2015 for sales tax refund
(4) Need to understand the GST treatment for each transaction of your business
(5) Accountants will need to understand the 23 GST tax codes
(6) Purchase a GST compliant software (example SQL)
(7) You may want to outsource your accounting function to a qualified accountant or accounting firm.
How can we HELP?
(1) We provide GST introductory seminars for public courses or customized course for your business
(2) We also provide seminars to understand the 23 GST tax codes and how to implement GST
– as of to date we have successfully performed courses to more than 200 clients.
(3) We can help you install GST compliant software (such as SQL)
– given our accounting background, we don’t only help you install GST software but also have the GST knowledge
(4) We provide GST and accounting outsourcing services to ensure you submit your GST tax return on time and accurately
(5) GST HELPLINE services – for a monthly fee, we provide GST helpline consultation services.