salient features of gst matta date :28 april 2014 place: vivatel hotel time: 2.30pm- 4.30 pm sakenah...

SALIENT FEATURESOF GSTMATTA

Date :28 April 2014 Place: Vivatel Hotel Time: 2.30pm- 4.30 pm

SAKENAH BEGUM BT. MD. NAZIR

1

Agenda

2

BASIC ELEMENTS OF GST

WHY GST?

WHAT IS GST?

PROPOSED GST MODEL

REGISTRATION FOR GST

2

1

3

5

4

Why GST?

1

3

4

WHY GST?

Indirect Tax

Customs DutyExcise Duty

SALES TAX SERVICE TAX

Direct Tax

Corporate TaxIndividual Income

TaxReal Property Gain

TaxStamp Duty

5

• chargeable on certain goods:- importation- manufactured in Malaysia

• since 1972

• rate 5% 10% 20% specific

WHAT IS SALES TAX?

6

Manufacturer Wholesaler Retailer Consumer

Government collects tax

at the manufacturer’s

level only

HOW SALES TAX WORKS

Element of sales tax embedded in

the price paid by consumer

7

EXAMPLES OF SALES TAX GOODS

5%

8

10%

EXAMPLES OF SALES TAX GOODS

9

• chargeable on prescribed goods and services

• implemented since 1975

• rate 6% specific

WHAT IS SERVICE TAX?

10

HOW SERVICE TAX WORKS

Service provider

Businesses

Consumer

Tax rate = 6%


when service provided to businesses


when service provided to consumer

Consumer knows he is paying service tax

11

Security Services

Parking Lots

Restaurant

Professional Services

Car Service Centres

6%

Hotel

EXAMPLES OF TAXED SERVICES

• Part of the government’s tax reform programme to enhance the efficiency and effectiveness of the taxation system inherent weaknesses in the current sales tax

and service tax cascading effect & double taxation compounding/pyramiding effect tax embedded in goods exported transfer pricing

Government is too dependent on income tax and petroleum revenue

WHY GST?

12

13

• A more stable source of revenue compared to income tax

less susceptible to economic downturn due to the consumption nature of the tax

• GST is a more efficient and effective tax systemself policing in-build cross checking featuresenhance tax compliance less bureaucracy

• Hidden/shadow sectors/industries may be encouraged to be in the GST system

businesses able to claim back input tax

WHY GST?

OCEANIANo. of countries = 7Highest tax rate = 15%Lowest tax rate = 5%

ASIANo. of countries = 19Highest tax rate = 20%Lowest tax rate = 3%

ASEANNo. of countries = 7Highest tax rate = 12%Lowest tax rate = 7%

AFRICANo. of countries = 44Highest tax rate = 20%Lowest tax rate = 5%

EUROPENo. of countries = 53Highest tax rate = 27%Lowest tax rate = 5%

SOUTH AMERICANo. of countries = 11Highest tax rate = 22%Lowest tax rate = 10%

CARIBBEAN, CENTRAL & NORTH AMERICA

No. of countries = 19Highest tax rate = 17.5%Lowest tax rate = 5%

160 countries implementing GST/VAT

What is GST?

2

15

What is GST?

• Also known as Value Added Tax (VAT)

• Implemented by 160 countries

• Broad based and multistage consumption tax to replace sales tax and service tax

• A consumption tax in the form of value added tax

• GST incurred on inputs is allowed as a credit to the registrant – offset against output tax

• Imposed on goods and services at every stage of the production and distribution chain

17

Business

GOODS or

SERVICES

INPUT OUTPUT

GST on inputs

= Input taxoutput tax - input tax

GST on outputs

= Output tax17

Raw materialsGoods, machines etcServices (rental telephone and insurance)

Utilities (electricity and water)

What is GST?

TYPES OF SUPPLY

OUTPUT TAX INPUT TAX

Standard rated 6% Claimable

Zero rated 0% Claimable

Exempt No GST charged Non claimable

18

What is GST?

19

GST AT 6%


Consumer pays 6%GST only

Manufacturer claims back

GST

How GST Works? Standard - rated

Wholesaler claims back

GST

Retailer claims back

GST

20

VALUE ADDED

ACTIVITY


How GST Works? Standard - rated

Delivery or

Supply Chain

Purchase cost : RM100GST* 6%Purchase Price : RM106*Note : claim input tax

Selling price : RM125GST* 6% : RM7.50Total selling price: RM132.50

Added value : RM25(Add GST : RM1.50)

21

GST AT 0%


Consumer does not pay

any GST

Manufacturer claims back

GST

How GST Works? Zero - rated

Wholesaler claims back

GST

Retailer claims back

GST

22

VALUE ADDED

ACTIVITY


How GST Works? Zero - rated

Delivery or

Supply Chain


Selling price : RM125GST* 0% : RM0Total selling price: RM125

Added value : RM25

23

GST 6%

Private hospital cannot claim GST on

inputs

NO GST

Medical supplier Private hospital Consumer

How GST works? – Exempted

Private Hospital does not charge

GST – consumer does not pay any GST

Supplier claims tax paid on inputs

24

VALUE ADDED

ACTIVITY


How GST Works? Exempted

Delivery or

Supply Chain


Selling price : RM131GST* : RM0Total selling price: RM131

Added value : RM25

Proposed GST model

3

25

26

Sales Tax & Service Tax (SST)

Goods and Services Tax (GST)

5%, 6%, 10% & specific rateVarious threshold

Rate = 6 %Threshold > RM500,000

• To replace current tax system

• GST is charged on goods and services that are supplied in Malaysia

Imported into Malaysia

Proposed GST model

27

200 UNITS A MONTH

0%

WATER SUPPLY TO DOMESTIC USERS

EXPORTED GOODS AND SERVICES

Proposed GST model – Zero rated supply

28

RAIL TRANSPORTATION :KTM, ERL, LRT, Monorail

BUS TRANSPORTATION

-school, express, stage

TAXIS

RESIDENTIAL HOUSES LAND FOR PUBLIC USEFINANCIAL SERVICES

HEALTH AND EDUCATION SERVICES

TOLLS

GSTXWATER TRANSPORTATION

-ships, ferries and boats

Proposed GST model – Exempt supply

29

Standard Rate

6%

Proposed GST model – standard rated supply

30

Proposed GST model – Supply by Government

Out of Scope

All supplies by Federal & State government

Supplies made in the regulatory and enforcement (R&E) functions

eg. Assessment rate collection, issuance of licenses, penalty

Subject to GST

Supplies that have been directed by Minister in the GST (Government Taxable

Supply) Order

eg. Supply made by RTM, Prison Department

Non R&E functions

ie. Business activities for example rental facilities and etc.

AcquisitionsNeed to pay GST on their acquisitions of services

Relief on all goods

Need to pay GST on their acquisitions

Relief on selected goods

Federal & State Government

Local Authority & Statutory Body

Basic Elements of GST

4

31

32

Basic Elements of GSTScope and Charge• GST is charged on

the taxable supply of goods and services

made by a taxable person in the course or furtherance of

business made in Malaysia

• GST is charged on imported goods

33

Basic Elements of GSTScope of tax

Supply Importation

Taxable supply

Taxable person

For the purpose of business

Made in Malaysia

Not Subject to

GST

Subject to GST

N0 Yes

34

GST Bill

defines a supply as “all forms of supply” includes imported services done for a “consideration” anything which is not a supply of goods is

a supply of services does not include money

SUPPLY

35

Sales Tax Act 1972

sale, usage or disposal of taxable goods

SUPPLY

Service Tax Act 1975

provision of taxable service

36

General meaning

to furnish, serve or provide somethingGenerally, a transaction is a supply if : someone does something or agrees to do something in

return for a consideration and involves a supplier and a receiver

Examples: selling something hiring or renting something doing something for some one else (a service)

SUPPLY

37

Includes zero rated and standard rated supplyGST charged on

Taxable supplies – sales of goods and provision of services

Deemed taxable supplies – disposal and private use of business assets, imported services, goods supplied by overseas supplier via agents eg. contract or toll manufacturers (drop shipment) and gifts costing more than RM500

TAXABLE SUPPLY

38

Supplies not subject to GST

cash donation or grants where a person does not get benefits

compensation or liquidated damages disbursements, dividends, loan repayments or

capital injection transfer of business as a going concern contribution to pension, provident or social

security fund


39


Supply Importation

Taxable supply

Taxable person


Made in Malaysia

Not Subject to

GST

Subject to GST

No Yes

40

Meaning of person

Includes natural and juridical persons for example individual, corporation, Federal Government, State Government, statutory body, local authority, society, trade union, co-operative society, trust, partnership and any other body, organization, association or group of persons, whether corporate or unincorporated

Meaning of taxable person A person who is or is required to be registered for

GST

TAXABLE PERSON

41


Supply Importation

Taxable supply

Taxable person


Made in Malaysia

Not Subject to

GST

Subject to GST

NoYes

42

Meaning of business

no specific meaning but it is wide Includes any trade, commerce,

profession, vocation or any other similar activity whether or not for a pecuniary profit

BUSINESS

43

Business test

Is the activity a serious undertaking or work earnestly pursued?

Is the activity actively pursued with reasonable or recognizable continuity?

Is the activity conducted in a regular manner and on sound and recognized business principles (business like nature)?

Is the activity concerned with the making of supplies for a consideration?

Is the activity concerned with the making of supplies of a kind commonly made by commercial organizations?

BUSINESS

44


Supply Importation

Taxable supply

Taxable person


Made in Malaysia

Not Subject to

GST

Subject to GST

No Yes

45


Rules for supply of goods:Goods treated as supplied in Malaysia

removal from a place in Malaysia to another place in Malaysia (local supply)

removal from a place in Malaysia to a place outside Malaysia (export)

B

A

CMalaysia O

Place of supply To determine whether a supply is made in Malaysia or not different rules for supply of goods and supply of services

46

Place of supply of goodsGoods treated as supplied outside Malaysia

removal from a place outside Malaysia to a place inside Malaysia (import)

removal from a place outside Malaysia to another place outside Malaysia (out of scope)

A

C

Malaysia

O

B

47

Place of supply of services

RULES FOR SUPPLY OF SERVICES

No. SERVICES TREATED AS SUPPLIED

SUPPLIER BELONGS ?

1. Malaysia Malaysia

2. Another country Outside Malaysia

48

Place of supply of servicesSUPPLIER OF SERVICES BELONGS ?

MALAYSIA OTHER COUNTRY

Business / Fixed Establishment

YES NO Supplier belongs in Malaysia

Usual place of residence

YES NO Supplier belongs in Malaysia

Business / Fixed Establishment

YES YES Supplier belongs in Malaysia if the supply of the business is most directly concerned with Malaysia

49

Place of supply of servicesBusiness establishment

Head office or principal place of businessFixed establishment

A branch or agency through which business is carried out

Usual place of residence For body corporate, the place of incorporation or

legally constituted (registered office) For unincorporated body, the place where centre of

administration is located For individual, where he sets up home with family

and is in full time employment

50

Time of Supply

Time of supply

• To determine when tax is due and payable on a supply

Supply of goods or services

• General time of supply rules Basic tax point

Goods removed or made available

Services performed

Actual tax point Tax invoice issued or payment received before basic tax

point

21 days rule

51

Time of payment

Tax invoice issued

Goods removed or Services performed

What happened if invoice issued or payment received before the ‘basic time of supply’? The time of supply is...

at the time of invoice issued at the time of payment with regards to supply

whichever is the earlier

1 June 1 July 1 Aug14 June 10 July24 June

Actual Time of supply

Time of Supply

52

Time of supply is the date of tax invoice if it is issued within 21 days after the ‘basic time of supply’

Tax invoice issued

Goods removed or Services performed

1 July 1 Aug4 July 24 July

Tax invoice issued within 21 days

Actual Time of supply

Time of Supply

Value of Supply

Value of supply (consideration in money)

Value = consideration – GST portion

Example: Company A receives payment for logs from Company B = RM 2,600.

GST rate is 6%GSGST = Consideration x Tax Fraction

GST = RM 2600 X

53

3 = RM 147.17

Value of supply = Consideration – GST = (RM2600 - RM147.17) = RM2452.83

53

Value of Supply

Value of supply (consideration not in money)

Value = open market value

Value of imported goods

Value = value for customs duty + any customs duty paid + any excise duty paid

Value of imported services

Value = payment made (value as stated in the

invoice)

54

GST Registration

5

55

56www.gst.customs.gov.my

Registration in GST

57

Registration in GST

58

Liability to Register

• Any person who makes taxable supply of goods and services in Malaysia

• Registration is mandatory for businesses with turnover that has exceeded the prescribed threshold

• Calculation of turnover for registration is based on the total value of the taxable supplies for a 12 month period

• Proposed turnover exceeding RM500,000.00

Registration in GST

59

Includes

Standard Rated Supplies

Zero Rated Supplies

Deemed Supplies such as private use, etc.

Includes

Standard Rated Supplies

Zero Rated Supplies

Deemed Supplies such as private use, etc.

Excludes

Exempt Supplies

Sale of Capital Assets

Imported Services

Out of Scope Supplies

Excludes

Exempt Supplies

Sale of Capital Assets

Imported Services

Out of Scope Supplies

Calculation of Taxable Turnover

60

• Liability to register is determined by historical turnover (based on turnover of

the current month and the preceding 11 months) or

future turnover (based on turnover of the current month and the next 11 months)

• To apply for registration within 28 days from the end of the relevant month

• Effective date of registration will be on the 1st day of the following month

Registration in GST

61

Registration Date

1/9/14

Last day to notify and registration application

Liable to register

28 days

Previous 11 months

1/10/15

Historical Method

Notification period

1/9/158/8/15 28/9/15

31/8/15

Reached amount of taxable turnover

(threshold)

First day in the 12 months

period

1/8/15

This month +

Registration Notification

62

28/9/15

Registration Date

15/7/15

Last day for notification dan registration application

Total taxable supply expected to exceed thresholdThis month + 11 months

28 days

Liable to register

Start business

31/1/16

1/10/15

1/9/15

8/8/15

Future Method

Notification Period

1/8/1531/8/15

Contract signed

Registration Notification

28/12/14

Effective date of registration

15/10/14

Last day to notify and apply for registration

Expected to reach threshold (signed future contract)

28 Days

Liable to register

Current month + next 11 Months (RM400,000)

Start business

31/10/15

1/4/15

1/12/14

16/11/14

Future Method (AD 1 April 2015)

Period to notify

1/11/14

Registration

63

RM100,000

64

Appointed Date (1.4.2015) If at the end of Nov 2014, the value of taxable supplies for the month

of November is RM100,000 If he reasonably expects his turnover for the next eleven months

(December 2014 to October 2015) to be more than RM400,000 He is liable to be registered for GST within 28 days from the end of the

month of November 2014 (1 December 2014 to 28 December 2014) The effective date of registration is 1 April 2015 (effective date of GST

implementation)

Registration On Appointed Date (AD)

65

Voluntary Registration• Businesses below threshold may apply

for voluntary registration• Once registered – must remain in the

system for at least 2 years

Registration in GST

66

Other types of registrationBranches or divisional registrationGroup registration – group of

companiesRegistration for non resident –

appointment of agent Joint venture registration – petroleum

exploration activity

Registration in GST

67

Responsibilities and Obligations of

Registered Person

6

68

• Issuance of tax invoice• Submission of returns• Payment of tax• Keeping of records

Responsibilities and Obligations

69

• Types of tax invoice when making taxable suppliesfull tax invoicesimplified tax invoice

Issuance of Tax Invoice

70

What is Tax Invoice?

A tax invoice is a document containing certain information about the supply that has been made and it is similar to a commercial invoice except for some additional information such as details of registered person and supply, GST rate and the amount of GST payable.

Importance of a tax invoice:

may trigger the time of supply for a transaction.

primary evidence to support a customer’s input tax claim.

determine when he may claim his input tax.

determine which supplies made by him should be included in a particular taxable period.

TAX INVOICE

71

Issuance of Tax Invoice Tax invoice shall be issued by every registered person who

makes any taxable supply in the course or furtherance of any business in Malaysia.

Tax invoice can be issued to the customer either : Hard copy Electronic

Must issue within 21 days after supply taken place (Time of supply).

Containing prescribed particulars.

TAX INVOICE

72

Tax Invoice – Full Tax Invoice The following particulars are required in the full tax invoice;(a) the words “tax invoice” in a prominent place;(b) the tax invoice in serial number;(c) the date of issue of the tax invoice;(d) name of supplier, address and GST identification number;(e) the customer’s name (or trading name) and address;(f) a description sufficient to identify the goods or services supplied (g) for each description distinguish the type of supply for standard rate, zero rate

and exempt, the quantity of goods or the extent of the services and amount payable, excluding GST;

(h) any discount offered;(i) the total amount payable excluding GST, the rate of tax and the total tax chargeable shown as a separate amount;(j) total amount payable including the GST charged; and(k) any amounts referred to (i) and (j) must be expressed in Malaysian currency.

73

e-Business Sdn Bhd No. 007 1000 Jalan Tipu, Bandar Reka Negeri Sembilan

GST No. : 01234567

No. Tel. : 06-7915566

TAX INVOICE Invoice Date : 7 th. July, 2015

Invoice to:- Send to:-SYARIKAT ABC SYARIKAT ABCJalan 5/6, Kelana JayaSelangor

Date Your Order Our Order Sales Rep.

30th. June, 2015 1123 123 ABC RAMBO

No. Item Unit Description Discounts Taxable Unit Price (RM) Total Price (RM)

1. 117711 10 Box - 6% 100 1,000

2. 117712 100 Pencils - 6% 1000 100,000

Subtotal 101,000

Discount 1,000

Subtotal 100,000

CONFIRMATION BY 30 DAYS GST 6% 6,000

E.OE SIGNATURE ……………………………………………. Total 106,000

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

Date of invoice

Serial number

Supplier, name,

address & Identification

number

The words “tax invoice”

in a prominent

place

Name and address of

person being supplied

(recipient)

Sufficient description

74

Syarikat Pemaju Hartanah Sdn Bhd Tax Invoice No. 00779 Lot 123, Jalan Meru, 43120 Klang Selangor

GST No. : 0001111

No. Tel. : 03-67868686

TAX INVOICE Invoice Date : 7 th. July, 2016

Invoice to:-SYARIKAT MANA DIAJalan 7/7, IpohPerak

No. Description Quantity Unit Price (RM) Total Price (RM)

1. Shop houses (6% GST) 2 350,000 700,000

2. Double story terrace houses (exempt)

10 250,000 2,500,000

Subtotal 3,200,000

Add GST @ 6% 42,000

Total Sales 3,242,000

……………………………………………………..SYARIKAT PEMAJU HARTANAH SDN BHD

Serialized tax invoice

number

Date of invoice

Total charge made

excluding GST

Total charge made

including GST

Quantity of goodsDescription of goods supplied

Name, address of

supplier

GST Registration

number

Name, address of

customer

TAX INVOICE

in a prominent

place

Rate of GST

Tax Invoice for Mixed Supplies

75

Tax Fraction

Tax fraction is the GST amount of the consideration.

The calculation of the tax fraction is as follows :

Tax fraction = tax rate x amount of consideration

100 + tax rate

Example:

Assuming your consideration is RM100.

GST = GST rate x consideration

100% + GST rate

= 6% x RM100

100% + 6%

= RM5.66

TAX INVOICE

76

Tax Inclusive In retail business, it may be more practical to treat the sum of money

received from your customer (consideration) as inclusive of GST. The tax invoice should still show the GST as a separate amount, and

you can state the GST inclusive prices and indicate with the words ‘price inclusive of GST’.

Example:

Assume you sell an oven at RM1,000.

GST = Price x Tax Fraction

= RM1,000 x 3/53

= RM56.60

Charge customer RM1,000 and remit RM56.60 to Customs.

TAX INVOICE

77

Tax Exclusive Refers to the amount of GST paid as shown in tax invoice with

separate GST amount.

Example:

Assume you sell an oven at RM1,000.

GST = Price x Rate of Tax

= RM1,000 x 6%

= RM60

Charge customer RM1,000 + RM60 (GST) = RM1,060 and remit RM60 to Customs.

TAX INVOICE

78

Contents of the Simplified Tax Invoice name, address and identification number of the supplier

date of issuance of the invoice

tax invoice serial no.

a description sufficient to identify the goods or services supplied

for each description distinguish the type of supply for standard rate, zero rate and exempt, the quantity of goods or the extent of the services and amount payable, excluding GST

the total amount payable including the total tax chargeable

the rate of tax and the amount of tax chargeable

state the word “Price Payable includes GST ”

Tax Invoice - Simplified Tax Invoice

No.

Item Units

Description Unit Price

Total

1 2022 1 Plasma TV Sony 56 inches

8999.00 8999.00

Price 8999.00

Discount 500.00

Subtotal 8499.00

Price inclusive of GST 6% (RM509.94) Total 9008.94

Issued by : juali

79

Supplier Identification

Date of invoice

The total amount payable including

tax

Sufficient description

C SERVICES & TRADING GST REG. 1234-567

30, Jalan 37, Taman Awam Phone : 03-87066078

BANDAR BARU SALAK JAYA Fax : 03-87066079

43900 SEPANG E-mail : [email protected]

CASH SALE

Invoice No : 11209Date : 12.11.2015

Simplified Tax Invoice

mailto:[email protected]

AGRO SHOPPING CENTRE SDN BHD

DESA PINGGIRAN PUTRA, SG. MERABTEL: 03 – 8896XXXX FAX: 03 – 896XXXX GST Reg. No

: ………………… Date: 30/3/2016 15:35:45

Invoice No: V001619

BISCUITS PNKL [PACK] 1 3.90 3.90 S010611

PRINGLES SC 182G [PCS] 1 6.90 6.90 S 001002

SUGAR 2 1.45 2.90 Z 123235

Item Count 4Total Sales Inclusive GST @ 6% 14.35Rounding Adjustment 0.00Cash 15.00Balance 0.65

GST analysis Goods TaxS = 6% 10.80 0.65Z = 0% 2.90 0.00

Print : 30/3/2016Salesperson : Aminah

Date of Tax InvoiceDate of Tax Invoice

Supplier’s name, address and GST identification number

Supplier’s name, address and GST identification number

Total amount payable including GST

Total amount payable including GST

Description of goods or services supplied

Description of goods or services supplied

Tax invoice serial number Tax invoice serial number

80

Indicator for zero rated supply Indicator for zero rated supply

Indicator for standard rated supply

Indicator for standard rated supply

Rate of GSTRate of GST

Total amount of GST chargedTotal amount of GST charged

SIM

PL

IFIE

D T

AX

INV

OIC

E

(TA

XA

BL

E S

UP

PL

IES

– 2

ra

tes)

81

For the purpose of claiming ITC : the buyer can use simplified tax invoice if the

total amount GST payable is RM30 or less (GST @ 6%).

if the total amount GST payable is more than RM30, the buyer must request for a (full name & address the recipient).

Tax Invoice - Simplified Tax Invoice

82

Input Tax Credit

Input Tax Mechanism Tax paid on inputs to be offset against the output tax in the

relevant taxable period

Subject to a time limit of 6 years from the date of return required to be made

Apportionment rule to apply for a mixed supply

Refund to be offset against other unpaid GST, customs and excise duties

Net tax to be refunded within

14 working days for on-line submission

28 working days for manual submission

83

Conditions: Claimant must be a taxable person Must have a valid tax invoice

full tax invoice simplified tax invoice - claim the input tax up to a limit of RM30.00 if name and address

of recipient is not stated in invoice (GST at 6%) invoice issued by approved person under Flat Rate Scheme Customs No 1 /Customs 9 (imported goods) document to show claimant pays imported services

Invoice issued under the name of the claimant Goods and services acquired are not subject to any input

tax restriction e.g., motorcars Good and services are acquired for the purpose of making

taxable supply

Input Tax Credit

Blocked input tax passenger motor cars including hiring of car

family benefits

club subscription fee

medical and personal accident insurance

medical expenses

entertainment expenses for family members and potential clients except entertainment expenses incurred by a person who is in the business of providing entertainment.

Blocked Input Tax

85

No apportionment if can attribute wholly to taxable or exempt supplies full input tax if wholly attributable to taxable supplies no input tax if wholly attributable to exempt supplies

Apportionment rules applicable when goods and services are used for both

taxable and non-taxable supplies

Input Tax Credit

86

Claim 100% input

tax

Inputsused

Attributable to both taxable and exempt supplies

Wholly attributable to taxable supplies

Wholly attributable to exempt supplies

Apportionment rules apply

Cannot claim input

tax

Input Tax Credit

87

Apportionment Rules

Mechanism for input tax apportionment Turnover-based method as a standard method for

apportioning any residual input

round up or down to the nearest two decimal places

Value of taxable supplies

Value of all supplies Taxable portion =

Input tax claimable = Taxable portion X Residual input tax

88

Apportionment RulesExample:

Taxable supplies = RM300,000

Exempt supplies = RM250,000

Residual input tax = RM8,000

RM300,000

RM300,000 + RM250,000Taxable portion =

= 54.5454%

= 54.55% (2 decimal places)

Input tax claimable = 54.55% X RM8,000

= RM4,364

89

Hospitality Industry

Supply of tour package/hospitality products

Tourism services

INPUTOUTPUT

GST on inputs

= Input taxClaimed input tax

GST on outputs

= Output tax

Goods (tour, transportation, car hire, accommodation)

Services (rental telephone and insurance)

Utilities (electricity and water)

Submission of Tax Return

90

Taxable Period• Regular interval period where a taxable person accounts and pays

GST to the government• To determine at the time when the GST registration is approved

quarterly basis for businesses with annual turnover not exceeding RM5 million

monthly basis for businesses with annual turnover exceeding RM5 million

• A taxable person may apply to be placed in any other category other than his pre-determined taxable period


91

sam

ple• GST returns (GST-03) and

payments must be submitted not later than the last day of the month following the end of the taxable period

• Electronic filing is encouraged


92

Records• Bahasa Malaysia or English• 7 years• can be kept in soft or hard copy• to be kept in principal place of business

Keeping of Records

93

Last day to pay tax• last day of the month following the taxable period

if last day is a holiday the following working day

• late payment compoundable offence under GST Regulation (item

123) and if still fail to pay, to charge under section 41(6) and 41(7) GST Act 20XX.

Fine not exceeding RM50,000 or to imprisonment for a term not exceeding three years or to both.

Payment of Tax

Thank youThank youSAKENAH BEGUM BT. MD. NAZIR

GST Special Task ForceRoyal Malaysian Customs Department

Tel : 03-88822837Email : [email protected]

94

salient features of gst matta date :28 april 2014 place: vivatel hotel time: 2.30pm- 4.30 pm sakenah...

Documents

tax compliance

tax vat

service tax slide

lowest tax rate

highest tax rate

current sales tax

multistage consumption

consumer slide