gst consultants from kwai fatt & associates universiti ... · universiti sains malaysia (usm)...

Universiti Sains Malaysia (USM)

24 February 2016

[email protected]

[email protected]

GST Consultants from Kwai Fatt & Associates

Choong Hui Yan

Eng Terng Pan

3-Day Training

22.02.2016 Monday Dewan Siswa 1, Kompleks Cahaya, USM, Penang

23.02.2016 Tuesday Dewan SERC, Bangunan SERC, USM, Penang

24.02.2016 Wednesday Dewan Persidangan Kampus, USM, Kelantan

Relevant Regulations to USM (21.02.2016)

Act 762 - GST Act 2014

Act 773 - Finance Act 2015

P.U.(A) 56 - Goods and Services Tax (Amendment) Regulations 2015

P.U.(A) 190 – Goods and Services Tax Regulations 2014

P.U.(A) 293 - Goods and Services Tax (Amendment No. 2) Regulations 2015

P.U.(B) 319 - Appointment Of Date Of Coming Into Operation

P.U.(B) 320 - Appointment Of Effective Date For Imposition Of Goods And Services Tax

P.U.(A) 183 - Goods and Services Tax (Amount of Taxable Supply) Order 2014

P.U.(A) 184 - Goods and Services Tax (Rate of Tax) Order 2014

Relevant Regulations to USM (21.02.2016)

P.U.(A) 271 - Goods and Services Tax (Exempt Supplies)

P.U.(A) 292 - Goods and Services Tax (Exempt Supplies)(Amendment)(No. 2) Order 2015

P.U. (A) 57 - Goods and Services Tax (Exempt Supply)(Amendment) Order 2015

P.U.(A) 272 - Goods and Services Tax (Zero Rated Supplies)

P.U.(A) 290 - Goods and Services Tax (Zero-Rated Supply)(Amendment)(No. 2) Order 2015

P.U.(A) 58 - Goods and Services Tax (Zero-Rated Supply)(Amendment) Order 2015

P.U.(A) 273 - Goods and Services Tax (Relief)

P.U.(A) 291 - Goods and Services Tax (Relief) (Amendment) (No. 2) Order 2015

P.U.(A) 59 - Goods and Services Tax (Relief)(Amendment) Order 2015

Item 6, First Schedule, Goods and Services Tax (Relief) Order 2014 - Approved Private Medical Equipment List

(Revised as at 13 January 2016).

Item 5(a), (b) and (c), First Schedule, Goods and Services Tax (Relief) Order 2014

– Approved Private Educational Institution Equipment List.

X GST

2016 Budget Calibration

Emphasized by

The Prime Minister, Dato' Sri Haji Mohammad Najib bin Tun Haji Abdul Razak

GST Rate = 6%

Market Price = Price Inclusive

Where a registered person

Displays Advertises Publishes Quotes

Section 9(5), 15(2) & para 1(4), Third Schedule

Element = 100% + 6%= 106%

GST Input Tax

Price inclusive

Tax Invoice

Purchase price RM1,060

CostingRM1,000

Input TaxRM60

GST Registered Supplier

GST 6%

Input Tax Implication

Tax InvoiceGST 6%

GST Registered Supplier

GST Registered

X GST Registered

Costing: RM 1,000

RM 1,060

Costing: RM 1,060

Supplies Allowable

Standard rated - SR (012201) √

Relief - RS (012207) √

Out of scope* - OS (012205) √

Zero rated- ZRE (012209) √

- ZRL (012202) √

Exempted - ES (012203) X

incurred for making

Input Tax

* Goods/ services which would be taxable if made in Malaysia

Bil Aktiviti

PTJ

(Rujuk senarai akaun

di lampiran)

Kod

Kumpulan

Wang

Keterangan

[6%]

Standard

P.U. (A) 190

[6%]

Blocked

Para36 of

P.U. (A) 190

[0%]

P.U. (A)

272

[Exempt]

P.U. (A)

271

[Relief]

P.U. (A)

273

[Out of Scope]

P.U. (A) 190

Semua Pusat Pengajian

dan Ko-K (R*)

100

201

1001

1002

KW Mengurus

KW Pembangunan

KW Universiti Penyelidikan

KW Universiti APEX

Desasiswa 403 KW Penginapan

Semua PTJ 306

308

310

KW Pertubuhan Pelajar

KW Siswazah

KW Kemasukan

Semua PTJ 309

311

401

KW Kebajikan (Pelajar SAHAJA)

KW Khas (Pelajar SAHAJA)

KW Inovasi & Perundingan

(USM KLE-IMP SAHAJA)

Semua PTJ

(KECUALI Pusat

Pengajian dan Ko-K)

100

1001

1002

201

KW Mengurus


KW Universiti APEX

KW Pembangunan

Semua PTJ 301

309

311

KW Kekal Hidup

KW Kebajikan (KECUALI Pelajar dan Pesakit)

KW Khas (KECUALI Pelajar dan

Tanggungan Pelajar)

Penyelidikan

(Tanpa Balasan)

Semua PTJ 1001

1002

203

304

305


KW Universiti APEX

KW Pembangunan Penyelidikan

KW Penyelidikan USM

(KECUALI Geran Sumbangan Luar)

KW Penyelidikan Science Fund

BL-R BL ZP EP - OP

Penyelidikan

(Dengan Balasan)

Semua PTJ 304 KW Penyelidikan USM

(Geran Sumbangan Luar SAHAJA)TX BL ZP EP - OP

Semua PTJ 302

401

402

403

KW Persidangan & Seminar

KW Inovasi & Perundingan

(KECUALI USM KLE-IMP)

KW Perkhidmatan & Kemudahan

(KECUALI HADHANAH dan Tadika)

KW Penginapan (KECUALI Desasiswa)

TX BL ZP EP - OP

HADHANAH Tadika

Islam

402 KW Perkhidmatan & Kemudahan

(HADHANAH dan Tadika Islam SAHAJA)TX-N43 BL ZP EP RP OP

5 Perkhidmatan

Jagaan Kesihatan

HUSM Pusat Kesihatan 100

201

309

311

KW Mengurus

KW Pembangunan

KW Kebajikan (Pesakit SAHAJA)

KW Khas (Tanggungan Pelajar SAHAJA)

TX BL ZP EP - OP

4 Komersial

TX-N43 BL

2 Pentadbiran &

Perkhidmatan

TX-RE BL

1 Pengajaran &

Pembelajaran

- OP

3

EP RP OPZP

ZP EP

Input Tax Credit Guide(21.02.2016)

Tax Code(Input Tax)

EL2: A11609 - INPUT TAX

Tax Code Explanation RateImplication on

BudgetEL3 GST-03

012001

Allowable



BudgetEL3 GST-03

TX Allowable input tax 6% X 012101 6 (b), 16 (asset)

ZP Zero rated purchase 0% X 012102

TX-E43 Input tax attributable to incidental exempt supply 6% X 012104 6 (b), 16 (asset)

TX-RE Residual input tax (allowable portion) 6% X 012106 6 (b), 16 (asset)

AJP Adjustment on input tax 6% X 012108 6 (b), 17 (bad debt relief)

IM Input tax on imported goods 6% X 012109 6 (b), 16 (asset)

No Input Tax



BudgetEL3 GST-03

EP Exempted purchase 0% X 012103

OP Out of scope purchase 0% X 012105

RP Relief purchase 0% X 012107

GP Group purchase 0% X 012110

NR Purchase from non-registrant 0% X 012111

IS Purchase under GST special scheme 0% X 012112

NC Non compliant supplier treatment 0% X 012113

EL2: 552 - Non-Allowable


BudgetEL3 GST-03

TX-N43 Input tax attributable to exempt supply 6% √ 52903

BL Blocked input tax 6% √ 52904

TX-RE Residual input tax (Non-allowable portion) 6% √ 52905

Time Period for Input Tax Credit

Tax Invoice

Customs K1 Form

Input Tax Incurred

Claim in either

Taxable Period

Subsequent Period

Within 6 years

Allowable vs Non-Allowable Input Tax

Allowable Non-Allowable

Reasons 1. For the furtherance of business/ taxable activities

1. Private use2. Expenses with no compliant tax

invoice3. Blocked input tax items [Para 36 of

PUA 190/ 2014]4. For exempt supplies activities

Costing 100 106

Journal Entry

Dr Expense 100Input tax 6Cr Supplier 106

Dr Expense 106Cr Supplier 106

Receiving of tax invoice amounting to RM106

Activities Tax Code GST

Education (Pengajaran & Pembelajaran)

ES (012203) -

Administration (Pentadbiran & Perkhidmatan)

n/a n/a

Research (Penyelidikan)

With return(Dengan balasan)

SR (012201) 6%

Without return(Tanpa balasan)

OS (012205) n/a

Commercial(Komersial)

SR (012201) 6%

Medical Centre(Pusat Kesihatan)

SR (012201) 6%

CHARGABLE

EL2: L11602 - OUTPUT TAX

Tax Code Explanation Rate EL3 GST-03

SR Standard rated supply 6% 012201 5 (b)

DS Deemed supply 6% 012206 5 (b)

AJS Output tax adjustment 6% 012208 5 (b), 18 (bad debt recovered)

NON-CHARGABLE

EL2: L11602 - OUTPUT TAX

Tax Code Explanation Rate EL3 GST-03

ZRL Local zero rated supply 0% 012202 10

ES Exempt supply 0% 012203 12

ES43 Incidental exempt supply 0% 012204 12

OS Out of scope supply 0% 012205

RS Relief supply 0% 012207 13

ZRE Exported supply 0% 012209 11

GS Disregarded supply 0% 012210

Tax Code(Output Tax)

Tax Code(Input Tax)



BudgetEL3 GST-03

012001

Allowable



BudgetEL3 GST-03

TX Allowable input tax 6% X 012101 6 (b), 16 (asset)

ZP Zero rated purchase 0% X 012102

TX-E43 Input tax attributable to incidental exempt supply 6% X 012104 6 (b), 16 (asset)

TX-RE Residual input tax (allowable portion) 6% X 012106 6 (b), 16 (asset)

AJP Adjustment on input tax 6% X 012108 6 (b), 17 (bad debt relief)

IM Input tax on imported goods 6% X 012109 6 (b), 16 (asset)

No Input Tax



BudgetEL3 GST-03

EP Exempted purchase 0% X 012103

OP Out of scope purchase 0% X 012105

RP Relief purchase 0% X 012107

GP Group purchase 0% X 012110

NR Purchase from non-registrant 0% X 012111

IS Purchase under GST special scheme 0% X 012112

NC Non compliant supplier treatment 0% X 012113

EL2: 552 - Non-Allowable


BudgetEL3 GST-03

TX-N43 Input tax attributable to exempt supply 6% √ 52903

BL Blocked input tax 6% √ 52904

TX-RE Residual input tax (Non-allowable portion) 6% √ 52905

Standard Rated Supplies

GST Registered SuppliersGST RegisteredCustomers

Non-GST RegisteredCustomers

Non-GST Registered Suppliers

GST 6%SR (012201)

X GSTNR (012111)

GST 6%TX (012101)

GST status of customer - Irrelevant -

Relief Supplies

GST Registered SuppliersFederal/ State Government

Other universitiesNon-GST Registered Suppliers

GST 6%SR (012201)

X GSTNR (012111)

GST 6%TX (012101)

If they are entitled for relief, relief certificate will be issued.

X GSTRS (012207)

Output Tax Guide(21.02.2016)

PANDUAN RINGKAS CBP - CUKAI OUTPUT

BilAktiviti/ Jenis

HasilKeterangan Kadar

6% 0% Dikecualikan (Exempt)

Pelepasan (Relief)

Di Luar Skop (Out of Scope)

Standard Sifar

Act 762/2014 (Zero)

Termasuk Tidak Termasuk

[P.U.(A) 272/2014]

[P.U.(A) 271/2014]

[P.U.(A) 273/2014]

Act 762/2014

1 PENGAJARAN & PEMBELAJARAN

a. Yuran BerkaitanPengijazahan

- Pengajian- Penginapan- Peperiksaan- Bas- Perpustakaan- Pendaftaran- Semak semula peperiksaan- Kad pintar- Kebajikan Pelajar- Aktiviti Desasiswa- Kegiatan Pemajuan Pelajar- Minggu Suaikenal- Konvokesyen- Kesihatan- Pemeriksaan kesihatan

Kekal

b. Pengajian Tanpa Ijazah

Semua Yuran Kekal

2 PENTADBIRAN & PERKHIDMATAN

a. Sumbangan Tanpa Balasan Kekal

Dengan Balasan Kekal

b. Deposit dan cagaran

Semua kategori Kekal

c. Denda dan hukuman

Semua kategori Kekal

3 PENYELIDIKAN

a. Geran Tanpa Balasan Kekal

Dengan Balasan Kekal

4 KOMERSIAL

a. Kemudahan sukan Kupon kemudahan sukan Kekal

Sewa padang dan kemudahan sukan

Kadar + CBP

b. Kemudahan Public library (pelajar) Kekal

Public library (staf/orang luar) Kekal

Yuran ahli gimnasium (staf/pelajar/orang luar)

Kekal

c. Sewaan Ruang, premis, alatan dan lain-lain Kadar + CBP

Utiliti & penyelenggaraan bagi sewaan ruang, premis

Kadar + CBP

d. Ujian Semua jenis perkhidmatan ujian Kadar + CBP

e. Seminar danperundingan

Seminar, bengkel, persidangan dan lain-lain latihan

Kadar + CBP

Perundingan

Kadar + CBP

f. Penginapan Rumah tetamu, chalet, desasiswa Kadar + CBP (Awam) (pesanan Dalaman)

Rumah Kediaman Kekal

g. Jualan Buku bacaan (secara fizikal dan online)

Kekal

Jurnal (secara fizikal dan online)

Kadar + CBP

Harta susutnilai/pelupusan

Kadar + CBP

Haiwan penyelidikan (mengikut syarat)

Kadar + CBP (pesanan Dalaman)

Borang tender

Kadar + CBP

Pakaian akademik

Kadar + CBP

Transkrip (tambahan) Kekal

Pelekat kenderaan Kekal

Kad pintar (staf) Kekal

h. Asuhan kanak-kanak Yuran HADHANAH (Berdaftar di bawahAkta Taman Asuhan Kanak-Kanak 1984)

Kekal

i. Pendidikan kanak-kanak

Yuran tadika (Berdaftar di bawah Akta Pendidikan 1961)

Kekal


5 PERKHIDMATAN JAGAAN KESIHATAN

a. Rawatan Semua caj rawatan pesakit Kekal

b. Lain-lain caj - Laporan Perubatan bertulis- Nota discaj- Makanan penjaga- Pendaftaran rawatan Kesihatan(tanggungan Pelajar)

Kekal

c. Ubat Ubat (mengikut syarat) Kekal


Goods

Services

Upon delivery

Upon completed

Issue Tax Invoice

Within 21 days

Account for output tax based on invoice date

Time of Supply

21 days Rule

Time of Supply(TOS)

Goods Removed / Services Completed

Tax Invoice Issued/ Advanced Payment

Received

Tax Invoice Issued

≤ 21 days

> 21 days

Tax Invoice Issued


TOS(Date of)


Tax Invoice Issued/ Advanced Payment Received* Earlier of

Date 2Date 1

Date 1 – Date 2

Date 1 Date 2

* Earlier of

23

Illustration

DO Date : 20.04.2015

Invoice Date : 02.05.2015

GST Due : 30.06.2015 (GST return for May)

DO Date : 20.04.2015

Invoice Date : 15.05.2015

GST Due : 30.05.2015 (GST return for April)

≤ 21 Days

> 21 Days

Tax Invoice Time of SupplyItem 3 of Director General’s Decision 3/2015

Within 30 days Tax Invoice has to be issued

Advance Payment

Period for issuing tax invoice

Part/ Full

Supplies GST Rate Tax Invoice

Taxable0 X

6 √

Exempt n/a X

Disregard/ Relief n/a √

Out of Scope n/a X

Issuance Tax InvoiceItem 1 of Director General’s Decision 6/2015

Tax invoice for disregarded supply and out of scope supply

GST: NILState that it is - granted relief/ - disregarded

ScenarioOutput tax > Input tax : GST payable

Output tax < Input tax : Input tax refund

Output tax = Input tax : Nil

Output Tax – Input Tax

Online submission : 14 working daysManual submission : 28 working daysSubject to input tax refund audit

Offset

Concept on Input Tax Claim

Refund

Taxable Period

Taxable supplies ≥ RM5 million

Yes No

Monthly

Eg : 01.01.2016 – 31.01.2016Tax Due : 29.02.2016

Quarterly

Eg : 01.01.2016 – 31.03.2016Tax due : 30.04.2016

Important Dates

Advisable submission date: 15th of each taxable period

Taxable Period GST Submission Deadline

January 01.01.2016 – 31.01.2016 29.02.2016 Monday

February 01.02.2016 – 29.02.2016 31.03.2016 Thursday

March 01.03.2016 – 31.03.2016 30.04.2016 Saturday

April 01.04.2016 – 30.04.2016 31.05.2016 Tuesday

May 01.05.2016 – 31.05.2016 30.06.2016 Thursday

June 01.06.2016 – 30.06.2016 31.07.2016 Sunday

July 01.07.2016 – 31.07.2016 31.08.2016 Wednesday

August 01.08.2016 – 31.08.2016 30.09.2016 Friday

September 01.09.2016 – 30.09.2016 31.10.2016 Monday

October 01.10.2016 – 31.10.2016 30.11.2016 Wednesday

November 01.11.2016 – 30.11.2016 31.12.2016 Saturday

December 01.12.2016 – 31.12.2016 31.01.2017 Tuesday

GST Risk

Output Tax• Chargeability• Timing

Input Tax• Accuracy+

GST 03

Incorrect Return [s88]- Fine ≤ RM50,000; or- Imprisonment ≤ 3 years; orboth

+ Penalty = 1x

Costing Comparison

Supplier A Supplier B

GST Registrant √ X

Selling Price (RM) 10.60 10.60

Cost (RM) 10.00 10.60

GST (RM) 0.60 -

Supplier A Supplier B

GST Registrant √ X

Selling Price (RM) 10.60 10.00

Cost (RM) 10.00 10.00

GST (RM) 0.60 -

Quantitative Factor:Supplier A

Quantitative Factor:Either

Residual Input Tax

GST 6%

TX-RE (012106) TX-RE (52905)

Taxable Supplies Exempted Supplies

Attributable to

Allowable Input Tax Non-Allowable Input Tax

Tax invoice received: RM1,060

Dr Expense RM1,000TX-RE 52905 RM60Cr Bank/ Supplier RM1,060

Month end

CalculateResidual input tax recovery rate(IRR) % Assuming IRR = 40%

Dr TX-RE 012106 RM24Cr TX-RE 52905 RM24

Total taxable supplies Total supplies (taxable + exempt)

Journal Entries

IRR Formula:

Relief PurchaseEquipment and materials

Certificate signed by: The Vice Chancellor or such other officer authorized by him

That it is proved to the satisfaction of the Director General that the goods are imported or purchased from a registered person, or purchased under the warehousing scheme, for the purpose to provide tertiary education courses approved by the MQA; and

That the goods acquired are directly used for the purpose to provide tertiary education courses approved by the Malaysian Qualification Agency (MQA)

That the cost is charged to a vote appearing in the public higher educational institutions estimates and are not purchased out of any other funds

Para 36 of P.U.(A) 190/2014

Passenger vehicles

- Including repair, maintenance & refurbishment

Accident & medical insurance (Group/

Individual)

Medical expenses for treatment

Family benefitsClub subscription fees (Recreation/ sports)

Entertainment Expenses

etc. than existing customers & employees

Passenger Vehicle

Vehicle

Capacity> 9 persons

Weight> 3,000kg

Para 34 of PUA 190/ 2014

Blocked Input Tax

Purpose Solely for taxable supplies Research Training/ Seminar Medical Centre→ Claim

Mixed USM administrator

(Eg: Bursary)→ Claim partially

Solely for exempt supplies Education → Cannot claim

TX 012101

TX-RE 012106TX-RE 52905

TX-N43 52903

DR Vehicle 106CR Bank 106

BL 52904

DR Vehicle 100TX 012101 6

CR Bank 106 DR Vehicle 100TX-RE 52905 6

CR Bank 106

DR Vehicle 100TX-N43 52903 6

CR Bank 106

TX 012101TX-RE 012106TX-RE 52905

TX-N43 52903

Government Service Tax

Description RM

Parts 1,000.00

Helix oil – semi 300.00

Labour 150.00

Government service tax (6%) 9.00

1,459.00 OP (012105)

This supply is before 01.04.2015but tax invoice issued after 01.04.2015No GST 6%

Apply OP tax code to the total billing

Goods and Services Tax (GST) is incorporated to replace service tax.

“Tax Invoice”; Tax invoice number; Date of tax invoice; Supplier name, address, ROC/ ROB & GST ID; Full name and address of USM; Description of goods or services; Total amount excluding GST; GST rate & amount; Total amount including GST

(Para 22 of P.U.(A). 190)

Supplier

Tax Invoice

Compliant Full Tax Invoice

• Input tax credit• Kept for ≤ 7 years

Supplier Issues of Non-Compliant GST

• “Tax Invoice”• Supplier’s GST Registration Number• The name of “University Sains Malaysia”• GST amount

Non-Compliant of tax invoice : GST not claimable

Supplier issues tax invoice without stated either :

Request supplier to issue a new compliant tax invoice

Tax Invoice Price ≠ PO Price

Purchase Order (PO) Goods Delivered

01.04.2015

Tax Invoice

RM1,060Price Agreed: RM1,000

The goods is subject to GST 6%Supplier has to account output tax inclusively

Pay only RM1,000

RM1,000 x

= RM56.60

6

106

Section 183(3), GST Act 2014

Payment Made Before 01.04.2015

Payment Goods Delivered

01.04.2015

Tax Invoice

RM1,060Price Agreed: RM1,000

The goods is subject to GST 6%Supplier has to account output tax inclusively

Request supplier to issue tax invoice amounting to RM1,000

RM1,000 x

= RM56.60

6

106


The service is subject to GST 6%Supplier has to account output tax inclusively

Progressive Billing Lapse 01.04.2015

RM 40,000Contract sum: RM 20,000 RM 20,000 RM 20,000

01.04.2015

Supplier issued tax invoice RM21,200

Pay only RM20,000

RM20,000 x

= RM1,132.08

6

106


Compliant to para 22 of P.U.(A) 190

“Tax Invoice”;Tax invoice number;Date of tax invoice;Supplier name, address, ROC/ ROB & GST ID;Full name and address of USM;Description of goods or services;Total amount excluding GST;GST rate & amount;Total amount including GST

Non-Compliant Tax invoice

Supplier providing non-compliant tax invoice

Without full name & address

Without “Tax Invoice”

Without GST ID No.

Request supplier to issue a new compliant tax invoice

Supplier name, address, ROC/ ROB and GST ID; Tax invoice number; Date of tax invoice; Description of the goods or services; Total amount inclusive GST; GST rate Total amount of GST

(Para 22 of P.U.(A). 190)

Supplier

Tax Invoice

Compliant Simplified Tax Invoice

• Input tax credit• Kept for ≤ 7 years

Grocery shopsSupermarketsPharmaciesCafes/ restaurantsLaundry shopsPetrol station

Allow to omit:i. “Tax Invoice”;ii. Name & address of customer;iii. amount excluding GST

Guide on Tax Invoice and Record Keepings

Input tax credit ≤ RM30

Para 38(1)(a) (i), P.U.A.190

Tax Invoice: RM636

Simplified Input tax credit ≤ RM30

Dr Expense 606.00Input tax 30.00Cr Bank/ Supplier

2 solutions1) Request for full tax invoice, or;2) Split to few invoices

Simplified Tax Invoice Issues

Standard rated supply

Supplier issue invoice as

Zero rated / Exempted

Advisable to follow supplier treatment

ZP 012102

EP 012103

Wrong Supplier Treatment

Charging Incorrect Types of Supplies

Debit Note & Credit Note Issues

Correct Usage for DN & CN

• Change of rate in force (s10)

• Change description of the zero rated and exempted supplies (s17 & s18)

• Any adjustment in the course of business

• Wrong GST treatment by supplier• Purchase order (PO) = final price

Price inclusive [s9(5)]• Supplier has no right to charge additional 6%• DN is invalid

Supplier

Invoice (RM1,000)

X GST

After a few weeks

Issue DN to bill for the 6% (RM60)

Employee ClaimsItem 2 of Director General’s Decision 2/2014

Claiming input tax on business expenses billed to employees

Exception:Mobile phone invoice billed under employee’s name

Tax Invoice

Issued under

Allowable for input tax

Other names (Co. or Individual)

X Allowable for input tax

General Expenses in Staff ClaimsStaff Claim GST Implication Tax Code

Public transport-Bus-Taxi-LRT / KTM

Exempt supply EP (012103)

Flight Ticket

Local flight : Standard rated

International flight : Zero rated

TX (012101)/ TX-RE (012106 & 52905)/ TX-N43 (52903)

ZP (012102)

Hotel Standard ratedTX (012101)/ TX-RE (012106 & 52905)/ TX-N43 (52903)

Tough & Go reload Out of scope OP (012105)

Staff Claim GST Implication Tax Code

Phone bill Local Calls : Standard rated

International Calls : Zero rated

TX (012101)/ TX-RE (012106 & 52905)/ TX-N43 (52903)

ZP (012102)

Allowances Out of scope OP (012105)

Mileage claim Out of scope OP (012105)

Expenses incurred in overseas

Out of scope OP (012105)

Purchase from non-registered supplier

Received normal invoice without GST ID stated

NR (012111)

General expenses in staff claims

TNB Bill

Charges for 01.04.2015 - 30.04.2015 Charges GST Tax Code

First 300 kWh @ 0% 45.00 0.00 ZP (012102)

Subsequent meter reading @ 6%868.00 52.08 TX (012101)/

TX-RE (012106 & 52905)/ TX-N43 (52903)

Kumpulan Wang Tenaga Boleh Baharu (KWTBB) – 1.6%

13.89 0.00 OP (012105)

Surcaj Lewat Bayar 48.00 0.00 OP (012105)

*Additional notes: GST bagi penggunaan domestik 300kWh pertama adalah berkadar sifar

Grocery Bill

PurchasesCharges

(RM)GST

(RM)Tax Code

Nescafe 3 in 115.00 0.90 TX (012101)/

TX-RE (012106 & 52905)/ TX-N43 (52903)

Chicken egg 9.50 0.00 ZP (012102)

Sugar 13.80 0.00 ZP (012102)

Detergent28.00 1.68 TX (012101)/

TX-RE (012106 & 52905)/ TX-N43 (52903)

Telekom Malaysia (TM) Bill

Previous Charges

RM Current Charges RM

Previous balance

1,008.60 Recurring Charges 1,168.00

Usage Charges 52.30

GST 73.22

Total Current Charges 1,293.52

Total Amount 2,302.12

Rounding Amount 0.00

Total Payable Amount 2,302.12

Total Amount Subject to GST:

Recurring Charges +Usage Charges

=RM1,168 + RM52.30=RM1,220.30

DR Telephone charges RM 1,220.30Input tax RM 73.22

CR Bank RM 1,293.52

Medical Expenses Claim

Medical Treatment Expenses GST Implication Tax Code

Clinic Exempted EP (012103)

Hospital:- Registration fee- Hospital charges- Doctor consultation fee

StandardExemptedStandard

BL (52904)EP (012103)BL (52904)

Medicine & drugs:- Under the NEML- Not under the NEML

Zero-ratedStandard

ZP (012102)BL (52904)

Medical equipment Standard BL (52904)

GST blocked (Para 36 of P.U.(A). 190)

*NEML: National Essential Medicine List & Control Drug List

Petrol Claim with receipts

Types of Petrol GST Implication Tax Code

RON 95 Relief RP (012107)

RON 97 Standard TX (012101)/ TX-RE (012106 & 52905)/

TX-N43 (52903)

RON 100 Standard TX (012101)/ TX-RE (012106 & 52905)/

TX-N43 (52903)

Diesel (non-commercial) Relief RP (012107)

Out of Scope Purchases

- Supply of goods/ services by Federal Government State Government Local authority & statutory body

(for regulatory and enforcement functions: required by law)

s 64

• Business license • Port pass

• Visa processing fees • Majlis Bandaraya Penalty

• HRDF • EPF / SOCSO

• Filing fees • Stamping fees

• Quick rent • Road tax

• TnG reload


DR Expenses (100%)CR Bank (100%)

OP (012105)

Traveling- Taxi/ Bus/ Train

Hotel/ Accommodation Meals

OP (012105) OP (012105) OP (012105)

EP (012103) TX (012101)/ TX-RE (012106 & 52905)/ TX-N43 (52903)/NR (012111)

TX (012101)/ TX-RE (012106 & 52905)/ TX-N43 (52903)/NR (012111)


Expenses incurred/ paid in overseasOutside Malaysia

Malaysia

DR Expenses (100%)CR Bank (100%)

OP (012105)

Documentation for Input Tax Claim

Local Purchase from GST Registrant

Compliant

tax invoice

Payment evidence

- payment voucher,

- payment remittance,

- etc

Purchase orderGoods received note/

delivery order

Documentation for Input Tax Claim

Importation (Goods)

Original Customs

K1 Form Customs receipt

Supplier invoice

Freight / Shipping document

-Airway bill

-Bill of Lading

-Forwarder invoice, etc

Deemed Supply

• Donation

• Imported service

• Gift rule (≥ RM500)

• Disposal of assets w/o consideration

• Change of use (Business to private)

Supply = Sales of goods/ services + Deemed supply

Documentation for Output TaxStandard & Zero Rated

Tax invoice Purchase/sales orderGoods received note/

delivery order

Documentation for Output TaxExportation (Goods) – Zero Rated

Original Customs K2 Form Tax invoice/ invoiceGoods received note/

delivery order

Purchase order / Sales order

Freight / Shipping document:

• -Airway bill

• -Bill of Lading

• -Forwarder invoice, etc

Documentation for Output TaxExportation (Service) – Zero Rated

Tax invoice/ invoice Report

Purchase order/

Sales orderAgreement / Contract

GST 03Zoom In

Zoom In

Allowable input tax

Zoom In

Bad Debt ReliefItem 3 of Director General’s Decision 1/2014

Claiming bad debt relief [S58(1) of GSTA 2014]

a) Remain unpaid ≥ 6 months

b) Insolvent / bankruptcy

Tax Invoice

GST 6%

Either (a) or (b) – √ Bad debt relief

With Conditions:

GST paid to customs sufficient efforts have been made:

- Letter of demand, reminder letter, solicitor letter etc

The word ‘month’ refers to calendar month or complete month.

May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15

Invoice issued on 25 May

Invoice Expiry of 6 months

Claim for bad debt relief

Positive for the collection Bad debt recognition differences between GST & accounting System limitation Lack of human resource on tracking Lack of required information

Do Not Claim Relief


Invoice issued on 25 May

Invoice Expiry of 6 months

Notify to DG of Customs, in writing

within 30 days

Records Requirement to Claim Bad Debt Relief

Tax invoice – showing time, nature, purchaser’s details and consideration of supply

Receipt – showing GST has been accounted / paid

Debtor’s aging list showing consideration has not been received after 6 months from invoice date

Accounts showing amounts has been written off as bad debts

Letters of demand or reminder from company / letter from solicitor / legal action, engagement and actions from credit agency

Insolvency records from debtor

Maintain single account ‘ refund for bad debts account’

Outstanding Debts ≥ 6 Months

S38 (9), GST Act 2014

• Debts owing to supplier ≥ 6 months• Input tax claimed• Required to account as output tax for the unpaid input tax amount.


Invoice received and claimed on 18

May

Invoice Expiry of 6

months

Account as output tax

Imported Services

• Is treated as “making supply himself”

• Reverse charge mechanism

• No tax invoice needed

Taxable Supply Exempt Supply

Dr Consultancy servicesInput taxCr Bank/ Supplier

Output tax

Dr Consultancy servicesCr Bank/ Supplier

Output tax

Input tax allowable Input tax X allowable

Used for

Time of Supply

Upon Payment to Supplier Overseas

Upon Invoice Issued by

Overseas SupplierOR

whichever is the earlierReverse Charge Mechanism:• Account for output tax • Tax code DS 012206

“services that are made by a supplier who belongs in a country other than Malaysia or who carries on business outside Malaysia to a recipient who belongs in Malaysia and such services are consumed in Malaysia.”

s2 of GSTA 2014

DG’s Decision 1/2014, item 2

Imported Service

Calculation

Service consumed by USM in Malaysia

Technical advisory service

by overseas consultant

09.10.2015Invoice received

05.11.2015Payment made

RM3,000 Payment to Creditor : RM3,000

22.9.2015Service performed

ToS : Earlier of

Account for output tax

GST Implication for Imported Service

For Commercial Purpose: Account output tax and fully claim input tax

Upon ToS:

Dr Expense (100%) RM3,000

Input Tax (6%) [TX-RV] RM180

Cr Overseas Supplier (100%) RM3,000

Output Tax (6%) [DS] RM180


For Admin Purpose: Account output tax and partially claim input tax

Upon ToS:


Input Tax (6%) [TX-RE] RM180




For P&P Purpose: Account output tax and no input tax to be claimed

Upon ToS:


Input Tax (6%) [TX-N43] RM180



Tax Invoice

Claim Input Tax

RM500 Test

AgainstGift Rule

Gift to

Employee

Stated in Employee Handbook? Employment Contract? Company Policy?

Yes – No output tax

No – Output tax

Etc. Persons(Including directors)

Output tax

When purchase gift:Dr Other Expense

Input TaxCr Bank

RM500 Test (Annually) (Per person)

Gift

RM500 Compliance Output Tax

<

≥

Gift Rule

DR Gift 6CR Output Tax 6

DS 012206

Gift RuleItem 4 of Director General’s Decision 2/2014

Given free

X Deemed supply

Gifts(RM660)

Purchased from

Non-GST Registrant

Because no input tax claimed

Gift Rule

Employee Benefit as Supply

Employer

Free gifts

Business goods for private use

Employee

Deemed Supply

Account Output Tax

Market Value X 6/106

The benefit already stated in employment contract or company’s handbook

Goods are zero-rated or exempted supply

Eg: Residential house, rice, sugar & etc

Gift rule: Value of all gifts given ≤ RM500 per year per person

Input tax on the goods are being blocked : passenger car & etc

Employee Benefit as Supply

Exception for deemed supply:

Sale as second hand goods

Disposal of Asset

Sale as scrap

Donation

Written off

Disposal of Asset :

Selling off asset

Sales OffSecond hand goods

Scrap

Consideration received

Standard rated supply

With input tax claimed

Either money or Benefit-in-kind

Charged output tax

> >

Disposal of Asset :

Deemed supply

Donation

Donation of asset

No consideration received

With input tax claimed

Received nothing

Self-account output tax based

on OMV

> >

OMV: Opened Market Value

Disposal of Asset : Written Off

Asset written off

No consideration received

Deemed supply

Received nothing

Self-account output tax based

on OMV

> >

Exclude:• Broken/ Not functionable• Still remain in asset listing

Disposal of Asset with input tax disallowed

Disposal of asset

Disallowance of input tax claimed

Out of scope supply

Blocked input taxEg: passenger car

Not a supplyNo output tax

TX-N43Exempt Supply: P&P

> >

GST Alignment (Enlargement)Essential Goods @ 0%P.U. (A) 290/2015

- Milk for infant ( 0 -36 months ) : Organic-based milk, soy bean-based milk

- Dhal bean : Chickpeas, beans of specific species, lentils, pigeon peas

- Vegetables : Lotus root, Water chestnut

- Spices : Mustard seeds

- Sugar : Jaggery powder ( Gula Merah )

- Noodle : Mi kolok ( Dry ) Budget 2016 Changes

GST Alignment (Enlargement)

Drugs & Medicine @ 0%Control Drug List & National Essential Medicine List

more brands of medicine (4,215 to 8,630) being zero rated for :

Diabetes Heart disease Cancer Hypertension

Budget 2016 Changes

Exempt Supply for Air TransportationP.U. (A) 292/2015

Within Sabah, Sarawak & Labuan Economy class Under Rural Air Services for Passengers

non-allowable input tax

GST Alignment (Enlargement)Budget 2016 Changes

GST Relief P.U. (A) 291/2015

Procurement of teaching materials and equipment by skills training providers that conduct approved and accredited programs (skills and vocational) under National Skills Development Act 2006.

Re-importation of goods that are exported temporarily for the purpose of research, promotion and exhibition.

Re-importation of eligible equipment (equipment are equipment used in the upstream oil and gas industry) that have been exported temporarily for the purpose of rental and lease outside the country.

GST Alignment (Enlargement)Budget 2016 Changes

Retailing Business

Business in :

Hardware store

Restaurant (F&B)

Super market & grocery store

Book & stationary store

Pharmacy

Entertainment centre

Issue Tax Invoice via:- Point of Sales system, or- Cash register machine

GST RATES AMENDMENT

Enhance knowledge, skills of ‘Rakyat’

Exercise book

Dictionary

Text book

Reference book

Religious book

Coloring book

Drawing book

Pictorial book

Newspaper

e-book

Zero rated supplies, GST @ 0%

Budget 2016 Changes

Stationary Magazines

Standard rated supplies, GST @ 6%

Issuance of Tax Invoice

(a) Fine ≤ RM30,000, or;(b) Imprisonment ≤ 2years, or;(c) Both

Penalty for non-issuance of tax invoice, S96 GST Act 2014

Tax Evasion [s89]

• Omits information

• Makes any false statement or entry

• False answer

• Prepares false books of account, invoices or other records

• Fraud, artifice or contrivance

First Offense Second/ Subsequent Offense Amount of Tax: X Ascertained

Fine: 10x ≤ F ≥20x; orImprisonment: ≤ 5 years; orBoth

Fine: 20x ≤ F ≥40x; orImprisonment: ≤ 7 years; orBoth

Fine: RM50,000 ≤ F ≥RM500,000; orImprisonment: ≤ 7 years; orBoth

Penalty for Improperly Obtaining Refund [s90]

• causes or attempts to

Input TaxTourist Refund

SchemeSpecial Refund

- Fine ≤ RM50,000; or- Imprisonment ≤ 3 years; orboth

Penalty = 2x

Penalty for Obstructing, etc., Officer of Goods and Services Tax [s92]

- Fine ≤ RM100,000; or- Imprisonment ≤ 7 years; or- Both

Assaults, Hinders or Obstructs

Fails to give reasonable facilities or assistance Officer

- Performance of duties under this Act

General Penalty [s96]

- Fine ≤ RM30,000; or- Imprisonment ≤ 2 years; or- Both

Cukai Barang dan Perkhidmatan (CBP) yangdilaksanakan pada 1 April 2015, pastinyaakan menimbulkan kekeliruan kepadasemua pihak. Oleh itu, informasi yang tepatdiperlukan untuk menjayakan pelaksanaanini. Jom tambahkan ilmu GST anda denganmemiliki senaskah buku yang menggunakanbahasa yang mudah difahami walaupunanda tiada pengetahuan tentangperakaunan dan percukaian yang tinggi.

Jika anda berminat tentang buku ini, silahubungi 012-2185153 (Hui Yan).

Tel: 012-218 5753 (Hui Yan)

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