gst consultants from kwai fatt & associates universiti...
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Universiti Sains Malaysia (USM)
24 February 2016
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 Penyelidikan
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 Penyelidikan
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
EL2: A11609 - INPUT TAX
Tax Code Explanation RateImplication on
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
EL2: A11609 - INPUT TAX
Tax Code Explanation RateImplication on
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
Tax Code Explanation RateImplication on
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)
EL2: A11609 - INPUT TAX
Tax Code Explanation RateImplication on
BudgetEL3 GST-03
012001
Allowable
EL2: A11609 - INPUT TAX
Tax Code Explanation RateImplication on
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
EL2: A11609 - INPUT TAX
Tax Code Explanation RateImplication on
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
Tax Code Explanation RateImplication on
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
Output Tax Guide(21.02.2016)
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
Output Tax Guide(21.02.2016)
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
Goods Removed / Services Completed
TOS(Date of)
Goods Removed / Services Completed
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; or- both
+ 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
Section 183(3), GST Act 2014
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
Section 183(3), GST Act 2014
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
Out of Scope Purchases
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)
Out of Scope Purchases
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
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
May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15
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.
May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15
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
GST Implication for Imported Service
For Admin Purpose: Account output tax and partially claim input tax
Upon ToS:
Dr Expense (100%) RM3,000
Input Tax (6%) [TX-RE] RM180
Cr Overseas Supplier (100%) RM3,000
Output Tax (6%) [DS] RM180
GST Implication for Imported Service
For P&P Purpose: Account output tax and no input tax to be claimed
Upon ToS:
Dr Expense (100%) RM3,000
Input Tax (6%) [TX-N43] RM180
Cr Overseas Supplier (100%) RM3,000
Output Tax (6%) [DS] 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; or- both
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)