GST : Malaysian Wait-and-See MindSet
Given more than 12 months for preparation on the implementation of Goods and Services Tax (GST) on April 1, 2015... everyone just seems like wait-and-see, grasping only the calculation on how 6% works. Not many people are aware that they are actually should have a plan for it.
While Custom in other way around, always reminding us to refer to their website which is full of information to get ready for, with each different industry providing scenarios and examples.
From internet google search, more people become aware of this topic, to search for more information.
Some people would rather think of, GST would be cancel due to the voice of the people. While the other side of the story, Custom or Government has already spending money on promoting GST, the more closer to April 2015, the more money has spent. Not forgetting budget 2014 has provided some comfort over the implementation of GST.
Therefore, the periods given is not the period for GST reconsideration, but to get ready for it.
GST is not just a tax and financial issue. It affects all parts of business operations starting from the IT system, procurement, sales and marketing, pricing setting department, supplier relationship, customer relationship to cash flow.
For instance, deadline submission, delay factor such as
a) Credit Note from Vendor Late
b) Invoice from Vendor Late
c) Computer down
d) Changing of Staff
e) No GST Staff
f) Unclear / Unsettle GST issue
g) Vendor not supportive on GST requirement, you cannot claim input tax
h) Tax reports are not tallying each other
i) Accounts not uptodate, which it includes expenses and capital expenditure (fixed assets) item.
would invites penalties and custom audit for delaying and not ready. Bear in mind, deadline would rather better translate as a full set of accounts would have been mostly completed during submission time either quarterly or monthly basis, which no more editing is to be allowed.
It is easy to make mistakes if rely solely on human power without GST compliance software and a structured checklist or else there would be figures different from the Custom Report versus Income Tax figure.
May~Sep 2014 :
Checking GST registration criteria. more than RM500,000 annual sales, need register
Checking GST submission dateline criteria. Quarterly or Monthly
Checking documentation should have English / Malay
(* product item if in fully Chinese / Tamil - normally not accept due to accounting records)
Checking Filling System = GST Tax Filling System?
Checking Closing Stock Value = fully actual or not?
Checking software - GST registered or not? If not consider buying
Checking Manual Tax invoice + keyin method / Fully computerised Tax Invoice
Checking Vendor registered GST ID number.
Register your GST ID
Identify Delay Vendor Bills
Identify Product Tax rate
Identify Different Type of Inventories, Going to be (Taxable / Exempt / Zero Tax)
Identify What are the adjustment normally
Operation Manual = documentation
Getting Online System
Identify Internal Control
Who would be your ICT support for your monthly / quarterly submission.
etc...depends on the industries,
Becareful, mixing type of Taxable product item industries is the hardest and complicated.
Those GST registered software, considered upgrading newer version
Getting a New PC
Getting Custom made Tax Invoice / Credit Note / Debit Note
Select a specific GST staff
Decide GST documentation = Accounting documentation
Software Operation Manual, internal Control + security
Implement Internal Control
Actual Stock Value as at 31.12.2014
Specify type of reason on Credit Note / Debit Note / Adjustment to the accounts.
Those upgraded GST software, need to upgrade to the latest GST.
Do not change GST staff.
Do not modify accounts transaction unnecessarily
Actual Stock Quantity as at 31.01.2015
Actual Stock Quantity as at 28.02.2015
Actual Stock Quantity as at 31.03.2015
(* actual stock quantity is needed due to input tax and output tax = real stock quantity)
Accounts for 2014 completed.
START MAINTAIN YOUR GST PEOPLE / ACCOUNTS PEOPLE / ICT PEOPLE.
If you are still waiting and see,
the period given by Government for preparation would simply meaningless at all.
"Rang Undang-undang Cukai Barang dan Perkhidmatan telah diluluskan oleh Dewan Rakyat pada 7 April 2014. Seterusnya, pada 5 Mei 2014, Dewan Negara telah meluluskan rang undang-undang tersebut."
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