GST : Mistake Watch Out
Although GST has not started yet, we might not aware what are the typical mistake that would happen in the long run. Let's check other GST countries by google it.
1. Fail to monitor Yearly Revenue Threshold RM500,000 from Gross Turnover
Business revenue might get near or achieve the threshold value without noticing it monthly, which it would hit the late register penalty as well as late payment penalty both at the same period. Penalty is RM1500 per month, maximum of RM20,000 Once you have noticed it is hitting the threshold, within 30 days for registering.
2. A single person having so many businesses
Combine all the turnover from all of your trade, profession or all your sole-proprietorship business on the same business nature or different business nature to determine registration.
3. Having a Single Taxable Person
This one most people would find it hard to understand, what GST is suggesting is that as long as there is financial link, economic link or organizational link is happen, all type of business need to be combine although each company threshold is below RM500,000 and each business is belong to each individual.
Financial link refers to:
i. financial support given by one party to another;
ii. one party not financially viable without the support from another party; or
iii.common financial interest in the proceeds of the business
Economic link refers to :
i.seeking to achieve the same economic objectives;
ii.activities of one party benefit the other party; or
iii.supplying to the same circle of customers
Organisational link refers to:
iii.common premises; or
4. Does not file GST return if does not have any business transaction during the period?
Submit a "Nil" Gst Return is required, just like Income Tax once everyone has a tax file.
5. Always Claim Refund from Custom?
Either business starts to make losses or an exporter would have this kind of option. Other than that, the claiming would be a problem or an indicator that importing goods for quite some months.
6. Self Billed Tax Invoice
This option is a tough work for certain industry where supplier unable issue tax invoice for being the goods and services presented, the customer has to issue self-billed tax invoice instead (input tax) for supplier at such the determination of the raw material prices, terms and conditions is calculated and offered by the customer. Such as Property Agent Commission, Insurance Agent Commission, Professional Services Received, Palm Oil Sector FFB, and etc..
7. Transition Period
Please double check on the following:-
a) Issuing invoice without deliver goods before 01.04.2015, is subject to GST
b) Deposit or advance payment before 01.04.2015, is subject to GST
c) Property completed after 01.04.2015, is subject to GST
d) Rental is subject to GST after 01.04.2015 even the agreement sign before GST period
e) Claiming Paid Sales Tax after 01.04.2015 for conducting audited closing stock on 31.03.2015
8. Getting out from the GST
Required at least 2 years in order to de-register GST. Furthermore GST might subject to custom audit.
9. Delay without Payment to GST
Filling GST must submit together with the payment.
10. Quarterly submission might jam Cash Flow
Filling Quarterly GST would sum up 3 months GST payment, especially top sales is achieved on the 4th quarter of the year while submission on the January, which is also closed to the Chinese New Year. Quarter 4 would be the highest GST payment submission if Quarter 4 of the year is representing the best Sales or Turnover period.