The Goods and Services Tax (GST) is a value-added tax in Malaysia. GST is levied on most transactions in the production process but is refunded with exception of Blocked Input Tax, to all parties in the chain of production other than the final consumer.
The existing standard rate for GST effective from 1 April 2015 is 6%. Many domestically consumed items such as fresh foods, water, and electricity are zero-rated, while some supplies such as education and health services are GST exempted.
GST was scheduled to be implemented by the government during the third quarter of 2011,but the implementation was delayed until 1 April 2015. Its purpose is to replace the sales and service tax which has been used in the country for several decades. The 6% tax will replace a sales-and-service tax of between 5–15%.
Due to the implementation, it has become crucial for SMEs and organizations to have a GST-compliant accounting software to make sure that they comply with the GST rules and requirements. This is also to ensure that reports are easily prepared to be submitted to the Malaysian Royal Customs Department in a timely manner to avoid costly penalties.
You can refer to the Malaysia Accounting Software Guide for GST as follow:
No comments:
Post a Comment