1. WHAT BUSINESS SHOULD DO TO PREPARE FOR GST
NATIONAL CONFERENCE ON GST “PREPARING FOR MALAYSIA GST IMPLEMENTATION 2015”
WHAT BUSINESS SHOULD DO TO PREPARE FOR GST
Venue : MATRADE Convention & Exhibition Centre, K.L
Date : 15 May 2014
Presenter:
Teh Kheng Ean

2. WHAT BUSINESS SHOULD DO
Establishing GST committee
Modification to accounting system
Preparing bills and invoices
Utilising GST Portal
GST Forms 1 2 3 4 5

3. ESTABLISHING GST COMMITTEE
To implement a GST compliant system
1st phase
2nd phase
3rd phase
GST
Project Team
Develop implementation plan
Implementation and execute
Post implementation
Key areas requiring attention
Tax regulatory compliance
Legal and transitional issues
Vendor and supplier communication
Documentation and system
Education and training

4. BUSINESSES’ PREPARATION
GST Implication on Prices
identify existing suppliers
talk to small suppliers to get them registered
review procurement policy to avoid tax cascading
negotiate prices with suppliers to pass on savings
review sales price
pass on savings
absorption of GST
Price Control and Anti Profiteering Act 2011

5. BUSINESSES’ PREPARATION
GST Implication on Stock Management
monitor business stocks
procurement policy
registration and deregistration
special refund
physical stock take on hand
documents to support refund
audit certificate

6. BUSINESSES’ PREPARATION
GST Implication on Cash Flow
need to analyze cash flow impact
cash recover from customer before GST is due
assess the need to provide for one time fund to cater for GST payment upfront
review credit terms to customers
review requirement to apply for special schemes

7. BUSINESSES’ PREPARATION
GST Implication on Bad Debts
ensure a proper matching of GST payment to government and payment received from customers
monitor payment from customers
understand evidence of ‘sufficient efforts’

8. BUSINESSES’ PREPARATION
GST Implication on Invoicing
identify whether standard rate, exempt, zero rate or out of scope supply
issuance of full and simplified tax invoice
requirement not to issue tax invoice for imported services and second hand goods under margin scheme
21 days rule
self billed invoice

9. BUSINESSES’ PREPARATION
GST Implication on Output Tax
gifts > RM500 subject to GST
commercial samples in a form not ordinarily available for sale to the public not subject to GST
deemed supply e.g, private use and disposal of business assets subject to GST
supplies to connected persons

10. BUSINESSES’ PREPARATION
GST Implication on Input Tax
blocked inputs not claimable
incidental financial supplies
Simplified tax invoice – claim tax amount more than RM30 to be supported by a tax invoice containing name and address of recipient
De minimis rule

11. BUSINESSES’ PREPARATION
GST Implication on Contracts
avoid long term contract without legal review
absorption of GST
pricing strategy to pass on savings
GST Implication on Human Resource
enhance staff understanding of GST
avoid unnecessary mistakes
false information may open to audit case
review policy on employee benefits

12. BUSINESSES’ PREPARATION
GST Implication on System
review system and processes
perform complete mapping of transactions to identify required changes
GST liability on every transaction
use of online submissions to the Customs
computerized system
ready made software
upgrading present system

14. GST FORMS GST -01 Name of form :
Application for goods and services tax registration.
Application to be a GST registered person
Type of registration:
Normal
Single taxable person
Single entity
Branch / division

15. GST FORMS GST-03 Name of form : Goods and services tax return.
Document Identification No:
generated by the system if GST-03 is submitted electronically.
Given by officer in charge if GST-03 is submitted manually.

16. Royal Malaysian Customs Department
Thank You
GST Unit
Royal Malaysian Customs Department