Accounting For Tax SAIFUL HAZMI SALLEH, JKDM WPKL

Transcription

1 Accounting For Tax SAIFUL HAZMI SALLEH, JKDM WPKL

2 Briefing Agenda 1. CHARGING OUTPUT TAX 2. TAX INVOICE, CREDIT NOTE & DEBIT NOTE 3. GST ADJUSTMENT 4. TAXABLE PERIOD 5. RECORD KEEPING 2

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4 Input tax and Output tax INPUT Goods (raw materials, machines and other goods) Services (rental telephone and insurance) Utilities (electricity and water) GST on inputs = Input tax Business Claimed input tax OUTPUT Goods (e.g. furniture, tableware, television) GST on outputs = Output tax Services ( e.g. advertising, hotel, lawyer firm) 4

5 Output Tax Scope and charge GST is charged on the taxable supply of goods and services made by a taxable person in the course or furtherance of business in Malaysia GST is charged on the imported goods/services 5

6 Output Tax GST charged on taxable supplies (sales of goods or services) deemed supplies disposal of business assets private use of business asset imported services (cth di slide berikutnya) goods sold in satisfaction of a debt gifts costing more than RM 500 supply of service with no consideration to connected person 6

7 Imported services Company A (GST registrant) (Malaysia) Company B (UK) Value of Service = RM10,000 Treat as normal practice Value of Service = RM10,000 6% GST = RM 600 Reverse Charge Mechanism Self-bill GST-03 OUTPUT TAX = RM600 INPUT TAX = RM600 RM 0 7

8 Output Tax Supplies which may not be subject to GST cash donation or grants where a person does not get benefits compensation or liquidated damages disbursements, dividends, loan repayments or capital injection transfer of going concern contribution to pension, provident or social security fund supplies by any society or similar organization supplies excluded from input tax credit (exempt supply) 8

9 2 Tax Invoice 9

10 TAX INVOICE Issuance of Tax Invoice (s. 33) Tax invoice shall be issued by every registered person who makes any taxable supply in the course or furtherance of any business in Malaysia. Tax invoice can be issued to the customer either : Hard copy Electronic Must issue within 21 days after supply taken place (Time of supply). Containing prescribed particulars. 10

11 TAX INVOICE Tax Inclusive In retail business, it may be more practical to treat the sum of money received from your customer (consideration) as inclusive of GST. The tax invoice should still show the GST as a separate amount, and you can state the GST inclusive prices and indicate with the words price inclusive of GST. Example: Assume you sell an oven at RM1,000. GST = Price x Tax Fraction = RM1,000 x 6/106 = RM56.60 Charge customer RM1,000 and remit RM56.60 to Customs. 11

12 TAX INVOICE Tax Exclusive Refers to the amount of GST paid as shown in tax invoice with separate GST amount. Example: Assume you sell an oven at RM1,000. GST = Price x Rate of Tax = RM1,000 x 6% = RM60 Charge customer RM1,000 + RM60 (GST) = RM1,060 and remit RM60 to Customs. 12

13 Tax Invoice Types of tax invoice when making taxable supplies : full tax invoice. simplified tax invoice. self-billed invoice. 13

14 Tax Invoice Full Tax Invoice The following particulars are required in the full tax invoice : (a) the words tax invoice in a prominent place; (b) the tax invoice in serial number; (c) the date of issue of the tax invoice; (d) name of supplier, address and GST identification number; (e)the customer s name (or trading name) and address; (f)a description sufficient to identify the goods or services supplied (g) for each description distinguish the type of supply for standard rate, zero rate and exempt, the quantity of goods or the extent of the services and amount payable, excluding GST; (h) any discount offered; (i) the total amount payable excluding GST, the rate of tax and the total tax chargeable shown as a separate amount; (j) total amount payable including the GST charged; and (k) any amounts referred to (i) and (j) must be expressed in Malaysian currency. 14

15 Supplier Identification Serial Number The words tax invoice in a prominent place Name and address of person being supplied Sufficient description Date of Invoice The total amount payable excluding tax, the rate of tax and the total tax chargeable shown as a separate amount. The total amount payable including the total tax chargeable

16 Tax Invoice - Simplified Tax Invoice DG may upon request in writing allow a registered person to issue a simplified tax invoice. This type of invoice is used by retailers who normally generate large volume of invoices daily to end consumers e.g. supermarkets, eateries, petrol kiosks and other point of sales outlets. This invoice can be issued regardless of any value of sales. Can take the form of an invoice, receipt, voucher or any other similar document, as long as it contains the particulars approved by the Director General. 16

17 Tax Invoice - Simplified Tax Invoice For the purpose of claiming ITC : the buyer can use simplified tax invoice if the total amount GST payable is RM30 or less 6%). (belian Rm530 inclusive 6% gst) if the total amount GST payable is more than RM30, the buyer must request for a full tax invoice. 17

18 Example : Tax Invoice - Simplified Tax Invoice Ahmad, a GST registered person, purchased goods worth RM600 inclusive of GST, RM33.96 (6/106 X RM600) at a hypermarket and enquired whether he can use the simplified tax invoice issued to him to claim the full input tax. Ahmad can claim input tax for GST amount up to RM30 with the simplified tax invoice. If he wants to claim the full input tax amount of RM33.96, then he has to request for a full tax invoice. 18

19 Example of Simplified Tax Invoice Supplier s name, address and GST identification number Description of goods or services supplied Tax invoice serial number Inv No : A00295 Date : Date of tax invoice Total amount payable inclusive of GST Rate of GST Total amount of GST charged 19

20 Example of Simplified Tax Invoice Statement Price inclusive of GST 6% need to be printed here The total amount payable including GST 6% 20

21 Tax Invoice Mixed Supplies A supplier may make exempt, zero rated and/or standard rated supplies simultaneously to the same customer. Issues one invoice to document such transactions. The tax invoice issued must clearly distinguish the taxability of the supplies (exempt, zero rated or standard rated) made. Indicate separately the applicable values and the GST rate charged (if any) on each supply. 21

22 Example of Full Tax Invoice Mixed Supplies Supplier s name, address and GST identification number Tax Invoice serial number Customer s name & address LILY SDN.BHD. Lot 123, Jalan Meru, Klang, Selangor (GST ID No : /2009) Tel : TAX INVOICE To : Ali Mini Mart Sdn. Bhd. No. 27, Jalan Maju Jaya, Description of Ipoh. goods or services supplied Tax Invoice No : Date : 25 Jun 2015 D/O No : S The words Tax Invoice clearly indicated Date of Tax Invoice ndicator for tandard ated supply Indicator for zero rated supply No. Description Qty Unit Price (RM) GST Amount (RM) Total (RM) 1. * School Shoes SS * School Shoes SS # Cooking Oil CO Total Charge made, excluding GST Quantity of goods or extent of the services supplied Note: * - 6% # - 0% Add GST (6%) Total Sales Rate of GST Total amount of GST charged.. LILYSDN. BHD. Total charge made, including GST 22

23 Supplier s name, address and GST identification number Date of Tax Invoice AGRO SHOPPING CENTRE SDN BHD DESA PINGGIRAN PUTRA, SG. MERAB TEL: XXXX FAX: XXXX GST Reg. No : Date: 30/3/ :35:45 Invoice No: V Tax invoice serial number SIMPLIFIED TAX INVOICE (MIXED SUPPLIES) Description of goods or services supplied BISCUITS[PACK] S PRINGLES SC 182G [PCS] S SUGAR Z Item Count 4 Total Sales Inclusive 6% Rounding Adjustment 0.00 Cash Rate of GST Balance 0.30 GST analysis Goods Tax S = 6% Z = 0% Print : 30/3/2016 Salesperson : Amin Indicator for standard rated supply Indicator for zero rated supply Total amount payable including GST Total amount of GST charged 23

24 Tax Invoice - Self - billed Invoice Recipient is allowed to issue self-billed invoice for supply in his possession if the value at the time of supply is not known by the supplier. the recipient and the supplier are both registered. the supplier agrees that no tax invoice will be issued by him. 24

25 Tax Invoice - Self - billed Invoice The following particulars are required in the self-billed invoice; a.the supplier s and recipient s names, addresses & GST identification numbers; b.the words self-billed invoice in a prominent place; c.the invoice serial number; d.the date of issue of the invoice; e.the reference number of RMCD s approval; f.a description sufficient to identify the goods or services supplied; g.for each description distinguish the type of supply for standard rate, zero rate and exempt, the quantity of goods or the extent of the services and amount payable, excluding GST; h.any discount offered; i.the total amount payable excluding GST, the rate of tax and the total tax chargeable to be shown separately; j.total amount payable including the GST charged; and k.any amounts referred to (i) and (j) must be expressed in Malaysian currency. 25

26 Self Billed Invoice RMCD Approval No. : KE.AA (01)

27 Tax Invoice Foreign Currency If the amount of the supply stated in a tax invoice is in foreign currency, the following particulars in the tax invoice have to be converted into Ringgit Malaysia (RM) for GST purposes : a. The amount payable before GST; b. The total GST chargeable; and c. The total amount payable (including GST). The foreign currency is converted into Ringgit Malaysia by using the open market rate of exchange prevailing in Malaysia at the time when the supply takes place. 27

28 Tax Invoice Foreign Currency Supplier s name, address and GST identificatio n number Customer s name & address No. Description Qty Unit Price (USD) Total (USD) Total LCD TV 42 T004S 20 1, , , Blue-Ray Player BD001 KENZOU ELECTRONIC BHD Kenzou Electronic Bhd Invoice No : Lot 169, Jalan Pasar, Ipoh, Perak (GST ID No:.) Date : Tel: D/O No : D To: Kenzo Sdn Bhd No. 24, Jalan Silibin Ipoh, Perak. TAX INVOICE The words Tax Invoice clearly indicated Price in foreign currency Price in Ringgit , , Home Theatre HT , , Total Sales 33, , Tax Invoice serial number Total amount payable excluding GST Description of goods or services supplied Add 4% 1, , Total Amount Due 34, , Total amount payable including GST Total tax chargeable KENZOU ELECTRONIC BHD 28

29 Tax Invoice Proforma Invoice A proforma invoice is not regarded as a tax invoice. A registered person can only claim input tax in his GST return if he has a proper tax invoice. The supplier should give him a proper tax invoice for claiming input tax. 29

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31 Adjustments Adjustments to input tax and output tax when the taxable person receives debit notes or issues credit notes payment not received after 6 months (bad debts) debtor has become insolvent before expiry of 6 months payment not made for supply after six months change of use of assets (from exempt to taxable) change of accounting basis (e.g., payment basis to invoice basis) annual adjustment for mixed supplier Capital Goods Adjustment for mixed supplier (change in the proportion of use) 31

32 CREDIT NOTE

33 Adjustments Credit note Adjustments due to credit note issued credit note is issued when the amount previously invoiced is reduced or a transaction is cancelled supplier, already accounted for output tax, reduces output tax in the return for the taxable period in which the credit note was issued buyer, already claimed input tax, reduces input tax in the return for the taxable period in which he received the credit note 33

34 CREDIT NOTE The name, address & GST identification number of the supplier The words Credit Note clearly indicated The name & address of the person to whom the goods or services are supplied DATE : The serial number & date of issue The number & date of the original tax invoice Description of the goods or services The quantity & amount for each supply The total amount excluding tax The reasons for its issue GST 6% Total The rate & amount of tax 34

35 Adjustments Credit note Example : Goods sold on by company A to company B, amount RM1,000 plus GST 6%. Goods returned on to company A, amount RM210 (inclusive GST). Credit note issued on by company A {assuming company is in monthly taxable period} Company A (seller) Output tax: RM1000 x 6% = RM60 (Jan 2016) Adjustment to reduce output tax (Feb 2016) RM210 x 6/106 = RM11.89 Actual GST paid to Customs is RM48.11 Company B (buyer) {assuming company is in monthly taxable period} Input tax: RM1000 x 6% = RM60 (Jan 2016) Adjustment to reduce input tax (Feb 2016) RM210 x 6/106 = RM11.89 Actual input tax claimed by Co. B is RM

36 DEBIT NOTE

37 Adjustments Debit note Adjustments due to debit note issued debit note is issued when the amount previously invoiced is increased supplier has to increase output tax in the return for the taxable period in which the debit note was issued buyer has to increase input tax in the return for the taxable period in which he received the debit note 37

38 DEBIT NOTE The name, address & GST identification number of the supplier The name & address of the person to whom the goods or services are supplied DATE: The words Debit Note clearly indicated The serial number & date of issue The number & date of the original tax invoice Description of the goods or services The quantity & amount for each supply The total amount excluding tax The reasons for its issue GST 6% Charge to be paid The rate & amount of tax 38

39 Adjustments Debit note Example : Goods sold on by company A to company B, amount RM1,000 plus GST 6%. Debit note issued on by company A for transportation charges for delivery of the goods, amount RM105 (inclusive of GST). {assuming company is in monthly taxable period} Company A (seller) Output tax: RM1000 x 6% = RM60 (Jan 2016) Adjustment to increase output tax (Feb 2016) RM105 x 6/106 = RM5.94 Actual GST paid {output tax} to Customs is RM65.94 Company B (buyer) {assuming company is in monthly taxable period} Input tax: RM1000 x 6% = RM60 (Jan 2016) Adjustment to increase input tax (Feb 2016) RM105 x 6/106 = RM

40 BAD DEBTS

41 Adjustments Bad Debts Adjustments due to bad debts supplier is entitled to bad debts relief supplier claims as input tax in the return for the taxable period in which the bad debts are given relief output tax amount to claim A1 input tax = x C B where A1 is the payment not received in respect of the taxable supply B is the consideration for the taxable supply C is the tax due and payable on the taxable supply customer account as output tax in the return for the taxable period in which the bad debts are given relief 41

42 Adjustments Bad Debts Payment not received Restoran Sedap Sdn Bhd made a supply and issued a tax invoice on to ABC Sdn.Bhd for RM21,200 inclusive GST 6% (RM20,000+RM1,200 GST). Tax has been accounted by Restoran Sedap Sdn Bhd for the month of Feb. Part payment of RM12,000 (inclusive of GST RM679.25) for the supply was received on Balance payment was not received after six months from the date of tax invoice issued. Restoran Sedap can claim bad debt relief by accounting as input tax in his August return. The claimable bad debt relief is as follows:- RM 9,200 x RM1,200 = RM RM21,200 42

43 Mechanism to claim bad debt relief add the amount of GST to claim to the amount of total input tax (Field 9b) 43

44 Adjustments Bad Debts Adjustments due to payment received in respect of bad debts supplier has made the claim for bad debt relief subsequently customer paid the debt supplier accounts as output tax in the return for the taxable period in which the payment is made output tax amount to account output tax A2 x C = B where A2 is the payment received in respect of the taxable supply B is the consideration for the taxable supply C is the tax due and payable on the taxable supply customer claim as input tax in the return for the taxable period in which the payment is made 44

45 Adjustments Bad Debts Payment received after six months Please refer to the same example of Restoran Sedap Sdn Bhd. Assuming the customer pays the balance of RM 9,200 (inclusive tax of RM520.75) on (after the expiry of 6 months from the date of supply). ARUS must account for output tax calculated as follows:- RM 9,200 x RM 1,200 = RM RM21,200 45

46 Mechanism to make repayment Registered person: GST return GST-03 46

47 4 Taxable Period 47

48 Sub (1) Taxable period - seksyen 40 KP tetapkan kategori orang kena cukai: Kategori A tempoh 1 bulan monthly basis for businesses with annual turnover exceeding RM5 million Kategori B tempoh 3 bulan quarterly basis for businesses with annual turnover not exceeding RM5 million Sub (2) Orang kena cukai boleh mohon tukar tempoh Sub (3) KP boleh terima atau tolak permohonan Sub (4) KP tetapkan semula kategori Sub (5) Dalam apa-apa keadaan, KP boleh ubah tarikh mula dan akhir tempoh 48

49 Submission of GST Returns Filing of Returns ( s. 41) GST returns and payments must be submitted not later than the last day of the month following the end of the taxable period Electronic filing is encouraged 49

50 Submission of GST Returns When to submit GST Return monthly taxable period quarterly taxable period 50

51 TAXABLE PERIOD The filing frequency of the various taxable periods are as below Filing Frequency Taxable Periods Jan-Mar, Apr-Jun, Jul-Sep, Oct-Dec Quarterly Feb-Apr, May-Jul, Aug-Oct, Nov-Jan Mar-May, Jun-Aug, Sep-Nov, Dec-Feb Monthly Every month Half-yearly (apply in writing to DG) Jan-Jun, Feb-July, Mar-Aug, Apr-Sep, May-Oct, July-Dec Aug-Jan Sep-Feb Oct-Mar Sep-Apr Jun-Nov, Dec-May 51

52 Taxable period Bayaran melalui pengisytiharan cukai: Ada bayaran [ cukai output > cukai input ] Pulangbalik [ cukai input > cukai output ] Tiada bayaran [ cukai output = cukai input ] Bayaran Pulangbalik: 14 hari bekerja - penghantaran secara atas talian 28 hari bekerja penghantaran secara manual

53 Payment slip GST-06 Payment method Cash Cheque Bank Draft Postal order Money order Bank/Electronic Fund Transfer (EFT)/E-Payment. Unit Tugas Khas 53

54 Payment of GST Payment of tax may be made at JKDM office, in person cash, cheque, bank draft, postal order, money order over the counter at dedicated bank cash, cheque, bank draft by post cheque, bank draft, postal order by electronic means Internet banking, FPX (financial processing exchange) 54

55 5 Record Keeping 55

56 Record Keeping-(Seksyen 36) Setiap orang kena cukai rekod lengkap dan benar, ditulis secara kemaskini yang berkaitan cukai Disimpan - 7 tahun - BM atau BI - di Malaysia, kecuali kelulusan KP Jika secara elektronik, mestilah boleh dibaca pada bila-bila masa Jika asal manual ditukar ke elektronik, kekal asal Salinan rekod mestilah boleh diterima untuk prosiding Denda RM 50,000 atau penjara 3 tahun atau keduaduanya 56

57 Record Keeping Disimpan dalam 2 keadaan: Fizikal (hardcopy) Elektronik (softcopy) Jenis-jenis rekod: Rekod berkaitan pendaftaran Rekod aktiviti perniagaan Rekod perakaunan Rekod percukaian Rekod electronic 57

58 Record Keeping Records relating to registration SSM records Form A, B, C, 8, 9, 24, 49 and etc. Records relating business activities Tax invoices, invoices, receipts, Debit note, credit note Delivery order, purchase order Bank slip, bank statement, voucher and etc. Contract, agreement Records relating to accounting (hard copy) Financial statement Profit & Loss, Balance Sheet, Trial Balance Account payable, account receivable, General ledger, Sales, Purchase, stock, cash and etc. 58

59 Record Keeping Records relating to taxation Customs forms K1, K2, K9 and etc. GST GST returns, registration and etc. GST adjustment sheet. Income tax declaration. Records relating to electronic form Accounting software manual. Accounts chart, access code, program documentation. Audit trail. Purchase, Sales, GL Listing (e.g standard, exempt, disregard, out of scope, deemed supply etc). GAF File (GST Accounting Software). Management Information Report (MIS) report. Other data / records keep in accounting / business software. 59

60 Record Keeping SST records keeping after GST era? For those formally registered under the Sales Tax Act 1972 and Service Tax Act 1975, records for GST purposes must be kept separately from sales tax and service tax. Separate the records due to different act of implementation. When must I start keeping records? Whether you are registered under GST Act or not, you must start keeping records from the date you provide taxable supply or become a taxable person. You can charge GST only after you are registered as a GST registered person. If you register voluntarily, you should start keeping records and charging GST from the date you are registered 60

61 Inquiry Ketua Setiausaha, Pejabat Pelaksana GST, Perbendaharaan Malaysia Komplek Kementerian Kewangan, No.5, Persiaran Perdana, Pusat Pentadbiran Kerajaan Persekutuan Malaysia, PUTRAJAYA. Tel : Customs Call Centre (CCC) Tel: Fax: ccc@customs.gov.my GST PORTAL

62 End of Presentation 62