During the government reading of the 2014 budget, Malaysian Prime Minister
Mr.
Najib Razak announced a GST tax of six percent starting on April 1, 2015. This
will replace the Sales and Services Tax.
Sage 300 ERP (formerly Accpac) has been successfully implemented worldwide
in countries with GDST/VAT since the DOS (Accpac Plus) days. Closer to us,
neighboring countries having successful
implementation of GST with Sage 300 ERP
in Australia, New Zealand, Singapore, Thailand and the Philippines (VAT),
Key facts on GST Malaysia:
1.
GST Rate will
be 6%
2.
Companies who
will have to register are those with annual turnover > RM500K
3.
. Companies do
have the option to register on voluntary basis if they fall out of this
bracket. Some business will find this beneficial if they deal primarily with
GST registered businesses.4. Registration date: 3 months prior to 1st April 2015.
5.
The Malaysian
government has announced a grant that will be available to businesses that
register for GST. This may be used to off-set the cost for software and or GST
training (further details still to come)
How would GST impact SMEs?
1.
It will impact
every aspect of the business if the business falls within the GST threshold
& could impact those business that do not fall into the threshold should
they purchase goods and services from those that do.
2.
It has legal
implications and penalties will be imposed Business transactions must become
more transparent to the government.
3.
There will be
greater need to automate as GST will need to be paid quarterly or monthly
dependent on business size.
4.
You can claim
back GST paid by your business – but to do this you need to be GST registered
and comply with the new regulations
5.
GST is not a
Tax on your business – rather a consumer driven Tax that is managed by your
business
Are NGOs and Charities
affected by GST?
1.
The NGOs will
be subject to the GST if they are involved directly in any business activity of
making taxable supplies.
2. Charitable
institutions such as the institutions of disabled persons, orphanages and home
for the senior citizens will not be subject to the GST where the services
provided are solely for the members of the institutes only and there is no
payment in return.
3.
Where the activities conducted by the charitable
institutions are profit motivated, such institutions shall have to register
under the GST.----------------------------------------------------------------------------------
Source: Ministry of Finance, Royal Malaysian Customs.
Source: Ministry of Finance, Royal Malaysian Customs.
