Friday, February 28, 2014

GST with Sage 300 ERP ( Accpac )

Sage and GST in Malaysia

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.

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.