2Accounting, submission Of returns & payment of tax
3TAX INVOICE What is Tax Invoice? A tax invoice is a document containing certain information about the supply that has been made and it is similar to a commercial invoice except for some additional information such as details of registered person and supply, GST rate and the amount of GST payable.may trigger the time of supply for a transaction.触发供应的时间primary evidence to support a customer’s input tax claim.证据索进 项税determine when he may claim his input tax.决定时间索进项税determine which supplies made by him should be included in a particular taxable period.特定的应纳税期间
4TAX INVOICE Issuance of Tax Invoice 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 copyElectronicMust issue within 21 days after supply taken place (Time of supply).Containing prescribed particulars.
5Tax InvoiceTypes of tax invoice when making taxable suppliesfull tax invoice.完整税务发票simplified tax invoice.简化税务发票self-billed invoice.自开税务发票
6Tax Invoice – Full Tax Invoice 税务发票资料;（a） “税务发票” 词语在显眼处; （b）税务发票的序列号; （c）发出税务发票之日; （d）供应商的名称，地址和GST别号; (e) 客户的姓名（或贸易名称）和地址; (f) 提供的商品或服务的描述 （g）对每个区分说明供应的标准税率，零税率和免税，货物数 量或服务，并付金额，不包括消费税; （h）所提供的任何折扣; （i）总额不包括消费税总，税收，的速率 (j) 付款项包括收取的消费税总额;和 （K）上文（i）及（j）任何金额必须以马来西亚货币。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) supplier’s name, address and GST identification number;the customer’s name (or trading name) and address;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 totaltax 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.
8For the purpose of claiming ITC : Tax Invoice - Simplified Tax InvoiceFor the purpose of claiming ITC :the buyer can use simplified tax invoice if the total amount GST payable is RM30 or less 6%).if the total amount GST payable is more than RM30, the buyer must request for a (full name & address the recipient).
11Tax Invoice - Self - billed Invoice Recipient is allowed to issue self-billed invoice for supply in his possession ifthe value at the time of supply is not known by the supplier供应商不知价值the recipient and the supplier are both registered and agree in writing供应商 ,收件人都注册和书面同意the supplier agrees that no tax invoice will be issued by him供应商同意不開税务发票
13TAX INVOICE Tax Fraction Tax fraction is the GST amount of the consideration.The calculation of the tax fraction is as follows :Tax fraction = tax rate x amount of consideration100 + tax rateExample:Assuming your consideration is RM100.GST = GST rate x consideration100% + GST rate= 6% x RM100100% + 6%= RM5.66
14TAX 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= RM56.60Charge customer RM1,000 and remit RM56.60 to Customs.
15TAX 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%= RM60Charge customer RM1,000 + RM60 (GST) = RM1,060 and remit RM60 to Customs.
16Credit Note Issuance of Credit Notes Credit notes are issued by a supplier when the price for a supply is reduced after a tax invoice was issued, e.g. reduction in price because of lower quality and credit note issuedShall make adjustment in the GST returnAdjustments due to credit note issuedsupplier reduces output tax in the return for the taxable period in which the credit note was issuedcustomer reduces input tax in the return for the taxable period in which he received the credit note
18Adjust by deducting the related GST in form GST -03 Credit NoteExample :Goods sold on 20/1/16 by company A to company B, amount RM 1,000. plus GST 6%. Goods returned on 10/2/16 to company A, amount RM212. Credit note issued on 25/2/16 by company A.Company A (Seller)Jan 2016Output tax : RM1000 x 6% = RM60Feb 2016 (Adjustment)Decrease Output tax : RM212 x 6/106 = RM12Discount givenUsually given directly through an invoice.Output tax on discounted value.If given later after invoice has been issued , then discount is usually given through a credit note.Supplier decrease his output tax (debit)Customer decrease his input tax (credit)OUTPUT TAXAdjust by deducting the related GST in form GST -03Company B (Buyer)Jan 2016Input tax – RM1000 x 6% = RM60Feb 2016 (Adjustment)Decrease Input tax – RM212 x 6/106 = RM12INPUT TAX
19Debit Note Issuance of Debit Notes Debit notes are issued by a supplier when the price for a supply is increased after a tax invoice was issued, e.g. wholesaler wrongly charging retailer a lower priceShall make adjustment in the GST returnAdjustments due to debit note issuedsupplier account for output tax in the return for the taxable period in which the debit note was issuedcustomer claim input tax in the return for the taxable period in which he received the debit note
21Debit NoteOn 20/3/16 ABC Ent. issued a tax invoice to Maju Sdn.Bhd forRM 10,600 inclusive GST 6%In March taxable period for that particular transaction:ABC Ent. accounts output tax of RM600 (i.e. RM10,000 x 6%)Maju Sdn.Bhd claimed an input tax of RM600 (i.e. RM10,000 x 6%)On 10/4/16, ABC Ent. raised a debit note for the amount of RM 1,060 inclusive GST 6%.In April taxable period,ABC Ent. has to make an adjustment by increasing the output tax by RM60 (i.e. RM1,060 x 6%)Maju Sdn.Bhd has to make an adjustment by increasing the input tax by RM60 (i.e. RM1,060 x 6%)
23BAD DEBT RELIEF Concept: 6 years period for claiming bad debt relief SupplyClaimed reliefTax paidPayment receivedGST has to be accounted to JKDM6 months elapsed
24Bad Debt Relief Bad Debt Relief entitle to relief on bad debts if the taxable person has not received any payment or part of payment in respect of the taxable suppliesConditions to apply reliefGST has been paidhas not received any payment or part payment 6 months from the date of supply or the debtor has become insolvent before the period of 6 months has elapsedsufficient efforts have been made to recover the debtShall make adjustment in the GST return for bad debt relief claim
25Bad Debt Relief Adjustments due to bad debts supplier is entitled to bad debts reliefsupplier claims as input tax in the return for the taxable period in which the bad debts are given reliefinput tax amount to claim :whereA1 is the payment not received in respect of the taxable supplyB is the consideration for the taxable supplyC is the tax due and payable on the taxable supplyWhat about specific boxes allocate in the GST Return????A1Binput tax =x C
2610 Jan 2016 RM53,000 (inclusive GST RM3,000) Bad Debt ReliefExample:10 Jan RM53,000 (inclusive GST RM3,000)InvoicePayment5 March RM42, Balance of RM10,600 unpaid after 6 months from date of invoiceGST – 03 : RM3,000 (output)RM10,600RM53,000input tax claimable =x RM3,000= RM600
27Bad Debt ReliefIf buyer who is a taxable person fails to pay his supplier the consideration (wholly / part) on the supply after the period of six months :-Need to account for GST on the outstanding amount owed to the supplierDeemed to be his output tax (RM600 in the previous example)Account the output tax in the taxable period after the period of six months in his GST ReturnIf he had ceased to be a registered person, account the tax in GST-03 form (amendment)
28Bad Debt RecoveryAdjustments due to payment received in respect of bad debtscustomer makes payment in respect of bad debts (relief has been claimed by supplier)supplier accounts as output tax in the return for the taxable period in which the payment is madeoutput tax amount to accountwhereA2 is the payment received in respect of the taxable supplyB is the consideration for the taxable supplyC is the tax due and payable on the taxable supplycustomer account as input tax in the return for the taxable period in which the payment is madeA2Boutput tax =x C
29SUPPLIER Bad Debt Recovery Based on the earlier example:On 5 September 2016, the customer pays RM5,300The balance of RM5,300 is still unpaid.RM5,300RM53,000output tax to be accounted =x RM3,000= RM300.00
30Customer Bad Debt Recovery Allowed to claim the RM300:- If he is a Registered person – claim as input tax in GST ReturnIf he ceased to be a registered person – claim as a refund in online TAP
44(If no Tax Invoice issued within 21 days) RETAILING – CONSIGNMENT GOODSExample:Sales statement issued by consignee1Company AShop BGoods removedConsigneeConsignor2Sales StatementBasic time of supply (Date of Sales Statement)21 days rule3(21 days)If Tax invoice issuedTime Of Supply(If no Tax Invoice issued within 21 days)Actual Time Of Supply(Invoice Date)
45RETAILING – CONSIGNMENT GOODS GST Treatment on Supplies Made When consignor has to account for GST?Time of Supply (TOS)12 months after the removal of the goods,Basic TOS : Date after 12 months the goods were sentActual TOS: Date of tax invoiceProvided that the tax invoice was issued within 21 days from the basic TOS
46(If no Tax Invoice issued within 21 days) RETAILING – CONSIGNMENT GOODSExample:No sales statement issued by consignee1Company AShop BGoods removedConsigneeConsignor2No Sales StatementBasic time of supply (12 months after goods removed)321 days rule(21 days)If Tax invoice issuedTime Of Supply(If no Tax Invoice issued within 21 days)Actual Time Of Supply(Invoice Date)