GST TAX CODE : IM

TAX CODE : IM

All goods imported into Malaysia are subjected to duties and GST.  GST is calculated on the value which includes cost, insurance and freight plus the customs duty payable (if any), unless the imported goods are for storage in a licensed warehouse or Free Trade Zone, or imported under Warehouse Scheme, or under the Approved Trader Scheme.

GST TAX CODE : TX

GST TAX CODE : TX

  • This refers to goods or services purchased from GST registered supplies.
  • The prevailing GST rate is 6% w.e.f 1 April 2015.
  • As it is a tax and final consumption, a GST registered trader will be able to claim credits for GST paid on goods or services supplied to them.
  • The recoverable credits are called input tax.
  • Examples include goods or serices purchased for business purposes from GST registered traders.

GST TAX CODES

  • All GST Compliant Systems must be able to store and map the various tax codes to taxable supplies and purchases.
  • There are currently 23 tax codes provided by Royal Malaysian Customs.

CAPITAL GOODS ADJUSTMENTS FOR GST

The purpose of CGA is to ensure that GST input tax claimed on capital good purchased by a GST mixed supplier is used consistently with the proportion of taxable supplies to exempt supplies. However, if the usage is changed, the CGA must apply for up to 10 years for land & building, and 5 years for other assets including taxable goodwill.

READY, SET, GO!

AS the country steels itself for the (GST implementation, awareness has kicked in among accounting professionals for the pressing need to be GST-compliant come April 1 2015. As the regulator and leading professional accountancy body, MIA's agenda is to en sure that practitioner and members are fully prepared before the deadline.

As such, MIA's GST Conference 2014 focused on practical tips, tools and strategies for getting GST right. Regional experts from countries which have already implemented GST shared insights and experiences, but the main message was clear: be prepared; learn everything you can about GST: and Do it Now.