Goods and Services Tax

Transcription

1 Goods and Services Tax Document Information Document Title : Self Review Check List for GST 03 Issuance Date : November 21, 2015 (Version 4) Purpose : This checklist serves as a guide for you to assess whether you take into consideration on determination of Supply and Purchase to fit into GST 03. This can use as pre filing checklist before you submit GST 03 Disclaimer : This document is issued as a summary from GST training and GST System Changes implementation and served as a guide based on the best understanding on the interpretation of GST in Malaysia. SW Project Consulting Sdn Bhd reserves the right to update this document from time to time. disclaims that this is a guidance for review purpose but not an official document to perform GST 03 submission. Issue: Stanley Wong Kah Leong Page 1

2 Table of Contents Contents Section 1: Registered Persons Details... 4 Section 2: Application Details... 4 Section 3: Tax Code Assignment as per Guide on Accounting Software... 5 Section 4: Accountability for GST Check List... 8 Section 4.1: Standard Rated Supplies Check List... 8 Section 4.2: Additional Information (Supplies)... 9 Section 4.3: Acquisition and Purchases (Wholly Taxable Trader) Section 4.4: Determination of Partial Exempt Trader and IRR Section 4.5: Acquisition and Purchases (Partial Exempt Trader) Section 5: Checking Routine (Excel Pivot Table) Section 5.1: Check Transaction Type Section 5.2: Check Chart of Accounts for GST to discover any mismatch Section 5.3: Check on GST Net between Output and Input Tax Section 5.4: Check Individual GST Code to determine Value and GST Section 6: Accountability for GST Section 7: GST 03 Submission Check List Section 8: GST 03 Summary Worksheets Page 2

3 Change Control History AUTHOR TITLE Stanley Wong Self review (Pre filing) Check List Change Control DOC DATE DOC VERSION AUTHOR AMENDMENTS November 21, Stanley K Wong Added change control section November 21, Stanley K Wong Update Section 4.2 with the treatment of selling goods to designated areas November 21, Stanley K Wong Update on treatment on incidental financial exempt supplies in Section 4.2 November 21, Stanley K Wong Update Section 4.5 on Importation Value (IM) November 21, Stanley K Wong Update Section 4.5 on Importation Value (IS) November 21, Stanley K Wong Update Section 5.1 on checking matrix. November 21, Stanley K Wong Remove checking on incidental exempt supplies on Section 7 November 21, Stanley K Wong Add adjustment Invoice more than 6 months Section 4.4 and Section 4.5 Page 3

4 Section 1: Registered Persons Details GST Number Business Name Business Registration Number Section 2: Application Details Name(s) of accounting software Version number(s) of accounting software Page 4

5 Section 3: Tax Code Assignment as per Guide on Accounting Software No. Discussion Supply Tax Code GST Tax Code for Supplies 1 Standard Rated Supply Standard rated supplies with GST Charged. 2 Local Zero Rated Supply Local supply of goods or services which are subject to zero rated supplies. SR ZRL Alternative Tax Code Yes No N/A 3 Exportation Exportation of goods or services which are subject to zero rated supplies. 4 Incidental Exempt Supplies Incidental Exempt supplies. Interest income, gain/loss in Forex, gain/loss in hedging, income from connected persons and etc 5 Deemed Supplies Deemed supplies (e.g. transfer or disposal of business assets without consideration, gift, importation of services, private use). 6 Out of Scope Supplies Out of scope supplies, overseas transactions. 7 Exempt Supplies Exempt supplies under GST (Exempt Order Gazette 2014) 8 Relief Supplies Relief supply under GST. (Relief Order and Relief by Minister) 9 Disregard Supplies Disregarded supplies & sales within Warehouse Scheme and Group Registration. 10 Adjustment Any adjustment made to Output Tax e.g : Longer period adjustment, Bad Debt recover, outstanding invoice > 6 months& other output tax adjustments. ZRE ES43 DS OS ES RS GS AJS Page 5

6 No. Discussion Purchase Tax Code GST Tax Code for Purchases (Wholly Taxable Trader) 1 Purchases with GST Purchases with GST incurred at 6% and directly attributable to taxable supplies. TX Alternative Tax Code Yes No N/A 2 Importation Import of goods with GST incurred. 3 Special Scheme where GST is suspended Imports under special scheme with no GST incurred (e.g. Approved Trader Scheme, ATMS Scheme). 4 Block Input Tax Purchases with GST incurred but not claimable (Disallowance of Input Tax) (e.g. medical expenses for staff). 5 Purchases from Non GST Registrants Purchase from non GST registered supplier with no GST incurred. Business below threshold in Malaysia. 6 Zero Rated Purchases Purchase from GST registered supplier with no GST incurred. (e.g. supplier provides transportation of goods that qualify as international services). 7 Exempt Purchases Purchases exempted from GST. E.g. purchase of residential property or financial services, HP Interest. 8 Out of Scope Purchases Purchase transactions which are out of the scope of GST legislation (e.g. purchase of goods overseas). 9 Disregarded Purchases Purchase transactions which disregarded under GST legislation (e.g. purchase within GST group IM IS BL NR ZP EP OP GP Page 6

7 No. Discussion Purchase Tax Code registration). Warehouse Scheme Alternative Tax Code Yes No N/A 10 Adjustment Any adjustment made to Input Tax e.g.: Bad Debt Relief, payment to creditor > 6 months & other input tax adjustment. GST Tax Code for Purchases (Partial Exempt Trader) 1 Purchases with GST Purchase with GST incurred directly attributable to incidental exempt supplies. 2 Purchases with GST Purchase with GST incurred directly attributable to non incidental exempt supplies. 3 Purchases with GST Purchase with GST incurred that is not directly attributable to taxable or exempt supplies. AJP TX E43 TX N43 TX RE *Note: Partial exempt trader can use purchases and acquisition tax codes for its wholly taxable supply businesses. The input tax credit is wholly attributable to taxable supply and claimable in full. Page 7

8 Section 4: Accountability for GST Check List Section 4.1: Standard Rated Supplies Check List Check GST 03 Field Check Conditions Have you Accountable? Yes No Standard Rated Supplies (SR) Check 1 Total Tax Invoices Issued Total business supply for the taxable periods Check 2 Total Debit Note Issued Total Debit Note issued; It can combined with nett Check 3 Total Credit Note Issued Total Credit Note issued; It can combined with nett Check on disposal accounts Check 4 Disposal of Business Assets & Scrap Check 5 Rental and Check on rental and miscellaneous income Miscellaneous Income accounts Deemed Supplies (DS) Check 6 Private Use Check on staff control, director control and amount due/to connected person Check 7 Transfer of Going Concerns Check on Equity, Investment, Subsidiaries, goodwill and trademarks Check 8 Gift Rules Check on gift, staff benefits, amenities, donation and sponsorship Check 9 Importation of Services Check on overseas payment; Reverse Charge Mechanism; Recorded as OP as imported service value and DS as accounted for output tax GST Adjustments (AJS) Check 10 GST Adjustment on Check on Output Tax Account Debit Note Check 11 GST Adjustment on Check on Output Tax Account Credit Note Check 12 Bad Debt Recovered Check on Output Tax Account; Recovery of outstanding debts Check 13 Annual Adjustment Partial Exempt Trader Check 14 Longer Period Partial Exempt Trader Adjustment Check 15 Other Adjustment Partial Exempt Trader Check 16 Capital Goods Partial Exempt Trader Adjustment Check 17 Invoice more than 6 Creditor Outstanding > 6 months months adjustment GST 03 5(b) Tally with Total Output Tax Page 8

9 Section 4.2: Additional Information (Supplies) Check GST 03 Field Check Conditions Have you Accountable? Yes No Zero Rated Supplies (ZRL) Check 1 Total Tax Invoices Total business supply for the taxable periods Invoices Issued Check 2 Total Debit Note Issued Total Debit Note issued; It can combined with nett Check 3 Total Credit Note Issued Total Credit Note issued; It can combined with nett Check 4 Sales to Designated Areas Total sales to designated areas** ** Without K2 Export Supplies (ZRE) Check 5 Total Commercial Invoices Issued Total business supply for the taxable periods** ** Sales to Designated Areas with K2 Check 6 Total Debit Note Issued Total Debit Note issued; It can combined with nett Check 7 Total Credit Note Issued Total Credit Note issued; It can combined with nett Exempt Supplies (ES) Check 8 Total Supply Total business supply for the taxable periods Check 9 Total Debit Note Issued Total Debit Note issued; It can combined with nett Check 10 Total Credit Note Issued Total Credit Note issued; It can combined with nett Check 11 Incidental Financial Include ES43 into Field 12 Exempt Supply. Exempt Supplies Record net gain Record zero if it is net loss Relief Supplies (RS) Check 12 Total Tax Invoices Total business supply for the taxable periods Invoices Issued Check 13 Total Debit Note Issued Total Debit Note issued; It can combined with net Check 14 Total Credit Note Issued Total Credit Note issued; It can combined with net Page 9

10 Section 4.3: Acquisition and Purchases (Wholly Taxable Trader) Check GST 03 Field Check Conditions Have you Accountable? Yes No Standard Rated Purchases (TX) Check 1 Total Tax Invoices Received from Trade Purchases Check 2 Total Tax Invoices Received from Miscellaneous, Sundry and Office Expenses Check 3 Check 4 Total Tax Invoices or statement on incidental financial exempt supplies Total Tax Invoices Received from Capital Goods Trade purchases from local GST registered suppliers Sundry purchases from direct payment or cash payment or creditor Check on bank, petty cash and sundry creditors Include input tax on incidental exempt supplies Purchase of fixed assets and capitalization items such as trademarks and goodwill Check 5 Total Debit Note received Total debit note from local GST registered suppliers Check 6 Total Credit Note received Total credit note from local GST registered suppliers Check 7 Imported Services (DS) Check overseas service invoice paid such as mgt fee, technical fee. Reverse Charge Mechanism Importation (IM) Check 8 Goods importation Check on overseas purchases from overseas creditors Check 9 GST Paid to Customs Check bank or GST Input Tax Account Adjustment (AJP) Check 10 GST Adjustment on Debit Note Check on Input Tax Account Check 11 GST Adjustment on Credit Note Check on Input Tax Account Check 12 Bad Debt Relief Check on Input Tax Account; Recovery of outstanding debts Check 13 Annual Adjustment Partial Exempt Trader Check 14 Longer Period Adjustment Partial Exempt Trader Check 15 Other Adjustment Partial Exempt Trader Check 16 Capital Goods Adjustment Partial Exempt Trader Check 17 Invoice more than 6 months Payment to creditors after expiry of 6 months GST 03 6(b) Tally with Total Input Tax Claimable Check 18 GST Input Tax Suspense to Claim Items that plan to claim in the future and not in the current period GST 03 6(b) After withholding suspended items to claim Capital Goods Acquisition Check 19 Capital Goods Purchases Check on Input Tax Account, Fixed Assets Accounts Importation under ATS (IS) Check 20 Importation under ATS Check on overseas purchases GST Suspended (IS) Check 21 GST Suspended Calculate on book 6% Page 10

11 Section 4.4: Determination of Partial Exempt Trader and IRR Partial Exempt Trader will require applying input tax recoverable ratio to determine the input tax credit available. Check Description Check Conditions Have you Accountable? Yes No Determination as Partial Exempt Trader with De Minimis Rule Check 1 Check De Minimis Rule Condition: Monthly 5,000 and 5% of total supplies Yes No Check 2 It does not exceed De Minimis Rule Claim full input tax credit Not apply apportionment rule Check 3 It exceeds De Minimis Rule Apply apportionment rule If organization exceeds De Minimis Rule, then it must apply apportionment ratio Check 4 Refer to the Section 4.1 and Section 4.2 Ascertain total of taxable supplies except Exempt Supply Check 5 Refer to the Section 4.2 Exempt Supply Ascertain total of exempt supplies Check 6 Total Supplies for the organization Ascertain total supplies Check 7 Calculate Input Tax Recoverable Ratio Get the ratio in % 100% Check 8 Ascertain Total GST Input Tax Section Confirm total Residual Input Tax 4.5 Check 9 Ascertain Total GST Input Tax Wholly Attributable to Taxable Supplies Confirm total Input Tax totally allowable for credit Example of calculation of Input Tax Recoverable Ratio for illustration Circle in red means that the input tax recoverable ratio Page 11

12 Section 4.5: Acquisition and Purchases (Partial Exempt Trader) Check GST 03 Field Check Conditions Apply IRR Standard Rated Purchases (TX RE) Check 1 Total Tax Invoices Received from Trade Purchases, Sundries and Capital Goods Check 2 Total Tax Invoices Received from Sundry Expenses Check 3 Check 4 Total Tax Invoices or statement on incidental financial exempt supplies Total Tax Invoices Received from Capital Goods Trade purchases from local GST registered suppliers Sundry purchases from direct payment or cash payment or creditor Check on bank, petty cash and sundry creditors Include input tax on incidental exempt supplies Purchase of fixed assets and capitalization items such as trademarks and goodwill Check 5 Total Debit Note received Total debit note from local GST registered suppliers Check 6 Total Credit Note received Total credit note from local GST registered suppliers Check 7 Imported Services (DS) 'Check overseas service invoice paid such as mgt fee, technical fee. Reverse Charge Mechanism. Total Purchases to make incidental Exempt Supplies (TX E43) Check 8 Total purchases to make incidental exempt supplies Check transactions with tax code assignment of TX E43 Importation Check 9 Goods importation (IM) ** Use K1 Value Check on overseas purchases from overseas creditors Check 10 GST Paid to Customs Check bank or GST Input Tax Account Have you Accountable? Yes No Page 12

13 Check GST 03 Field Check Conditions Apply IRR Adjustment Check 11 GST Adjustment on Debit Note Check on Input Tax Account Check 12 GST Adjustment on Credit Note Check on Input Tax Account Check 13 Bad Debt Relief Check on Input Tax Account; Recovery of outstanding debts Check 14 Annual Adjustment Partial Exempt Trader Check 15 Longer Period Adjustment Partial Exempt Trader Check 16 Other Adjustment Partial Exempt Trader Check 17 Capital Goods Adjustment Partial Exempt Trader Check 18 Invoice more than 6 months Payment to creditor after 6 months GST 03 6(b) Tally with Total Input Tax Claimable Check 19 GST Input Tax Suspense to Claim GST 03 6(b) Items that plan to claim in the future and not in the current period After withholding suspended items to claim Capital Goods Acquisition Check 20 Capital Goods Purchases Check on Input Tax Account, Fixed Assets Accounts Importation under ATS Check 21 Importation under ATS (IS) **Use K1 value Check on overseas purchases and importation GST Suspended Check 22 GST Suspended Calculate on book 6% Have you Accountable? Yes No Page 13

14 Section 5: Checking Routine (Excel Pivot Table) Ascertain the transaction type or journal type used in the organization. Check on the transaction types that are having GST impacts. Those transactions without GST impacts such as depreciation, provision, prepayment, accruals, equity, journal reclassification and others shall use different transaction types to enter. These transaction types will be Out of Scope and without GST. Typical example code to use can include blank, #, OS and OP Section 5.1: Check Transaction Type Check transaction types that relate to Supply, Standard Rated Supplies and Standard Rated Purchases and Acquisition. Please do not check the transaction types that are not required to disclose in GST 03 Check transactions type with the following tax code SR, DS, AJS ZRL, ZRE, RS, ES, ES43 TX, AJP IM, IS Partial Exempt Trader TX, TX RE and TX E43 Do not check transaction types with the following tax code GS and OS ZP, EP and NR BL, TX N43 GP Blank Tax Code, # or OP Check DS for reverse charge mechanism Page 14

15 Section 5.2: Check Chart of Accounts for GST to discover any mismatch This is to check that no wrong tax code is assigned to the wrong chart of accounts for the recognition of GST. Make sure that all GST code is assigned correctly to the chart of accounts. For example, passenger car maintenance must be BL instead of TX. Page 15

16 Section 5.3: Check on GST Net between Output and Input Tax This is to check that the GST Input Tax and GST Output Tax kept in the accounting software will be the figure for submission. However, it may have manual adjustment if you do not follow your accounting software The grand total is the expected amount payable or refundable. Page 16

17 Section 5.4: Check Individual GST Code to determine Value and GST Check on the individual tax code and ascertain total GST and total value. For instance, you can use Pivot Table to check on TX with transaction type and account code. You can filter transaction type and Page 17

18 Section 6: Accountability for GST Please refer to the MS Excel Pivot Table to extract transactions and fill up the GST Submission Check List in MS Excel format. Section 7: GST 03 Submission Check List Automated calculation check list in MS Excel. You may use this check list as the basic to fill up GST 03. Page 18

19 This is the linkage from GST 03 Check List. Businesses can use this print out to fill up the blank in GST TAP online. Page 19

20 TAP format. Page 20

21 Businesses can fill up Non Disclosure Items to ascertain completeness of supply and acquisition records. Page 21

22 Check GST 03 Field Check Conditions Have you Accountable? Yes No Block Input Tax (BL) Check 1 Total Tax Invoices Received Make sure block input tax are assigned Check 2 Check 3 Total Debit Note received with BL and voluntarily give up input tax credit is located here Total Credit Note received Purchases directly attributable to Non Incidental Exempt Supply (TX N43) Check 4 Total Tax Invoices Received Thorough understanding on those Check 5 Total Debit Note received transactions that fall into this tax code Check 6 Total Credit Note received must justify Out of Scope Purchases (OP) Check 7 Total Tax Invoices Invoices Issued Purchases that are not within the scope of GST Check 8 Total Debit Note Issued Check 9 Total Credit Note Issued Purchases from Non GST Registrants (NR) Check 10 Total Tax Invoices Invoices Purchases from not GST registrant Issued Check 11 Total Debit Note Issued Check 12 Total Credit Note Issued Exempt Purchases (EP) Check 13 Total Tax Invoices Invoices Exempt purchases Issued Check 14 Total Debit Note Issued Check 15 Total Credit Note Issued Purchases without GST from GST Registrant Companies (ZP) Check 16 Total Tax Invoices Invoices Zero rated Purchase and relief purchase Issued Check 17 Total Debit Note Issued Check 18 Total Credit Note Issued Disregarded Purchases (GP) Check 19 Total Tax Invoices Invoices Issued Group transactions and warehouse scheme Check 20 Total Debit Note Issued Check 21 Total Credit Note Issued Page 22

23 Check GST 03 Field Check Conditions Have you Accountable? Yes No Out of Scope Supplies (OS) Check 22 Total Tax Invoices Invoices Issued Supplies that are not within the scope of GST Check 23 Total Debit Note Issued Check 24 Total Credit Note Issued Disregarded Supplies (GS) Check 25 Total Tax Invoices Invoices Group transactions and warehouse Issued scheme Check 26 Total Debit Note Issued Check 27 Total Credit Note Issued Page 23

24 Section 8: GST 03 Summary Worksheets These are three reports stated in Guide on Tax Invoice and Records Keeping. However, minor amendment has been done to the original reports. It is all linkage to the source worksheets. The three summary worksheets are: 1. GST Summary Sheet of Total Acquisition and Input Tax 2. GST Summary Sheet of Total Supply and Output Tax 3. GST Summary Sheet of Additional Information Page 24

25 Confirmed By: Name: Designation: Reviewed By GST Licensed Agent: Name: Designation: Page 25