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Preparing for GST in Malaysia: Take 3 Vitamins

GST starts in Malaysia on 1 April 2015. Get ready today.
Vit G: Ground rules
Vit S: System upgrade
Vit T: Transitional measures

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Preparing for GST in Malaysia: Take 3 Vitamins

  1. 1. Malaysia GSTseminar
  2. 2. GSTstarts on 1/4/2015
  3. 3. On 1/4/2015,YOUwant to go on leave
  4. 4. 3vitamins to get youGST-ready Ground rules S System change T Transitional measures G
  5. 5. Ground rules G S System change A/R A/P Filing
  6. 6. Don’t let GST drain your cashflow GST on Invoice 3 M 1 M Pay GST 4 M 1 M average 2.5 M
  7. 7. Bad & doubtful debts Financial Accounting GST YOU Customer Invoice Journal $ NO GST impact
  8. 8. Bad doubtful debts Financial Accounting GST YOU Customer YOU Customs Invoice Journal $ NO GST impact Bad debt relief GST Money Back GUARANTEE 100%
  9. 9. Step 1 1A – Bad debt relief Step 2 2A – Bad debt irrecoverable 2B – Bad debt recovered
  10. 10. ClaimBad debt relief under Input tax ÜBad debt is Expense
  11. 11. Adjust Bad debt recoveredin Output tax ÜBad debt written back is Income
  12. 12. Supplier invoice outstanding 6 months Step 1 1A – Unpaid bill GST “Refund” Step 2 2A – Bill written off 2B – Bill later paid
  13. 13. DeclareUnpaid supplier inOutput tax ÜBill “forgiven” is Other Income
  14. 14. Claim backPaid supplierunder Input tax ÜLong outstanding bill paid is still Expense
  15. 15. 3 common Errors GST Filing
  16. 16. GST Accounting Claim relief Write off
  17. 17. Supplier invoice outstanding 6 months Review AP ageing
  18. 18. Blocked input tax Passenger motor cars including hiring of cars Family benefits Club subscription fees Medical personal accident insurance Medical expenses Entertainment for family members potential clients
  19. 19. Today Lifeas normal T G S 1/4/2015 Upgrade ahead of time: Go attend GST training Standby accounting system Don’t be a moneylender: Re-evaluate customer credit terms Start proper documentation on collection efforts Watch out for blind spots: Review sales contracts quotations (add GST clause) Identify blocked expenses keep a list handy
  20. 20. Welcometo theworldwide GST Club 152 out of 190 countries have implemented GST/VAT * * Source: Royal Malaysian Customs Department’s official website for Malaysia GST
  21. 21. Image credits Sunset Pill bottle Badge World map Images and/or photos in this presentation are the copyrighted property of 123RF Limited, its Contributors or Licensed Partners and are being used with permission under license. No image and/or photo may be copied or downloaded without permission from the respective copyright owner/s.
  22. 22. Presented by: Kenny Goh, Speaker and trainer © All rights reserved 2 0 1 4