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AUTOMOTIVE INDUSTRIES
2014
SPECIAL SCHEMES
KHILMIE BIN GHAZALI
Unit Khas GST, JKDM, Putrajaya.
Venue : Grand Bluewave, Shah Alam.
Date : 25 March 2014
PEJABAT PELAKSANAAN GST
KEMENTERIAN KEWANGAN
Sec. 71 (1)-(2)
ATS - Concept
Overseas
person
Malaysia
GST-03
Amount of GST
Suspended
ATS
3. Approved person
declares the total
amount of GST
suspended in a
taxable period
Approved
person
declaration
. Makes
on imported goods
Customs no.1
GST is
suspended
4
ATS - Concept
Malaysia
AA Pte Ltd
ATS approval
XX Sdn Bhd
GST-03 (December
20XX)
overseas
Customs no.1
GST is
suspended
5
11
Sec. 72(1)-(8)
12
Overseas
Principal
3.
Overseas principal
invoices local customer
on finished goods
received
1.TM imports
consigned goods
from the overseas
principal (ATS)
4.
TM invoices overseas
principal for valueadded services
(disregard)
Malaysia
Toll Manufacturer
Local Customer
Recipient accounting
2.
TM drop-ships finished
goods to local customer
of overseas principal
Local supplier
13
Upon
Expected
Application drop shipment
of ATMS
under toll
(principal) manufacturing
per annum
P1
RM 300,000.00
Other
Total
taxable
Turnover
supplies
for
In Malaysia registration
per annum
(exclude
supplies
under TM)
0
Liability for
registration
Eligibility for
ATMS
No
Yes
P2
RM300,000.00
RM100,000
RM100,000
No
Yes
P3
RM600,000.00
No
Yes
P4
RM400,000.00
RM200,000
RM200,000
No
Yes
P5
RM400,000.00
RM500,001
RM500,001
Yes
No
15
Approval
under
ATMS
Years
Drop shipment
under ATMS
Other taxable
supplies in
Malaysia
Liability for
registration
Eligible of ATMS
ATMS P1
Year 1
RM300,000
No
Yes
Year 2
RM500,000
No
Yes
Year 3
RM700,000
No
Yes
Year 1
RM300,000
No
Yes
Year 2
RM500,000
RM200,000
No
Yes
Year 3
RM700,000
RM600,000
Yes
ATMS P2
16
17
RM12,000
INPUT TAX
RM12,000
Net Tax
0
18
RM200,000.00
RM12,000.00
19
21
22
23
WS - GST Treatment
GST on goods deposited into the warehouse to be suspended
GST on goods moved from one warehouse to another warehouse to
be suspended
Intermediate supplies within a warehouse to be disregarded
The last supply is subject to GST (trigger the duty point)
Goods released to local market to be subjected to GST
Goods released to overseas market to be zero- rated
All goods and services consumed in warehouse to be standard-rated
24
Warehouse 1
Warehouse 2
GST on supplies
received suspended
Supplies within
warehouses
disregarded
Warehouse 3
25
Type of warehouses
WAREHOUSING
SCHEME (WS)
Warehousing
Scheme
The last supply => the supply which is to be taken out from a
warehouse, i.e. the supply that triggers the duty point
Duty point => the time when the goods are removed from the
warehousing scheme
28
= RM 10,000.00
= 10%
= RM1000.00 (10%X RM10,000.00)
= RM 10,000.00
= RM 1,000.00
= RM 11,000.00
= RM
660.00
29
30
32
33
(i)
39
Scenario 2
Down payment < Margin
Selling Price
RM50,000
(inclusive of GST)
RM50,000
(inclusive of GST)
Down payment
RM10,000
RM10,000
Loan
RM40,000
RM40,000
RM45,000
RM35,000
Margin
RM(50,000 45,000)
= RM5,000.00
RM(50,000 35,000)
= RM15,000.00
GST chargeable
on the sale
6/106 x RM5,000
= RM283.00
6/106 x RM15,000
= RM849.05
GST on
down payment
6/106 x RM10,000
= RM566.03
6/106 x RM10,000
= RM566.03
GST to be
accounted
RM283.00
This amount will be
accounted wholly from
down payment as GST
chargeable on the sale is
limited to RM283.00 only.
RM849.05
This amount will be
accounted partly from
down payment
(RM566.03) and partly
from loan (RM283.02)
40
41
DESIGNATED AREA
What is DA?
(Sections 161-167)
DESIGNATED AREA
Designated area refers to Free Ports ( Langkawi, Labuan and Tioman)
Supply
DA to DA :
Goods and
services
within the DA:
Goods and
services
World to DA:
Goods and
Services
DA to World:
Goods and services
*
GST Treatment
*No GST chargeable
DESIGNATED AREA
Supply
GST Treatment
PCA to DA:
Goods
Services
*Zero-rated
Standard rated
DA to PCA:
Goods
Services
Standard rated
Standard rated
OTHER TRANSACTIONS
Gifts
Samples
Warranty
Disposal of assets
Goods lost/destroyed
45
OTHER TRANSACTIONS
Gift
Gift of goods not more than RM500 made in the course or
furtherance of business to the same person in the same
year :
not subject to GST
Samples
Imported trade sample given relief under GST Relief
Order
Trade samples given for promotion not subject to GST
on conditions
packed differently and labelled sample or not for
sale
samples not packed differently is subject to
business gift rules of RM500
46
OTHER TRANSACTIONS
WARRANTY
OTHER TRANSACTIONS
Disposal of Assets
Sale of capital assets, other than TOGC
subject to GST
Sale of assets as TOGC
not subject to GST (not a supply)
Given free
the value will be the open market value
subject to GST (>RM500)
Sell as scrap
the value will be the sale value of scrap
subject to GST
48
OTHER TRANSACTIONS
Goods Lost / Destroyed
Imported goods lost while under customs control
subject to GST
may apply for remission from the DG
Goods lost while not under customs control
if the incident happened before sales took place and proven with
supporting document (such as police report, insurance claim etc)
no GST
if unable to prove with relevant documents, Customs has the
power to assess and collect GST
Goods lost during delivery
if supply has not taken place - no GST
if supply has taken place (goods made available) - subject to
GST
49
BUSINESSES PREPARATION
50
BUSINESSES PREPARATION
GST Implication on Prices
identify existing suppliers
talk to small suppliers to get them registered
review procurement policy to avoid tax cascading
negotiate prices with suppliers to pass on savings
absorption of GST
Price Control and Anti Profiteering Act 2011
51
BUSINESSES PREPARATION
GST Implication on Stock Management
special refund
physical stock take on hand
documents to support refund
audit certificate
52
BUSINESSES PREPARATION
GST Implication on Cash Flow
need to analyse cash flow impact
53
BUSINESSES PREPARATION
GST Implication on Bad Debts
ensure a proper matching of GST payment to
government and payment received from
customers
monitor payment from customers
understand evidence of reasonable efforts
54
BUSINESSES PREPARATION
GST Implication on Invoicing
identify whether standard rate, exempt, zero rate or
out of scope supply
issuance of full and simplified tax invoice
BUSINESSES PREPARATION
GST Implication on Output Tax
gifts > RM500 subject to GST
56
BUSINESSES PREPARATION
GST Implication on Input Tax
blocked inputs not claimable
incidental financial supplies
57
BUSINESSES PREPARATION
GST Implication on Contracts
avoid long term contract without legal review
absorption of GST
BUSINESSES PREPARATION
GST Implication on System
review system and processes
perform complete mapping of transactions to identify
required changes
GST liability on every transaction
use of online submissions to the Customs
computerised system
ready made software
upgrading present system
59
GST FORMS
GAZETTED FORMS
FORMS NO.
TITLE
GST-01
GST-02
GST-02A
GST-02B
GST-03
GST-04
GST-04A
60
Thank You
End of Presentation
Royal Malaysian Customs
(gst.customs.gov.my)
GST Unit