The Shoppers Guide handbook is out. This handbook will help the public compare prices of basic necessities before and after implementation of GST. 

There are 500 items in the handbook which has been divided into 6 zones - Central, East, South, North, Sabah and Sarawak zones. 

Get your ebook prepared by the Malaysian Domestic Trade, Cooperatives and Consumerism Ministry http://ebook.kpdnkk.gov.my/

How SMEs should prepare for GST

This is a very good writeup of how Malaysian SME's should prepare for eventual introduction of GST

http://www.thesundaily.my/news/973007

GST Malaysia Workshop & Seminar 2014

Malaysia GST is scheduled to be introduced in April 2015.  The uppermost question in everybody's mind is - which accounting software provides GST invoice and calculation.

We are conducting a series of workshops, entitled  "How to use MYOB Accounting software to track GST transactions"

Register at our dedicated website   MYOB Accounting System   

This workshop is ideal for :

• existing MYOB users

• business owners who currently outsource their accounts

• business owners who currently use other accounting software which is not  GST- ready. 
  
  If you intend to buy a new accounting software in 2014, it is best you ask about the vendor's preparedness and experience in  GST implementation.  

Come and find out how MYOB Accounting software helps SME's in Singapore and Australia cope with GST calculation and GST form submission,  and how it is ready to assist Malaysian SME's in time to come.  

The current MYOB Accounting Malaysia software edition is already GST-ready.   It is capable of  calculating the correct GST amounts paid and collected, whether it is going to be Standard Rated, Zero Rated, Exempt Supplies or Out of Scope Supplies.   At the end of the period, to print GST report, just click Print. 

Come and ask your questions, on the accounting software part.  This workshop is more about how the MYOB software will help you record your transactions on a timely basis, in time for GST reporting every month, or every quarter, depending on the circumstances. 

For specific GST questions relating to your business, we ask that you refer to the Customs Department officers themselves. 

 
In this workshop, we want to share our knowledge of the following topics to help you prepare for eventual GST implementation.  

1. Overview of the proposed GST model for Malaysia
2. Scope of GST
3. Impact of GST on EVERY company's cashflow position
4. Demo on how GST and non-GST transactions are tracked in MYOB Accounting software.
5. GST reporting in MYOB software

This workshop is a sharing session with MYOB users and non-MYOB users. 

It is very important that you understand the effects of GST on your business, so that you can better prepare for it. Then go back to strategise and plan your next move.

Once again, click here to register for the GST Malaysia workshop :   MYOB Accounting System . 


If  for whatever reason, the above event is not updated, please send us a feedback.

GST challenges for SME's in Malaysia

Come April 2015, all Malaysian companies whose annual turnover is more than RM 500,000.00 will need to be registered as a GST registered company.

If you belong to this category of business, you will be acting as collecting agents on behalf of the Government.  

Your 'duty' as a GST registrant will be to collect tax from your customers and hand over the tax collected to the Government.  You can offset the tax that you pay to your suppliers from the amount you collected from your customers, and only remit the net amount to the Government.

This seemingly easy tax collection process poses a lot of challenges to the small and medium sized companies in Malaysia.  If you fall into the 500k turnover category, it is best that you prepare early for the eventual implementation of Malaysian GST.

Some of challenges facing Malaysian SME's  
1. Understanding GST
2. Evaluate how GST will impact every aspect of the business
3. Have a clear business process
4. Have a clear recording process
5. Insufficient internal resources for GST implementation
6. Lack of personnel with sufficient experience in GST
7. Need to invest / upgrade accounting software to capture the tax collected and paid
8. Proper documentation relating to GST
9. Need to restructure business functions within group of companies


It is best you seek the help of GST consultants to assist you if you manage a big group of companies

GST to be introduced in Malaysia

It's confirmed.  The Malaysian PM has just announced that GST will be implemented in Malaysia effective from April 1, 2015, at the rate of 6%.

In line with that, expenses related to purchase of accounting software and training in preparation for GST will be entitled to double deduction.

Who will be affected should GST be implemented in Malaysia

The Malaysian Government is quite set to introduce introduce the Goods and Services Tax GST in Malaysia.  While the exact date has not being given, it is now expected in 2014.  Whichever date it is, the Government has mentioned that they will give ample time between 18 to 24 months for the businesses and industries to prepare themselves for the implementation of GST

Who are the people who will be affected by GST implementation

1. All consumers (individuals and companies) in Malaysia who buys taxable goods will be paying for the GST.  This cover practically every item sold in Malaysia except for the utilities and necessities.  

2. Companies who manufacture and sell taxable goods will  collect the GST on behalf of the government, and remit the tax when due

About 122,000 companies will be affected by the eventual implementation of the Goods and Services Tax (GST). 

 Within these companies, it will affect  everything from human resources policies,  and systems and processes relating to stock management and invoicing. The introduction of GST will involve more than just the accounts department.

How can companies prepare for GST?

The GST amount can be large for some businesses.  Company owners must make sure their  business managers have a good grasp of the mechanics of GST to enable them to develop .    strategies to tackle the implementation issues.  Proper planning and execution is necessary to ensure that the company's profitability, competitiveness, costing and cash flow will not be unduly affected by the implementation of GST. 

Some areas that companies need to take note are :

• Contracts signed from now on would need to include a provision to review for post GST implementation. 
•  Understand the scope of taxation under GST environment.  If your company is exempted from GST registration (as it falls below the income threshold) you might want to weigh the cost and benefits of applying for voluntary GST registration
• Whether it is more beneficial to register for GST registration as a single entity or as a group, and what paperwork is required
• Find out what are the grey areas in computing the taxable and non taxable component of a product, and resolve with the relevant authorities to get the most effective method to  apportion the cost
• What are the conditions for preferential treatment of GST and how you can qualify for it
• Understand clearly when the tax is due for submission so that you can plan your cashflow well.  
• For certain industries, such as the construction industries, it is important to find out how the treatment of income recognition and accrual of expenses will affect the timing of GST due and payable.  

 
 

The body that is driving the implementation of GST is the Taxation Review Panel set up by the Ministry of Finance.   You can refer to the Ministry officials if you are in doubt.

One important area that you can start looking into is to invest in an accounting system that is GST ready.

Tourist refund scheme to be introduced

In a GST environment, tourists who have been subjected to GST on their purchases while holidaying in Malaysia are entitled to a refund of the GST paid. 

The Malaysian goverment is going to introduce a tourist refund scheme, and details are being worked out on the appointment of tourist refund agents, approved outlets, and quantum of refund.

 

Public relations firm to promote GST in Malaysia

The Malaysian Government will appoint a public relations firm to help it conduct more  programmes to increase awareness of GST in Malaysia. 

In the next few months, we will hear a jingle about GST.  There will also be more roadshows, television talks, and billboards on the impending GST introduction.

So far, there have been 2,000 awareness programmes organised by the Ministry of Finance, SME Corp, and Federation of Malaysian Manufacturers (FMM).



 

Are Malaysians ready for GST in 2011? No.

Are Malaysians, in general, ready for the Goods & Services Tax (or otherwise known as GST) in 2011?

No, according to the ACCCIM - Associated Chinese Chambers of Commerce & Industry of Malaysia.

The ACCCIM 2010 SME's Survey sent out a questionnaire to 2000 SME's but only 1250 returned their questionnaire paper.

Out of these, 33% said their business were not prepared for the GST implementation due to a lack of information from the government.

About 80% of the respondents said their computer systems were not ready to cater to the GST system.

What can we infer from the findings?
1. The Malaysian Government must strenghten its efforts to educate the public so that they will have a positive view of the GST

2. The government should draw up a clear timetable and give the public sufficient time to prepare for GST implementation

3. The Government should consider giving out incentives to encourage companies to switch to GST systems. Note: The Singapore government gave out a rebate of SGD 5,000 for companies that bought new software and hardware systems that are GST compliant.

4. In the meantime, all companies concerned should take the initiative to source for new computer systems that can track the GST payable, and GST collectible, so that they will not lose out when the GST is introduced.

My one sen worth
The ACCCIM said that 2012 is the right time to introduce GST as 24 months time frame is necessary to get the public to be ready for GST. However, it is like setting a moving target. Come 2012, the companies will also not be ready. The GST idea has been mooted since 2005, and was supposed to be introduced on Jan 1, 2007. And still, people are not ready.

I think the government should bite the bullet, and take the strong commitment to explain the exact workings of GST, and how it will affect the consumers. Do not skirt around the issue, and say that it will be good for the country's economy. Explain that only a handful of Malaysians pay tax, and that is not enough to maintain the country's development. Also, be transparent, and explain exactly which projects are going to be funded by tax collected, and so we can make the Government accountable .

Read the articles in Bernama, and the Star

Read the actual report REPORT OF ACCCIM 2010 SMEs SURVEY  as published on the ACCCIM website

Podcast : Implementing GST in Malaysia and Its Effects on SMEs

GST - the dreaded three letter word. What are the repercussions of GST for every Malaysian, and how best to prepare for impending GST implementation in Malaysia.

Listen to the podcast on the BFM 89.9 Business radion station on the topic 'Implementing GST in Malaysia and Its Effects on SMEs" by Mr Paul Jennings, MD of MYOB Malaysia.

GST to cost the Malaysian Government Rm222 million

The Malaysian Government will need to fork out an estimated initial sum of Rm222 million to ensure the smoth and effective implementation of GST system in Malaysia.

The amount consists of Rm  139 million for developing the GST computerisation system,  and Rm 83 million for the Malaysian Customs Department to implement the system.

The annual maintenance cost is estimated to cost Rm 8.5 million.

Statement from the Finance Minister in a written reply to a Member of Parliment


My one sen worth

By implementing the GST system, the Government is expected to generate Rm 1 billion in additional income.

The cost seems reasonable, judging by the tax amount to be collected, and it appears that the government can recoup its investment in 3 months after the GST is implemented. 

I just hope the new system will be thoroughly tested before it is launched.

GST workshop : Insight to GST

MYOB Malaysia office is kick-starting a series of workshops to teach Malaysian public, and existing MYOB users, on the impact of GST on your business, and why your business needs to be prepared.

Click for latest schedule of workshops.

Who and what is MYOB?
MYOB is a trademark of MYOB Pte Ltd, Australia.  MYOB the Company is the publisher of a business management software, which is called MYOB Accounting software.  The MYOB software is a great tool to use in your business, any kind of business, and suitable for most Malaysian SME's.  The software takes care of your invoicing to customers, updates your stock listing when goods are received or sold, calculates the GST amount automatically, and keeps a record of when the GST will be due and payable, and so much more.


Why should you listen to the MYOB software publisher? 
Because MYOB the company, and by extension, MYOB Accounting software, has helped thousands of customers transition to GST in Australia, New Zealand and Singapore. Now in Malaysia, MYOB wants to do the same!

The same software has been in use in the GST countries, and so the software is a tried and tested product which you can rely on to help you transition to GST environment come year 2011.

No plan to increase GST above 4%

The Malaysian government through its Deputy Finance Minister, Datuk Dr Awang Adek Hussin,  gave assurance that the GST rates will not be increase above 4%.  

He said 126 programmes involving 180,000 participants have been organised nationwide to explain GST implementation.  (I am waiting to attend one, but there's not much publicity on these workshops / seminars)

Also of interest are the following comments :

1. the 4% rate will have a neutral impact on inflation, and overall government revenue. 

2. the main objective of GST implementation is to restructure the country's taxation system, to make it comprehensive, efficient, transparent, and business-friendly,  and to address the weaknesess in the present taxation system. 

3. GST will not lead to higher business costs, but instead will make the prices of goods and services more competitive in the domestic and international markets.   The GST paid by traders for business inputs like raw materials, telephone bills and office equipment can be claimed as a credit from the government.

4. The country's per capita income level is not a yardstick to implement GST.  There are some countries with much lower per capita income which have already implemented GST.  Countries such as Venezuela, Sri Lanka, South Africa and Sudan are GST-taxable countries.

5. The county's revenue collection can be increased through efficient GST collection and higher compliance level.

Extracted from Bernama report dated June 9, 2010

How can you prepare for GST

CheckList to gauge whether you  are ready for GST .  Read here