Goods and Sales Tax in Malaysia Context and Compliance

[acecombat2]

@lubos, I would like the Tax Code Feature for Malaysia to be improve.

This is the source, of example of how Malaysia Tax Invoice GST Compliant looks like.

Source: http://gst.customs.gov.my/en/rg/SiteAssets/specific_guides_pdf/GST%20Guide%20-%20Tax%20Invoice%20and%20record%20keeping.pdf

My intend is to have Manager custom enabled readily for Tax code feature to accommodate incoming users from Malaysia, what manager lacking is to display Tax class per line items for Sales & Purchase Invoice and GST table summary.

I would also want the Tax Codes able to group under one Tax grouping Category and able to custom name (because I can see our local government intended to increase the tax rate and fixed name 6% not gonna be permanent) able to calculate by per sub-code instead calculate all at once like the current multiple rates.

Source: http://www.1gst.com.my/gst-library/115-gst-tax-codes.html

The current workflow also have to be improve, lets just say, My Tax grouping structure like the follows,
GST (in picture follows would be called GST6% as per built-in tax codes)=
-Standard Rate [SR]

• Zero Rate Local [ZRL]
• Zero Rate Export [ZRE]
• Exempted [ES]

I choose GST6% then another extra bracket come up to choose more specific tax codes defined in Tax Codes features,

if there is only ‘more than 1% defined in sub Tax Codes’ (in this case Standard Rate 6%) or single sub Tax Code selected in invoice then no GST Summary table will be display,

if more than 1 sub tax codes selected, GST Summary table will be display.

Take note that Our GST tax codes has different initials for Sales and Purchases.

If wondering why Purchases? since we usually receive Sales Invoice from Supplier, Tax codes in Purchase Invoice may be less relevant since we rarely or never did before sent purchase invoice to our suppliers. For Report purposes it still relevant.

Can lubos add recipient.identifier in Purchase invoice? I find it inconsistent.

Thank you for taking your time reading my (will be misunderstood explanation).

[Tut]

If you read carefully, the requirements for tax invoices in paragraph 3.1 of the document you referenced are fully met by Manager already. Some of the examples pictured in the document are slightly different in presentation. But they are only examples, not requirements.

@acecombat2

what manager lacking is to display Tax class per line items for Sales & Purchase Invoice and GST table summary.

This is not true. Each line item on a Manager invoice shows the tax code applied. The total amount of each category of tax is also displayed.

@acecombat2

would also want the Tax Codes able to group under one Tax grouping Category and able to custom name

When a tax rate changes, you will need a new tax code, not a renaming of an existing code.

@acecombat2

able to calculate by per sub-code instead calculate all at once like the current multiple rates.

Current multiple-component custom tax codes already show individual component amounts.

As for the rest of your suggestions, everything you want is already provided as long as you specify the relevant codes, either in-built or custom. And they apply to both sales and purchases.

@acecombat2

we rarely or never did before sent purchase invoice to our suppliers.

You should not send purchase invoices to suppliers. Purchase invoices are how you record sales invoices suppliers send to you.

@acecombat2

add recipient.identifier in Purchase invoice?

If your supplier has a code defined, it will appear on the purchase invoice preceding the supplier’s name.

[acecombat2]

I’m sorry for late reply, we’re having Hari raya holidays this week in Malaysia.

@Tut

If you read carefully, the requirements for tax invoices in paragraph 3.1 of the document you referenced are fully met by Manager already. Some of the examples pictured in the document are slightly different in presentation. But they are only examples, not requirements.

what manager lacking is to display Tax class per line items for Sales & Purchase Invoice and GST table summary.

This is not true. Each line item on a Manager invoice shows the tax code applied. The total amount of each category of tax is also displayed.

Yes Manager complies the wholly tax supply as per 3.1, I’m looking at 3.1.1 Mixed Supply scenario.
Yes, I like the current line items to be applied defined tax codes as per users need, its perfect. Nothing to improve in this part.

@Tut

would also want the Tax Codes able to group under one Tax grouping Category and able to custom name

When a tax rate changes, you will need a new tax code, not a renaming of an existing code.

I meant, able to custom the tax grouping subcodes names & rates and renamed gst category from GST 6% into GST or Goods and Sales Tax instead 6% because the Goods and Sales Tax Act 2014 are able to change its rate at its will, not like our previous tax system called Sales and Service Tax (SST) which cannot change its rate (permanently).

@tut I might not understand the ‘need new tax code but not renaming of an existing code’.

@Tut

able to calculate by per sub-code instead calculate all at once like the current multiple rates.

Current multiple-component custom tax codes already show individual component amounts.

As for the rest of your suggestions, everything you want is already provided as long as you specify the relevant codes, either in-built or custom. And they apply to both sales and purchases.

I try to explain through pictures,

The follow is what I call how it should be use but not what I need.

and the following is what I need but not suppose to be use as such:

@Tut

we rarely or never did before sent purchase invoice to our suppliers.

You should not send purchase invoices to suppliers. Purchase invoices are how you record sales invoices suppliers send to you.

add recipient.identifier in Purchase invoice?

If your supplier has a code defined, it will appear on the purchase invoice preceding the supplier’s name.

Right my bad, @Tut.

I usually use supplier code with my own unique structure for reference which helps me in a glance I’m dealing what kind of business entity, not using for business registration number though. I thought The Business Registration number should be used like the following form.

@Tut

add recipient.identifier in Purchase invoice?

If your supplier has a code defined, it will appear on the purchase invoice preceding the supplier’s name.

I thought recipient.identifier is for Business Registration Number, VAT Registration Number and such?

is not in Supplier’s Tab

something like this:

[Tut]

I am sorry, @acecombat2, but you have jammed so many quotes, pictures, and unrelated bits of text into your last response, I cannot really tell whether you are asking a question. The only thing I understood clearly was your desire to be able to enter business identifier information for suppliers. You can already do that. Just put it in the Address field, which accepts HTML code.

[acecombat2]

Basically I want Manager able to produce similar to these format. That has short abbreviation of tax codes of each line items, and another table calculation of subtotal supply with different tax codes called gst summary. To accomodate a mixed supply scenario. Basically current manager’s workflow aren’t suitable to achieve similarly as above sample.

[Tut]

The format may not be exactly the same, it it seems all the information would be there:

• Supplier’s name
• Customer’s name
• Tax Invoice label
• Serial number
• “Tax Invoice” title
• Goods description per line item
• Total excluding tax
• Name and rate of tax for every line item
• Total mount of tax for every individual tax code used on the invoice
• Total amount including tax

The only thing missing seems to be the GST summary section, and within that the only thing missing is the subtotal amount before tax is applied for each tax category. But that doesn’t seem to be a requirement, just a feature of the particular example.

[acecombat2]

.

3.1.1
Tax Invoice for Mixed Supplies
A tax invoice may contain details of more than one supply (taxable supply and exempt supply)
.
For example, invoice issued by an insurance company for supply of medical insurance, fire insurance, motor vehicle insurance (standard rate) and life insurance (exempt) to the same buyer. When this occurs, the tax invoice (full or simplified tax invoice) must clearly distinguish between the various supplies and indicate separately the applicable values and the tax charged (if any) on each supply for GST purpose. …

This is why I interpreted the text in that sense, which GST Summary fits the description, that has subtotal + tax calculation for different tax codes.

@tut try reproduce the invoice in such format with manager’s current tax codes features, I did and it doesn’t display similarly as the format sample. Just need an addition other than single rates and multiple rates option. that only applies one of many tax codes within tax category to be applied to single line items. like a drop down menu. the subtotal label as GST 6% as per tax category instead as per the tax subcodes.

if possible, enable an IF Logic if there is multiple tax codes used in the documents, GST Summary table will shown as an option.

[Tut]

Well, @acecombat2, our interpretations will have to differ. The standard Manager sales invoice (1) distinguishes between various supplies, (2) indicates values (the Amount column), and (3) indicates tax charged for each separate tax code. If 10 different tax codes have been used, 10 different tax code amounts will be separately shown.

What you seem to be missing is the point that different percentage assessments, even though part of the same tax structure, are different tax codes in Manager. So GST 6% and GST 12% are separate codes, not subcategories of an umbrella GST code. So your idea of dropdown selection within a tax code is not needed, if that is what you were trying to convey. And only one tax code can be applied to a given line item, in Manager or any other accounting system.

I completely understand what is shown in the GST Summary of your screen shot example. What I am saying is that only presentation format differs. All required information is present in the standard sales invoice template.

[sharpdrivetek]

The requirements of @acecombat2 and mine are almost similar in some aspects as we too are faced with a new GST implementation in our country.

@Tut

different percentage assessments, even though part of the same tax structure, are different tax codes in Manager. So GST 6% and GST 12% are separate codes, not subcategories of an umbrella GST code.

This is the way it needs to be calculated. But in the end it should give a summary of the taxes. Think about the mistakes that can happen when filing tax return by manual addition of tax totals. I asked for help regarding this from Lubos but there has not been a response yet.

India's New GST Invoice Format

@lubos i need your help regarding this. It is necessary to mention the total of tax amounts under each tax category separately as a line when an invoice is made under Reverse Charge Mechanism.

[Tut]

@sharpdrivetek

Think about the mistakes that can happen when filing tax return by manual addition of tax totals.

I don’t think this is really going to be a problem. The Tax Summary gives you the numbers:

Even in a relatively complex tax environment, the actual number of different tax codes used during an accounting period will be small. And if you don’t trust yourself or your calculator to add 3-4, or even a dozen numbers, for whatever purpose, you can always export the report and manipulate them in a spreadsheet.

[acecombat2]

At least, any possible improvement of tax invoice without the gst summary? The workflow of tax codes of how is display and the indicators of tax codes abbreviation. Expecially for mix supply retailers.

Usually tax agent for gst will check the line items whether the item is taxable or not and then whether is under zero rated category. How do I produce a report for purchases that I classify it properly? Usually sales are no problem since they can check the inventories list but not the purchases. My issue mostly to show that I comply the tax invoice standard for mix supply as per requirement. (Concern to customer who receive my sales invoice for claimable fund from customs)

Please do consider looking at custom officer’s point of view and the business owners.