[Malaysia] gst accounting treatment

#1

Forgive me, I’m not fluent in English.

As per title, I found out the Manager’s way of accounting treatment in GST are a bit different of how Malaysia does it.

For Example,
We have GST Output (collected from taxpayer in trust to pay to Royal Malaysian Custom Department) which will be in credit and GST Input ( for claims to be net off from purchase that includes GST 6% in debit.)

Depending either which is amounted more than the other, it will be net off to Custom Payable (Tax Payable) or Custom Claimable (Tax Claimable) which I expect it to be there under asset control account.

Can this accounting treatment be implement in Manager?

Or is there other way to do it that I didn’t know of? :disappointed_relieved:

#2

Manager has only the one account “Tax Payable” located under BS Liabilities and that collects both the GST Output & the GST Input, therefore its balance is always the net of the two.

#3

3.PNG810×504 7.72 KB

Well more like I have to make a journal to transfer to Asset control account. fair enough.

#4

There is no real need to that, once you receive the refund that balance will get cancelled out.
Perhaps for a year end you could transfer but normally GST Output exceeds GST Input so a “negative” BS balance should be rare.

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#5

@Brucanna Yes you are absolutely correct, it will cancel out if receive the ‘refund’ normally within financial year. Yes, suppose to be rare. Not in case of Malaysia, now almost second year since implementation of GST. I’m a tax assistant for gst department in secretarial business company. so far, is not rare anymore in Malaysia to have more Tax Claimable, especially when most of our client did not provide needed information in our RMCD Tax Access Portal to received it in bank account AFTER approve by “Director General” if “satisfied” (after audited by their officers) which obviously lousy returning the Claimable Money. Plus our unstable economy position that cause businesses being closing down at alarming rate.

#6

If you have a negative balance and you want to relocate it, instead of doing a Journal, you could just go to Settings - Chart of Accounts and EDIT Tax Payable and change Group from Liability to Asset - then it will show as an Asset account in the Balance Sheet

#7

Good Idea! but I still need to change the Account’s name together.

#8

You do that on the same edit screen where you change from liability to asset.

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#9

@Brucanna and @Tut Thank you so much, I appreciate this advise!