The Malaysian Government proposes to introduce the Goods and Services Tax (GST) sometime in year 2013. To help you along, we have prepared a simple check list to assess your preparedness for Malaysian GST implementation.
GST will replace the existing Sales and Services Tax (SST). GST will affect NOT ONLY accounting, finance, or tax personnel, but ALL levels of staff , including those from sales, operations, logistics and even human resource.
What can you to do prepare for the eventual introduction of GST?
GST in summary
GST is a tax on domestic consumption. Tax is paid when when money is spent (or consume) on goods and services.
GST will be a self-assessed tax which means you as a business owner will have to track the tax collected from customers (less the tax you paid on purchases) and remit them to the government accordingly.
Is your business ready for GST?
1. Are you able to categorise your business transactions?
2. Have you analysed critical transition issues with your accountant?
3. Are you able to analyse the GST effect on business cash flows and prices?
4. Keep records of your GST start up costs
5. Send your staff for GST training & seminars where available
6. Prepare and plan for stocktake on the last day before GST implementation date.
7. Prepare and plan for re-pricing of goods, and printing of price labels to reflect the GST-inc price.