The Goods and Services Tax was implemented in Malaysia commencing April 2015.
All persons, not just registered businesses, conducting business with an annual gross turnover of RM500.000.00 per annum or more, were required to register with Customs.
Once registered, a person or business was required to comply with the rules and regulations, including keeping track of GST collected as well as GST paid and account for it either on a monthly or quarterly basis.
A GST compliant accounting software has to have the following features:
- Facilitate issuance of Tax Invoices, Credit and Debit notes
- Have the relevant GST tax codes available for use with transactions.
- Be able to produce the GST-03 either on a monthly or quarterly basis.
- Be able to produce the GST Audit File when requested by Customs.
- Be able to keep track of a customer’s or supplier’s:
- Business registration number
- GST registration number
- Be able to handle Bad Debt Relief and Recovery for both sales and purchases