This product update features the latest tax reporting system in the following aspects. Click the following hyperlinks to show or hide details in the respective sections:
In line with the latest requirements relating to the employee expense and customs declaration number for the GAF (GST audit file), additional fields have been incorporated into the tax reporting system to gather the required data via the following entry points:
The VAT Data column, added to the header enables you to access the Extra VAT data pop-up, accessible via the spacebar, F2, or F5 shortcuts. Here, you can type up to 20 alphanumeric characters for the export declaration number.
Similar to the sales journal entry, the VAT Data column at the header of the purchase journal entry enables you to define up to 20 alphanumeric characters for the import declaration number in the Extra VAT data pop-up, accessible via the spacebar, F2, or F5 shortcuts.
Likewise, you are able to define additional GST details for the individual line items, as shown in the following:
By default, the GST details in the cost line will be reflected in the VAT line if a VAT code has been defined for the cost line. This tax information is useful for the employee expense claim.
The type of information you can store in the added VAT Data column in the selected general journal entries varies depending on the following type of transactions:
When you create bank or cash transactions at Finance ? Entries ? Bank/Cash, you can define both the import or export declaration numbers, and GST details in the added VAT Data column for the individual line items of the related offset general ledgers:
When performing direct cost allocation from Cash flow ? Entries ? Cash flow, you are able to furnish only the GST details by clicking the icon in the added VAT column in the Book costs screen. The VAT column is displayed only when you click the Advanced button.
The GST details can be furnished only when you select Costs for any of the following offset general ledger defined in the Book costs screen:
Note: This enhancement is not applicable for cost allocation entries to bank costs.
Note: After the declaration number and/or GST details have been defined for an entry, and saved, the icon will be displayed in the VAT Data or VAT column, depending on the entry point accessed. To disable the information, clear the selection of the icon. All information is optional, and will be extracted for GAF reporting purposes. For more information, see Product Update 411: GST audit file (GAF) improved (Malaysian legislation).
In this product update, the MSIC code classification process in the tax reporting system has been further refined according to the revenue account used to book revenue when printing the final invoice. For more information on the initial application of the MSIC standard, see Product Updates 410, 409 and 408: Further enhancements on the Goods and services tax (GST) reporting functionality (Malaysian legislation).
When generating the GST-03 return, the system derives the MSIC code from the revenue account selected under the Print section in the Invoice settings screen at System ? General ? Settings.
If Debtors is defined at Revenue account under the Print section in Invoice settings, the MSIC code is derived from the offset general ledger account of the entry linked to the offset account in the accounts maintenance screen for debtor, as shown in the following:
The newly added MSIC code field is displayed in the Extra tab of the Maintain accounts screen at Finance ? General ledger ? Chart of G/L’s. If the MSIC code has not been defined in the offset general ledger account, the MSIC code from the Items screen will be used for the tax reporting purposes. The Items screen can be accessed from various entry points. For more information, see Creating and maintaining items.
Note: The same underlying principle applies when you select Item at Revenue account. The MSIC code from the Items screen will be retrieved for the tax reporting purposes.
However, in cases when the MSIC code field in the Items screen is left blank, and if none of the other items (if present) in the entry has an MSIC code predefined, then the default MSIC code in Item data settings will be retrieved. The Item data settings screen is accessible via System ? General ? Settings. If the default MSIC code in Item data settings is also left blank, then the output tax amount will be displayed at Others in the item 19 of Part C in the GST-03 form.
The following table concludes the prioritization of the MSIC code retrieval:
Along with the reformations on the prioritization of the MSIC code classification, the automated entries and reversal entries can now be generated with item code(s) for GST reporting purposes.
The item codes retrieved from the sales order are displayed in the double entry transactions created in the automated GST entry or GST reversal entry. The following is an example of a GST entry with multiple item codes:
When you generate the GST-03 form with Item selected at Revenue account under the Print section in Invoice settings, the GST amounts will be reported according to the MSIC code predefined for the item through the item code. If the MSIC code is not defined in the item maintenance, the system will retrieve the MSIC code defined in the Item data settings screen. Otherwise, the GST amounts will be reported at Others in the item 19 of Part C in the GST-03 form. For a detailed description, see Handling MSIC (Malaysia Standard Industrial Classification) codes in printing different revenue accounts.
For more information, see Product Update 410: Automated entries for Goods and Services Tax (GST) return introduced (Malaysian legislation).
The VAT basis column in the VAT Overview screen has been refined to display a consistent value, with or without the Non-deductible VAT setting preselected in General ledger settings. The same value will be displayed at box 6A in the GST-03 form.
In this product update, further improvements have been integrated to the tax reporting system to identify balances being written off as exchange rate differences. For a detailed description on the improved tax filling system relating to write-offs for exchange rate difference, see Product Update 411: Tax reporting system enhanced for write-offs involving exchange rate difference and banking fees.
The VAT return box (12) has been created for the Purchase basis type via System ? General ? Countries ? Tax codes. You must link the box to the respective tax codes defined for the exchange rate difference write-off transactions to reflect the correct amounts (if applicable) in the latest GST-03 form. For an explanation on the changes made to the GST-03 form, see Tax reporting form layout upgraded (GST-03).
The GST-03 form has been revised to cater for the improved tax filling system with regard to the write-offs for exchange rate difference. The item 12 of Part C, as shown in the following example, has been readjusted to display the Sales basis and Purchase basis amounts. Previously, only the Sales basis amount was displayed. For further related adjustments, see New VAT return box (12).
For more information on the past release, see Product Updates 410, 409 and 408: Further enhancements on the Goods and services tax (GST) reporting functionality (Malaysian legislation). For other related documents, see the following: