What you should know about GST (Goods and Services Tax)
Basically, all taxable persons will be required to account for GST based on accrual (invoice) basis of accounting i.e. all output tax and input tax are to be accounted and claimed based on the time when the invoice was issued or received.
However, certain categories of taxable persons may be allowed to use the payment (cash) basis of accounting. This facility may be given to businesses who carry out their activities solely on a cash payment basis.
All business and accounting records relating to GST transactions are to be kept in Bahasa Melayu or English for a period of seven (7) years.
Additional accounting job scope for GST registered companies are :
- Issuance of tax invoices with prescribed particulars.
- Preparation of accounts for GST submission every 1 or 3 months.
- Assigning GST codes.
- Recording purchase invoices for input tax claims.
- GST adjustments through debit and credit notes.
- Keeping proper documentation for potential GST audits.
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