ACCOUNTING DOUBLE ENTRY & GST TAX CODE MAPPING - UBS …€¦ · ACCOUNTING DOUBLE ENTRY & GST TAX...

ACCOUNTING DOUBLE ENTRY& GST TAX CODE MAPPING

Version 2015 (Training Note Ver2.1)1

Version 2017

2

Tax Code on

Adjustmentfor

Purchases- 1 Code

Tax Code on

AdjustmentFor

Supplies- 1 Code

Tax CodeFor

Purchases

- 12 Codes

12 1

Tax CodeFor

Supplies- 9

Codes

9 1

Tax CodeFor

Purchases

- 14 Codes

14

Tax CodeFor

Supplies- 10

Codes

10

Tax Code Description GST-03

OS-TXM(0%)

This refers to out-of-scope supplies made outsideMalaysia which will be taxable if made in Malaysia.The out-of-scope supply must comply withMalaysia GST legislations to fulfil this tax codeconditions. This OS-TXM is applicable forcalculating the input tax recoverable ratio (IRR)

-

NTX(0%)

This refers to a supply which is no tax chargeablesuch as supply of goods between Free Zone areaand other Free Zone area. Moreover, there is noGST chargeable on supply of goods and serviceswithin or between designated areas. The supplieshas to be declare under Field 10 of GST- 03 return.This NTX is applicable for calculating the input taxrecoverable ratio (IRR)

10

SUPPLY

New Tax Code

Tax Code

GST-03 Mapping

PreviousLatest

Amendment

ZDA(0%)

10 11

MAPPING

Tax

CodeRate Description

SR 6% Standard-rated supplies with GST charged.

ZRL 0% Local supply of goods or services which are subject to zero rated supplies.

ZDA 0%Exportation of goods from Malaysia to Designated Area (Langkawi, Labuan& Tioman) which are subject to zero rated supplies. (By referring CustomsForm No. 2 (K2), and/or other reference documents)

ZRE 0%Exportation of goods or services which are subject to zero rated supplies.(By referring Customs Form No. 2 (K2), and/or other reference documents)

DS 6%Deemed supplies (e.g. transfer or disposal of business assets withoutconsideration)

OS 0% Out-of-scope supplies under GST legislations

ES 0% Exempt supplies under GST legislation

IES 0%Incidental exempt supplies under GST legislation

(Note : Replace ES43)

RS 0% Relief supplies under GST legislations

GS 0% Disregarded supplies under GST legislations

AJS 6%Any adjustment made to Output Tax (e.g. : Longer period adjustment, BadDebt recovered, outstanding invoice > 6 months & other output taxadjustments.)

Tax


SR-MS 6% Standard-rated supplies under Margin Scheme

SR-JWS 0% Standard-rated supplies under Jeweller Scheme

ES-GU 0% REMOVED

OS-ER 0% REMOVED

OS-OV 0% REMOVED

OS-OVN 0% REMOVED

OS-OVT 0% REMOVED

NS 0%Matters to be treated as neither a supply of goods nor asupply of services, and no GST chargeable

OS-

TXM0%

Out-of-scope supplies made outside Malaysia which will

be taxable if made in Malaysia.

NTX 0% Supplies with no tax chargeable.

Tax


TX 6%Purchases with GST incurred at 6% and directly attributable totaxable supplies.

TX-CG 6% Purchases with GST incurred for capital goods acquisition

TX-ES 6%Purchases with GST incurred directly attributable to non-incidentalexempt supplies (Note : Replace TX-N43)

TX-IES 6%Purchases with GST incurred directly attributable to incidentalexempt supplies (Note : Replace TX-E43)

TX-RE 6%Purchases with GST incurred that is not directly attributable totaxable or exempt supplies. (Applicable for partially exempttrader/mixed supplier only)

IM 6%Import of goods with GST incurred (By referring Customs Form No. 1(K1), and/or other reference documents)

IS 0%Import of goods under Approved Trader Scheme (ATS) whereas thepayment of GST chargeable is suspended on the goods imported.

BL 6%Purchases with GST incurred but not claimable (Disallowance of

Input Tax) (e.g. Acquisition or rental of passenger car)

NR 0% Purchases from non GST-registered supplier with no GST incurred

ZP 0% Purchases from GST-registered supplier with no GST incurred

Tax


EP 0%Purchases exempted from GST (e.g. purchase of residentialproperty or financial services)

OP 0%Purchase transactions which is out of scope of GST legislations.(e.g. purchase of goods overseas)

RP 0%Relief Purchase under GST legislations. (e.g. purchase of RON 95petrol & diesel)

GP 0%Purchase transactions which disregarded under GSTlegislations. (e.g. purchase within GST group registration)

AJP 6%Any adjustment made to Input Tax. )e.g.: Bad Debt Relief &other input tax adjustment)

Tax


TX-FRS 2% Purchase under Flat Rate Scheme

TX-NC 6% GST incurred and choose not to claim input tax

NP 0%Matters to be treated as neither a purchase of goods nor apurchase of services, and no GST incurred.

TX-ER 6% REMOVED

IM-CG 6% REMOVED

IM-RE 6% REMOVED

Tax Code: TX-NC

This refer GST paid on a purchase and the company choose not to claim the

input tax incurred. Any transaction using this code will not be declared in field

6a & 6b of GST-03 return. For example, the company choose not to claim 10

parking invoices and attain it as a company expenses.

11

a) Bank, investment bank, or any other financial institution licensed under

the Financial Services Act or any other written law;

b) A moneylender required to be licensed under the Moneylenders Act 1951;

c) A person licensed under the Money Services Business Act 2011;

d) Any insurer or takaful operator licensed under Financial Services Act

e) A holder of Capital Markets Services License or a holder of Capital

Markets Services Representative’s License dealing in securities or

derivatives under the Capital Markets and Services Act, 2007;

f) A pawnbroker licensed under the Pawnbrokers Act, 1972 or a

pawnbroker implementing the Islamic pawn broking business in

compliance with Syariah principles;

g) Person who supplies goods and provides finance under agreement

which expressly stipulates that the property will pass at some time in the

future;

h) Any company that issues credit card, charge card or debit card or other

payment instruments under the Financial Services Act 2013 Islamic

Financial Services Act 2013;

i) Any company that provides any scheme’s assets under the collective

investment scheme in accordance with Capital Markets and Services Act

2007 including unit trust but excluding real estate investment trust.

j) Investment holding company

Financial institution

Supply of incidental exempt FINANCIAL suppliesby non financial business. Reg. 40

a) Interest earned on fixed deposit of tradingcompany.

b)Provision of loans , advances or credit to employees.c) Exchange of currencyd)Holding of bonds and other debt securities e) Transfer of equity ownership f) Holding or redemption of unit trust g) Hedging of interest, commodity, utility or freight

risk.

Incidental Exempt Supply

Tax

Code

Description GST

-03

ZDA

(0%)

This refers on the supply of goods from Malaysia to Designated Area (Pulau

Langkawi, Labuan & Pulau Tioman) that qualify for zero-rate if the movement is

supported with Customs No. 2 Form which stated the supplier’s name and address

as the consignor and the recipient’s name and address in DA as the consignee, with

supporting documents such as invoice, packing list, etc. Thus, exportation of goods

from Malaysia to Designated Area is subject to zero-rated supplies and the supplier

has to declare the value of this export under field (10) of GST-03 return. For more

information, please refer to GST (Zero-Rated Supply) Order 2014 and Guide on

Designated Area.

10

NS

(0%)

This refers supplies treated as neither a supply of goods nor a supply of services

and no GST chargeable. Based in Second Schedule of GST Act 2014, supplies that

treated as neither a supply of goods nor a supply of services such as Transfer of

Going Concern (TOGC), pension, provident or social security fund, and supply by

any society or similar organization. This tax code also applicable for supply of

goods or services made within or between designated areas based in Sec. 155 of

GST Act 2014, that notwithstanding section 9, no tax shall be charged on any

taxable supply of goods or services made within or between the designated areas

unless the Minister otherwise directs in an order under section 160.

-

SUPPLY

Tax Code

Description GST-03

RP(0%)

This refers to purchase of goods which given relieffrom charging and payment of GST. Example for thistax code are purchase of RON95 petrol, diesel andother relief supply that been given relief from GST asprescribed under GST (Relief) Order 2014.

-

TX-CG(6%)

This tax code refer to purchase with GST incurred at6% for all capital goods acquired that is claimableregardless the value of the goods. For example, landand buildings, equipment, machinery, vehicles, orothers capital goods which the company claims forinput tax and capitalize the acquired capital goodsas their assets. The GST registrant who claiming thecapital goods has to declare the value of thisclaimed capital goods under field (6a &6b), and field(16) of GST-03 return.

6a, 6b

16(totalexcludeGST)

PURCHASE

New Tax Code

Tax Code

Description GST-03

TX-NC(6%)

This refers GST incurred as purchases and thecompany chooses not to claim the input tax. This taxcode is not mapping with field 6a & 6b GST- 03return and will turns as an expenses of the company.

-

TX-ER(6%)

This refers GST incurred as purchases and thecompany allowed to claim input tax on theacquisition of goods or services by local authority orstatutory body. By referring Reg.49 of GSTRegulations 2014, where any local authority orstatutory body has acquired goods or services toperform its regulatory and enforcement functions,the local authority or statutory body is entitled to acredit for so much of its input tax that is allowableand reasonable to be attributable to the suppliesmade or to be made by it

6a, 6b

PURCHASE

GST situation Input Tax Claimable

Income Tax

claimable

Tax Code

GST03

Disallowed Input Tax under Sec 39(1)

No Yes BL No

Non registered person N/A Yes N/A N/A

Taxable person failed to register Under GST Act.

No No N/A No

Allowable Input Tax but not claim by Taxable person

Yes No TX-NC No

Output tax borne on behalf ofCustomer

N/A No SR Yes- 5a & 5b

Version 2015 (Training Note Ver2.5) 20


Controls & Security

Print Control

Subsequent print of these documents will carry the watermark “Duplicate Copy”

Tax Invoice

Credit Notes

Debit Notes

Abiz Advisory

28

Guide

Accounting

7. Housekeeping

1. Setup

1. General Setup

29

Guide

Accounting

7. Housekeeping

1. Setup

1. General Setup

GST Setting Tab

Taxable period

Go to [Housekeeping > Setup > General setup]

The taxable period is generated automatically.

30

37

No GST GL Account Code

Account Description

Account Type Group To Remarks

1 4800/010 GST Input Tax Balance Sheet GST Control Account

For Purchase acquisition

2 4800/020 GST Output Tax

Balance Sheet GST Control Account

For supply

3 4800/000 GST Control Account

Balance Sheet None To show net tax effect—payable or claimable

4 4810/000 GST Liability (AR)

Balance Sheet None For GST Bad Debt handlingon customer

5 4820/000 GST Claimable (AP)

Balance Sheet None For GST Bad Debt handlingon supplier

6 4830/000 GST Suspense Balance Sheet None GST on importation of Goods

7 9801/000 GST Expense Profit & Loss None For no claimable input tax

a) Purchase of passenger motor carb) Hire of passenger motor carc) Repair, maintenance and refurbishment of

passenger motor cara) Club subscription feeb) Medical and personal accident insurance premiumc) Medical expensesd) Family benefitse) Entertainment expenses except for employees

and existing clients. Although the above expenses could be for business purposes, such input tax is specifically blocked under the GST laws.

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39

Guide

Accounting

» 1. General » A. Miscellaneous Files » 7. Tax Code Maintenance

40

Guide

Accounting

1. General

1. General Ledger

A/C Maintenance

42

Guide

UBS System

Control Panel

Settings

Accounting

Setting

Country

Advance Setting

Tick

Transaction

44

Guide Accounting - 4. Transaction > 1. Transaction File Maintenance

21 May 2017Time to Examine Your GST 03 and GAF 45

GL Account Description DR CR Tax Classification

Taxable amount

DIRECT INPUT /OUTPUTTAX

GST Detail

COS & Expenses

Supplier’s Name & Description

RMxx Yes Yes No YES

GST Input Tax

RMxx Yes No No No

Bank /Cash/Debtor/Creditor /Director A/C /Balance Sheet Item

RMxx

No No No No

. Transaction File Maintenance

Commonly made mistakes

21 May 2017Time to Examine Your GST 03 and GAF47

48


Go to Housekeeping > File Organisation

49


Is the excess payment received subject to GST?

We receive excess payment from customer instead of

actual amount stated in the invoice. For example:

Actual amount : RM 48.50

Payment received: RM 50.00 (excess payment of RM1.50)

is the excess payment received subject to GST?

By virtue of Regulation 15, GST Regulations 2014, tax on

supply chargeable only to the extent covered by the invoice.

Any excess payment in relation to the invoice issued is not a

consideration for the supply and not subject to GST.

Excess Payment Received

Excess payment received from customer

Date Particulars DR CR Tax Code

Bank 50.00

Trade Receivable 50.00


Trade Receivable 1.50

Other Income 1.41

Output tax 0.09 SR

Excess payment received from customer charged out to P&L account

GST AND NON-GST TRANSACTIONS FOR EXPENSES

ENTERTAINMENT – CUSTOMERS AND STAFF AND POTENTIAL

CUSTOMERS AND STAFF FAMILY DAY ETC.

o Potential Customers

o Staff Family Day


Entertainment 400.00

GST Expenses 24.00 BL

Bank 424.00


Entertainment 5,000.00

Entertainment 15,000.00

Input Tax 300.00 TX

GST Expenses 900.00 BL

Bank 21,200.00

Sponsorship in Cash


Other receivable 600.00

Sponsorship received 566.04 SR

Output tax 33.96 SR


Sponsorship 566.04 TX

Input tax 33.96 TX

Other Payable 600.00

Received Sponsorship in cash from Supplier

Sponsorship in cash give out to Customer

Accrued Expenses – Electricity RM1,590.00

DR CR Tax Code

Water 500 .00 TX/ZP/OP

Electricity 1,000.00 TX/ZP/OP

GST suspense 90.00

Accrual 1,590.00

(Being Electricity Bill the month accrued)


DR CR Tax Code

Accrual 1,500.00 TX

GST Input Tax 90.00

Bank 1,590.00

(Being Payment of Accrued Electricity Bill)


DR CR Tax Code

Accrual 90.00

GST Suspense 90.00

(Being Reversal of GST Suspense)

Deemed supply – Gift to staff RM1,000.00

DR CR Tax Code

Deemed supply - Gift 943.40

Deemed supply – Gift 943.40

GST output tax 56.60 DS

GST expense 56.60

(Being GST on gift to staff)

Deemed supply – Sales of laptop to director at RM1 (market value at time

of disposal RM600)

DR CR Tax Code

Amount owing by director 1.00

Disposal of PPE 1.00

Deemed supply - others 566.04

Deemed supply – others 566.04

GST output tax 33.96 DS

GST expense 33.96

(Being DN#2033 on sale of laptop to director)

Disposal of Capital GoodsDR CR Tax Code

1. Other Debtor 1,060.00

Gst output tax 60.00

Disposal Account 1,000.00 SR

2. Bank 1,060.00

Other Debtor 1,060.00

3. Disposal Account 800.00

Computer (at cost) 800.00

4. Accumulated Depreciation 400.00

Disposal Account 400.00

(Being disposal of computer)

61

Inter-Company Transaction

DR CR Tax Code

1. Amount due from Inter-Company 1,060.00

Sales 1,000.00 SR

Output Tax 60.00 SR

Reimbursement Expenses ,Loan on Inventory or Fixed Asset charged out to Inter-

Company

2. Amount due from Inter-Company 500.00

Interest Received 500.00 IES

Interest received from Inter-Company’s Loan

3. Amount due from Inter-Company 800.00

Disbursement/Dividend/Overdue Interest 800.00 OP

Disbursement/Dividend/Overdue Interest received from Inter-Company’

Disbursement vs Reimbursement

Verify Out of period transactions

Housekeeping > GST-03 verification

21 May 2017Time to Examine Your GST 03 and GAF

63

Generate ledger report for GST Input tax andGST Output tax GL.

Generate Goods & Service Tax report.

Generate draft GST-03 of current taxableperiod(Cross check all the reports and make sure all the three reports tally,then do journal adjustment .)

64

Dr GST Output taxCr GST Control account

Dr GST Control accountCr GST Input tax

5 b) 6b)

65

When Finalize GST-03

Dr GST Output tax

Cr GST Control

Dr GST Control

Cr GST Input tax

When made payment to JKDM

Dr GST Control

Cr Bank/Cash

Difference is the GST

amount payable


Guide - Accounting

5. Reports

A. Goods and Service

Tax

3. Malaysia GST

1. Goods and Service

Tax Report

Documents Required For Audit

8.1. Organisation chart/ company profile(if available)8.2. A copy of company registration form

no.9,24,44 and 498.3. Statement of the Goods and Services Tax

(GST statement -03/04)8.4. Documents/ accounting reports:8.4.1. Record/ Purchase Document/ Input Tax

a) Purchase Invoice(Full Tax Invoice/ Simplify tax invoice)

b) Debit Note/ Credit Note c) Purchase Order d) Delivery Note/ Acceptance of ordere) General Ledger

f) Purchase Ledger g) Customs Form No. 1 or No. 9h) Bill of Lading or Airway Billi) Import Permit/ Granted Duty/ Tax

Exemption j) Purchase agreement/ price agreement k) Other relevant documents

8.4.2. Record/ Supply Document/ Input Taxa) Sales Invoice b) Debit Note/ Credit Note c) Export Exemption Documentd) General Ledger/ Sales Ledger e) Debtor Ledger

f) Cash Book g) Daily sales statement from Point of Sale

(POS) system (if available)h) Bank Statement i) Inventory Record j) Other relevant documents

8.4.3. Trial balance, management account

8.4.4. Business related contracts (eg: sale and purchase, rental of building)

8.5. Audited Financial Statement 8.6. GST Audit File (GAF)8.6.1. Auditee who uses accounting software approved

by Customs shall be required to submit GAF when necessary and it may be submitted through the MyGST system, email or softcopy .

8.6.2. If there is no GAF generated from such accounting software system, auditee must be able provide all information on business transaction related GST.

8.7. Name, address, phone and fax no. of company secretary

8.8. Name, address, phone and fax no. and license of chartered accountant


•-GL listing for the month of the taxable period on

below (where applicable)-

•Fixed assets additions•Disposal of assets / equipment /tools•Commission•Entertainment•Donation/sponsorship•Insurance•Travelling and accommodation •Staff welfare –medical, etc•Repair and maintenance /unkeep of motor vehicle •Service provided to connected persons

RECORD KEEPING

Records on GST Summary SheetSummary Sheet – Total Acquisition and Input Tax for Taxable Period 1 Jan-31 Mac 2016

Standard Rate Purchases Value(RM) Input Tax(RM)

1. Purchases to make

-standard rated supply

-exempt supply

2.Purchase of capital goods

-standard rated supply

-exempt supply

3.Imported services

4.GST on imports

------------------------------------------------------------------------------------------

Sub Total

------------------------------------------------------------------------------------------

Adjustments:

1.Bad debt relief

2.Credit note/debit note

3.Capital goods adjustment

------------------------------------------------------------------------------------------

Sub Total

------------------------------------------------------------------------------------------

Total

RECORD KEEPING

Records on GST Summary SheetSummary Sheet – Total Supply and Output Tax for Taxable Period 1 Jan-31 Mac 2016

Standard Rate Supplies Value(RM) Output Tax(RM)

1. Normal supply

2. Disposal of business assets

3. Deemed supply:

Gifts, business asset used privately, etc

4. Imported services

------------------------------------------------------------------------------------------

Sub Total

------------------------------------------------------------------------------------------

Adjustments:

1. Bad debt recovered

2. Credit note/debit note

3. Capital goods adjustment

------------------------------------------------------------------------------------------

Sub Total

------------------------------------------------------------------------------------------

Total

------------------------------------------------------------------------------------------

Net tax payable/(Claimable) (Output tax – Input tax)

RECORD KEEPING

Records on GST Summary SheetSummary Sheet – Additional Information for Taxable Period 1 Jan-31 Mac 2016

Types of Supply Value(RM) GST(RM)

1. Total Value of zero-rated – local supplies

2. Total Value of export supplies

3. Total Value of exempt supplies

4. Total Value of Supplies with GST relief

5. Total Value of goods imported under

special scheme and GST suspended

6. Total Value of disregarded supplies

------------------------------------------------------------------------------------------

Total

------------------------------------------------------------------------------------------

Housekeeping > Setup > User Defined > User Defined Menu

83

Sage UBS Double entry –Part II

1. Disbursement vs Reimbursement

2. Importation Goods

3. Imported Service

4. Access payment

5. Open item Debtor & Creditor

6. Manage to claim Bad Debt Relief & making repayment

7. Documents and evidence required to claim

8. Bookkeeping and record for Bad Debt Relief.

9. Double entry & adjustment for Bad debt relief and recovery .

10. Rounding adjustment for Supply & Purchases aquirsation

11. Retention

12. INSURANCE EXPENSES – DISTINGUISH BETWEEN ALLOWABLE AND

BLOCKED INPUT TAX

13. GST Reconciliation84

Total Value of Standard Rated Supply (5a)

Total Output Tax (Inclusive of Tax Value on Bad Debt Recovered & otherAdjustments) (5b)

Total Value of Standard Rate and Flat Rate Acquisitions (6a)

Total Input Tax (Inclusive of Tax Value on Bad Debt Relief & otherAdjustments) (6b)

Total Value of Local Zero-Rated Supplies (10)

Total Value of Export Supplies (11)

Total Value of Exempt Supplies (12)

Total Value of Supplies Granted GST Relief (13)

Total Value of Goods Imported Under Approved Trader Scheme (14)

Total Value of GST Suspended under item 14 (15)

Total Value of Capital Goods Acquired (16)

Total Value of Bad Debt Relief Inclusive Tax (17)

Total Value of Bad Debt Recovered Inclusive Tax (18)

Breakdown Value of Output Tax in accordance with the Major Industries Code(19)

1.GST Registration :-

https://www.youtube.com/watch?v=MfmC7pYqZU4

2. GST Form: Online Filing GST Form GST03 Tax Submission to Customs:-

https://www.youtube.com/watch?v=Z4WVQT7gAG0

3. Pay GST Payment Form Online :-

https://www.youtube.com/watch?v=B0_3j1YFKWg

4. How to Claim GST refund in Malaysia

https://www.youtube.com/watch?v=d-YXmbP1uSk

5. GST GUIDE ON AMENDMENT RETURN (GST-03)

http://gst.customs.gov.my/en/rg/SiteAssets/specific_guides_pdf/GST%20Guide%20on%20Amendment%20Return%2028GST-0329.pdf

https://www.youtube.com/watch?v=MfmC7pYqZU4

https://www.youtube.com/watch?v=Z4WVQT7gAG0

https://www.youtube.com/watch?v=B0_3j1YFKWg

https://www.youtube.com/watch?v=d-YXmbP1uSk

http://gst.customs.gov.my/en/rg/SiteAssets/specific_guides_pdf/GST Guide on Amendment Return 28GST-0329.pdf

ACCOUNTING DOUBLE ENTRY & GST TAX CODE MAPPING - UBS …€¦ · ACCOUNTING DOUBLE ENTRY & GST TAX...

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