GST Tips

GST Tips

Tip #1: Claiming input tax on utiliies

Tenancy agreements cannot be used as a supporting document to claim utilities bills for the rented property. They can, however, be used as a supporting document to change the name on your utility bills (TNB, Indah Water, etc) so you can claim input tax on utilities.

Tip #2: 21-day rule

If you supply taxable goods or services, you must issue a tax invoice to your buyer within 21 days (21-day rule), and he must receive the tax invoice within 30 days from the date of supply or payment (full or partial). On the other hand, if you are the buyer and if your supplier does not adhere to these rules, please ask them to refer to the DG?s decision 3 2015 No. 3 so they do not delay your input tax claim.

Tip #3: Rounding mechanism

Many of you will see the following message during your online GST submission: This amount does not follow the standard GST rate and will need to be reviewed by a customs officer. If it this is due to the rounding mechanism, don?t worry. Customs has said that a difference of a few cents is tolerable.

Tip #4: Credit note tax code

Many of us think that the tax codes AJS & AJP should be used in credit notes. Not true. These codes are used for adjustments such as bad debt relief, bad debt recovery and longer period adjustment. When you issue a credit note for a corresponding invoice, it means a reduction of output tax. Hence, use the same tax code as per your invoice. Example: If your invoice item code is SR, your credit note item code should also be SR.

Tip #5: Imported goods input tax claim

You may claim input tax on goods imported into Malaysia if and only if: a. The import GST is paid b. There is a K1 form under your name The K1 form needs to be attached to the purchase invoice and be kept for 7 years.

Tip #6: Handwritten invoices

If you are using handwritten preprinted tax invoices, the original handwritten copies must be attached to the computer-generated copies (if any) and be kept for 7 years.

Tip #7: Goods to Designated Areas

Goods sold to Designated Areas (DA) - Labuan, Tioman and Langkawi - without GST must have a K2 form.

Tip #8: Sole proprietors and rental income

A sole proprietor can use his name or trading name to charge rental income with GST regardless of whether the property is under his name or the trading name.

Tip #9: Specify your income industry codes

You need to specify the industry code for each type of income in the Chart of Accounts before filing your GST return. These codes can be obtained from

Tip #10: Not all accounting entries need tax codes!

Not every accounting entry must be tagged with GST codes. Only goods and services transactions (supplies, acquisitions - cost of sales and expenses) will have the relevant tax codes. Others, like bank transfer and asset depreciation, do not need tax codes.p>

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