gst - Treezsoft Updates - GST Rate Update

Dear valued customers,

(Updated at 30 May 2018)

[IMPORTANT] For TreezSoft Users to Take Note:

1	Treezsoft will update the system by introduce new Tax Code such as SR_0 and TX_0. Please refer table "Changes on Treezsoft to cater the Transition Period of GST 0%" for more detail.
2	Item's Price: System will not auto update your item's default price. Please remember to update your item's price at 01 June 2018.
3	Item's Default Sales Tax and Purchase Tax: System will not auto update your item's default sales tax and purchase tax. Please remember to update your item's default sales tax and purchase tax at 01 June 2018. However, a function (a button called "Remap GST Tax Code") will be prepared in Stock Item listing at 01 June 2018, where once you clicked, system will remap your item's default sales tax and purchase tax based on "Tax Code Table" (except "RP"). E.g. current default sales tax SR_S will be updated to SR_0 (based on "Tax Code Table") after the button is clicked. Item with blank or active sales tax and purchase tax will be ignored. If you would like Treezsoft to trigger this function on behalf, please send us an email to [email protected] by 31 May 2018 before 6:00 PM. Disclaimer: This function will remap the sales tax and purchase tax based on "Tax Code Table" (except "RP"). Please DO NOT use this function or instruct Treezsoft to trigger this function on behalf, if the remap is not suit to your case. Treezsoft will not be held responsible for any issue after remap.
4	Recurring Invoice: System will not auto update the Tax Code used in the template of your recurring invoice. Please remember to update your recurring template.
5	Negative Value appear in 5(b), 6(b) of GST-03: If the negative value exists in field 5(b) of the GST-03 return, the tax code to be used for adjustment for claiming of input tax credit is “AJP” which is to be declared in field 6(b) of the same return. This can be done by raising a Journal Entry to transfer the amount from one Tax Code (e.g. SR or other Tax Code that cause the negative value) to AJP. On the other hand, if the negative value exists in field 6(b), the tax code to be used for adjustment for payment of tax is “AJS” and declaration need to be made in field 5(b) of the GST-03 return.
6	Please DO NOT change the current setting in Tax Setup screen.

Changes on Treezsoft to cater the Transition Period of GST 0%
1	Tax Code Changes: New Tax Code will be introduced and certain Tax Code will be disabled at 01 June 2018. Please refer table "Tax Code Table".
2	Tax Code Option List: Start from 01 June 2018, both active and inactive Tax Code will be selectable in all screens (e.g. Sales Invoice, Supplier Invoice, etc), so you still able to use inactive Tax Code (e.g. SR_S at 6%) after 01 June 2018 for special situation. However, a warning will be given as a reminder if inactive Tax Code has been selected, and you can choose whether to proceed or cancel the save. If you foresee there will be probably no special situation, you may choose to hide all inactive Tax Code in all screens by configurate it in GST Preference.
3	Transfer Document: When transfer document into another document (e.g. Sales Quotation to Sales Invoice, etc), transferred Tax Code will always follow the source document. However, a warning will be given as a reminder if inactive Tax Code has been selected, and you can choose whether to proceed or cancel the save.
4	Credit Note and Returns: When perform Credit Note, Supplier CN, the Tax Code and Rate of the source document will be used by default.
5	Returns: When perform Sales Return, Purchase Return, Delivery Return and Goods Received Return, the Tax Code and Rate of the source document will be used and not allowed to change.
6	Blocked Input Tax: When inserting Simplified Tax Invoice in Cash Purchase, Blocked Input Tax will not be triggered if there is no GST amount being charged.
7	Gift Rule: The default Tax Code of Gift Rule will be updated to SR_0 at 01 Jun 2018 in GST Preference automatically. If accummulated gift amount is over RM500 after 01 June 2018, a journal entry will be created with SR-0. User can update the Tax Code in journal entry if it is suppose to be otherwise.
8	Advance Payment: The default Tax Code of Advance Payment will be updated from SR_S to SR_0 at 01 Jun 2018 in GST Preference automatically.
9	Reverse Charge: The default Tax Code of Reverse Charge will be updated from SR_I and TX_I to SR_0 and TX_0 respectively at 01 Jun 2018 in GST Preference automatically.
10	21 days Rule: System will always use the Tax Code and Rate from Delivery Order when transfer into Invoice.
11	Bad Debt Relief and Recover: System will always use the Tax Code and Rate from source document, when perform relief and recover.
12	Imports Goods (Import Declaration): New Tax Code (IM_0) will be available for user to choose.
13	GST-03 Mapping: Mapping for new added Tax Code will be done automatically by system.

Tax Code Table				Before 01 Jun 2018		Effective from 01 Jun 2018
Code	Label	Category	Description	Rate (%)	Active	Rate (%)	Active	Remark
AJP	AJP_ARBD	PURCHASE	Input Tax 6% - Adjustment for AR Bad Debt Relief	6	Yes	6	Yes
	AJP_APBD	PURCHASE	Input Tax 6% - Adjustment for AR Bad Debt Recover	6	Yes	6	Yes
	AJP_C	PURCHASE	Input Tax 6% - Adjustment for Capital Goods	6	Yes	6	Yes
	AJP_A	PURCHASE	Input Tax 6% - Adjustment for Annual Adjustment	6	Yes	6	Yes
	AJP_O	PURCHASE	Input Tax 6% - Adjustment for Others Adjustment	6	Yes	6	Yes
	AJP_0	PURCHASE	Input Tax 0% - Adjustment	-	-	0	Yes (New)
AJS	AJS_APBD	SUPPLY	Output Tax 6% - Adjustment for AP Bad Debt Relief	6	Yes	6	Yes
	AJS_ARBD	SUPPLY	Output Tax 6% - Adjustment for AR Bad Debt Recovery	6	Yes	6	Yes
	AJS_C	SUPPLY	Output Tax 6% - Adjustment for Capital Goods	6	Yes	6	Yes
	AJS_A	SUPPLY	Output Tax 6% - Annual Adjustment	6	Yes	6	Yes
	AJS_O	SUPPLY	Output Tax 6% - Others Adjustment	6	Yes	6	Yes
	AJS_0	SUPPLY	Output Tax 0% - Adjustment	-	-	0	Yes (New)
BL	BL	PURCHASE	Input Tax 6% - Not Claimable	6	Yes	6	Yes
	BL_E	PURCHASE	Input Tax 6% - To Make Exempt Supplies	6	Yes	6	No
	BL_CE	PURCHASE	Input Tax 6% - Capital Goods Acquired To Make Exempt Supplies	6	Yes	6	No
DS	DS	SUPPLY	Output Tax 6% - Deemed Supplies	6	Yes	6	No
EP	EP	PURCHASE	Input Tax 0% - Exempted	0	Yes	0	Yes
ES	ES	SUPPLY	Output Tax 0% - Exempt Supplies	0	Yes	0	Yes
ES-GU	ES-GU	SUPPLY	Output Tax 0% - Exempt supplies of land for general use (Land used for burial, playground or religious building).	0	Yes	0	Yes
ES43	ES43	SUPPLY	Output Tax 0% - Incidental Exempt Supplies	0	Yes	0	Yes
GP	GP	PURCHASE	Input Tax 0% - Disregarded	0	Yes	0	Yes
GS	GS	SUPPLY	Output Tax 0% - Disregarded Supplies	0	Yes	0	Yes
IES	IES	SUPPLY	Output Tax 0% - Incidental exempt supplies under GST legislations. (Note: Replace ES43)	0	Yes	0	Yes
IM	IM	PURCHASE	Input Tax 6% - Import of Goods	6	Yes	6	No	Shall use standard rated at 0% (IM_0).
	IM_0	PURCHASE	Input Tax 0% - Import of Goods	-	-	0	Yes (New)
IM-CG	IM-CG	PURCHASE	Input Tax 6% - Import of goods with GST incurred for a capital goods acquisition.	6	Yes	6	No	Shall use standard rated at 0% (IM_0).
IM-RE	IM-RE	PURCHASE	Input Tax 6% - Import of goods with GST incurred that is not directly attributable to taxable or exempt supplies (Residual input tax).	6	Yes	6	No	Shall use standard rated at 0% (IM_0).
IS	IS_ATS	PURCHASE	Input Tax 0% - Imports Under Special Scheme (ATS)	0	Yes	0	No	Shall use standard rated at 0% (TX_0).
	IS_ATMS	PURCHASE	Input Tax 0% - Imports Under Special Scheme (ATMS)	0	Yes	0	No	Shall use standard rated at 0% (TX_0).
NP	NP	PURCHASE	Input Tax 0% - Matters to be treated as neither a purchase of goods nor a purchase of services, and no GST incurred.	0	Yes	0	Yes
NR	NR	PURCHASE	Input Tax 0% - From Non-GST Supplier	0	Yes	0	Yes
NS	NS	SUPPLY	Output Tax 0% - Matters to be treated as neither a supply of goods nor a supply of services, and no GST chargeable.	0	Yes	0	Yes
NTX	NTX	SUPPLY	Output Tax 0% - Supplies with no tax chargeable.	0	Yes	0	Yes
OP	OP	PURCHASE	Input Tax 0% - Out of Scope	0	Yes	0	Yes
OS	OS	SUPPLY	Output Tax 0% - Out of Scope Supplies	0	Yes	0	Yes
OS-ER	OS-ER	SUPPLY	Output Tax 0% - Out-of-scope supplies for Enforcement and Regulatory functions.	0	Yes	0	Yes
OS-OV	OS-OV	SUPPLY	Output Tax 0% - Out-of-scope supplies between overseas country with other overseas country.	0	Yes	0	No
OS-OVN	OS-OVN	SUPPLY	Output Tax 0% - Supplies made outside Malaysia which would not taxable if made in Malaysia.	0	Yes	0	No
OS-OVT	OS-OVT	SUPPLY	Output Tax 0% - Supplies made outside Malaysia which would be taxable if made in Malaysia.	0	Yes	0	No
OS-TXM	OS-TXM	SUPPLY	Output Tax 0% - Out-of-scope supplies made outside Malaysia which will be taxable if made in Malaysia.	0	Yes	0	Yes
RP	RP	PURCHASE	Input Tax 0% - Relief Purchase under GST legislations. (e.g: purchase of RON 95 petrol & Diesel)	0	Yes	0	No	Shall use standard rated at 0% (TX_0) except Minister Relief (e.g. purchase of RON 95 & Diesel) to use RP-M.
	RP_M	PURCHASE	Input Tax 0% - Relief Purchase under GST legislations. (e.g: purchase of RON 95 petrol & Diesel)	-	-	0	Yes (New)
RS	RS	SUPPLY	Output Tax 0% - Relief Supplies	0	Yes	0	No	Shall use standard rated at 0% (SR_0).
SR	SR_S	SUPPLY	Output Tax 6% - Standard Rated Supplies	6	Yes	6	No	Shall use standard rated at 0% (SR_0).
	SR_I	SUPPLY	Output Tax 0% - Imported Services	0	Yes	0	No	Shall use standard rated at 0% (SR_0).
	SR_D	SUPPLY	Output Tax 6% - Disposal of Business Assets	6	Yes	6	No	Shall use standard rated at 0% (SR_0).
	SR_0	SUPPLY	Output Tax 0% - Standard Rated Supplies at 0%	-	-	0	Yes (New)
SR-JWS	SR-JWS	SUPPLY	Output Tax 0% - Supplies under Approved Jeweller Scheme (AJS)	0	Yes	0	Yes
SR-MS	SR-MS	SUPPLY	Output Tax 6% - Standard-rated supplies under Margin Scheme	6	Yes	6	No	Shall use standard rated at 0% (SR_0).
	SR-MS_0	SUPPLY	Output Tax 0% - Standard-rated supplies under Margin Scheme	-	-	0	Yes (New)
TX	TX_S	PURCHASE	Input Tax 6% - To Make Taxable Supplies (standard rated)	6	Yes	6	No	Shall use standard rated at 0% (TX_0).
	TX_Z	PURCHASE	Input Tax 6% - To Make Taxable Supplies (zero rated)	6	Yes	6	No	Shall use standard rated at 0% (TX_0).
	TX_I	PURCHASE	Input Tax 6% - Imported Services	0	Yes	6	No	Shall use standard rated at 0% (TX_0).
	TX_C	PURCHASE	Input Tax 6% - Capital Goods Acquired to Make Taxable Supplies	6	Yes	6	No	Shall use standard rated at 0% (TX_0).
TX-E43	TX-E43	PURCHASE	Input Tax 6% - To Make Incidental Exempt Supplies	6	Yes	6	No	Shall use standard rated at 0% (TX_0).
TX-ER	TX-ER	PURCHASE	Input Tax 6% - Input tax allowed on the acquisition of goods or services by local authority or statutory body.	6	Yes	6	No	Shall use standard rated at 0% (TX_0).
TX-ES	TX-ES	PURCHASE	Input Tax 6% - Purchase with GST incurred directly attributable to non-incidental exempt supplies. (Note: Replace TX-N43)	6	Yes	6	Yes
TX-FRS	TX-FRS	PURCHASE	Input Tax 2% - Purchase under Flat Rate Scheme.	2	Yes	2	Yes
TX-IES	TX-IES	PURCHASE	Input Tax 6% - Purchase with GST incurred directly attributable to incidental exempt supplies. (Note: Replace TX-E43)	6	Yes	6	Yes
TX-N43	TX-N43	PURCHASE	Input Tax 6% - To Make Non-incidental Exempt Supplies	6	Yes	6	No	Shall use standard rated at 0% (TX_0).
TX-NC	TX-NC	PURCHASE	Input Tax 6% - GST incurred and choose not to claim the input tax.	6	Yes	6	No	Shall use standard rated at 0% (TX_0).
TX-RE	TX-RE	PURCHASE	Input Tax 6% - Residual Input Tax	6	Yes	6	No	Shall use standard rated at 0% (TX_0).
	TX_0	PURCHASE	Input Tax 0% - To Make Taxable Supplies (standard rated) at 0%	-	-	0	Yes (New)
ZDA	ZDA	SUPPLY	Output Tax 0% - Exportation of goods from Malaysia to Designated Area (Pulau Langkawi, Labuan, & Pulau Tioman) which are subject to zero rated supplies. (By referring Customs Form No. 2 (K2), and/or other reference documents)	0	Yes	0	No	Shall use standard rated at 0% (SR_0).
ZP	ZP	PURCHASE	Input Tax 0% - Zero Rated	0	Yes	0	No	Shall use standard rated at 0% (TX_0).
ZRE	ZRE	SUPPLY	Output Tax 0% - Zero Rated Supplies (Exports)	0	Yes	0	Yes
ZRL	ZRL	SUPPLY	Output Tax 0% - Zero Rated Supplies	0	Yes	0	No	Shall use standard rated at 0% (SR_0).

Above changes is due to:

On the 16th May 2018, Ministry of Finance has revised GST standard rate (SR) from 6% to 0% with effect from 1st June 2018. The GST framework shall remain until further notice.

TreezSoft will update the system according to the updates and TreezSoft shall remain compliant with Royal Malaysia Custom Department’s (RMCD) requirement.

For any further updates, TreezSoft team will release on our website and Treezsoft Blog.

Please do not hesitate to contact us for any further inquiries.

Email: [email protected]

Phone/Whatsapp: +60127708577

Skype: Treezsoft Support

Important Note:

Do not change the GST rate and tax code in the Tax Setup screen, system will update automatically on 01 June 2018.
It is advisable that you insert all your transactions which issued before 01 June 2018, into the system before the changes take effect.
For those business that requires to submit GST-03, you shall submit GST—03 until further information provided by RMCD.
Any consumer who wants to save 6%, please do not instruct delivery or tax invoice in May 2018.
If you are currently GST inclusive, kindly revise your item prices accordingly on 01 June 2018.

Treezsoft Updates - GST Rate Update

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