Review of ‘E-Business Suite R12: Malaysia Goods and Services Tax (GST), February, 2014 (Doc ID 1624947.1)’

Malaysian GST (MY GST) in Oracle R12 and Oracle Fusion

This article is to provide a little more information on  ‘E-Business Suite R12: Malaysia Goods and Services Tax (GST), February, 2014 (Doc ID 1624947.1)’

We have managed to use standard functionality to pull all the requirements together. Oracle have looked at this and have said they are not going to do anything special to get ready for the launch date and I have to agree with them! The required data needed for the GST submissions can be collected using standard functionality. The Financial Tax Register could be used to report the right data although crudely so we do suggest that you look at getting expert help so that first the data is captured in the most optimal way, using a fully automated solution (NO DEFAULTING TAX CODES!) and then a bespoke report will be able to neatly provide all the reporting requirements linked to the right tax codes.

You can click here for the Oracle link which we suggest you monitor because at the time of writing, it was last updated in February so a change is likely soon.

Oracle Financial Applications in a Malaysian Goods and Services Tax environment

Malaysia’s Goods and Services Tax (GST) legislation is yet to be passed by the Malaysian parliament. This limits Oracle’s ability to provide a definitive statement of Oracle E-Businesses ability to specifically address Malaysia’s GST requirements.   However, this document provides a preliminary overview of Oracle EBS applications’ tax capabilities and summarizes standard EBS functionality that exists for countries which have a GST or Value Added Taxation (VAT) regime.

Based on our current understanding of the proposed Malaysian GST, the standard Oracle E-Business product is expected to enable compliance with Malaysian GST/VAT processing, however, its implementation will need to be reviewed by customers to determine the most appropriate method of configuration and implementation specific to their circumstances.

Oracle E-Business Tax

Oracle E-Business Tax provides extensive functionality for Value Added Tax (VAT), Sales Tax and GST through a single point solution for managing transaction based tax requirements and uniformly delivers tax services to all E-Business Suite business flows through one application interface. As a global system architecture, E-Business Tax is configurable and scalable for adding and maintaining country specific tax rules and content. With E-Business Tax, Malaysian customers should be able to model their GST tax requirements according their specific needs.

Malaysian Reporting Requirements

Part of any GST/VAT system requires reports and file submissions to the local taxation authority. To this point Oracle E-Business applications provides an extensive number of general reports to address VAT/GST transactions. There may be specific formatting requirements for reports to comply with Malaysian Taxation reporting. A statement on the ability to produce specific reports is subject to the availability of definitive information and requirements from the Malaysian Customs Office and Government. However, there are no plans to provide product localization reports for Malaysia as it is expected that the reporting tools available, including RXi, Oracle Reports, or BI Publisher to specify fields of the Tax Reporting Ledger to include and print required reports or produce files in a format that meets each customers’ specific needs.

The Oracle E-Business Tax Tax Reporting Ledger (TRL) provides a single reporting solution for the complex global tax requirements on sales and purchases and enables you to summarize tax information from Receivables, Payables, and General Ledger transaction. In Release 12 of Oracle Applications, taxable transactions are accounted for in the base products according to your tax configuration and tax rules setup in E-Business Tax. The Tax Reporting Ledger consists of the tax information recorded in each of these and related products.

The TRL represents a reporting framework for E-Business Tax Release 12 reports for Receivables, Payables, and General Ledger transactions. Reports built around the TRL share a common set of code to produce tax extract copies of accounting information in an interface table accessible from the available reporting tools mentioned above.

If you require further information or a comprehensive outline of the respective taxation systems implementation guidance and reporting, please refer to the Oracle E-Business Tax implementation Guide, Oracle E-Business Tax Reporting Guide and Oracle E-Business Tax User Guide.

Andrew Bohnet
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Andrew Bohnet

Managing Director and Oracle Fusion Tax / eBTax expert at eBiz Answers Ltd
Andrew Bohnet is the current chair for the Oracle Tax Management SIG. He founded eBiz Answers to offer clients complete tax solutions making the most of the rich functionality of the R12 and Fusion tax modules. Whether it is analysis, design, configuration or support, eBiz Answers provide an unparalleled service when it comes to a complete tax solution. Having worked on one of the first Oracle R12 implementations in Europe, Andrew was exposed to the tax module early on and worked closely with Oracle to fix bugs, enhance functionality and present on numerous occasions on the subject of tax and Oracle. When it comes to presenting on eBTax, you wont find a more experienced consultant outside of Oracle.
Andrew Bohnet
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