Are you ready for the 2015 Malaysian GST?

Oracle R12 and Fusion Tax – Malaysian 2015 GST Implementation – Accounting (Tax) Software Compliance and Requirements

On 01 April 2015, the Royal Malaysian Customs Department will implement Goods and Services Tax (GST) replacing the current Consumption Tax. The introduction of GST is part of the Government’s tax reform programmed to enhance the efficiency and effectiveness of the existing taxation system.

As a consequence of this change, companies have to ensure their Accounting Software in use for business is in compliance with new requirements. Developing/Enhancing the accounting software will be necessary to produce additional electronic files, listings, reports, etc. This is something that eBiz Answers has been working on for some time and now has an off-the-shelf solution available for Oracle R12 and Oracle Fusion.

GST requirements and changes include: “GST Audit File” (GAF), data elements mandatory on documents such as Invoices, Credit Note, Debit Note, Purchases Listing, Supply Listing (including Vendor and Customer Data). Reports and files provided to the Royal Malaysian Customs Department should be in MYR.


GST Audit File
the Jabatan Kastam Diraja Malaysia (JKDM) – Royal Malaysian Customs Department, will be conducting periodic audits in order to ensure Tax returns are correctly prepared, and in order to ensure this, an electronic file containing the breakdown of all business transactions. This file should include key elements (such as GST Registration Number, Period transactions are being declared, Document/Transaction details, etc). This file should be made available to both Auditors and End Users (non IT specialist) on demand.

Tax Invoices – All Invoices should be showing specific data items, such as: Words TAX INVOICE in a clear prominent place, sequential number, GST Registration number of customer, address, total amount, excluding tax, as well as all details related to Tax Rate used, etc.

Credit Note/Debit Note – All credit/debit notes have to reflect specific data items, such as: Words CREDIT/DEBIT NOTE on a prominent place, GST registration number, customer details, amounts, tax amounts, reference to Original Invoice document.

Purchase Listings – In order to comply with GST, a listing of all purchases should be provided, these listings should include all Purchases, Expenses as well as Importation of goods. For the purchases listings, all details related to those Imports should be provided.

Supply Listings – with the implementation of GST, companies have to report under the supply listings, the correct value of all transactions under the supply chain, including those that don’t generate revenue to the company. Exports are to be included on these listings.

It is very important that these requirements are considered and addressed before the deadline for GST Implementation. Any modification on design, set up, etc, needed in the accounting software should take place in order to be in compliance with the GTS requirements.

For further more information on Malaysia GST:
Visit the Official Website for the Royal Malaysian Customs Department where they will be providing full guides and additional information on Malaysia Goods and Service Tax (GST).

Also keep an eye on the eBiz Answers website and blog where we will be publishing up-to-date resources and information as it becomes available.

Previous eBiz Answers articles on the subject of Malaysian GST include:
Review of ‘E-Business Suite R12: Malaysia Goods and Services Tax (GST), February, 2014 (Doc ID 1624947.1)’