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41 Sales Tax - Coggle Diagram

- - - - in Msia
        Msia excluding special area and designated area
        SP/DA: outside Msia
        
        Special Area
        
        Free Trade Zone (normally places near to port)
        
        Licensed Manufactured Warehouse (to rebulk and export)
        
        Joint Development Area
        
        Designated Area (Islands)
        
        Langkawi
        
        Labuan
        
        Tioman
        
        Pangkor
      - sold: sold to customer
      - used: for own use
      - disposed: donate to ophanage
- - - - Historical method
        
        Not later than the last day of the month
        following the end of the month where
        total turnover in that month + the 11 immediate preceding months > RM500,000
      - Future method
        
        Not later than the last day of the month
        following the end of the month where
        total turnover in that month + the 11 immediate succeeding months > RM500,000
  - - - these persons are closely linked from financial, economic and org aspect
      - DG: biz is artificially separated
      - biz conducted by diff persons
    - - the persons involved are manufacturing taxable goods
      - entire manufacturing activity is deliberately separated in to few parts + fragmented biz is concurrently carried out by 2 or more diff persons
        ie. Co A do part of product, pass to Co B, Co C do final part
      - turnover threshold shall be achieved based on the aggregated sales of all the persons involved
    - - DG name all the involved persons to be taxed as STP
      - a name jointly nominated by the constituent members to be submitted
        and registered with DG within 14 days after the last person being served the direction to be included as a STP
      - any taxable goods manufactured by constituent member shall be treated as taxable goods manufactured by STP
      - any failure by STP to comply with Sales Tax Act 2018 deemed to be a non-compliance made by each constituent member severally
- - - - Schedule B
        
        exemption to non-registered manufacturers who manufactures non-taxable goods
        
        for goods acquired to use in manufacture of certain products
      - Schedule C
        
        exemption to registered manufacturer in taxable goods used in manufacturing of taxable goods
  - - - may apply for sales tax dedn for taxable goods purchased from supplier
    - - Sales Tax rate of the taxable goods purchased : Sales Tax Dedn Rate
        5% :arrow_forward: 2%
        10% :arrow_forward: 4%
    - - supplier is X connected to the registered manufacturer
      - supplier have pd sales tax on goods sold to registered manufacturer
      - purchase of taxable goods is proved with invoice issued by the supplier
      - taxable goods purchased shall be used in the manufacture of taxable goods
  - - - goods are exported within 6 months from the date which the sales tax has been paid for the importation of taxable goods/ date the invoice for the purchase of taxable goods
      - application is made within 3 months from date of export in the prescribed
      - goods must be proved to the satisfaction of a senior custom officer that such goods have been exported
      - class of goods exported is not been prohibited by Customs Act 1967
      - taxable goods have not been used after importation/ after payment of sales tax
      - every person claiming drawback must declare that the said goods are
        not (intended) to be relanded/ detrained at any place in Msia
- - - - SV = transaction value
      - transaction value = goods sold to a non-connected purchaser
      - IF sale to connecter purchaser,
        determine SV in the order of
        
        transaction value for identical goods (same goods)
        
        transaction value for similar goods
    - - SV = Custom Valuation Amount (priority) IF X have, use Purchase Cost + Insurance + Freight charges (CIF)
        + custom duties (excise duties - duty to discourage purchase of certain goods, import duties)
    - - SV = charge for work performed
      - amt to be approved by the DG
- - - - sales tax has been paid on an invoice issued by the registered manufacturer
      - unpaid sales tax has been written off in the manufacturer's acc as bad debts due to insolvency
        ie. ind: bankrupt; Co: ordered by court to wound up/under receivership
      - no payment was received for 6 mths from the date the goods is sold
      - reasonable efforts have been made by manufacturer to recover the debt
        ie. issue legal letter
    - - **Formula
        ST minus A/B x C**
        
        A: payment received of the sale of such taxable goods
        
        B: sale value of such taxable goods + sales tax payable on such taxable goods
        
        C: sales tax payable on such taxable goods
    - - Sales tax deduction
        
        registered manufacturer summited sales tax return and paid the sales tax
        
        sales amt subsequently reduced
        due to wrong quantity or product, defective quality or discount is given
        
        result in overpayment of sales tax
      - Issuance of Credit Note
        
        IF registered manufacturer issue credit note with prescribed particulars, sales dedn shall be given
      - Unultilised sales tax deduction
        
        dedn for any taxable period > the amt of sales tax payable
        
        excess c/f to subsequent taxable period until whole balance has been fully deducted, no refund
    - - issue when amt previously invoiced is increased
        due to an addition of sales tax to be paid for any price adjustment
    - - invoice, credit note, debit note etc are to be kept for a period of 7 years
        from the latest date to which the record relates
  - - - shall repay to DG the tax claimed
      - submit in Form SST-02 in the taxable period
        which he receives the payment of the sales tax from the debtors
      - Formula
        A/B x C
        
        A: payment received of the sale of such taxable goods
        
        B: sale value of such taxable goods + sales tax payable on such taxable goods
        
        C: sales tax payable on such taxable goods