Friday, November 21, 2014

Understanding GST – GEC Business Review

By Jess Lee

It is no secret that the Goods & Services Tax (GST) will be soon implemented on 1 April 2015, and the GST rate has been fixed at 6% while the current Sales Tax and Services Tax will be abolished. The question is, are you ready? 

As a general rule of thumb, GST is a consumption tax based on the value-added concept, such tax levied and charged on the taxable supply of goods and services by a taxable company and individual. Further, GST is also imposable on the importation of goods and services.

No doubt, GST can only be levied if the business is registered under GST. In other words, a business is not eligible to be registered if its annual turnover of taxable supplies does not reach a prescribed business turnover. Therefore, such businesses are not liable to charge and collect GST on the supply of goods and services made to their customers.

We need to pay tax so that our Government can operate efficiently. Besides, GST is proven better tax format as it works effective, efficient and transparent, further spur economic growth as well as increase our country’s competitiveness in the global arena.

GST is not new concept, in actual fact, the idea of GST was actually devised by a French tax official during the 1950s. GST is also known as VAT (Value-Added Tax) in other countries. There are more than 160 countries nowadays including the European Union and Asian countries such as China, Singapore and Sri Lanka practice such form of taxation.

Here are some of the tax rates of countries around the world who have implemented GST or VAT.


For more GST info, please visit the official website of Malaysia Goods & Services Tax (GST) of the Royal Malaysian Customs Department and/or download GST Act 2014.

***
About GE Consult
Founded since 2003, GE Consult has helped numerous local SMEs/SMIs in developing their company profiles, business plans, business proposals etc. assisted clients in securing business deals and contracts. If you are looking for a winning company profile or any professional services, please do not hesitate to contact us at (+6017) 330 8077 and/or email rachel@geconsult.org for further service explanation.

1 comment:

Related Posts Plugin for WordPress, Blogger...