GST Treatment: ATS: Difference between revisions

Revision as of 02:00, 11 December 2015

Import Goods (IM)

Introduction

Approved Trader Scheme (ATS) is a special schemes are introduced to alleviate negative cash flow impact to business.

Under ATS,

ATS participants are allowed to suspend GST on the importation of goods.
Goods imported is used in the course or furtherance of business.
The amount of GST suspended needs to be declared in the GST return (for the taxable period to which the suspension relates).

Persons eligible for ATS

Companies located within Free Industries Zone (FIZ)
Licensed Manufacturing Warehouse (LMW)
International Procurement Centre (IPC)
Regional Distribution Centre (RDC)
Toll manufacturers under ATMS
Jewellery manufacturers under AJS
Companies with turnover above RM25 million and at least 80% of their supplies made are zero-rated; or
Any other person approved by the Minister.

ATS

Tax Code

[GST | Maintain Tax...]

You can found the following tax code available in SQL Financial Accounting.

Tax Code	Description	Tax Rate %
IS	Imports under special scheme with no GST incurred. This refers to goods imported under the Approved Trader Scheme (ATS) and Approved Toll Manufacturer Scheme (ATMS), where GST is suspended when the trader imports the non-dutiable goods into Malaysia. These two schemes are designed to ease the cash flow of Trader Scheme (ATS) and Approved Toll Manufacturer Scheme (ATMS), who has significant imports. \|\| 0%

Purchase Invoice For ATS

[Purchase | Purchase Invoice...]

1. Create the oversea supplier invoice at Purchase Invoice.

2. You are required to key-in the Import Declaration No. (eg. K1 or K9) into Permit No column. This import declaration no will be appear in GAF file.

3. Select the tax code = IS. Tax amount = 0.00

4. Taxable Amount (local value) should entered as:

GST Value = Customs Value (CIF) + any customs duty paid + any excise duty paid

GST Return Process

[ GST | New GST Return...]

1. Process the month GST Return.

2. GST03 item no 14 will be fill-up with the Taxable Amount from the purchase invoice item with tax code “IS”.

3. GST03 Item no 15 = Taxable Amount (local value) x 6%

4. For example, below screenshot:-

GST03 Item no 15 = 74,600.00 x 6% = 4,476.00

Highlight Changes

Date	Initiated by	Remarks
07 May 2015	Loo	Initial document.

@@ Line 20: / Line 20: @@
 :# Any other person approved by the Minister.
-==GST IMPORTATION OF GOODS (IM)==
+==ATS==
 ===Tax Code===
 ''[GST | Maintain Tax...]''<br />
@@ Line 29: / Line 29: @@
 ! Tax Code !! Description !! Tax Rate %
 |-
-| IM-0 || Import of goods with no GST incurred (for Foreign Supplier Account) || 0%
+| IS || Imports under special scheme with no GST incurred.
-|-
+This refers to goods imported under the Approved Trader Scheme (ATS) and Approved Toll Manufacturer Scheme (ATMS), where GST is suspended when the trader imports the non-dutiable goods into Malaysia. These two schemes are designed to ease the cash flow of Trader Scheme (ATS) and Approved Toll Manufacturer Scheme (ATMS), who has significant imports. || 0%
-| IM|| Import of goods with GST incurred || 6%
 |}<br />
-===Oversea Supplier Invoice===
+===Purchase Invoice For ATS===
 ''[Purchase | Purchase Invoice...]''<br />
 :1. Create the oversea supplier invoice at Purchase Invoice. <br />
-:2. Select the tax code “IM-0”. Tax amount = 0.00 <br />
+:2. You are required to key-in the Import Declaration No. (eg. K1 or K9) into Permit No column. This import declaration no will be appear in GAF file. <br />
-::[[File:GST-IM-PI-01.jpg | 440PX]]
+:3. Select the tax code = IS. Tax amount = 0.00 <br />
-<br />
+:4. Taxable Amount (local value) should entered as: <br />
-===Received Forwarder Notification from K1 /Invoice===
-:Let's said in the K1 form details:-<br />
-::{| class="wikitable"
-|-
-! style="text-align:left;"| Description !! style="text-align:right;"| Amount (MYR) !! Calculation
-|-
-| Goods Value (A)|| style="text-align:right;"| 1,155.00 || USD300 x 3.8500
-|-
-| Custom Duty (B) <br /> ''(assumed is 5%)'' || style="text-align:right;"| 57.75 || Rm1,155 x 5%
-|-
-| Total Taxable Amount (C) || style="text-align:right;"| 1,212.75 || A + B
-|-
-| '''GST - IM'''  || style="text-align:right;"|  '''72.77''' ||  '''C x 6% = Rm1,212.75 x 6%'''
-|}<br />
-:Usually, the forwarder will invoice to the principal company for the following details:- <br />
+  '''GST Value''' = Customs Value (CIF) + any customs duty paid + any excise duty paid
-::{| class="wikitable"
-|-
-! style="text-align:left;"| Description !! style="text-align:right;"| Net (MYR) !! style="text-align:right;"| GST !! style="text-align:right;"| Gross (MYR)
-|-
-| Est. Duties (Import&/Excise Duty) || style="text-align:right;"| 57.75 ||  ||
-|-
-| Est. GST Import (RM1,212.75 x 6%) || style="text-align:right;"| 72.77 ||  ||
-|-
-| '''Est Duties + GST Import''' || style="text-align:right;"| '''130.52''' ||  || style="text-align:right;"| '''130.52'''
-|-
-| Duty Processing Fee || style="text-align:right;"| 100.00 || style="text-align:right;"| 6.00 || style="text-align:right;"| 106.00
-|-
-| '''Total Payable''' ||  ||  || style="text-align:right;"| '''236.52'''
-|}
-<br />
- '''NOTE : '''<br />
- GST Import can be calculated in different way. It might based on total weight (ie. weight x container) or total meter square (ie,meter square x container).
- For example,
- '''GST Import''' = 30,000m2 x 10 containers x 6% = RM18,000.00
+::[[File:GST-ATS-PI-01.jpg | 440PX]]
 <br />
-===Forwarder Invoice Entry (Purchase Invoice)===
+===GST Return Process===
-''[ Purchase | Purchase Invoice...]''<br />
+''[ GST | New GST Return...]''<br />
-:1. Select the forwarder supplier code in Purchase Invoice.<br />
-:2. Insert the following fields:-<br />
-:* Import Curr.Code (for display only)
-:* Import Curr Rate (for display only)
-:* Import Purchase Amt (GST Import input)
-:* Tax Amount
-:* Local Tax Amount<br />
-:3. Click on the side button under Import Purchase Amt column. See screenshot below.<br />
+:1. Process the month GST Return.<br />
-::[[File:GST-IM-PI-02.jpg | 240PX]]
+:2. GST03 item no 14 will be fill-up with the Taxable Amount from the purchase invoice item with  tax code “IS”.<br />
-<br />
+:3. GST03 Item no 15  = Taxable Amount (local value) x 6%<br />
-:4. You have to input the info according to 2.3. Received Forwarder Notification from K1 /Invoice example.<br />
+:4. For example, below screenshot:-
-::{| class="wikitable"
+ '''GST03 Item no 15''' = 74,600.00 x 6% = 4,476.00
-|-
-! Field Name !! Input Value !! Explanation
-|-
-| Currency Code || USD || Currency to the goods purchased
-|-
-| Currency Rate || 3.85 || Follow K1 exchange rate
-|-
-| Purchase Amount || 300.00 || Goods foreign value as stated in K1 form
-|-
-| Custom Local Amount || 1,212.50 || Follow K1 total taxable amount.<br /> Formula = Purchase Amount + Custom Duty
-|-
-| Tax || IM || 6%
-|-
-| Tax Amount || 72.77 || 1,212.75 x 6%
-|-
-| Permit No || K1-3232323 || Key-in the K1 no.
-|}<br />
-::[[File:GST-IM-PI-03.jpg | 240PX]]<br />
-:5. After press OK to exit the GST Import screen, the purchase invoice item description will be updated as “Purchase Value USD 300.00@3.8500 = RM 1,155.00, Permit No: K1-32323232” from the GST Import entered. <br />
+::[[File:GST-ATS-PI-GST03-02.jpg | 240PX]]
-:6. Below is the sample of Forwarder invoice entry.<br />
-::[[File:GST-IM-PI-04.jpg | 240PX]]<br />
 <br />
@@ Line 124: / Line 62: @@
 ! Date !! Initiated by !! Remarks
 |-
-| 28 March 2015 || Loo || Initial document.
+| 07 May 2015 || Loo || Initial document.
-|-
-| 22 April 2015 || Loo || Update K1 and new screenshot
-|-
-| 24 June 2015 || Loo || For forwarder invoice, tax code IM should refer to Local Tax Amount instead of Tax Amount.
 |}