GST Treatment: ATS

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.

GST IMPORTATION OF GOODS (IM)

Tax Code

[GST | Maintain Tax...]

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

Tax Code	Description	Tax Rate %
IM-0	Import of goods with no GST incurred (for Foreign Supplier Account)	0%
IM	Import of goods with GST incurred	6%

Oversea Supplier Invoice

[Purchase | Purchase Invoice...]

1. Create the oversea supplier invoice at Purchase Invoice.

2. Select the tax code “IM-0”. Tax amount = 0.00

Received Forwarder Notification from K1 /Invoice

Let's said in the K1 form details:-

Description	Amount (MYR)	Calculation
Goods Value (A)	1,155.00	USD300 x 3.8500
Custom Duty (B) (assumed is 5%)	57.75	Rm1,155 x 5%
Total Taxable Amount (C)	1,212.75	A + B
GST - IM	72.77	C x 6% = Rm1,212.75 x 6%

Usually, the forwarder will invoice to the principal company for the following details:-

Description	Net (MYR)	GST	Gross (MYR)
Est. Duties (Import&/Excise Duty)	57.75
Est. GST Import (RM1,212.75 x 6%)	72.77
Est Duties + GST Import	130.52		130.52
Duty Processing Fee	100.00	6.00	106.00
Total Payable			236.52

NOTE : 

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

Forwarder Invoice Entry (Purchase Invoice)

[ Purchase | Purchase Invoice...]

1. Select the forwarder supplier code in Purchase Invoice.

2. Insert the following fields:-

Import Curr.Code (for display only)
Import Curr Rate (for display only)
Import Purchase Amt (GST Import input)
Tax Amount
Local Tax Amount

3. Click on the side button under Import Purchase Amt column. See screenshot below.

4. You have to input the info according to 2.3. Received Forwarder Notification from K1 /Invoice example.

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. 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.

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.

6. Below is the sample of Forwarder invoice entry.

Highlight Changes

Date	Initiated by	Remarks
28 March 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.