1. What is SST
The reintroduction of the Sales and Services Tax (SST) will see its rate set at 10% for sales and 6% for services.
This was announced by Finance Minister Lim Guan Eng on 16 July 2018, who informed that the Bill on SST will be passed in Parliament sometime in August.
More Info kindly click on the below link:-
https://youtu.be/K7d-70rr8Fk (in Chinese)
https://www.youtube.com/watch?v=LXCZTp--6yQ&t=20s (in English)
Facts about SST
No. | Notes |
1 | A company might need registered as: a) Service Tax b) Sales Tax c) Service + Sales Tax |
2 | Service Tax Registration Number start with 3100 |
3 | Sales Tax Registration Number start with 2100 |
4 | Different calculation on Service / Sales Tax |
5 | Service Tax, submission can be on accrual basis or payment basis |
6 | Sales Tax, tax calculation on accrual basis (upon issue invoice, tax amount be computed and to be submitted |
7 | You may have GST documents to be input after 01/09/2018, judge yourself whether to kept GST enable in system. |
8 | Delivery Order need account for SST? (Awaiting confirmation whether applicable to Service or Sales tax or both?) |
9 | If you are SST registrant, ensure sales invoice being issue don’t have GST related info, but include all related SST info such as SST number and SST payable amount. |
10 | SST Submission is bi-monthly basis |
11 | Bad Debt Claim is applicable on Sales Tax Registrant (claim from JKDM no. 2 Form) |
12 | Bad Debt Refunded is applicable on Sales Tax Registrant (adjustment to be made in SST-02 Form) |
13 | Take note on Sales Tax Treatment in Designated Area, Special Area (Free Zone) |
14 | NO GST on or after effective date (01/09/2018) |
The differences between SST & GST
The example below makes certain assumptions for simplification purposes, just to show the differences between SST & GST.
The example below if middle man do not claim back Input Tax; consumer will PAY MORE:
** More to be updated soon.