GST Software Malaysia

GST Software Malaysia  

The Goods and Services Tax (GST) system was officially implemented in Malaysia on April 1, 2015, and amongst the first group of people affected by the GST implementation are the vendors for GST Software Malaysia.

GST Software Malaysia Guide

GST Software Malaysia

In order to be ready for Malaysian GST, the governing body for GST in Malaysia, which is The Royal Malaysian Customs Department (RMCD) or Jabatan Kastam Diraja Malaysia (JKDM) has issued a guideline as early as March 2014, which was later finalised in Sept 2014.  The GST Software Guide is entitled “Guide to enhance your accounting software to be GST compliant”

The GST Software Guide Malaysia issued by Customs GST Malaysia or Kastam GST advises businesses to ensure their software developers follow the recommendations in the Guide.  The guide goes on to say that the requirements are in line with the existing best practices for business applications.

You can download the entire Malaysian GST Software guideline here

General Guidelines for GST Accounting Software Malaysia




A GST compliant accounting software for use by GST registered companies in Malaysia should provide the following information:

  1. provides issuance of  Tax Invoice as well as  Debit Note and Credit Note in compliance with GST legislation.
  2. provide a reporting facility to generate information necessary to prepare tax returns
  3. provide comprehensive documentation to assist auditors and users to understand how the system operates
  4. incorporate adequate internal controls to ensure reliability of data being processed
  5. create adequate audit trails to assist auditors to understand the flow of events and reconstruct the events, if necessary
  6. has in place mechanism to archive and restore the archived data, to ensure the integrity and readability of electronic records after an extended period.
  7. contains key data elements necessary for business
  8. allow the production of GST audit file (GAF) by non-specialists staff who do not have an IT background

 

Why you need GST Software Malaysia to manage your business




A GST compliant software will help a business track and maintain proper and accurate financial information.   GST Customs Malaysia has the right to conduct audit on the business to ensure that proper GST tax declarations are made correctly.

During the GST audit, Kastam GST will request for accounting information as part of the audit.   In fact one of the key requirement requested by Kastam GST is that the accounting software should be able to produce the GAF, as part of an effort to reduce time and effort in conducting the GST audit.

If your business is registered for GST, it is very important to automate your accounting process.  You need to have proper record keeping in order to prepare accurate tax declarations.  You may face strict penalties if you submit incorrect GST amounts

Therefore it is very important to invest in a Malaysia GST compliance software so that you are able to capture the transaction records accurately and on a timely basis, and be able to produce accounting information for GST purposes. With a proper accounting system in place, you are less likely to make computational and accounting errors.  In addition, a GST accounting system can   generate operational and financial information that are useful for managing the business.

The more transactions your business generates, the more difficult it is to keep track of all transactions manually.  If you keep your accounting records manually, you are bound to make mistakes, due to sheer volume of transactions, and the short time of period given to submit the GST tax form.    All  GST registered companies have to submit the GST returns on a monthly or quarterly frequency, depending on the annual turnover.   You are given 30 days after the end of the month, or end of the quarter to submit the GST form and make the payment.

In addition many small businesses have limited resources to administer the GST collection and payment process, and are ignorant  on the GST regulations.

GST affects every business, whether or not you are compulsorily required to register for GST.    You have to select the right type of software for manage GST more efficiently.

 

Responsibilities and obligations as a registered GST business

As a registered GST supplier, you will have to

  1. account for GST collected on taxable supplies made and collected
  2. submit GST return and pay tax by due date
  3. issue tax invoice on taxable supply made
  4. keep adequate records of business transactions relating to GST

Although GST is not a business cost, the amount of GST to collect is based on the sales value.  The amount of GST paid is calculated based on Purchase of raw Material and Capital assets, and other business expenses.

List of GST Accounting Software approved by RMCD

Developers of  Accounting Software that has complied with all the requirements stated in the Accounting software Guide are given a unique approval number issued by Customs GST Malaysia,.  The software vendors are listed on the directory of approved Malaysia GST Accounting Software.   There are around 300 local and foreign softwares which are GST compliant and  approved by Royal Custom Department of Malaysia.  You have a long list to choose from for the best Malaysian GST software for your use.

In the early stages of GST implementation, businesses were given Rm1000.00 as subsidy to ourchase GST accoutnign software form the apporved vendorrs. This is to ensur that their GST submission wil be in accordance wth the requirement of Cusotms GST

For a complete list of approved software vendors for GST Software Malaysia, click here




 

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