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SST Implementation

SST Implementation

Owned by Priyasri Subramaniam (Unlicensed)
Last updated: 2019-Nov-14 by Gracia Surialim

Note: Please be notified that this is Proposed guide only, any updates will be referred to Customs - SST

 SST Registration
  • Customs will be sending email to the GST registered company, in case they have been automatically registered for SST.
  • In case the company has not received any email for Customs which notifying on the SST auto-registration, company needs to check from the following link, whether their company is registered under SST:
    Customs - SST Registration Status 
  • Please be notified that for SST, Sales Tax and Service Tax are separate Tax Acts.  


 SST List of Taxable Goods and Services


 SST Frequently Asked Questions (FAQ)


 SST Basic Information

SST Basic Information

  • SST is only applicable for Manufacturers and not for Distributors and Retailers. 
  • SST has TWO separate acts, Sales Tax and Service Tax.
  • SST should be filed as at bi-monthly (2 months - file once). This is different from GST, which are by monthly or quarterly filing.
  • Example of SST basic filing cycle as per following table. Please take note that this is the basic filing cycle and submission. Customs may have emailed or notified your company if the filing cycle and submission date is different. Kindly follow the Custom's instructions if there is any.                                                                                          
Bi-monthly filing cycle
Last day of SST submission 
Sept - Oct 201830 Nov 2018
Nov - Dec 201831 Jan 2018
Jan - Feb 201931 Mar 2018
Mar - Apr 201931 May 2018 
  • Sales Tax accounts for 0%, 5% and 10% of tax rate, based on the list of Taxable Goods.
  • Service Tax accounts for 6% of tax rate.
  • Sales Tax should be filed following the date of Invoice issued. 
  • Service Tax should be filed following the date of payment received. 
  • To regard with this, it is advised to issue separate Invoice for Goods/ Sales and Service. 
  • The printed Invoice for SST should have the indication of INVOICE and not TAX INVOICE that was done during GST. 


 EMP Tax Codes for SST

Proposed Supply Tax Codes:

SALES (CUSTOMER)
Recommended Tax Code for GoodsDescription
SRG10Sales with 10% Sales Tax
SRG5Sales with 5% Sales Tax
SRG0Sales with 0% Sales Tax
ZREG0Export Sales with 0% Sales Tax
ZRLG0Sales to Designated Areas/ Special Areas with 0% Sales Tax
ESG0Sales which are exempted from Sales Tax
OSG0Out of Scope (Goods)


Recommended Tax Code for ServicesDescription
SRS6Sales with 6% Service Tax
SRS0Sales with 0% Service Tax
ZRES0Export Sales with 0% Service Tax
ZRLS0Sales to Designated Areas/ Special Areas with 0% Service Tax
ESS0Sales which are exempted from Service Tax 
OSS0Out of Scope Sales (Services)


Recommended Tax Code for Goods and ServicesDescription
NRCSNot Registered for Service Tax
NRCGNot Registered for Sales Tax

Proposed Purchase Tax Codes:

PURCHASE (SUPPLIER)
Recommended Tax Code for GoodsDescription
TXG10Purchase Invoices with 10% Sales Tax
TXG5Purchase Invoices with 5% Sales Tax
TXG0Purchase Invoices with 0% Sales Tax
IMG10Imports with 10% Sales Tax
IMG0Imports with 0% Sales Tax
NRG0Not Registered for Sales Tax 


Recommended Tax Code for ServicesDescription
TXS6Purchase Invoices with 6% Service Tax
TXS0Purchase Invoices with 0% Service Tax
IMS0Foreign Invoices with 0% Service Tax
NRS0Not Registered for Service Tax 
 EMP Filing
 Filing Criteria

SALES

  • The invoice can be filled in the EMP if invoice HAS tax code → SRG10, SRG5, SRG0

SERVICE

  • The Invoices can be filled in the EMP if ALL condition below are fulfilled:
    • The invoice MUST have Payment / Settlement (RCT)
    • The invoice MUST tax code → SRS6, SRS0
    • Filling is bi-monthly ( 2 months periods )
    • SUM of RCT > SST, this is for partial Settlement done for 1 invoice. 
 Filing Scenario

  • INVOICE and RECEIPT

Documents

Scenario

Test Case 

Expected Result

Remarks

INV + RCT 

Full Payment

INV = RM 106 (SST = RM 6)


RCT =  RM 106

The INV will be filed, follow the Settlement date. 


INV + RCT 

Partial Payment

INV = RM 106 (SST = RM 6)


RCT =  RM 50

The INV will be filed, follow the settlement date. Because the RCT amount is more than the SST amount.


INV + RCT

Partial Payment

INV - RM 1060 (SST = RM 60)


RCT = RM 50



The INV will NOT be filed. Because the RCT amount is lesser than the SST amount.



*Reason for following this method is because, in RCT, there is no Item Code. If the INV has many items, some with SST and some without SST, the RCT cannot identify that the payment is for which item code (with or without SST).

INV + Multiple RCTs

Partial Payment

INV - RM 1060 (SST = RM 60)


RCT 1 = RM 50

RCT 2 = RM 20

(Sum of RCT amount = RM70)

The INV will be filed, following the 2nd RCT settlement date. Because Sum of the RCT amount is more than the SST amount.



  • INVOICE and Manual CM → Customer Credit Note only

Documents

Scenario

Test Case

Result

Remarks

INV + Manual CM

Full Settlement

INV = RM 106 (SST = RM 6)


Manual CM =  RM 106

The INV will be filed, follow the Settlement date. 


INV + Manual CM

Partial Settlement

INV = RM 106 (SST = RM 6)


Manual CM =  RM 50

The INV will be filed, follow the settlement date. Because the Manual CM amount is more than the SST amount.


INV + Manual CM

Partial Settlement

INV - RM 1060 (SST = RM 60)


Manual CM = RM 50

The INV will NOT be filed. Because the Manual CM  amount is lesser than the SST amount.


INV + Multiple Manual CMs

Partial Settlement

INV - RM 1060 (SST = RM 60)


Manual CM 1 = RM 50

Manual CM  2 = RM 20

(Sum of Manual CM amount = RM70)

The INV will be filed, following the 2nd Manual CM’s settlement date. Because the Sum of the Manual CM amount is more than the SST amount.


  • INVOICE and Auto-created CM (SR)

>>> The SR created from INV, should have the same tax code. It is impossible for the tax code to be different for the linked INV and SR. If in 1 Invoice document, there are many items, some have SST and some does not have SST, based on the item codes user selected from Sales Return, the system will capture the tax code. Therefore, it is impossible for the tax codes to be different for the linked INV and SR.

Documents

Scenario

Test Case

Result

Remarks

INV + SR (CM)

Full Settlement

INV = RM 106 (SST = RM 6)


SR (CM) =  RM 106

The INV will be filed, follow the Settlement date. 


INV + SR (CM)

Partial Settlement

INV = RM 106 (SST = RM 6)


SR (CM) =  RM 50

The INV will be filed, follow the settlement date. Because the SR (CM) amount is more than the SST amount.


INV + SR (CM)

Partial Settlement

INV - RM 1060 (SST = RM 60)


SR (CM) = RM 50



The INV will NOT be filed. Because the SR (CM) amount is lesser than the SST amount.


INV + Multiple SR (CM)

Partial Settlement

INV - RM 1060 (SST = RM 60)


SR (CM) 1 = RM 50

SR (CM) 2 = RM 20

(Sum of SR (CM) amount = RM70)

The INV will be filed, following the 2nd SR (CM) settlement date. Because the Sum of the SR (CM) amount is more than the SST amount.


  •  INVOICE and Multi Documents

Documents

Scenario

Test Case

Result

Remarks

INV 1 + RCT 1

INV 1 & SR 1 (CM 1)

CM 1 + INV 2

Future Contra 

INV 1 settled with RCT 1

Later, INV 1 has SR 1 (CM 1).

The CM 1 is settled with INV 2. 


Note: The SR 1 is done for Item without SST.
Therefore, for this test case, the INV 1 also does not have SRS 6. 

If INV 1 has tax code SRS 6, then INV 1 will be filed. 






If INV 2 has no SRS6, then INV 2 will NOT be filed. 

For INV 1, the RCT settled will be considered as the settlement document for INV 1. 



If the SR 1 has no tax code (which means user return Items without SST), then the future contra with INV 2, with no SRS6, the system will NOT file INV 2. 

INV 1 + RCT 1

INV 1 & SR 1 (CM 1)

CM 1 + INV 2

Future Contra 

INV 1 settled with RCT 1

Later, INV 1 has SR 1 (CM 1).

The CM 1 is settled with INV 2. 


Note: The SR 1 is done for Item without SST.
In case, the INV 2 has tax code, and settled with CM 1 (SR 1) which has NO SRS6. 

If INV 1 has tax code SRS 6, then INV 1 will be filed. 






If INV 2 has SRS6, then INV 2 will be filed. 

For INV 1, the RCT settled will be considered as the settlement document for INV 1. 



If the SR 1 has no tax code (which means user return Items without SST), then need to double confirm with User if the transaction is correct, whereby INV 2 has SRS6 but CM 1 (SR 1) does not have SRS6.  

 EMP SST Filing
  • Create Filing Cycle (Menu Path: Extended Modules > Malaysia GST > Tax Filing > Tax Filing Create)
  • Sales Tax Filing (Menu Path: Extended Modules > Malaysia SST > Sales Tax > Sales Tax Filing)
    • Click the company 
    • Click the Date From and Date to 
    • Click Submit

  • Service Tax Filing (Menu Path: Extended Modules > Malaysia SST > Service Tax > Service Tax Filing)
    • Choose the branch and click submit
    • Click "File it"
    • Chose the file and click "file it"

  • SST-02 Report
    • Section 10 → shows the Tariff Code (configured under item)
    • Section 11 → shows the INV filed
    • Section 13 → shows the CM filed 
    • Section 16 → shows TOTAL of Section 11 minus Section 13


 Settings to be done by User
 System Configurations

1. Add New Category for SST 

Path: Accounting > Maintenance > Configuration > GL Category Maintenance

2. Add New GL code

Path: Accounting > Maintenance > Configuration > Add GL Code

for Sales Tax Registrant


for Service Tax Registrant


3. EMP Tax Configuration

Path: Control Panel > System Admin > EMP Configuration > Tax

General

Sales (Output Tax)

for Service Tax Registrant

Purchase (Input Tax)

for Service Tax Registrant

Sales (Output Tax)

for Sales Tax Registrant

Purchase (Input Tax)

for Sales Tax Registrant

 Company's SST ID

Path: Control Panel > Developer > Organisation Structure > Company

Search for company > Edit



 Item Tax Codes
  • User needs to download the list of Item Codes from EMP system, update the CSV file with the New SST Tax Codes. 
  • Go to Inventory > Item > Item Listing 
  • Download the Item Listing and update the new tax codes.
  • Upload the CSV file to EMP system at the following function: Inventory > Item > Upload Item 
  • At the Upload Item Code function page, tick on the checkbox for Check Tax Fields Not Empty (as shown in the following screenshot)


  • Following is the example to edit the CSV file. User only needs to edit the Tax Code columns.
  • User do not have to update Tax Type and Tax Rate column, as the system will auto-update the Tax Type and Tax Rate following the Tax Code keyed in. 


Recommended Tax Codes for Items:

For Service Tax Registrant:


SalesPurchase
Inventory/GoodsSRG0TXG0
ServiceSRS6TXG6

For Sales Tax Registrant:


SalesPurchase
Inventory/GoodsSRG10TXG10
SalesSRS0TXS0
 SST Printable




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