The Sales and Services Tax (SST) has been implemented in Malaysia. The SST replaces the existing Goods and Services Tax (GST) and affects all domestic and import shipments.
The SST has two elements:
A Service Tax that is charged and levied on taxable services provided by any taxable person in Malaysia in the course and furtherance of business,
and a single stage Sales Tax levied on imported and locally manufactured goods, either at the time of importation or at the time the goods are sold or otherwise disposed of by the manufacturer.
- Files > Modules
- Tick GST/VAT/SST. Save & Close
- Go to GST/SST Settings. Enter Date. Tick SST Registrant. Save
- Upon saving, Tax Code Update will show
Please select ‘Sales’ or ‘Services’ depends on what your company is registered under. Click OK
- Go to GST/SST Accounts Setup. Click Apply. The purpose for this step is creating the GL Account under Chart of Account and assigned in Tax Code Posting (You can refer the result in step 6 and 7)
- Go to General Ledger > Chart of Accounts.
Type and search SST. Notice that SST GL account codes have been applied
- Go to Tax Codes. GL account is applicable in Posting Account column now.
System will post to the GL account according to the tax code as defined.
- Go to File > Company Profile
Update Sales Tax Register Number if you are register under Sales Tax
Update Services Tax Register Number if you are register under Service Tax
- Go to Company Info. Update SST Register Number under company letter head
SST Services tax
SVT-6% - Service Tax (SST)
- Create Cash Sales.
- View GL Transaction. Notice Credit to SST Services Tax
- Go to SST Service Tax Return. Click New
- Fill up taxable period. Then Save it, so that you do not need to fill the taxable period again later.
After this, click “Re-Generate Draft Data”, system will display the result according to the SST tax codes as selected
- Click Retrieve SST Reports SST-02
- Notice tax amount at Taxable Services other than from Group H
- Create Sales Credit Notes. Select Tax Code SVT-6%
- View GL Transaction. Notice Debit to SST Services Tax
- Go to SST Sales Tax Return again, notice that the taxable period already there.
Click on “Re-Generate Draft Data” since new transactions has been added. Then click Retrieve SST Reports SST-02
- Notice tax amount at Tax Deduction from Credit Note
SVTD-6% - Service Tax With Payment Basis (SST)
Create a Sales Invoice. Select SVTD-6% Service Tax Paid upon Payment Received
- View GL Transaction. Notice Credit to SST Deferred Tax Account
- Go to SST Services Tax Return again. Click Re-Generate Draft Data.
Notice that the Sales Invoice created with Deferred Tax just now does not appear here because the payment has not yet received.
- Go to Customer > Receive Payment. Knockoff the Sales Invoice amount
- View GL Transaction. Notice Debit to SST Deferred Tax and Credit to SST Service Tax
- Go to SST Sales Tax Return again.
Click on “Re-Generate Draft Data” since new transactions has been added. Then click Retrieve SST Reports SST-02. Now the documents show after the payment.
- Click Retrieve SST Reports SST-02 again.
- Notice updated tax amount at Taxable Services other than from Group H
- For Submission and Lock Taxable Period, Go to Edit > Submit SST Return
- Fill up information. Click Submit
- Click Yes to confirm
- Click Yes to open journal
- System generates a Journal Entry & Posting the double entries
- Status become Submitted
- Open back the transaction within taxable period.
- Try Edit from quantity 1 to 2. Save.
- System will not allow saving with a validation error message
Note: Refer Related Information
QNE Optimum Enabling SST Module
QNE Software - SST Service Tax
SST TAX CODES MAPPING TO SST-02 FORM