Government Service Tax (GST) Malaysia - Implementation

Implementation of Government Service Tax (GST) is no longer a hot topic in Malaysia, however, government has not yet announce when will be the actual day of bringing GST "Live".

Regardless how it will increase our burden affecting the living cost, I would like to share about how it will going to affect the application, especially to integrated financial software, i.e. ERP, POS. From 5 years ago, market is starting to prepare and welcome this event as it will bring up a lot of business opportunity, especially in consulting line.

Market will required Consultant who has experience in this area for the implementation of GST. GST is not a very new concept and it had been implemented in lots of country, i.e. Singapore, Vietnam, Indonesia, and more.

Thanks to all of my employer, I have experienced the implementation of GST in Singapore and Indonesia (it is called VAT there), and both are implemented differently based on the Government Policies. From my experienced, if GST is really live in Malaysia,

The following response and enhancement will required for current existing application:

1. Setup Taxation Profile and Tax Rate.
Most of the application has their standard calculation of tax (except those locally customized previously before announcement of GST). Administrator might explore the possible setup menu to create a simple calcuation of taxtion, i.e. [Line Amount] * [Tax Rate]

2. Solid and Responsiveness Tax Formula / Calculation
Depends on the final rule of taxation, the possibility of having a special tax calculation is always here in "Malaysia", as we do not know whether government would like the implement some special benefit to certain item, certain group of people (i.e, income less than RM3k, Fisherman, Hawker, etc).


The implementation of tax will comes to a challenge when it comes to a special "request". My advise is do contact your specific software provider to get their consultation, the consulting cost cannot be avoid to having a solid tax calculation, unless you have a consultant in your department.

It is still early to judge the implementation of taxation, easy or difficult, but I am ready for the challenge. Do leave a comment / opinion here and we shall discuss it. Hopefully it not a nightmare that affecting our consultant life.

I am available to be a freelance consultant of GST implementation. Do contact me if you require the consulting to welcome GST in Malaysia. Good Luck!

Link : Government Service Tax (GST) Information
http://www.treasury.gov.my/index.php?option=com_content&view=category&id=186&layout=default&lang=en