Goods and Services Tax (GST) In Malaysia
GST is an initiative by the government of Malaysia to promote a fair, just and transparent tax system. It employs a self-managed system where computations and filings are the responsibility of business managers. GST in Malaysia is enforced by the Royal Customs Department Malaysia under the directions of Ministry of Finance.
Businesses now face the requirement of frequent updates and conclusion of accounts in line with GST filing periods in addition to risks arised from wrongful tax law interpretations as well as weaknesses in documentations.
Consumers now enjoys anchored tax rate of 6% as of 2015, while playing vital roles of scrutinising and reporting misconducts in GST to the authorities. Good consumer awareness will be key to an effective and healthy GST ecosystem.
Matching of one stage’s output taxes to the next stage’s input tax makes the flow of taxes more transparent and traceable. Tax leakages are minimised as mass participants of conscious taxpayers assume the roles of whistle blowers and inspectors.
Accountants are key personnel in reporting and analysing Business management information with a stakeholder interest view. With Gst introdueced, they must familiarise themselves with this new system and partake in the Government Financial Initiative so that it can be taken on well in Malaysia.