GST Appraisal (Healthcheck)
Since its implementation in 2015, GST has well and truly become an intrinsic part of running a business in Malaysia. But have you considered whether these changes have been properly implemented, and whether they are sufficient to manage your GST risk?
With input from GST/VAT specialists from Australia, United Kingdom, Singapore and New Zealand, we have created a dedicated “GST Appraisal (Healthcheck)” programme to identify, document, test and evaluate the GST controls and processes put in place within your business during the implementation phase.
With extensive experience working on GST implementation projects for a diverse range of industry sectors, we also aim to identify risk areas which have not been adequately addressed. We can provide practical guidance and recommendations on additional measures that your business can put in place to ensure your business is in the best position possible to minimise the risks of non-compliance.
The service includes:
- Identification of the risk areas which are relevant to your business
- Prioritisation of GST risks to identify those which require more extensive testing and evaluation
- Interviews with your key personnel to determine the currently existing controls and processes
- Walkthrough tests of controls of common business transactions and operations
- Report outlining our findings, potential gaps or weaknesses based on the controls and processes reviewed by us, along with other comments and recommendations to address these shortfalls for your consideration
In-house GST Training
GST is a complex and pervasive tax that will impact every aspect of a business. A good understanding of GST is required not only by your finance team, but also by your sales and marketing, product development / pricing team, procurement, HR and even internal audit functions.
As GST in Malaysia continues to evolve, interpreting and applying the changing laws significantly increases the risks of non-compliance for businesses. Incorrectly charging output tax on sales and/or incorrectly claiming input tax on purchases in everyday business transactions, is a risk that is ever present.
It is vital therefore that you are familiar with the GST rules relating to your business and industry, and keep your staff up to date with the latest developments, to avoid potential errors in GST reporting.
Our basic in-house GST training can help you to:
- Understand how GST rules are applicable to a number of complex transactions and how to evaluate the impact of GST
- Identify and deal with major GST issues
- Understand when transactions qualify for zero rating or exemption or relief
- Be equipped with knowledge on input tax recovery rules
- Learn about the common GST errors and issues
- Identify the changes required for business operations to comply with the GST law
- Utilise special schemes and rules where applicable
Working with you to tailor the training to your needs
You may already be confident in certain aspects of GST knowledge within your organisation. If you would like a GST course which addresses specific GST areas or specific busines your business, we would be happy to work with you to design a course that addresses your specific requirements.
Entering into new agreements and contracts, or are you unsure as to the full GST implications of pre-existing contracts?
Avoid any unexpected GST consequences, and optimise your contracts from a GST perspective.
Our GST team can provide contract review services to ensure that all GST liabilities will be accounted for correctly with any transactions arising from the contract. Careful structuring of your contract has the potential to save significant sums. A contract review helps you to identify areas of GST liability and exposures in your contract. Doing this before you sign the contract gives you the opportunity to either renegotiate parts of the contract and/or plan how to manage your exposure in advance.
The service includes:
- A review of the contract to identify the GST liabilities and exposures which arise under the contract. This will cover:
- the nature of any supply(s)
- whether and when GST is triggered;
- the contract terms that are relevant to GST
- whether these address the issue of GST
- A short written report on our findings and suggesting further action to protect your position, including suggested changes to the contract or other risk management strategies
- A telephone consultation to discuss the report and provide further guidance if required
Price Control and Anti-Profiteering Act 2011 (PCAPA)
With the implementation of GST, the Price Control and Anti-Profiteering Act 2011 (PCAPA) was amended to prohibit businesses from including input tax credits in the prices they charge for goods and services. Further, businesses are required to reflect any sales tax refunds in the prices of their goods and services.
The penalties for non-compliance can be harsh. The PCAPA provides for fines of up to RM500,000 for a first offence, and up to RM1,000,000 for any subsequent offences.
We can help you to assess your pricing strategies and review your pricing changes to determine whether any price changes could be construed as “profiteering” under this Act.
Further, we can assist with the preparation of documentation to justify any price increases to manage the risk of being charged under the PCAPA.