GST will be implemented on April 1st 2015. Learn more from the infographic below, how it will have an affect on your business and what you should do once GST has been implemented.
How will the implementation affects SMEs
- Change in daily operations to accommodate to the compliant accounting systems.
- Businesses will have to make GST output tax within deadlines regardless of whether they had been paid
- SMEs will be able to claim the tax charged to them as input tax if their suppliers are GST registrants as this will lower the burden on cash outflows.
Who should register their business/company for GST?
- Companies/businesses that have an annual sales turnover of more than RM500,000.
- Businesses with annual turnover of less than RM500,000 are exempted from being GST registered and will thus nit required to collect or pay GST.
Why SMEs should register even if their turnover is below RM500,000?
- Non-registered SMEs that are doing businesses with suppliers that are registered may lose out because they are not entitled to claim the input cost incurred on their purchases of raw materials.
- They may be at a disadvantage compared with their peers who have registered.