Standard-rated supplies

Standard-rated supplies

Last Updated : 11/11/2013 12:48

Standard-rated supplies are goods and services that are charged GST with a standard rate. GST is collected by the businesses and paid to the government. They can recover credit back on their inputs. If their input tax is bigger than their output tax, they can recover back the difference. How GST is charged at each level of supply chain standard rated supply : How GST is charged and collected at the wholesale level for standard rated supply : Computation of GST at all levels of the supply chain for standard rated supply : Level of supply Sales price (including GST at 6%) Payment to Government Raw material supplier Sales price = RM50.00 GST = RM3.00 Total sales price = RM53.00 GST collection = RM3.00 Less: GST paid =RM0.00 GST payable = RM3.00 Manufacturer Sales price = RM100.00 GST = RM6.00 Total sales price = RM106.00 GST collection = RM6.00 Less: GST paid =RM3.00 GST payable = RM3.00 Wholesaler Sales price = RM125.00 GST = RM7.50 Total sales price = RM132.50 GST collection = RM7.50 Less: GST paid =RM6.00 GST payable = RM1.50 Retailer Sales price = RM156.00 GST = RM9.36 Total sales price = RM165.36 GST collection = RM9.36 Less: GST paid =RM7.50 GST payable = RM1.86

Countries Implementing GST or VAT

Countries Implementing GST or VAT

Last Updated : 24/1/2014 16:41

1. List of Countries Implementing VAT/GST Currently, there are 160 countries in the world that have implement VAT/GST. Number of country based on region are as follows:- No. Region No. of Country 1 ASEAN 7 2 Asia 19 3 Europe 53 4 Oceania 7 5 Africa 44 6 South America 11 7 Caribbean, Central & North America 19 Out of 160 countries, eight countries are not United Nation (UN) Member States:- 1. Azores 2. Taiwan 3. Faroe Islands 4. Isle of Man 5. Jersey 6. Kosovo 7. Madeira; and 8. Niue Number of UN Member States are 193 and out of the 193, only 41 Member States do not implement VAT/GST, as follows: No. Region No. of Country 1 Asean -Malaysia -Brunei -Myanmar 3 2 Asia -Afghanistan -Bahrain -Bhutan -Iraq -Kuwait -Maldives -North Korea -Oman -Qatar -Saudi Arabia -Syria -Timor Leste -United Arab Emirates -Yemen 14 3 Europe -Andora -San Marino 2 4 Oceania -Kiribati -Marshall Islands -Micronesia -Nauru -Palau -Solomon Islands -Tuvalu 7 5 Africa -Angola -Comoros -Djibouti -Eritrea -Liberia -Libya -Sao Tome and Principe -Somalia -South Sudan -Swaziland 10 6 Caribbean, South, Central & North America -Bahamas -Cuba -Saint Lucia -Suriname -United States of America 5 Latest countries to implement VAT/GST (for the last 5 years) are: Gambia - 2013 Saint Kitts and Nevis - 2010 Congo - 2012 Laos - 2009 Seychelles - 2012 Niue - 2009 Grenada - 2010 Sierra Leone - 2009 Country working towards a VAT/GST system:- → Afghanistan, Bahamas, Bhutan, Kiribati, Marshall Islands, Micronesia, Palau, Sao Tome and Principe, Syria → Gulf Cooperation Council (Bahrain, Kuwait, Qatar, Saudi Arabia, Oman and the United Arab Emirates) → China & India – to have a uniformed GST system The detailed list of country are attached. ASEAN (7 Countries) No. Country GDP Per Capita (World Bank, 2011, USD) Year of Implementation Initial Rate (%) Current Rate (%) 1 Indonesia 3,495 1984 10 10 2 Thailand 4,972 1992 7 7 3 Singapore 46,241 1993 3 7 4 Philippines 2,370 1998 10 12 5 Cambodia 897 1999 10 10 6 Vietnam 1,407 1999 10 10 7 Laos 1,320 2009 10 10 ASIA (19 Countries) No. Country GDP Per Capita (World Bank, 2011, USD) Year of Implementation Current Rate (%) 1 Bangladesh 743 1991 15.0 2 China 5,445 1994 17.0 3 India 1,509 2005 12.5 4 Iran NA 2008 5.0 5 Japan 45,903 1989 5.0 6 Jordan 4,666 2001 16.0 7 Kazakhstan 11,357 1991 12.0 8 Kyrgyzstan 1,124 1999 20.0 9 Lebanon 9,413 2002 10.0 10 Mongolia 3,129 1998 10.0 11 Nepal 619 1997 13.0 12 Pakistan 1,189 1990 16.0 13 Papua New Guinea 1,845 2004 10.0 14 South Korea 22,424 1977 10.0 15 Sri Lanka 2,835 2002 12.0 16 Taiwan NA 1986 5.0 17 Tajikistan 935 2007 20.0 17 Tajikistan 935 2007 20.0 17 Tajikistan 935 2007 20.0 18 Turkmenistan 5,497 1993 15.0 19 Uzbekistan 1,546 1992 20.0

GST scope and charge

• GST shall be levied and charged on the taxable supply of goods and services made in the course or furtherance of business in Malaysia by a taxable person. GST is also charged on the importation of goods and services.

• A taxable supply is a supply which is standard rated or zero rated. Exempt and out of scope supplies are not taxable supplies.

• GST is to be levied and charged on the value of the supply.

• GST can only be levied and charged if the business is registered under GST. A business is not liable to be registered if its annual turnover of taxable supplies does not reach the prescribed threshold. Therefore, such businesses cannot charge and collect GST on the supply of goods and services made to their customers. Nevertheless, businesses can apply to be registered voluntarily.