SST: How to enable Service Tax 8%

SST: How to enable Service Tax 8%

The service tax is scheduled to increase from 6% to 8% for selected services, effective March 1, 2024.

New Tax Code for SST
​
In compliance with the latest changes on SST, 8 new tax codes are being added to the system.
These tax codes are: SV-8, SVU-8, SVI-8, PS-8, DS-8, DSN-8, IMSV-8, ESV-8.

To enable the tax code related to Service Tax at 8%, follow these steps:

1.       Go to Tax > Tax Code Maintenance.




2.       Click on Configure Malaysia SST.




3.      You may tick the tax code that you needed in tab Input Tax and Output Tax and click on Save.
Example: SV-8, SVI-8, PS-8, IMSV-8 










Now, you may create Invoice with tax code SV-8 for document date on or later than 01/03/2024.




If the document date is earlier than 01/03/2024, the system will prevent you from saving the document with tax code SV-8.




Apply SST on payment transactions:

When running the SST Processor, if there is an advance payment, the system allows you to generate SST on the payment at either 6% or 8%.

1.      You need to tick the document (O/R or CN) to process the SST on Payment.




2.      Select Create JE SV-6 for 6% or Create JE SV-8 for 8%.




3.      JE Tax Code will show your selected type, then click on Next to continue for the SST processor.




In case you have wrongly selected, you may click on Clear JE Tax code to undo the selection. 




4.      Click on Finish and then click on Yes.






5.      This is the Journal result for SST on Payment on 8%.




Perform Imported Services for 8%

1.      Users need to enable the tax code IMSV-8 and SVI-8 for imported services 8%.







2.      Key in the AP invoice or Purchase Invoice with the select tax code IMSV-8 and click on Save.




3.      Click on OK to generate Imported Services journal.




4.      This is the journal result for Imported Services on 8%.




Transfer Document allow to change Tax Code

For document dated before 01/03/2024 and you have selected tax code 6%, while transfer document to 01/03/2024 or later, system allow you to change the tax code. 

Example: 
Quotation dated 07/02/2024 with select tax code SV-6
 



Transfer the Quotation to Invoice dated 01/03/2024, now you can change the tax code which no necessary to unlock the tax code field from ‘Edit Column Lock’.





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