GST and you.

[bslee]

Most bookstores will just whack 6% GST across the board and then argue later !!

Isn't this was what I was trying to say earlier, other than books? What argue?..people going to line up for refund should it be corrected?
Say if a product was already levied a 10% sales tax (other than excise or import tax), now its 6% GST, so by right the product should be cheaper, but that doesn't seem so as they're intending to simply add on 6% on top of current price..regardless. No?

[Naka]

Actually GST is really not that complicated, for any businesses, do it for a few months and everything will be fine and it will become a routine.

I know cos' I had done it before for my business

[bslee]

Wait..
I've been wanting or KIV to buy an excellent Bosch Cordless drill, now priced at RM499 nett.
There's other shops or online shops selling selling at RM475 lowest. The price have remained stable and firm for the past 2 years..no large shift. List price is RM569.
I'm going to keep a very very close watch at the price after April 1st. Lets see if its going to be more expensive or cheaper.
The product is Malaysia assembled (Penang?) .not from Germany! Last seen at Hatyai Thailand DIY chain store revealed much cheaper there than here.
If it turns out it become more expensive..you're screwed..so I think.

[Naka]

These On-Line Shops are a very big headache for the Australian Government because so far if you buy On-Line, you do not have to pay GST.

After so many years, it is still a headache to the Gahman here

I bought & buy a lot of goods On-Line either from here or from overseas ie HK, London etc and in all these transactions there is no GST.

If Australia is having problems with none On-Line GST , I suppose Boleh will be boleh-free-on-line-GST for a long long long time.

[HTCHONG]

Lighten up your day with a joke….

A Chinese Tea House was raided by custom. The shop owner was asked to take up his books. The chief of the raiding team asked “ Apek, you ada GST ke?”
“Huh ?!....(Apek scratched his head). Sini semua ada, Uloong Tea, Jasmine Tea, Pu’er Tea, Guanyin Tea. Tapi GS Tea taka da ma !”

This is how GS Tea looks like

[bslee]

All goods imported or produced in this country which are subjected to existing 10% sales tax, IF removed then replaced with 6% GST should work out to be slightly CHEAPER.
Can anyone can prove to me its not like this, I'm entirely wrong or a warped view entirely?
OR
Its going to be a natural slam 6%GST on top of current retail price.

[patrick]

Come April 1st it'll be my paramount responsibility to consistently avoid ALL places and products that automatically charge extra tax, unless I'm forced to.
Reluctant me..period! I don't expect others to follow suit, do what you want with your hard earned money..its your prerogative.
BTW, I learned you maybe paying more than what you think is simply 6% GST.

Buy online from Ebay, online shops.
Product cost RM100
Card charge = RM106
MY Kastam = another 6% = RM112.
So you pay RM112 or extra 12%.
Happy?

I find it a bit confusing! If kastam already going to tax me 6% on my purchase, why should there be another 6% on my payment? Isnt that tentamount to double taxation? Forget about import. If I buy from the shop item X, there would be a 6% gst, right? So, if I chose to pay by credit card, would I be taxed another 6% on my payment? Wahhh...if I pay for an expensive item eg Rm5000, another 6% is a lot of money !! If like that, might as well pay cash!! Credit card mati lor !!

[bslee]

Yes Patrick, this is the scenario I gather that will be imminent. Call it double, triple, unfair taxation.. we leave ourselves vulnerable to paying more than was intended.
The way things are done in this country, its not a bullet proof plan, with holes and we all suffer the consequences. They happily rake in the taxes, you can be tormented by technicalities, confusion whether you were taxed fairly or not.
Like Ebay, how do you pay the seller? Its either Paypal and credit card facility, AFAIK! Sorry, we're not a highly advanced country where this is concerned. Its not the seller's onus to sympathize with Malaysian buyers with taxes or poor exchange rate.

[Henry T]

Yes Patrick, this is the scenario I gather that will be imminent. Call it double, triple, unfair taxation.. we leave ourselves vulnerable to paying more than was intended.
The way things are done in this country, its not a bullet proof plan, with holes and we all suffer the consequences. They happily rake in the taxes, you can be tormented by technicalities, confusion whether you were taxed fairly or not.
Like Ebay, how do you pay the seller? Its either Paypal and credit card facility, AFAIK! Sorry, we're not a highly advanced country where this is concerned. Its not the seller's onus to sympathize with Malaysian buyers with taxes or poor exchange rate.

Please lah, there is no double or triple taxation. Don't confuse others and yourself. Import duty, when buying online or importing, and GST are two different things. When you buy online or import, the seller doesn't charge you GST. If the item attracts import duty then Malaysian Customs will tax you.

Malaysian Customs do not charge GST. They only collect GST and all businesses with annual turnover of RM500,000 must collect GST. Basically these businesses are tax collecting agents to Malaysian Customs.

Every time an item change hand the net GST charged is only on the value added portion. Say a hardware dealer buys a drill from the local distributor at 100 and sells it for 120 the net GST he forward to Malaysian Customs is only 6% of RM20 which is the added value (6% of 120 minus 6% of 100). This is why it is also called Value Added Tax aka VAT. There is no tax on tax. The enduser/consumer pays everything.

[Sentinel]

Please lah, there is no double or triple taxation. Don't confuse others and yourself. Import duty, when buying online or importing, and GST are two different things. When you buy online or import, the seller doesn't charge you GST. If the item attracts import duty then Malaysian Customs will tax you.

Malaysian Customs do not charge GST. They only collect GST and all businesses with annual turnover of RM500,000 must collect GST. Basically these businesses are tax collecting agents to Malaysian Customs.

Every time an item change hand the net GST charged is only on the value added portion. Say a hardware dealer buys a drill from the local distributor at 100 and sells it for 120 the net GST he forward to Malaysian Customs is only 6% of RM20 which is the added value (6% of 120 minus 6% of 100). This is why it is also called Value Added Tax aka VAT. There is no tax on tax. The enduser/consumer pays everything.

Exactly!

[Greenwich]

...Malaysian Customs do not charge GST. They only collect GST and all businesses with annual turnover of RM500,000 must collect GST. Basically these businesses are tax collecting agents to Malaysian Customs.

Every time an item change hand the net GST charged is only on the value added portion. Say a hardware dealer buys a drill from the local distributor at 100 and sells it for 120 the net GST he forward to Malaysian Customs is only 6% of RM20 which is the added value (6% of 120 minus 6% of 100). This is why it is also called Value Added Tax aka VAT. There is no tax on tax. The enduser/consumer pays everything.

This is correct and should be the way of how the quantum of 6% GST is passed on to consumers/buyers. But, this is just one of the tax-flow processes, we need to look at the processes before the distributor also.

Let say this drill is manufactured locally. The factory which manufactured this drill paid 6% GST on all the components needed to make this drill and assembled these components into a drill. The manufacturer then made a profit margin by selling it to the distributor.

The elements of the selling price are :
a) Manufacturing cost of the drill (labour, components, fatory expenses)
b) Product margin of the drill
c) 6% GST of the total of (a) and (b)

I don't think the manufacturer will minus the 6% GST of all the components when calculating the selling price. In other words, 6% GST has been charged twice to the selling price when the drill reached the distributor.

[Henry T]

........
The local factory which manufacturer this drill paid 6% GST on all the components needed to make this drill and assembled these components into a drill. The manufacturer then made a profit margin by selling it to the distributor.

The elements of the selling price are :
a) Manufacturing cost of the drill (labour, materia. fatory operating expenses, etc)
b) Product margin of the drill
c) 6% GST of the total of (a) and (b)

I don�t think the manufacturer will minus the 6% GST on the components when calculating the selling price. In other word, the 6% GST has been charged twice to the selling price.

Assuming the components of the drill are standard rated then a 6% GST applies. But the same components will not have to pay the 10% sales tax anymore. At this point the components should result in a more or less lower cost to the manufacturer. Now, why would a manufacturer not claim the input GST to stay competitive?

Under GST he now has to pay 6% on logistic services too when previously he need not. AFAIK, if the GST one pays is part of the cost then it can be contra-ed from the output GST one charges the customers. But if you were to take a client out for dinner and have to pay RM1000 + 6% then you can't contra this GST but you will charge this RM1060 to expenses.

I am still learning.

[Jennylim]

I will be pissed off if they change last minute, so much time, money etc had been invested by companies to be compliant and ready, if they change, Customs better be prepared to refund or get sued !!

Lately the politicians,ministers, who are part of government are grinning ear to ear, the hippo and the husband have already started shopping for new stuff long before and taken delivery even before the 1 April! No worries, they are looking forward to the money. If GST doesn't take off, all their heaven on earth and their dream holiday/shopping would be shattered.

[Greenwich]

I am still learning.

Sure, we are all learning.

I probably know nothing about GST as I am an end-buyer, not a trader. Allow me to give another example which I think maybe more relevant to us.

Let say someone has a house which is going to complete and vacant possession is expected from developer around 4th quarter of this year. He plans to furnish the house, here is the shopping list :

- install shower enclosure and if space allow, add a bathtub.
- install kitchen cabinet with all the essential kitchen appliances.
- install built-in wardrobe in bedrooms
- install built-in shoe cabinet at entrance foyer
- Buy household appliances like fridge, air-conditioners, washing machine, tumble dryer, home theatre system, etc.
- Buy dining table, chairs, and living hall furniture.

Let say the above cost around RM100k. This 100k is inclusive of 6% GST when these items are purchased from dealer/supplier.

If the owner want to sell the house later, he would have to pay 6% GST of the house selling price to government, right ?

Do you think he will minus 6% GST he already paid to the RM100k items that he added to the house from the house selling price ??

I think is it is unlikely he will. In other words, indirectly, the new buyer of the house would have pay 6% GST twice as the house price is inclusive of GST of the house and also GST of the items in the house which have been paid before...

[bslee]

Thanks everyone here for your participation in throwing light and arguments. Yes, very possible what I think isn't right, confused or flawed. But come this April onwards, I've taken note of many current prices of goods and products and will do comparison. Thereon I will observe closely how GST is put to practice and surely know whether I've to cough out more or not in the future.
I would certainly be watching out for THAT cordless drill!