Setting up and using SST in ABSS - An interim guide

From 1st September 2018, Sales Tax and Service Tax 2018 (SST) will replace the existing Goods and Services Tax.

Pending formalisation of tax codes (if any) as well as the SST reporting/submission formats by Customs, you will need to start issuing invoices from 1st September.

Use this guide to setup ABSS in the interim. It applies to both ABSS Accounting and ABSS Premier.

To start recording your sales transactions with SST in ABSS, add one or both Sales Tax and Service Tax depending on your business requirements:

Create the tax codes

Open your company file, click on Lists from the menu at the top, then click on Tax Codes

Next, click on the New button

Sales Tax Tax Code ST Description Sales Tax Tax Type Sales Tax Rate 5% or 10% depending on your industry Linked Account for Tax Collected Sales Tax Payable (see note below)

Service Tax Tax Code SST Description Service Tax Tax Type Sales Tax Rate 6% Linked Account for Tax Collected Sales Tax Payable (see note below)

Review the Tax Codes List to verify that the codes have been created correctly.

Note on Sales Tax Payable account.

If you do not have this account, create a new one. You can use a different account code than the one shown shown here, i.e. 2-3300. The account you create however, must be a liability account, i.e. the account number should start with the "2" digit.

Once you have created the relevant tax codes, you can then use it in the invoices you create.

Using the tax codes

Sales Tax

Select the ST tax code for Sales Tax. The tax will be automatically calculated.

If you click on the drilldown arrow next to the Tax field, you will be able to review how the tax amount was calculated.

You can also review the accounting entries. With the invoice open, click on Ctrl + R keys to recap the transaction entries.

 

Service Tax

Select the SST tax code for Service Tax. The tax will be automatically calculated.

If you click on the drilldown arrow next to the Tax field, you will be able to review how the tax amount was calculated.

You can also review the accounting entries. With the invoice open, click on Ctrl + R keys to recap the transaction entries.

 

Not subject to SST?

Use the N-T code on your invoices

Paying SST

SST returns must be submitted together with payment bi-monthly. The first submission is 30th November 2018. See SST from 1st Sept 2018 for more details.

 

Paying SST

In the Command Centre, click on Banking, then click on Spend Money. If you already have Ketua Pengarah Kastam card, select that, if not, just type in "Ketua Pengarah Kastam" into the Payee box. Make sure your date of payment is correct. For the first submission, this must be either on or before 30th Nov 2018. Next, select the Sales Tax Payable account. In our example, the account number is 2-3300. Key in the amount payable Select "N-T" for tax, and record the payment transaction.