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Nov
27

Why there’s always different for GST calculation on the tax invoice ?

written by IT Evangelist

When GST being implemented in Malaysia, many business operators faced the problem whereby when the users key-in the tax invoice being received from supplier into the system, sometimes it will have different, but sometimes nope. Most users will thought it’s the error, in fact, it’s happened due to non standardize of the calculation among the GST accounting software in Malaysia.

Following is the example and explanation :

INVOICE 1001 :
PRICE WITH GST GST AMOUNT GST AMOUNT PRICE BEFORE GST
ITEM A 104 5.8868 5.89 98.11
TOTAL 104 5.8868 5.89 98.11
5.89 5.89
After Rounding Count Based On Invoice Total Count Based On Each Item
 
INVOICE 1002 :
ITEM A 104 5.8868 5.89 98.11
ITEM B 103 5.8302 5.83 97.17
ITEM C 102 5.7736 5.77 96.23
ITEM D 106 6.0000 6 100
TOTAL 415 23.4906 23.49 391.51
23.49 23.49
Count Based On Invoice Total Count Based On Each Item
INVOICE 1003 :
ITEM A 104 5.8868 5.89 98.11
ITEM B 104 5.8868 5.89 98.11
TOTAL 208 11.7736 11.78 196.22
11.77 11.78
Count Based On Invoice Total Count Based On Each Item

Assumed Company A only have 3 Invoice Per Month :

Total Sales ( WithGST ) = 104 + 415 + 208 = RM 727

Situation A : If Follow Per Line Rules to Calculate GST, Total GST Amount As following :

Total Sales ( Without GST ) = 98.11 + 391.51 + 196.22 = RM 685.84

Total GST Amount = GST for Each Item for each Invoice
Total GST Amount = 5.89 + 23.49 + 11.78 = RM 41.16

** If to Count 41.46 / 685.84, the Rate of Total Tax Amount Pay is 6.0451. It won’t be Exactly Same with 6% due to Rounding Per Line.

Situation B : If Follow Per Invoice Rules to Calculate GST, Total GST As following :
Total GST AMount = GST Invoice 1001 + GST Invoice 1002 + GST Invoice 1003
Total GST Amount = 5.89 + 23.49 + 11.77 = RM 41.15

** To Calculate GST Amount Based on Per Invoice Sales is not Accurate, the accurate method is Based on Per Item at Each Invoice.

Situation C : If Follow Per Company Rules to Calculate GST, Total GST As following :
Total Sales ( With GST ) = 104 + 415 + 208 = RM 727

Total GST Amount = Total Sales with GST x 6/106
which is RM 727 x 6/106 = RM 41.1509, and Rounding to RM 41.15

** To Calculate GST Amount Based on Total Company Sales is not Accurate, the accurate method is Based on Per Item at Each Invoice.

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