The implementation of 6% GST rates in Malaysia will take effect from 1 April 2015. If your coin laundry business has an annual turnover of more than RM500,000, you are required to register your business for GST. Otherwise, you can do it on a voluntary basis.
Registering your coin laundry business will help you to offset your business expenses through charging GST. Such expenses may include your machinery, laundry supplies and other inventories.
However, you must have proper record-keeping practices for future reference. Companies which fail to present proper records may face government imposed penalties for incorrect tax accounting.
How to get your coin laundry business ready for GST?
- Obtain a complete guide on when, where and how to register for GST in Malaysia at http://gst.customs.gov.my/en/Pages/pgst.aspx
- Set up an internal accounting system to monitor GST collection and payment There are many software solutions available in the market for this
- Maintain a proper accounting records to fulfil tax obligations, claim tax credits and tax audit requirements
- Submit regular GST returns
- Keep up to date on the latest development in GST requirements and exemptions
It is important to know the tax systems and regulations which may benefit your coin laundry business. Hence, being prepared for GST would put your business in a favourable position when the new tax regulation is implemented.
