Import Services - SST

This Article is suitable for:

• ABSS Premier v22 and below
• ABSS Accounting v27 and below

Starting from 1^st January 2019, any person who carries on business in Malaysia (including in designated area and free trade zone) who obtains chargeable service from any service provider from outside Malaysia shall pay service tax.

Let say oversea chargeable service is RM1000 (after converted to Malaysia), so the taxable import service is RM 60.

How to record import service from oversea supplier.

1) Record overseas supplier.

• Kindly go to purchases > enter purchases > select oversea supplier.
• Enter your purchase amount example USD 250 with the exchange rate on that day ( example 4.0)
• The tax code is N-T. ( May refer the image below)

2) As requested from RMCD, we need to declare a 6% import service in our SST 02 report. So in order to record this, the user needs to charge themselves by record a sale invoice under their name.

• Kindly go to sales > enter sales > add an intermediary customer.
• On your Sales Invoice, record dummy invoice on the date you paid payment to your supplier. (example you paid on 1st March)
• On the first line, select your PBC item ( if you do not have this item, kindly create it first) with Import Services in local currency (converted amount in local from supplier) – example is RM 1000. The tax code is S06.

• On the second line, select the same item and put the same amount with a negative figure. –RM1000 with the tax code N-T.
• The total amount of your invoice is RM 60 (Import service amount).

 3) Record the payment for that particular invoice.

• Kindly go to sales > receive payments > select your intermediary Customer.
• Deposit to account > select contra account (if you do not have contra account, kindly create it).
• Record the payment for RM 60. ( You may refer image below)

After you record the payment, this figure will reflect on your SST 02 report.

4) Record a journal to zero rise your contra account.

• Go to Account > record journal for SST RM60 as expenses:

• You need to Credit your Contra account RM60 and Debit your expense account RM 60.
• So at the end, your contra account will become 0 and RM 60 will go to your expense account.

 5) Record Import service payment to RMCD.

• Go to banking > spend money > select your bank account that you pay to RMCD.
• On the debit side, you need to select Sales & Service tax payable account.
• Enter the import service amount RM60.