Malaysia Watch Forum
Main Forums => General Discussion - Modern Watches => Topic started by: fireken on March 02, 2015, 06:40:07 PM
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Hi all,
Does anyone know how gst for watch work this coming April? I hear different AD compute differently...
Some say...
1.GST is compute on initial retail price and then minus discount or
2.Retail price minus discount then compute GST.
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#2
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#2, GST is calculated on the total sales revenue for the month of the business, sales revenue= price after disc
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2, gst counted base on total discounted figure
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hi
i have a question hope someone here can help me
i plan to buy a watch from oversea, the payment is through paypal
and the seller courier the watch to me,
how , got kena GST or not?
critical time leh end of march d, if i pay arr what if later reach already april and half half cannot up and cannot down.
how to pay GST?
please advise
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If the watch arrives after April 1st, you will have to pay 6% sales tax at the customs before they release the watch.
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I am afraid it's too late now to buy a watch from overseas and shipped it back to Malaysia. You won't make it by 1st April to avoid the GST. You should have planned ahead.
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From experience in other countries, if shipped via registered parcel, there is a chance that they'll miss inspecting the package and hence no GST kena. If ship via courier service ie FEDEX or DHL, sure kena becos their declaration different.
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Info from my usual AD is that all retail prices will be adjusted to include 6% GST.
Then you negotiate discounts from there.
I am no math wiz... but I am guessing it's the same?
Scenario 1:
rm10,000 + 6% gst = 10600 retail
Let's say u get 15% off.
It's rm9,010 final price paid.
Scenario 2:
rm10,000 with a 15% discount = rm8,500 + 6% gst = rm9,010 as well...
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Hanz079.. great info :thumbsup: :thumbsup:
On 1st April, the retail price should hike up to reflect the GST.
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Basically, I prefer 1 than 2.
Imagine negotiating for price until u reach something feasible and suddenly need to add 6%... sien liao.
If the GST is just added into the retail price, whatever final price we come to, that is the price we pay.
Mentally, just treat it like a price increase... in a couple of years... won't matter much.
Just the couple of months right after implementation, there will be an initial mental block... after that... life goes on...
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So tourist / foreigner can claim their gst at airport like other country? Sorry for noob question
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Info from my usual AD is that all retail prices will be adjusted to include 6% GST.
Then you negotiate discounts from there.
I am no math wiz... but I am guessing it's the same?
Scenario 1:
rm10,000 + 6% gst = 10600 retail
Let's say u get 15% off.
It's rm9,010 final price paid.
Scenario 2:
rm10,000 with a 15% discount = rm8,500 + 6% gst = rm9,010 as well...
sure from end user POV it looks fine.
but the flaw in scenario 1 is that the AD will end up with less margin - as GST paid is more which means the govt will take more which is a big nono ;D
scenario 1. GST = RM600.
scenario 2. GST = RM510.
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Info from my usual AD is that all retail prices will be adjusted to include 6% GST.
Then you negotiate discounts from there.
I am no math wiz... but I am guessing it's the same?
Scenario 1:
rm10,000 + 6% gst = 10600 retail
Let's say u get 15% off.
It's rm9,010 final price paid.
Scenario 2:
rm10,000 with a 15% discount = rm8,500 + 6% gst = rm9,010 as well...
sure from end user POV it looks fine.
but the flaw in scenario 1 is that the AD will end up with less margin - as GST paid is more which means the govt will take more which is a big nono ;D
scenario 1. GST = RM600.
scenario 2. GST = RM510.
GST paid to the govt is based of final selling price, the price that is printed on the invoice.
So by adding 6% in earlier, the calculations will end up the same.
No flaws there.
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The sticker price need to be GST inclusive...
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Info from my usual AD is that all retail prices will be adjusted to include 6% GST.
Then you negotiate discounts from there.
I am no math wiz... but I am guessing it's the same?
Scenario 1:
rm10,000 + 6% gst = 10600 retail
Let's say u get 15% off.
It's rm9,010 final price paid.
Scenario 2:
rm10,000 with a 15% discount = rm8,500 + 6% gst = rm9,010 as well...
sure from end user POV it looks fine.
but the flaw in scenario 1 is that the AD will end up with less margin - as GST paid is more which means the govt will take more which is a big nono ;D
scenario 1. GST = RM600.
scenario 2. GST = RM510.
GST paid to the govt is based of final selling price, the price that is printed on the invoice.
So by adding 6% in earlier, the calculations will end up the same.
No flaws there.
Agree. All about percentage. No flaw at all
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GST paid to the govt is based of final selling price, the price that is printed on the invoice.
So by adding 6% in earlier, the calculations will end up the same.
No flaws there.
no la, say if item costs RM5000.
scenario A - GST paid = RM600. Profit = 9010 - 600 - 5000 = RM3410.
scenario B - GST paid = RM510. Profit = 9010 - 510 - 5000 = RM3500.
any corrections are welcomed, cos this is how i see it :P
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GST paid to the govt is based of final selling price, the price that is printed on the invoice.
So by adding 6% in earlier, the calculations will end up the same.
No flaws there.
no la, say if item costs RM5000.
scenario A - GST paid = RM600. Profit = 9010 - 600 - 5000 = RM3410.
scenario B - GST paid = RM510. Profit = 9010 - 510 - 5000 = RM3500.
any corrections are welcomed, cos this is how i see it :P
Both scenarios the shop will pay rm510 in GST as the GST is calculated on the final price paid.
The figure that is printed on the invoice.
The one that will be paying the GST is the consumer alone.
No matter how much the item costs and how much is the retail of the item with GST included... After discount, u pay the price and the GST will be the same amount in tandem with the discount.
It's a consumption based tax so the one ultimately footing the bill is the consumer.
An item that has a retail of rm10,600 (assuming with GST included) does not mean the shop has already paid govt the rm600.
As long as the item is left unsold, the price tag is just a figure printed on a tag. (at this point, only the GST of 6% based on cost price is paid to the Govt)
Once the item is sold, then the shop will have to enter the amount into the POS system then the shop will need to pay the GST to the govt... Whereby the money comes from u anyway.
I will use your scenario as an example with the "cost of the item" being rm5,000
Shop purchases stock from supplier.
GST paid to supplier rm300 (based on cost of rm5,000)
Item now placed on display with a rrp of rm10,600 (with 6% added in)
Item not sold, GST of rm600 will NOT be paid to the Govt.
But the Govt have already received the 1st tier of the tax which is the rm300 paid from the shop to the supplier and the supplier to the Govt (assuming no more chain of supply on top on the supplier)
If the item is then sold at retail price. The CONSUMER would have paid rm10,600...
Invoice will then list the price as rm10,600
Shop will now enter the amount into the POS system and they will compute as rm10,000 + rm600 GST.
Shop will now pay Govt rm300 as the earlier rm300 is to reimburse the rm300 that the shop paid to the supplier.
Now assuming item is sold at a discount. 15%? ok
Invoice will now list the price as rm9,010
Shop will now enter the amount into the POS system and they will compute as rm8,500 + rm510 GST.
Shop will now pay the Govt rm210 as the earlier rm300 is to reimburse the rm300 that the shop paid to the supplier.
Now assuming price listed is not GST inclusive.
Shop listed at rm10,000 and sold it at a 15% discount.
Invoice will list as rm9,010 (10,000 - 15% + 6% GST = rm9,010)
In both cases, the shop makes exactly how much it's suppose to make without the GST eating into it's profits.
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GST paid to the govt is based of final selling price, the price that is printed on the invoice.
So by adding 6% in earlier, the calculations will end up the same.
No flaws there.
no la, say if item costs RM5000.
scenario A - GST paid = RM600. Profit = 9010 - 600 - 5000 = RM3410.
scenario B - GST paid = RM510. Profit = 9010 - 510 - 5000 = RM3500.
any corrections are welcomed, cos this is how i see it :P
Both scenarios the shop will pay rm510 in GST as the GST is calculated on the final price paid.
The figure that is printed on the invoice.
The one that will be paying the GST is the consumer alone.
No matter how much the item costs and how much is the retail of the item with GST included... After discount, u pay the price and the GST will be the same amount in tandem with the discount.
It's a consumption based tax so the one ultimately footing the bill is the consumer.
An item that has a retail of rm10,600 (assuming with GST included) does not mean the shop has already paid govt the rm600.
As long as the item os left unsold, the price tag is just a figure printed on a tag.
Once the item is sold, then the shop will have to enter the amount into the POS system then the shop will need to pay the GST to the govt... Which the money comes from u anyway.
I will use your scenario as an example with the "cost of the item" being rm5,000
Shop purchases stock from supplier.
GST paid to supplier rm300 (based on cost of rm5,000)
Item now placed on display with a rrp of rm10,600 (with 6% added in)
Item not sold, GST of 600 will NOT be paid to the Govt.
But the Govt have already received the 1st tier of the tax which is the rm300 paid from the shop to the supplier and the supplier to the Govt (assuming no more chain of supply on top on the supplier)
If the item is then sold at retail price. The CONSUMER would have paid rm10,600...
Invoice will then list the price as rm10,600
Shop will now enter the amount into the POS system and they will compute as rm10,000 + rm600 GST.
Shop will now pay Govt rm300 as the earlier rm300 is to reimburse the rm300 that the shop paid to the supplier.
Now assuming item is sold at a discount. 15%? ok
Invoice will now list the price as rm9,010
Shop will now enter the amount into the POS system and they will compute as rm8,500 + rm510 GST.
Shop will now pay the Govt rm210 as the earlier rm300 is to reimburse the rm300 that the shop paid to the supplier.
Now assuming price listed is not GST inclusive.
Shop listed at rm10,000 and sold it at a 15% discount.
Invoice will list as rm9,010 (10,000 - 15% + 6% GST = rm9,010)
In both cases, the shop makes exactly how much it's suppose to make without the GST eating into it's profits.
When shop sells to u. They just like an agent that wil add 6% on top and pass the money to goverement. While they will claim back the tax they paid from government.
Says, the cost of an item is 5000. They hav to pay 5300 to supplier. Then. They sell the item says, 10600. So. They wil pass the 600 to custom and claim back the 300 which they paid to the supplier. Shop has nothing to earn from this tax scheme provided by there isnt any hanky panky stuffs.
What i understand is, the shop need to submit 600 to custom and claim back the 300. Means they cannot offset on their own. Means all gst will go to customs first.
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So tourist / foreigner can claim their gst at airport like other country? Sorry for noob question
According to the regulations yes.
But how is another question....
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Both bros hanz079 and keanewoon provided excellent scenario :thumbsup:
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So tourist / foreigner can claim their gst at airport like other country? Sorry for noob question
According to the regulations yes.
But how is another question....
don't know why... i have a feeling that "they" will tell tourist that there will be no GST refund for the first few months at the airport due to system not fully functional ;D
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So tourist / foreigner can claim their gst at airport like other country? Sorry for noob question
According to the regulations yes.
But how is another question....
don't know why... i have a feeling that "they" will tell tourist that there will be no GST refund for the first few months at the airport due to system not fully functional ;D
Thay might ask you to fill a form like in other countries, submit it and wait for the refund..... which might never be seen... ;D
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So tourist / foreigner can claim their gst at airport like other country? Sorry for noob question
According to the regulations yes.
But how is another question....
don't know why... i have a feeling that "they" will tell tourist that there will be no GST refund for the first few months at the airport due to system not fully functional ;D
Haha.. sounds so familiar .... Sorry, system down. Please wait till your plane takes off!! :o :o :o
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So tourist / foreigner can claim their gst at airport like other country? Sorry for noob question
According to the regulations yes.
But how is another question....
don't know why... i have a feeling that "they" will tell tourist that there will be no GST refund for the first few months at the airport due to system not fully functional ;D
Thay might ask you to fill a form like in other countries, submit it and wait for the refund..... which might never be seen... ;D
I experienced this before. Did my tax refund for my purchase in UK. I didnt know i need to specifically tell the shop i wan to do tax refund bck to my credit card. End up did the tax refund in paris airport and they mail me the cheque. Well, i didnt get it and i did not keep any documentation as proof as the sales receipt itself is used to submit the tax refund. Probably they got my mailing address wrong. Curse my bad handwriting.
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Was in Taiwan and went to the counter to get my tax refund.
Unfortunately, they need to physically inspect the items but my wife have already packed it all into the checked in luggage.
Bye bye tax refund...
Australians do their tax refunds the best.
They just need to see the pre filled forms (from the respective shops) and show them which credit card you want the refund to be credited. Swipe the card. Print out a receipt. Done. 2 weeks processing time.
Paris is about the same. Fill in all forms and they will credit the amount from your card. Just a longer processing time. 6-8 weeks iirc.