Category Archives: Malaysia GST

Changing GST rate in QuickBooks Desktop accounting system

You can change the GST rate of those affected GST code from 6% to 0% on the effective date that the Malaysia government scrapped off the GST. You should not amend the existing transactions once the rate has changed to prevent QuickBooks from recalculating the GST base on the new GST rate.

Change GST rate

It is better to complete the transactions with 6% rated GST before amending the GST rate since QuickBooks does not have a change over date set in the GST profile.

As a QuickBooks administrator, you should lock the account by setting up a closing date and password to prevent other users from editing the existing transactions. Do a backup before the rate change, just in case you need to roll back after rate changed; and an integrity check (Rebuild and Verify Data) before and after rate changed.


For users who are using an older version of QuickBooks (especially Reckon QuickBooks version) may consider adding a new GST code than replacing the current rate. There is a risk that the old rate may get replaced when migrating to the latest version.


Malaysia scrapping GST from June 2018

Malaysia new government has decided to scrap GST (Goods and Services Tax) from June 2018; the standard rated GST is going to reduce from the 6% to 0%. What are those setting which you need to change in MoneyWorks accounting system?

Unlike some other software which requires you to create a new GST code to cater for the rate change, MoneyWorks allows you to set a new GST rate at a specified changeover date within the tax code profile. First, change the default tax rate (Rate 2) of tax code such as G GST Code (for SR and TX GST code) from 6% to 0%, then enter the old rate (6%) in Rate 1 field and set the changeover date to 1 June 2018.

Malaysia scrapping GST

Once the tax rate changed, any transaction which uses the amended GST Code will be 0% automatically.

Go through the list of GST code from the Tax Rate table (under the Show menu) and amend those codes which require changes. You may have to consult your accountant or tax department as the changeover could be complicated especially regards to those bad debts recovered or capital goods acquisition/disposal transactions.

You are still required to process the finalisation of GST at the end of each GST cycle although the rate has changed from 6% to 0% as the GST system is still in place and MoneyWorks is still actively tracking the GST of each transaction.

The newer version of MoneyWorks is v8, contact us if you require upgrading your existing version.




Update on Malaysia GST Form-03 report

Software: MoneyWorks accounting software

Cognito has updated the Malaysia GST Form 03 report in MoneyWorks version 7.3. The new update includes a new Box 19 for the breakdown value of Output Tax in accordance with the Malaysia new Business Code. The Box 19 consists of three columns: MISC Code, Value of Output Tax, and the Percentage.

Malaysia GST Form-03

The Box 19 uses the information from the “Category 4” field of the name profile to analysis the Sales transactions, which have an Output Tax, related to the name. Therefore, you have to first update the new Business Code in the Category 4 field of the debtor profile, so to allow the new GST Form 03 report to pick up the new Business Code from the Name.Category4 field. For example, your customer is a manufacturer of the leather footwear, you enter “15110” in the Category 4 of the debtor name.

MoneyWorks will analysis the sales transactions, which have a GST code tagged, and summarised the top 5 industries you sold to during the GST cycle and leave the others at the REST section of the Box 19.