As of 1/5/19, companies would have to account for service tax for imported services.
To account for service tax for imported services, please find the solution below.
Solution
1. Go to [Inventory], [Item List] and click [New]
2. Create an item code call imported services and tick [I Sell This Item] with an account code linking to Service Tax Expenses
3. Go to [Item Details] and key in the [Tariff Code]
4. Go to [ Sales], [Enter Sales] to enter the value of imported services obtained. (Note: we recommend to create a specific customer for the transaction. Users can either create multiple customers with the supplier names or one customer eg. Imported Services)
5. On the first line, put the ship as a +1, selecting the item code imported services and in the price, put the RM value of the services acquired. Make sure that the tax code for this line is [S06].
6. On the second line, put the ship as -1, selecting the item code imported services and in the price, put the RM value of the services acquired. Make sure that the tax code for this line is [N-T].
7. Go to [Sales], [Receive Payment] and select the payment account as your contra account. Knock-off the necessary transaction.
8. Go to [Account], [Record Journal Entry] and key in the following transaction to re-class the contra amount into the expenses account.
9. Once done, user can check the SST-02 detail report and it will reflect the imported services value.
