GST tax code
Tax Code: TX-IES
This refers for transactions involving the payment of input tax attributable to the incidental exempt financial supplies as input tax attributable to taxable supplies. This means that the registered person is entitled to claim any input tax that is attributable to the making of the following incidental exempt financial supplies. Example of usage for this tax code are such as purchased a security box for the accounts clerk to deposit daily earnings of the company in a bank, hiring of security firm to transfer/deposit money into financial institutions (bank), sells lots of shares through a remisier and GST charged on the commission, and incurred GST on the legal agreements and other expenses related to a financial loans. (Note: Rename of TX- E43)
Tax Code: TX-ES
This tax code should be used for transactions involving the payment of input tax that is directly attributable to the making exempt supplies, and only applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader). TX-ES only include in field 6a & 6b of GST-03 return once the de minimis rule is fulfilled. Example for this tax code is your company bought wall paper for your residential apartment rented to others and purchase costs are already included 6% GST, but you are not eligible to claim the amount of input tax as it would be applied directly to make exempt supply (rental of resident apartment). Please refer to APPENDIX 5(e) for more details on de minimis rule. (Note: Rename of TX-N43)
TX-RE Tax Code: TX-RE
This refers to GST incurred that is not directly attributable to the making of taxable or exempt supplies (or commonly known as residual input tax), and only applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader/mixed sup plie r). However, a mixed supplier can claim the full amount of the residual input tax incurred if the amount of exempt supply fulfilled the de minimis rule. Otherwise, he is required to apportion the residual input tax incurred accordingly. The example is such as residual input tax on operation overhead for a development of mixed property (properties that including residential and commercial).
When are these three used? How to tell?
Read through the above with some examples included.