Invalid Tax Invoice/simplified Tax Invoice/POS Tax Invoice
1. The most important document in the GST system is the tax invoice. This document is generally issued by the supplier notifying the purchaser of the obligation to make payment in respect of any transaction. It contains certain information such as details of registered person and supply, GST rate and the amount of GST payable as stipulated under the GST law.
Section 33 GSTA provides that every registered person who makes any taxable supply of goods or services in the course or furtherance of any business in Malaysia shall issue a tax invoice containing the prescribed particulars. Failure to issue a tax invoice is an offence.
As a registered person you need to have a tax invoice to claim input tax credit. Without a proper tax invoice, a GST registered person and his customers who are also registered persons, cannot claim GST incurred on their purchases of taxable goods or services.
Invalid tax invoice means the tax invoice does not in compliant to GST requirement of Tax Invoice Issuance and will not qualify for input tax credit.
2. Simplified Tax Invoice. There are instances where the Director General may, upon request in writing allow registered persons to issue simplified tax invoice to their customers in accordance with section 33(3) of the GSTA. Issuance of this invoice normally involves retailers who generate large volume of invoices such as hypermarkets, mini markets, restaurants, beauty salons, petrol kiosks, motor workshops and other point of sales outlets.
simplified tax invoice can be issued regardless of any sales amount and can take the form of an invoice, receipt, voucher or any other similar document provided it contains the particulars approved by the Director General.
Simplified tax invoice can be used to claim input tax. In the case of an approved tax invoice without the name and address of the recipient, the allowed input tax amount claimable is RM30.00 or less. If the GST amount is more than RM30.00, he can only claim the input tax up to a limit of RM30.00 using this invoice. Therefore, he must request for a tax invoice with the name and address of the recipient to enable him to claim the full input tax if it is more than RM30.00.
3. POS tax invoice is generated from a Cash Register machine, calculating.machines and pocket-size data recording, reproducing and displaying machines with calculating functions;.accounting machines, postage franking machines, ticket-Issuing machines and similar machines, incorporating a calculating device; cash registers.
Thank you very much for your clarification.
A simplified tax invoice can be used to claim input tax of maximum amount RM30.00. Can we claim the full input tax (>RM30.00)incurred in POS generated tax invoice? Under what circumstances a incomplete tax invoice is allowed to claim input tax of RM30.00 or less (such as without name or address of recipient)?
1. Yes you can. Only simplified tax invoice. Any tax invoice which is not in the full compliance is nor allowed to claim.
2. A receipt is a written (electronic or manual) acknowledgement that a specified article or sum of money has been received as an exchange for goods or services. A receipt or other document can be a tax invoice if it has all the particulars of a full tax invoice or simplified tax invoice approved by the Director General.