May i know what is the different of Tax Code TX-X & TX-ES? Thank you.
Tax Code: TX or TX-X
This refers to taxable goods and/or services purchased from GST registered suppliers. The prevailing GST rate is 6% with effect from 01/04/2015. As it is a tax on final consumption, a GST registered trader will be able to claim credits for GST paid on goods or services supplied to them for the furtherance of businesses. The recoverable credits are called input tax. Examples include goods or services purchased for business purposes from GST registered traders, imported services & and etc.
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)
(You can download from Customs website and refer to Appendix 5(e) of GST Guide on Accounting Software Enhancement Towards GST Compliance As At 2 March, 2017)