GST Treatment for Imported Services (Reverse Charge)
What is the GST treatment for imported services? GST treatment for imported services is through a concept of “reverse charge”. Reverse Charge Mechanism also known as Self Recipient Accounting (RSA). Since the supplier is not in Malaysia and he/she supplies services to a customer in Malaysia, he/she does not have to charge GST. Therefore, the recipient of the services will be treated as making a supply and receiving the supply and the recipient of the supply is requested to account for the output GST on the imported services and report the amount in the GST returns submitted to the Customs.
There are two well-known accounting software in Malaysia that are used to handle the GST treatment for imported services for desktop version, which are SQL and MYOB.
Please refer to the attachment on how to handle your import service by using MYOB for better understanding.
On the hand, by SQL to handle your GST treatment for imported service, there are two options available for you to choose, either payment made before invoice or invoice first, payment later. You may refer to the attachment on how to handle your import service by using SQL.