(Exemptions or zero-rated goods
make businesses' compliance costs extremely high and could be an audit nightmare for the Internal Revenue Service.)
They also define profit margins and explains how to calculate VAT based on profit margins, and dress zero-rated goods
and services, including telecommunications, international transportation of passengers or goods, investment grade precious metals, new and converted residential buildings, as well as healthcare, education and buildings earmarked for charity.
They created fictitious sales transactions and invoices for zero-rated goods
like animal feeds, children's clothing and fruit and vegetables and pocketed reclaimed VAT for fake business costs.
BUSINESSES have been warned of hefty penalties if they charge Value Added Tax (VAT) on zero-rated goods
and services starting from today.
The Domestic Trade and Consumer Affairs Ministry found that 30 per cent of 'mamak' restaurants are still raising their food prices despite the zero-rated Goods
and Services Tax (GST) implemented since June 1.
"This is to ensure all comply with the laws and regulations as well as to ensure VAT is not charged on zero-rated goods
Yeo also said that the impact from the surcharge for commercial users will be minimal, following the zero-rated Goods
and Services Tax (GST).
However, she said, the PH government had fulfilled several promises made in its manifesto for the 14th General Election, including the implementation of the zero-rated Goods
and Services Tax and stabilising oil prices.
Meanwhile, Leong said the current property market was improving with a feel-good effect as the cost of living has been reduced due to measures taken by the government, such as the zero-rated goods
and services tax implementation.
However Dr Wan Azizah said implementation of several initiatives had already begun, such as the zero-rated goods
and services Tax (GST), which would later be abolished during the first session of the Dewan Rakyat this year.
Asli Centre of Public Policy Studies Chairperson Tan Sri Ramon Navaratnam said the budget should be implemented in a pragmatic manner to reflect current economic and financial realities, which included the new zero-rated Goods
and Services Tax which reduced the budget revenue.