Скачать или смотреть Additional FAQ - Margin Scheme

GST is normally due on the full value of goods sold. The margin scheme allows a GST Margin Scheme registered person (GST MS registered person) who meets all the conditions to calculate and charge GST on the margin.

If no margin is made (because the purchase price exceeds the selling price) then no GST is charged and payable.

The Margin Scheme means that GST is still charged but only on the value being added to the goods or profit margin made on selling the same goods.

By calculating GST on the margin, the scheme therefore avoids double taxation as second-hand goods re-enter the economic cycle.

Any taxable person involved in the business of buying and selling secondhand motor vehicles is eligible to apply for the scheme subject to approval given by the Royal Malaysian Customs Department (RMCD).

In xeersoft system, there is a setting to set margin scheme where an general ledger will be auto generated by system when there are transaction using margin scheme.

Next, let's go through the video on how to use margin scheme in xeersoft system.