SST-02 declaration for Malaysia
This article explains how to set up and generate the SST-02 return form for legal entities in Malaysia.
The SST-02 return form is the official electronic form that is used to declare and pay indirect taxes (Sales and Services Tax [SST]). These indirect taxes are grouped by specific classifications, as described by the tax authorities in the legislation. Registered manufacturers and legal persons must declare SST-02 returns every two months, according to the taxable period. SST replaces the existing Goods and Services Tax (GST), and affects all domestic and import operations.
The SST-02 return form report in Microsoft Dynamics 365 Finance includes the following reports:
- Part B1: Detailed transactions by tariff code and service type
- Part B2: Consolidated amounts in accordance with layout proposed by Malaysian government
Prerequisites
The primary address of the legal entity must be in Malaysia.
Turn on the feature
In the Feature management workspace, turn on the feature that is named (Malaysia) Category hierarchy for Sales and purchase tax report.
For more information about how to turn on features, see Feature management overview.
Download Electronic reporting configurations
The implementation of the SST-02 return form for Malaysia is based on Electronic reporting (ER) configurations. For more information about the capabilities and concepts of configurable reporting, see Electronic reporting.
For production and user acceptance testing (UAT) environments, follow the instructions in Download Electronic reporting configurations from Lifecycle Services.
To generate the SST-02 return form and the related reports in a Malaysian legal entity, you must upload the following ER configurations:
- Tax declaration model.version.67.xml
- Tax declaration model mapping.version.67.93.xml
- SST-02 Declaration Excel (MY).version.67.3.xml or a later version
After you've finished downloading the ER configurations from Microsoft Dynamics Lifecycle Services (LCS) or the Global repository, follow these steps.
- In Finance, in the Electronic reporting workspace, select the Reporting configurations tile.
- On the Configurations page, on the Action Pane, select Exchange > Load from XML file, and upload all the files in the order in which they are listed earlier in this section.
After all the ER configurations are uploaded, the configuration tree should be present in Finance.
Set up application-specific parameters
The SST-02 return form includes a set of boxes (lines) that correspond to specific parts of the SST return form. Each box should include information about SST amounts and operations. To meet the requirements that are established by the form, you must configure each box with the correct information. This information automatically comes from the sales tax transactions that are generated from sales, purchases, or other operations where SST tax is posted through the sales tax code configuration.
The Application-specific parameters option lets you define the criteria that determine how the tax transactions will be collected and calculated in each box of the declaration form when you generate the report, depending on the sales tax code configuration.
In the Electronic reporting workspace, select Configurations > Setup to set up the rules that are used to identify the tax transaction in the related box of the SST-022 return form.
Select the current version, and then, on the Lookups FastTab, select ReportFieldLookup. This lookup identifies the list of boxes that are required by the tax authority in the SST-02 return form.
On the Conditions FastTab, select Add, and then, on the new line, in the Lookup result field, select the related line of the SST-02 return form.
In the Tax code (Code) field, select the sales tax code that is used to calculate the related line of the SST-02 return form.
In the Name field, select the tax transaction classification where the sales tax code is used.
Repeat steps 3 through 5 for all the lines (boxes) of the SST-02 return form, and for the combination of sales tax codes and tax transaction types that is configured in your legal entity.
Select Add again, and then, in the Lookup result field, select Other.
In the Tax code (Code) and Name fields, select Not blank.
By adding the last record, Other, you define the following rule: If the tax code and name that are passed as an argument doesn't satisfy any of the previous rules, the transactions won't be included in the SST-02 return form. Although this rule isn't used to generate the report, it helps prevent errors from occurring in the generated report because of a missing rule configuration.
The following table provides an example of a configuration. However, you can use a different combination of a tax code and a name, depending on your Finance implementation.
Form (section) Lookup result (ReportFieldLookup) Description Line Tax code Name PART B2-11a TaxableGoods5 Taxable goods at 5% Rate 1 SST5 Sales PART B2-11a TaxableGoods5 Taxable goods at 5% Rate 2 SST5_O Sales PART B2-11b TaxableGoods10 Taxable goods at 10% Rate 3 SST10 Sales PART B2-11b TaxableGoods10 Taxable goods at 10% Rate 4 SST10_O Sales PART B2-11c TaxableServices6 Taxable services at 6% rate 5 SST6 Sales PART B2-11d TaxableServiceGroupH Taxable services from group H 6 SSTH Sales PART B2-13 TaxableCredit Amount of Tax_Deducted from Credit Note 7 SST5 SalesCreditNote PART B2-13 TaxableCredit Amount of Tax_Deducted from Credit Note 8 SST5_O SalesCreditNote PART B2-13 TaxableCredit Amount of Tax_Deducted from Credit Note 9 SST10 SalesCreditNote PART B2-13 TaxableCredit Amount of Tax_Deducted from Credit Note 10 SST10_O SalesCreditNote PART B2-13 TaxableCredit Amount of Tax_Deducted from Credit Note 11 SST6 SalesCreditNote PART B2-13 TaxableCredit Amount of Tax_Deducted from Credit Note 12 SSTH SalesCreditNote PART B2-18a Exempted_Export Exempted Export, Special Area and Designated Area 13 SSTE SalesExempt PART B2-18a Exempted_Export Exempted Export, Special Area and Designated Area 14 SSTE SalesExemptCreditNote PART B2-18b1 Exempted_ClassOfPerson Schedule A (Class of Person) 15 SSTE_A SalesExempt PART B2-18b1 Exempted_ClassOfPerson Schedule A (Class of Person) 16 SSTE_A SalesExemptCreditNote PART B2-18b2 Exempted_Manufacturer Schedule B (Manufacturer of specific nontaxable goods) 17 SSTE_B SalesExempt PART B2-18b2 Exempted_Manufacturer Schedule B (Manufacturer of specific nontaxable goods) 18 SSTE_B SalesExemptCreditNote PART B2-18b3i Exempted_CRawMaterials Purchase or Importation of Raw Material Exempted From Sales Tax 19 SSTE_C1 SalesExempt PART B2-18b3i Exempted_CRawMaterials Purchase or Importation of Raw Material Exempted From Sales Tax 20 SSTE_C1 SalesExemptCreditNote PART B2-18b3ii Exempted_CManufacturer Purchase or Importation of Raw Material on behalf of Registered Manufacturer Exempted From Sales Tax 21 SSTE_C2 SalesExempt PART B2-18b3ii Exempted_CManufacturer Purchase or Importation of Raw Material on behalf of Registered Manufacturer Exempted From Sales Tax 22 SSTE_C2 SalesExemptCreditNote PART B2-18b3iii Exempted_CValueofWork Value of Work Performed Exempted from Sales Tax 23 SSTE_C3 SalesExempt PART B2-18b3iii Exempted_CValueofWork Value of Work Performed Exempted from Sales Tax 24 SSTE_C3 SalesExemptCreditNote PART B2-19 PurchaseImportRawMaterial Purchase or Importation of Raw materials exempted from sales tax 25 SSTP_1 PurchaseExempt PART B2-19 PurchaseImportRawMaterial Purchase or Importation of Raw materials exempted from sales tax 26 SSTP_1 PurchaseExemptCreditNote PART B2-20 PurchaseImportRawMaterialManufacturer Purchase or Importation of Raw material on behalf of Registered Manufacturer exempted from sales tax 27 SSTP_2 PurchaseExempt PART B2-20 PurchaseImportRawMaterialManufacturer Purchase or Importation of Raw material on behalf of Registered Manufacturer exempted from sales tax 28 SSTP_2 PurchaseExemptCreditNote PART B2-21 PurchaseOtherExempted Value of work performed exempted from sales tax 29 SSTP_3 PurchaseExempt PART B2-21 PurchaseOtherExempted Value of work performed exempted from sales tax 30 SSTP_3 PurchaseExemptCreditNote Not applicable Other Other 31 Not blank Not blank Repeat the previous steps for the ReportFieldDetailed lookup. The following table provides an example of a configuration. However, you can use a different combination of a tax code and a name, depending on your Finance implementation.
Form (section) Lookup result (ReportFieldDetailed) Description Line Tax code Name PART B1-8 TaxableGoods_B18 Value of Taxable Goods Sold Value of Work Performed 1 SST5 Sales PART B1-8 TaxableGoods_B18 Value of Taxable Goods Sold Value of Work Performed 2 SST10 Sales PART B1-8 TaxableGoods_B18 Value of Taxable Goods Sold Value of Work Performed 3 SST5 SalesCreditNote PART B1-8 TaxableGoods_B18 Value of Taxable Goods Sold Value of Work Performed 4 SST10 SalesCreditNote PART B1-9 OwnUsedFreeServices_B19 Value of Goods For Own Used or Disposed or Values of Free Services 5 SST5_O Sales PART B1-9 OwnUsedFreeServices_B19 Value of Goods For Own Used or Disposed or Values of Free Services 6 SST10_O Sales PART B1-9 OwnUsedFreeServices_B19 Value of Goods For Own Used or Disposed or Values of Free Services 7 SST5_O SalesCreditNote PART B1-9 OwnUsedFreeServices_B19 Value of Goods For Own Used or Disposed or Values of Free Services 8 SST10_O SalesCreditNote PART B1-10 TaxableServices_B110 Value of Taxable Service 9 SST6 Sales PART B1-10 TaxableServices_B110 Value of Taxable Service 10 SSTH Sales PART B1-10 TaxableServices_B110 Value of Taxable Service 11 SST6 SalesCreditNote PART B1-10 TaxableServices_B110 Value of Taxable Service 12 SSTH SalesCreditNote Not applicable Other Other 13 Not blank Not blank After the configuration is completed, in the State field, select Completed.
Select Save, and then close the Application specific parameters page.
Note
To help prevent issues when the report is generated, create all mappings where the sales tax codes are posted. For example, if the line has omitted the operation name (SalesCreditNote in this configuration), and tax transactions are posted by using sales tax code SST5, you will encounter issues when the report is generated. We recommend that you go to Tax > Inquire > Posted sales tax to review all the posted sales tax codes and the sales tax codes that aren't included in this mapping of the configuration.
The following table provides a definition of the Name column to help you understand how the tax transactions are classified.
| Classifier value | Condition |
|---|---|
| PurchaseCreditNote |
|
| Purchase |
|
| SalesCreditNote |
|
| Sales |
|
| PurchaseExemptCreditNote |
|
| PurchaseExempt |
|
| SalesExemptCreditNote |
|
| SaleExempt |
|
| UseTaxCreditNote |
|
| UseTax |
|
| PurchaseReverseChargeCreditNote |
|
| PurchaseReverseCharge |
|
| SalesReverseChargeCreditNote |
|
| SalesReverseCharge |
|
Set up General ledger parameters
To generate the SST-02 return form report in Excel, you must define an ER format on the General ledger parameters page.
- Go to Tax > Setup > General ledger parameters.
- On the Sales tax tab, in the Tax options section, in the Electronic reporting field, select SST-02 Declaration Excel (MY). If you leave the SST statement format mapping field blank, the standard sales tax report will be generated in SQL Server Reporting Services (SSRS) format.
- Select the category hierarchy. This category makes the Commodity code field on the Foreign trade tab available, so that users can select and classify goods and services. A detailed description of this classification is provided on sales and purchase transaction reports.
Generate an SST-02 return form report
The process of preparing and submitting an SST-02 return form report for a period is based on sales tax payment transactions that were posted during the Settle and post sales tax job. For more information about sales tax settlement and reporting, see Sales tax overview.
Follow these steps to generate the tax declaration report.
Go to Tax > Declarations > Sales tax > Report sales tax for settlement period or Settle and post sales tax.
Select the settlement period.
Select the "from" date.
Select the sales tax payment version, and then select OK to save your changes.
Select the report type:
- SST for goods and services
- SST for goods
- SST for services
Select OK to confirm your settings and generate the report.