GST Information for iPay88 Payment Gateway

GST ON IPAY88 SERVICES

According to Goods and Service Tax Act 2014, business with an annual turnover exceeding RM500,000 is recommended by Royal Malaysia Custom (RMC) to obtain its GST registration number by 31 December 2014. With that, please find below our GST registration numbers for your record:- Company Name Company Registration GST Number Mobile88.com Sdn Bhd 521817-M 000576036864 iPay88 Sdn Bhd 726820-X 001311219712
We urge all registered merchants to update your company details with GST registration number at http://goo.gl/forms/rXn4nQAnlE by 15 March 2015 as part of our system upgrade to issue you valid Tax Invoice in the GST era. We also enclose below illustrations that help you to compare and understand better the impact of GST on iPay88 fees:-
Current Without GST Transaction value = RM100 iPay88 fees = RM100 X 3% (assume at 3% of transaction value) = RM3.00 iPay88 pays back to merchant = RM100 - RM3 = RM97 Merchant's profit = RM100 - RM3 = RM97
In GST era if you are non GST registrant & not charging 6% GST on your sales Transaction value = RM100 iPay88 fees = RM100 X 3% (assume at 3% of transaction value) = RM3.00 GST on iPay88 fees = RM3 X 6% = RM0.18 iPay88 pays back to merchant = RM100 - RM3 - RM0.18 = RM96.82 Merchant's profit = RM100 - RM3 - RM0.18 (GST not recoverable) = RM96.82
In GST era if you are GST registrant & charge 6% GST on top of your sales Transaction value = RM100 + 6% GST RM6 = RM106 (total receipt included RM6 GST from customer) iPay88 fees = RM106 X 3% (assume at 3% of transaction value) = RM3.18 GST on iPay88 fees = RM3.18 X 6% = RM0.19 iPay88 pays back to merchant = RM106 - RM3.18 - RM0.19 = RM102.63 Merchant - GST payable to Custom = RM6 - RM0.19 (input tax claimable) = RM5.81 Merchant profit = RM100 - RM3.18 = RM96.82
In GST era if you are GST registrant & absorb 6% GST in your sales Transaction value = RM94.34 + 6% GST RM5.66 = RM100 (total receipt included RM5.66 GST from customer) iPay88 fees = RM100 X 3% (assume at 3% of transaction value) = RM3 GST on iPay88 fees = RM3 X 6% = RM0.18 iPay88 pays back to merchant = RM100 - RM3 - RM0.18 = RM96.82 Merchant - GST payable to Custom = RM5.66 - RM0.18 (input tax claimable) = RM5.48 Merchant profit = RM94.34 - RM3 = RM91.34
Further, you are advised to check the below link on GST guide issued by Custom on e-commerce. http://gst.customs.gov.my/en/rg/SiteAssets/industry_guides_pdf/Guide%20on%20E-commerce%2020.08.2014.pdf
Kindly send email to [email protected] if clarification is required on iPay88 fees related to GST. Thank you.

Sincerely,
iPay88 Sdn Bhd
http://www.ipay88.com