In UBS, you must reconcile (Knock- Off) paid transactions to ensure the system accurately captures the tax amount in the SST-02 return report.
The SST 02 report for service tax must be declared to the Royal Malaysian Customs Department (RMCD) if:
The invoice has been paid and received.
You need to reconcile all payments with invoices that include a Service Tax code.
Please activate the knock-off function (mark debtor as open-item). Any invoice that remains unpaid after 12 months will be declared in the 13th month or, after the Year-End Process, in the first month of the next financial period.
This process is automated by the UBS system tracker.
According to RMCD, only paid invoices will be declared in the SST-02 service tax report. If invoices related to service tax transactions remain unpaid, businesses are not required to file their SST tax returns yet. However, if these invoices remain unpaid for more than 12 months, it becomes mandatory to declare the taxable amount to the RMCD.