BATCH 1
MALAYSIAN ASSOCIATION OF TOUR AND TRAVEL AGENTS (MATTA)
NO
1.1(c)
ISSUES
MATTA
PROPOSAL/RATIONALE
Please confirm that the ‘reseller’ under
model (a) and (c) will zero rate their
entire international air tickets (including
the ‘profit’ and the ‘service fee’) as per
GST treatment in Example 1 above.
Treat the sale of flight tickets for
the entire flight ticket price
(including ‘profit mark up’ and
‘service fee’) to follow the type of
flight (entirely standard rated for
domestic flight; entirely zero rated
for international flight)
RMCD’s RESPONSE


1.1(d)
1.2
Under the “reseller” model, Please
confirm whether the whole of the
RM1500 is to be zero-rated or only
certain items. If only certain items are to
be zero-rated, please identify the items to
be standard-rated and the items to be
zero-rated.
If travel agent
acting as a
principal sells
the international
flight ticket
(including profit
mark-up and
service fee) will
be zero-rated
If travel agent
acting as a
principal sells
the domestic
flight ticket
(including profit
mark-up and
service fee) will
be standardrated
To clarify, this answer
is for international
flight.
Air ticket
Air ticket (purchased from Air Asia)
RM
a) Flight
1060
b) KLIA 2
10
c) Passenger security fee
40
d) Passenger service fee
110
e) Airport Tax
70
f) Aviation Levy
30
g) Fuel surcharge
100
a)
b)
c)
d)
e)
f)
g)
Zero rated
Standard rated
Standard rated
Standard rated
Standard rated
Standard rated
Zero rated
Services & Fees
Services & Fees
h) Air Asia Insure Return
i) Processing Fee
50
30
h) Zero rated
i) Standard rated
2.1
2.2
2.3(a)
2.4
By their nature, tour packages (in
Designated Areas) can involve 2
interwoven components:
i)
Transporting the tourist into
and out of the Designated
Area; and/or
ii)
Providing the food,
accommodation and guided
tours around the island
(Designated Area)
Is there any GST for Langkawi tour
package [incorporating (i) and (ii) sold by
a tour operator whose principal place of
business is in Langkawi?
Would the answer to issue 2.1 be
different if the tour operator has a head
office in Malaysia (Non-Designated
Area) and a branch office in Langkawi
whereby all Langkawi tours are sold and
billed by the Langkawi branch office?
What is the answer (Standard Rated or
No GST) to issue 2.1 if the tour operator
does NOT have any office in Langkawi?
(This means all Langkawi tours are sold
and billed by the office in say Kuala
Lumpur)
GST Guide on Travel
Para 14: “Optional tours in
Malaysia……to be consumed or enjoyed
in Malaysia are subject to GST at a
standard rate e.g. Tioman Tour….”
The above statement did not specify
whether the tour operator was Langkawibased or was a non-Langkawi based tour
operator, and thus, can lead to various
interpretations. Further expansion and
i) Transportation (Flight
and chartered coach) –
Standard rate
ii) No GST
Tour operator whose
principal place of
business is in Langkawi
providing tour package
– No GST
Not subject to GST
If the RMC were to decide that
Inbound Tours to Langkawi (sold
by tour agents in say Kuala
Lumpur) are Standard Rated, this
would cause such operators to
suffer a financial loss on their tours.
As the GST treatment will cause
financial loss to affected tour
operators (eg.KL tour agents selling
Langkawi tours) who will be outpriced, the RMC must deliberate
deeply and thoroughly on this issue,
taking into account the financial
repercussions such decision will
have to the tour industry- an
important contributor to the
nation’s GDP.
Tour package
comprising hotel
accommodation, tour
inside DA not subject to
GST but services
related to arranging of
tour will be subject to
GST
Tour package within
DA not subject to GST
2.5
2.6
2.7
2.8
details should be provided to avoid
ambiguity. Please clarify.
Is the on-sale of Langkawi hotel room by
tour operator (based in Kuala Lumpur) to
a customer subject to GST?
What is the GST treatment for the on-sale
(by the tour operator based in Kuala
Lumpur) of the following services which
will ultimately be consumed in
Langkawi?
a) Restaurant meals in Langkawi
b) Car Rental in Langkawi
c) Entrance ticket for Langkawi
attraction spots
d) Guided island tour in Langkawi
Will the GST treatment be any different
if the invoicing for the Langkawi tour
packages is as follows:
Not subject to GST
Services made inside
Langkawi not subject to
GST
Only the arranging fees
are subject to GST
a) Tax invoice reflecting a single
receipt only (without details of the
tour package); and
b) The invoice reflecting details/
breakdown of the tour package as
separate line items together with
the pricing for each item (i.e.
hotel rooms, restaurants, car
rental, entrance ticket, tour guide,
arrangement fees etc.)
Multi-destination tours involving
Designated Area.
a) Invoice should
reflect services
for arranging the
tour
b) Services made
inside Langkawi
such as hotel
room etc not
subject to GST
The Langkawi portion
can be itemised as not
subject to GST but
arranging services
subject to GST
Penang – Langkawi – Taman NegaraKota Kinabalu
3.1
For such local multi-destination tours, is
the entire “local” tour packages subject to
GST at standard rate 6%, or can the
Langkawi portion of the package be
separately itemized on the Tax Invoice as
being NOT subject to GST?
Extension of Issue 1 on the Service Fee
charged by tour agents. Tax Invoice
issued by the tour agent must separately
disclose:
a) Air ticket price (cost from airline
which zero-rated)
b) Service Fee (standard rated)
“Zero-rating” the entire
international air ticket is the
simplest solution to this problem
and to the related problem under
issue 1.1. After all, this would be
consistent with the treatment
applied to domestic flights,
whereby the entire selling price of
International flight
ticket will be zero-rated
Domestic flight ticket is
standard rated
3.2
4.1
4.2
This is supposed to be private and
confidential. Airline does NOT want this
revealed to anyone. By doing the above,
the tour agent will be forced to expose
the cost of its ticket and the services fee
to its customers and competitors- this is
clearly undesirable as it will undermine
the cost and pricing structure of the travel
industry.
Will the RMC accept such arrangement
whereby the Tax Invoice will only
describe a summary of the supply (ie.
minimal breakdown) while further details
(including cost analysis) are shown on an
attachment sheet?
Multi-billing approach using BSP
Statement
Can the BSP Statement be regarded as
the equivalent of a ‘multi-billing’ Tax
Invoice in order for travel agencies to
claim their Input Tax Credits?
If not, please advise the documents to be
used as evidence for claiming Input tax
Credits.
Where a PO Box address is provided by
the tourist, is this acceptable to the RMC
as the “customer’s address”?
In other cases where the “customer’s
address” is NOT available, can the travel/
tour agents be allowed NOT to disclose
the “customer’s address” on the full Tax
Invoice?
5.1
Travel Agency
(3)
(4)
Earn commission
Airline
Ticket
(1)Tax
(2)
Invoice
Customer
Travel Agent assists customer to buy the
ticket; Charges a “service fee” for
booking service rendered.
1) Travel Agent issues Tax Invoice
the domestic flights is “standard
rated”.
It will be acceptable if
sufficient details will be
included and comply
with Regulation 22
Refer to Transport
sector
Write in to DG for
simplified tax invoice
under Section 33(3)(a)
Also refer to Panel
Decision 1/2015 on this
matter
2) Customer pays “service fee” and
ticket cost
3) Travel Agent pays ticket cost to
airline
4) Travel Agent earns commission
Based on arrangement above, FAQ 7
seems to suggest that for computing
“Taxable Turnover” for GST
Registration:
a) The travel agent above (who is a
‘commission agent’) can
disregard the ticket cost even
though the ticket cost is shown in
the Tax Invoice above; and
b) The travel agent above only needs
to count the ‘commission income’
and ‘service fee’.
Please confirm that this is the method to
compute the ‘Taxable Turnover’ for GST
registration. If NOT, please indicate how
the ‘Taxable Turnover’ should be
computed for the above arrangement.
Yes, disregard the ticket
cost because threshold
will be calculated based
on agent’s commission
and service fee only
because the invoice is
issued by airline and the
travel agent act as agent
and earning
commission and service
fee only.
If the travel agent
issued invoice under his
name, travel agent act
as a principal and
threshold is to be
calculated based on air
ticket, commission and
service fee.
(WHOEVER ISSUE
THE TAX INVOICE
IS ACT AS A
PRINCIPAL )
6.1(a)
Incentive given for sales achieved.
Example,
Sales Achieved : RM1 million
Performance Incentive(assume
1.5%)attributable to Jan 2016 =
RM15,000 :
Who should issue the relevant Tax
Invoice for the incentive?
i)
The tour operator earning the
incentive; or
ii)
The airline paying the
incentive (for instance, using a
self-billing approach)
The tour operator
should issue the invoice
for the incentive
received.
However, the airline
may issue the selfbilled Tax Invoice if the
value is not known by
the tour operator and
they must apply and
comply with Section
33(3)(5)
6.1(b)
6.2
7.1
7.2
7.3
8.1
What is the GST treatment for the
performance incentive?
Is it always Standard Rated regardless of
the destination of the air ticket?
Standard Rated by the
agent regardless of the
destination
Or does the GST treatment of the
performance incentive follow the GST
treatment of the underlying ‘product’
(eg.since international air ticket is zerorated, incentives for international air
ticket is also zero-rated?
Would it be acceptable to use the Time of
Supply (for the incentive income) as the
earlier of:
- Tax Invoice date (which is to be
issued in Dec 2016 after
determination of the incentive);
and
- Payment date for the incentive
income?
It is provision of
services for the sales of
the tickets
This means the ‘21 day rule’ is
disregarded.
What is the GST treatment on service fee/
transaction fee/ booking fee/ markup for
a Local Tour Agent (LTA) assisting an
airline to sell air tickets?
In relation to zero-rating of commission
earned by an LTA from an FTA for sale
of outbound tours, is it necessary for the
LTA to have a formal “contract” with the
FTA in order for the LTA to apply the
zero-rated status on the commission
earned?
If the answer to issue 7.2 is that a
“contract” is indeed needed, then can a
letter or email or other correspondences
be acceptable as a “contract”?
Refer to Section
11(9)(a), or tax invoice
date issued or payment
date received,
whichever is earlier
*Normally based on
payment.
Refer to Table 7.1
Refer to Table 7.1
Section 12 of the Second Schedule Yes, necessary to have
an agreement
of the GST (Zero-Rated Supply)
Order 2014:
Services supplied under a contract
with a person who belongs in a
country other than Malaysia…
It is hoped that the Guide can be
GST Guide on Travel Industry
Para 10 states that the following items
revised to remove this
are “subject to GST”:
inconsistency.
 Cancellation Fees/ Charges; and
 Amendment Charges
Para 27: “Cancellation fees are regarded
as compensation and therefore not subject
to GST”.
Yes, as long as have
sufficient evidence that
directly benefit a person
in a country other than
Malaysia at the time the
services are performed
Cancellation fees are
regarded as admin fee
and therefore not
subject to GST.
Amendment charges
subject to GST at zero
rated for international
air ticket and subject to
Para 28: “Amendment charges are
regarded as compensation and therefore
not subject to GST”.
8.2
8.3
8.4
9.1
Para 10 appears inconsistent with the
details appearing in Para 27 and 28.
Which is the correct GST treatment for
Cancellation fees and Amendment
Charges?
Q&A 12 of the Travel Industry Guide
Question 12 of the Guide provides an
illustration where an FTA sells an
inbound tour package on behalf of an
LTA. In return, the FTA will charge a
commission to the LTA.
However, in the Answer, it is stated that
the same commission is “charged by the
LTA”.
Para 12(f) and Q&A 12 Travel
Industry Guide
Para 12(f): “FTA sells inbound tour
packages on behalf of LTA and receives
commission from LTA. The commission
received will be out of scope.”
Q&A 12: “The LTA has to account for
the GST using the reverse charge
mechanism”.
Kindly confirm whether the said
commission is totally Out of Scope or
subject to “reverse charge mechanism”.
Para 13(a) Travel Industry Guide
“Sale of outbound tour package
(including haj/ umrah) is a zero rated
supply.”
GST at standard rated
for domestic air ticket.
Should the phrase in the Answer 12
“charged by the LTA” be replaced
by “charged by the FTA”?
*Already amended in
Travel Guide.
It is also hoped the Guide can be
revised to remove this ambiguity.
Para 12(f): Out of Scope (from
perspective of FTA)
Accordingly, please update the
Guide to enhance clarity.
Since the entire amount of an
inbound tour package was
standard-rated in para 12(c) of the
Guide, then in order to ensure
Para 13(e)
Breakdown of outbound tour package consistency of treatment, the entire
Foreign Tour Package Value
1,500 amount of outbound package
Profit Margin (20%)
300 should be zero-rated.
Service fees (air ticketing)
100
Total value of package
1,900
From the context of Para 13(a) above, we
expect the entire amount of RM 1,900 to
be zero-rated. Please confirm this.
An inbound tour package to Malaysia
may also include a trip by coach to
Singapore which stops over at Malacca.
The phrase should be
replaced by “charged
by the FTA”
Imported services
*Already amended in
travel guide.
Services comprising
arranging of outbound
tour to foreigners and
who is outside Malaysia
when the services
performed to be zerorated.
Further details will be
given in Batch 2 of
answer to queries.
The trip by coach to
Singapore (which
“stops over” at Malacca
(stay overnight at Malacca prior to
resuming the journey to Singapore the
next day)
9.2
along the way) is zerorated.
Is the trip by coach to Singapore (which
“stops over” at Malacca along the way) to
be zero-rated?
Q&A 10 of the Travel Industry Guide
“outbound tour package” that includes
pickup from the passenger’s house to the
airport, the entire package is a zero-rated
supply
Outbound air ticket –
Zero rated
Pickup from house to
airport – Standard rated
because different
supplier
Would the GST treatment be different if
it was an outbound air ticket (not tour
package) which also included pickup
from house to the airport?
9.3
9.4
Would the ‘air ticket and pickup from
house to airport’ be zero-rated?
Refer to Table 9.3
In determining the GST treatment for the
pickup from hotel to airport:
a) Would the GST treatment of the
‘pickup’ follow the type of tour
package (ie. Inbound is entirely
standard rated; Outbound is
entirely zero-rated)? Or
b) Would the tour operator be
required to break up the tour into
its components (eg. Pickup from
hotel to airport is separated from
the rest of the tour), and
determine the GST treatment for
each component separately?
GST Guide on Travel Industry
“Domestic leg, if it is part of the
international carriage and provided by the
same supplier is to be zero rated”.
KK
KLIA
MAS aircraft
Amsterdam
KLM aircraft
Code: MH/KLM
Ticket supplied under MAS
Is the flight from Kota Kinabalu to
Amsterdam (supplied by MAS under
“code sharing” with KLM) fully eligible
for zero-rating ie. Allowed to zero-rate
If approach (b) is to be adopted,
then are the GST treatments
proposed in Table 9.3 correct?
It is emphasized that this question
should be addressed in the context
of Designated Area.
The approach is b)
breakup the component
of the transport.
Domestic leg from KK
to KLIA is subject to
GST at standard rate
and International leg
from KLIA to
Amsterdam is subject to
GST at zero rate
because the domestic
and international
carriage provided by
two different supplier.
9.5
the domestic leg as well as international
portion?
KK
KLIA
Amsterdam
AirAsia
MAS
AirAsia flight from KK
to KLIA is standard
rated because of 2
different suppliers not
under code sharing
(1) Passenger buys travel
arrangement from Travel Agent
and will be charged one lump sum
price
(2) However, the actual plane for the
domestic leg and the international
leg are provided by 2 separate
airlines NOT under “code
sharing”
9.6
10.1
Can the travel agent zero-rate the travel
arrangement from KK to Amsterdam?
It must be emphasized that the entire
purpose of the 2 flights is to enable the
passenger to travel from KK to the end
destination which is Amsterdam.
Para 30 of the GST Guide on Supply
“Composite supply refers to a single
supply with more than one component.
Where a supply appears to consist of
more than one component, the supply is
still a
single supply if there is clearly one
overall supply being made to which the
remaining
components can be seen as incidental,
integral or tie-in.”
a) Can the tour be regarded as entirely
zero-rated (since a majority of the
components by value as well as by
content) is either “international travel” or
“consumed in Singapore”?
b) If NOT, then how is GST to be
imposed since certain elements (eg. The
“Combo entrance ticket”) carry a single
price but is to be consumed in both
Singapore and Malaysia?
KTM
Wholesaler
Customer
RM 10
RM 13
Since the KTM tickets are “stocks” to the
wholesaler, when it sells such tickets to
end consumers, are the KTM tickets at
Refer to Table 9.6
No. The tour must be
separated into domestic
(standard rated) and
international (zero
rated) portions.
It should be breakdown
into individual prices
Referred to para 22 (b),
second schedule,
exempt supply order
2014, the amount of
RM13 is subject to GST
at standard rate. The
wholesaler is not
retail price of RM13 under “Exempt’
category?
licenced under the
Railways Act 1991 to
provide rail services.
If the answer is NO (cannot use Exempt
status on the full RM13), then what is the
GST treatment?
11.1
11.2
12.1
What is the disclosure in the Tax
Invoice?
In addressing this question, attention is
drawn to issues 1.1 (treatment of
“stock”) and 3.1 (profit exposure).
For cases where there has NOT been any
payment nor any Tax Invoice issued
before the tour, the Time of Supply will
then revert to the time indicated in
S11(3). Under such situation, when
exactly is the Time of Supply for the said
tour?
a) Start date of the tour; or
b) End date of the tour (which
appears more consistent with
S11(3))
Where the performance period (to which
the performance-related incentives
accrues) stretches before and after
1.4.2015, is the payer of the incentive
require to apply the transitional
provisions for ‘supply spanning GST’
and apportion the performance incentive?
Section 11(3) of the GST Act 2014 End date of the tour
“…the time of supply of services
shall be at the time when the
services are performed”.
the portion before
1.4.2015 is NOT
subject to GST
the portion on or after
1.4.2015 is subject to
GST
Generally, transitional provisions would
require the incentive to be timeapportioned whereby the portion before
1.4.2015 is NOT subject to GST. Please
confirm that this understanding is
applicable to the situation.
Para 24 of the GST Guide on Travel
Industry
“Cruise packages that include docking or
stop over at one or more ports outside
Malaysia are subject to GST at zero rate”
a) What would be the GST treatment
if the same cruise carrying the
same passengers were to continue
with a return journey back to
Malaysia as part of the original
cruise?
the return journey
would be considered as
part of the “outbound”
cruise, and therefore the
entire cruise would be
treated as zero-rated
It is assumed that the passengers
embarked on the cruise that
started from Malaysia, docked at
international port, and returned
by the same cruise back to
Malaysia.
Would the return journey be viewed
separately and regarded as standardrated?
Or
Would the return journey be considered
as part of the “outbound” cruise, and
therefore the entire cruise (from Malaysia
to overseas, and from overseas back to
Malaysia) would be treated as zero-rated?
b) Some cruises by their nature
would normally involve a round
trip ie. Starts from Malaysia and
may travel to (and dock at)
international ports before
returning back to Malaysia.
Para 4 of Second Schedule of
GST (Zero-Rated Supply) Order
2014
Zero-rating is only available when
either the point of origin or the end
destination is outside Malaysia
Zero-rated
In such instance, would the cruise still be
zero-rated (taking note that such cruise
starts and ends in Malaysia)?
12.2
13.1
What is the GST treatment for a cruise
which picks up embarking passengers
from an international port into Malaysia?
Transaction involving Foreign Exchange
rates.
Treatment of foreign exchange gain/loss
Zero-rated
Under Para 5 of the Third Schedule
of Goods and Services Tax Act
2014, it is stated that: “where any
sum……is expressed in a currency
other than ringgit,it is to be
converted into ringgit at the selling
rate of exchange prevailing in
Malaysia at the time when the
supply takes place……”
That means GST is already
reported and paid based on the
exchange rate at the time when the
supply takes place .therefor there
should NOT be further GST impact
at time of eventual collection. So
there should NOT be any GST
impact on the realised foreign
exchange gain/loss.
Since the realised
foreign exchange
gain/loss is an exempt
supply there will be NO
GST.
13.2
14.1*
Tax code for realised foreign exchange
gain/loss
Is it “OS” for foreign exchange
gain and “OP” for foreign loss?
Credit Card
In conducting business, it is not
uncommon for customers to pay by
Credit Card charges passed on to
credit card. In such event, the bank
customers
charges associated with the usage
of credit card will often be backWhat is the GST treatment for this “credit charged to the customer as a
card charge” that is back-charged to the
separate item on the Tax Invoice.
customer?
The bank charge is merely to
Can the tour/travel agent regard this as a
disburse the tour/travel agent who
“disbursement” and therefore, pass this
has suffered the same from the
along to the customer without any GST?
bank/ credit card company.
15.1
Gifts and Company Trip
Lucky draw prizes and Gifts for
customers(tourists)
15.2
Does the travel agent need to account for
GST when providing a free company trip
to employees?
In view that monetary cash vouchers will
only trigger GST at point of redemption,
does the travel agent need to account for
any GST (deemed supply) when
presenting these monetary cash vouchers
to employees as gifts at the company’s
annual dinner? (Assumption: the
monetary vouchers are more than RM500
each.)
15.3
Please confirm that there will NOT
be any GST impact for the realised
foreign exchange gain/loss.
What is the GST Tax Code to be
used for the realised foreign
exchange gain/loss
16.1
Foreign Agent such as
Occasionally, travel/tour agent will
hold promotions whereby the
customers who buy outbound tour
packages from a particular tour
agent will be given a free gift (eg.
In the form of a luxury luggage
etc).These gifts can sometimes be
valued more than RM500 (meaning
the donor cannot rely the “RM500
Gift rule” to “exempt” the gift
given away).
Tax Code is ‘ES’ or
Exempt Supply.
(After Batch 2
discussion, Tax Code
should be “ES43” and
NOT “ES”)
According to the bank,
merchant cannot pass
on the cost which is
bank charged the usage
of credit card to the
merchant. If merchant
charged the customer, it
is subject to GST at
standard rated. It is a
cost to the operator and
is not regarded as
disbursement.
(Refer to Para 5(2)(a)
First Schedule of GST
Act 2014)
Amount RM500 per
person per year is a
aggregate of all gift
given in the tax year if
total cost exceed
RM500 it is subject
GST(account for output
tax).
No
Monetary cash
vouchers given to
employees regardless of
the amount is not
subject to GST.
Online Travel Agents
(eg. Agoda.com or Expedia)
(1)
‘Buys’ hotel rooms
(2) ‘Re-sells”
hotel rooms
Refer to section 13(4)
this is an imported
services if the LTA
located in PCA.
(under contract)
Malaysia Hotel
Local Tour Agent
Time of supply is time
of payment made by the
recipient.
For the local tour agent, is the acquisition
of hotels from the Foreign Agent
regarded as an “imported services”?
16.2
If so, please confirm the “Time of
Supply” for such imported services: Is it
at time of payment to the Foreign Agent?
Tour agents sometimes receive a softcopy
invoices in ‘statement format’ from
suppliers with volume transactions. That
means the invoices is in the form of a
statement detailing out many transactions
on various dates.
Will the RMC accept such invoices in
‘statement format’ as the equivalent of a
‘purchase’ Tax Invoice in order for the
tour agent to claim input tax credits?
17.1
Compelling tour agents to pay over the
GST of ‘6/106’ on the GST-inclusive
price of all transitioning tours already
sold may cause a major financial
hardship to tour agents arising from the
deemed GST to be paid to the RMC in
Apr 2015 taxable period.
It is hoped that the RMC and the
government views with considerate eyes
the plight faced by tour agents selling
transitioning tours, and provide tour
operators dispensation/ special exemption
from complying with the requirement to
pay over the deemed GST portion of
‘6/106’.
Refer to section 34 a
registered person can
produce a tax invoice
by computer ( in
softcopy).
The ‘statement format’
as the equivalent of a
tax invoice will be
acceptable if the
‘statement format’ is
comply with regulation
22 (content of tax
invoice).
Refer to Section 183(3)
if the payment received
before ED and services
perform after ED,
the invoice issued shall
be deemed to be
inclusive of tax.
APPENDIX
Table 7.1
Air ticket being
Agent (earning the
sold
commission)
Domestic Flight
Local Tour Agent
International Flight
Local Tour Agent
(M’sia to overseas)
International Flight
Local Tour Agent
(M’sia to overseas)
International Flight
Local Tour Agent
(M’sia to overseas)
International Flight
Local Tour Agent
(M’sia to overseas)
International Flight
Local Tour Agent
(overseas to M’sia)
International Flight
Local Tour Agent
(overseas to
overseas)
International Flight
Local Tour Agent
(overseas to M’sia)
International Flight
Local Tour Agent
(overseas to
overseas)
* ONLY THE COMMISSION (FEE)
Principal
Foreign Tour Agent
Local air line
GST treatment on
fee earned? (*)
Zero rated
Standard Rated
Foreign air line
Zero Rated
Local Tour Agent
Standard Rated
Foreign Tour Agent
Zero Rated
Local air line
Standard Rated
Foreign air line
Zero Rated
Local Tour Agent
Standard Rated
Foreign Tour Agent
Zero Rated
However, if the Foreign Principal has a Branch in Malaysia, then the commission cannot be
zero rated.
Table 9.3
Type of package
Pickup from:
Inbound package
Hotel in Langkawi
Inbound package
Hotel in Langkawi
After pickup, send
to:
Airport in
Langkawi; Flight to
overseas home
country
Airport in KLIA
(non-DA); Flight to
overseas home
country
GST treatment for
the ‘Pickup’:
Out of scope?
Pickup from hotel to
airport - No GST
Flight to overseaszero rate
Zero-rated.
By chartered coachstandard rated
Flight to overseas –
Zero rated
Table 9.6
Item
RM
2D1N – Self drive in Johor
2D1N Singapore
Combo entrance ticket for:
 LEGO Land (Malaysia)
 Hello Kitty (Malaysia)
 Universal Studio
(S’pore)
 Aquarium (S’pore)
Hotel in Johor
Hotel in Singapore
Bus service: KL to Johor to
S’pore
Bus service: Singapore to
Johor
Total value of tour package
500
800
300
Consumed in
Singapore/
International
Consumed in
Malaysia/Domestic
500
800
X
100
300
500
300
500
200
200
Y
100
2,700 1,800 + X
600 + Y