Implementation of 6% GST by Malaysian Government for Tours & Services Starting from 1st April 2015
ABT/2014/0001
4 October 2014
To: All Valued Clients
LETTER OF ANNOUCMENT:
Implementation of 6% GST by Malaysian Government for Tours & Services Starting from 1st April 2015 and the collection of 6% GST by Amazing Borneo Tours
The Malaysian government has announced that on 1st April 2015, it will implement a Goods and Services Tax (GST) of six (6) percent. This would mean that starting from 1st April 2015, under Malaysian Law, all inbound tour and hotel packages & other services that are consumed in Malaysia are subject to 6% GST. This also applies to bookings made before 1st April 2015 but services is supplied on/after 1st April 2015.
Due to our continued growth we are now obliged to become GST registered. In view of this, we wish to inform our valued clients that GST will be added at the prevailing rate to all invoices.
That means, if your tour/accommodation date is on/after 1st April 2015, all rates will be subjected to 6% GST with immediate effect regardless of your booking dates. That includes existing bookings.
Note: It is a serious offence for registered licensed companies to avoid such taxation. Any company found to violate the laws will be fined heavily or result in cessation of business operation.
Click for more info > http://gst.customs.gov.my/en/Pages/default.aspx
EXAMPLE A: (Invoice issued in May 2014 but tour in June 2015)
Peter booked a 10 Day North Borneo tour (01-10 June 2015) on 15 May 2014
Tour price at RM8000/- billed on 15 May 2014
Deposit paid RM4000/- on 20 May 2014
Original Balance payment RM4000/- due on 01 May 2015
Due to the new GST implementation in 2015,
Peter must now pay RM4480/- upon making his full payment to Amazing Borneo Tours.
Calculation as follow:
RM480 (6% GST of RM8000) + RM4000 (Original Balance Payment) = RM4480/-
Remarks: Although Peter’s tour booking was done in May 2014, before the official GST implementation on 01 April 2015 and before the announcement of this letter, he is still liable to pay GST for tours conducting on 01 June 2015.
EXAMPLE B: (Invoice issued in Dec 2014 but tour in Aug 2015)
Johnson booked a 3 Day Mount Kinabalu Climb (01- 03 Aug 2015) on 10 Dec 2014
Tour price at RM2000 + RM120 (6% GST) = RM2120/- (Inclusive of 6% GST) billed on 10 Dec 2014
Deposit paid RM1060/- (Inclusive 6% GST) on 15 Dec 2014
Balance payment RM1060/- (Inclusive 6% GST) due on 01 July 2015
Due to the new GST implementation in 2015,
Johnson must pay a total of RM2120 (Inclusive of 6% GST) to Amazing Borneo Tours.
Remarks: Although Johnson booked early in Dec 2014 before the official GST implementation on 01 April 2015, he is still required to pay GST for tours conducting on 01 Aug 2015.
EXAMPLE C: (Invoice issued in Dec 2014 but tour in March 2015)
Mary booked a 3 Day Mount Kinabalu Climb (01- 03 March 2015) on 10 Dec 2014
Tour price at RM2000/- billed on 10 Dec 2014
Deposit paid RM1000/- on 15 Dec 2014
Balance payment RM1000/- due on 01 Feb 2015
GST not implemented yet,
Mary’s booking is not subject to GST.
Remarks: Since Mary’s tour booking date and the tour dates are before the official GST implementation on 01 April 2015, Mary is not required to pay GST for tours conducting on 01 March 2015.
What is GST?
GST is known as Goods and Services tax or value added tax (VAT) in many countries. It is a multi-stage consumption tax on goods and services. Tax will be levied on the supply of goods and services at each stage of the supply chain from the supplier up to the retail stage of the distribution.
We seek your understanding and cooperation in the implementation of GST during this transition period. For enquiries, please feel free to email to dinna@amazingborneo.com or contact myself at +60128552009.
Thank you.
Best regards,
Dinna Chong
Business Development Manager
Discussion