Implementation of 6% GST by Malaysian Government for Tours & Services Starting from 1st April 2015
The Malaysian government has announced that effective 1st April 2015, it will implement a Goods and Services Tax (GST) rate of six (6) percent. This would mean that starting from 1st April 2015, 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.
If your tour/accommodation date is on/after 1st April 2015, all rates will be subject to 6% GST with immediate effect regardless of your booking dates, including existing bookings.
EXAMPLE A: (Invoice issued in January 2015 but tour in June 2015)
Mr A bought a 4 Days 3 Nights Kota Kinabalu Ground Tour on 5th January 2015
Tour price at RM4000 - billed in January
Deposit paid RM500/- on 15 January 2015
Original Balance payment RM3500/- due on 01 May 2015
Due to the new GST implementation in 2015,
Mr A must now pay RM3740/- upon making his full payment to VI Vacation.
Calculation as follow:
RM240 (6% GST of RM4000) + RM3500 (Original Balance Payment) = RM3740/-
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 contact us. Thank you.