Tuesday, 31 March 2015

GST and the travel industry .. in a nutshell

I hope by sharing the below, it can shed some light on what is taxable and what is not in the travel and leisure industry.. 

This is in a very nutshell as it will affect all of us in a way or another.. 

Items that are bought, paid, finalised, completed pre-GST (aka today) that have GST = are deemed to be GST-inclusive.. Hence the operators, carriers, providers CANNOT ask for more money from you..

Tomorrow onwards, the below will take effect.. This applies to all human beings as the tax regime does not recognise your nationality, as long as the item is consumed in the country and is taxable, it is taxable.. 

'nuff said..

Disclaimer: this is as far as the industry and I know, I stand corrected if there is any error but this is not conclusive, but safe to say, final. 

a) domestic (except Langkawi, Labuan and Tioman) = 6%
b) domestic* Langkawi, Labuan and Tioman = no GST
c) overseas = no GST

* includes car rental, excursion, hotel, restaurants, shopping etc CONSUMED WITHIN the boundaries of the duty-free islands BUT excluding ferry/flight into or out of the island. 
Items bought in these islands are already duty-free, hence it is TAX-FREE = NO GST! You can still bring these items out back home etc for personal consumption without duty or GST being taxed on you at the departing ports.. 

a) domestic = 6% on everything (fare, airport tax, levy, taxes, fuel).
b) international = no GST for ALL airlines EXCEPT Malaysia airport tax = 6%.
c) domestic connecting to international = no GST on the condition the international flight is within 24 hours from the arrival of domestic flight into international hub EXCEPT Malaysia airport tax = 6%.
d) baggage/meal etc = to be treated the same as above in according to domestic, international or domestic-international connecting.

- Any flights originating from an international point into Malaysia = no GST. 
- International point to international point but ticket bought in Malaysia = no GST (except maybe the handling fee by agent, credit card fee eg airline website if the airline is GST registered, will have GST, else no).

a) Actual visa fee charged by embassy = no GST
b) Handling fee charged by agent(s) = 6%

Any type by any words which imply a service fee = 6%


a) within Malaysia = 6%
b) overseas = no GST

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