Thank you for your participation for the training held on March 8, 2016.
The following is the question and answer summary for the training on March 8, 2016 (Kuala Lumpur). Please read the PDF document for detail explanation
- Tripartite Arrangement between local hotel, overseas booking agent and local consumer. Local hotel and overseas booking agent must have a binding agreement. Local hotel has to issue tax invoice to overseas booking agent for consumption. Overseas booking agent will issue commission invoice to local hotel. Local hotel has to do reverse charge mechanism. Consumer whose paid to overseas booking agent will receive hotel voucher. However, consumer will not entitle for input tax credit.
- Withholding tax and GST - GST on reverse charge mechanism is calculated based on total payment to overseas.
- How does Trade-In work - Trade-in will work either as a reduction in retailer's tax invoice or seller has to issue tax invoice. As a GST registrant, I would suggest to issue tax invoice. As a consumer, let the retailer's handle the trade-in in the tax invoice.
- GST Clearing - It is used to capture GST value in K1 valuation, gift rule and open market mechanism which are not accounting value but these are GST value.
- Transfer fixed assets from overseas - The time of supply to trigger GST is upon importation. Journal reclassification to use cost, net book value and fair value is not within the scope of GST. GST must be paid upon importation and GST registrant claims input tax credit with proper K1 and customs official receipt.
- Date of Supply for Vendor - It is based on tax invoice date as the vendor holds the tax invoice. This date will use to calculate "invoice more than 6 months adjustment"
- All recoveries will subject to GST as reimbursement, except disbursement items
- Cancellation of part payment - It is either forfeited, refund and issue credit note to settle it. GST is implied with different situation.