GST System Changes Newsletter

Enter 8, Name and Email
Name:
Email:

SWPC Latest Events

Thu Aug 13 @10:00 - 05:30PM
Webinar: Latest Sales Tax Mechanism and Exemption Facilities for Manufacturers and Traders Updates
Fri Aug 14 @09:00 - 05:00PM
Mastering Management Accounting and Management Accounting Reports
Fri Aug 14 @10:00 - 05:30PM
Webinar: Latest Sales Tax Mechanism and Exemption Facilities for Manufacturers and Traders Updates
Mon Aug 17 @09:00 - 05:00PM
销售税最新进展
Fri Aug 28 @09:30 - 05:30PM
Mastering Data Analysis Tools using Microsoft Excel

Tripartite Arrangement for GST - Hotel Booking

Tripartite Arrangement in accommodation that involves local hotel, overseas booking agent and local consumer. Payment is received by overseas agent from local consumer.As such, local consumer does not entitle for input tax credit as there is no tax invoice issued from overseas booking agent. It will give a hotel voucher to check-in. At the same time, local hotel will not issue tax invoice to local consumer as the payment is made to overseas agent. 

In the tripartite arrangement, there must be a binding agreement between overseas booking agent and local hotel. Local hotel will issue tax invoice to overseas booking agent as the place of supply is in Malaysia.  Local hotel receives payment including all taxes from overseas booking agent since the local consumer paid in full.

Under this arrangement with local GST consumer, local hotel and overseas booking agent, no input tax credit is cited. Local hotel has to pay output tax.

Please read the document for other hotel booking scenario related to tripartite arrangement in hotel booking.

 

Attachments:
Download this file (Tripartite Arrangement for GST.pdf)Tripartite Arrangement for GST - Hotel Booking[GST Articles]366 kB

SWPC Rapid Contact

Please contact us if you have queries
Email:
Subject:
Message:
How many eyes has a typical person?

GST System Changes