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EVENT MANAGEMENT SERVICE PROVIDED TO FOREIGN CLIENT

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EVENT MANAGEMENT SERVICE PROVIDED TO FOREIGN CLIENT

Post by stella1234 on Thu Apr 16, 2015 10:16 am

Good day. I would like to seek your advice on GST issue.

My company is an event organizer and a GST registered person. And we are engaged by an client based in UK to run an event in Malaysia. We have provided event management services, including arrange venue, manpowers, machines, facilities, food and beverage, furniture, provide equipment and installation and etc.

Please advise if my service provided to this UK company an export for GST purposes and thus not subjected to GST?

Looking forward to your reply and thank you for your time.

stella1234

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Re: EVENT MANAGEMENT SERVICE PROVIDED TO FOREIGN CLIENT

Post by joseph on Thu Apr 16, 2015 10:21 am

It is a local supply of services, not export services. It is subject to GST.

_________________


DISCLAIMER:
Any opinion expressed is strictly my personal view based on my understanding and interpretation of the GST Act 2014, Regulations, Orders, DG's Panel Decisions and Customs' Guides. You should seek advice from experts and/or the Customs Dept if the subject matter is significant to your business.

joseph

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Re: EVENT MANAGEMENT SERVICE PROVIDED TO FOREIGN CLIENT

Post by stella1234 on Thu Apr 16, 2015 10:33 am



I saw this from Kastam Guide. If the event benefit to foreign client, it should be zero rate?

stella1234

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Re: EVENT MANAGEMENT SERVICE PROVIDED TO FOREIGN CLIENT

Post by joseph on Thu Apr 16, 2015 12:48 pm

Only services as stated in Second Schedule of the GST (Zero-Rated Supply) Order 2014 can be zero-rated.

Item 12 of Second Schedule of the GST (Zero-Rated Supply) Order 2014 is not very clear.

Read the following GST guides:
1) General Guide
2) Supply
3) Export
4) Event Management Industry

In UK, B2B supply of such services depends on where the events actually take place. If the events take place in the UK, then subject to UK VAT.


Last edited by joseph on Wed Jul 08, 2015 5:41 pm; edited 1 time in total

_________________


DISCLAIMER:
Any opinion expressed is strictly my personal view based on my understanding and interpretation of the GST Act 2014, Regulations, Orders, DG's Panel Decisions and Customs' Guides. You should seek advice from experts and/or the Customs Dept if the subject matter is significant to your business.

joseph

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Re: EVENT MANAGEMENT SERVICE PROVIDED TO FOREIGN CLIENT

Post by joseph on Thu Apr 16, 2015 12:58 pm

Taken from GST Guide on Telecommunication Services:


_________________


DISCLAIMER:
Any opinion expressed is strictly my personal view based on my understanding and interpretation of the GST Act 2014, Regulations, Orders, DG's Panel Decisions and Customs' Guides. You should seek advice from experts and/or the Customs Dept if the subject matter is significant to your business.

joseph

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Re: EVENT MANAGEMENT SERVICE PROVIDED TO FOREIGN CLIENT

Post by stella1234 on Thu Apr 16, 2015 4:34 pm

Thank you for your reply.

So, in my case, the contracting party is UK (outside Malaysia)

Event happend in Malaysia ( service to Malaysia)

Benefit to my UK client ( outside Malaysia)

so, my event management services, including arrange venue, manpowers, machines, facilities, food and beverage, furniture, provide equipment and installation and etc. is under ZERO RATED SUPPLY?

Correct me if I am wrong.


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Re: EVENT MANAGEMENT SERVICE PROVIDED TO FOREIGN CLIENT

Post by joseph on Thu Apr 16, 2015 5:55 pm

Based on strict interpretation of the GST (Zero-Rated Supply) Order 2014:

Services supplied under a contract with:
1) a person who belongs in a country other than Malaysia (your client belongs in UK)
2) directly benefit a person who belongs in a country other than Malaysia (your client in UK is the one benefited)
3) who is outside Malaysia at the time the services are performed (your client is domiciled in UK)

Your company's service does qualify to be zero-rated.

In Singapore, the above wordings used are almost similar
http://www.iras.gov.sg/irashome/page04.aspx?id=834

This seems to run contrary to the general concept of cross-border GST/VAT where the destination principle is widely practised. Wherever the goods or services are consumed/performed, that is where GST/VAT has to be charged.

Ask your UK client if they have to account for VAT on your services or not. If they do not have to account for VAT, then you should charge GST in Malaysia. GST/VAT has to be charged either in Malaysia or UK.

In Australia, broadly, a supply of a service is GST-free (zero-rated) if the recipient of the service is outside Australia and the use of the service is outside Australia.
https://www.ato.gov.au/Business/GST/When-to-charge-GST-(and-when-not-to)/GST-free-sales/Exports/

If a service is physically performed in Australia, then this is a supply connected with Australia and so will be subject to Australian GST law.
https://www.ato.gov.au/Business/GST/In-detail/Rules-for-specific-transactions/International-transactions/Common-GST-errors---importing-or-exporting/

Confirm with Customs Dept. Write to them via TAP of GST Customs portal (log in to your account).

_________________


DISCLAIMER:
Any opinion expressed is strictly my personal view based on my understanding and interpretation of the GST Act 2014, Regulations, Orders, DG's Panel Decisions and Customs' Guides. You should seek advice from experts and/or the Customs Dept if the subject matter is significant to your business.

joseph

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Re: EVENT MANAGEMENT SERVICE PROVIDED TO FOREIGN CLIENT

Post by stella1234 on Fri Apr 17, 2015 8:46 am

2) directly benefit a person who belongs in a country other than Malaysia (your client in UK is the one benefited)

Actually how to interpret "Direct benefit"?

stella1234

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Re: EVENT MANAGEMENT SERVICE PROVIDED TO FOREIGN CLIENT

Post by joseph on Mon Apr 20, 2015 9:42 am

Read the link to Singapore IRAS above.

_________________


DISCLAIMER:
Any opinion expressed is strictly my personal view based on my understanding and interpretation of the GST Act 2014, Regulations, Orders, DG's Panel Decisions and Customs' Guides. You should seek advice from experts and/or the Customs Dept if the subject matter is significant to your business.

joseph

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Re: EVENT MANAGEMENT SERVICE PROVIDED TO FOREIGN CLIENT

Post by joseph on Thu May 14, 2015 1:01 pm

Yes, you can zero-rate your event management services to your UK customer.

_________________


DISCLAIMER:
Any opinion expressed is strictly my personal view based on my understanding and interpretation of the GST Act 2014, Regulations, Orders, DG's Panel Decisions and Customs' Guides. You should seek advice from experts and/or the Customs Dept if the subject matter is significant to your business.

joseph

Posts : 277
Join date : 2014-09-25

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Re: EVENT MANAGEMENT SERVICE PROVIDED TO FOREIGN CLIENT

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