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Overseas suppliers selling goods on consignment

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Overseas suppliers selling goods on consignment

Post by vias on Fri Apr 24, 2015 5:45 pm

overseas suppliers selling goods to Malaysian customers are required to register GST as the title of goods passes in the consignment hub in Malaysia. This may create PE exposure for the overseas suppliers. Have anyone clarified the above PE issue with Malaysian tax authority?

vias

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Re: Overseas suppliers selling goods on consignment

Post by joseph on Fri Apr 24, 2015 8:57 pm

Where did you get the idea that overseas suppliers selling goods to Malaysian customers are required to register GST?

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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: Overseas suppliers selling goods on consignment

Post by vias on Fri Apr 24, 2015 9:44 pm

I was by our customer's tax adviser in Malaysia that if the title of goods passes in Malaysia, the supply would then happen in Malaysia. If the GST threshold is exceeded, then, gat registration is required under the law.

vias

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Re: Overseas suppliers selling goods on consignment

Post by joseph on Fri Apr 24, 2015 10:39 pm

Are you the overseas supplier?

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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: Overseas suppliers selling goods on consignment

Post by vias on Fri Apr 24, 2015 10:53 pm

Yes

vias

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Re: Overseas suppliers selling goods on consignment

Post by joseph on Fri Apr 24, 2015 11:29 pm

GST is charged on:-
1) any taxable supply of goods and services;
2) made in the course or furtherance of any business;
3) by a taxable person; and
4) in Malaysia.

GST is also charged on the importation of goods and services into Malaysia.

If the goods are supplied from overseas to Malaysia, the place of supply is outside Malaysia -> not 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

Posts : 277
Join date : 2014-09-25

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Re: Overseas suppliers selling goods on consignment

Post by vias on Sat Apr 25, 2015 5:54 am

But if the title is passed after importation, then, it means we are liable to GST at the point of importation. We need to charge the customer GST at the time the customer pull the good from the warehouse in Malaysia. The time of supply occurs in Malaysia.

vias

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Re: Overseas suppliers selling goods on consignment

Post by joseph on Sat Apr 25, 2015 11:05 am

I suppose you are selling on CIF terms. Your resposibility as the seller should end once the goods reaches the port of choice of the buyer. It is the buyer or their fowarder who is responsible to clear the goods from the Customs, and responsible to pay customs duty, excise duty and GST. It is the buyer who has to account for GST, not the overseas seller.

_________________


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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