Place of Supply

A supply of goods or services will be within the scope of GST and therefore chargeable to GST if the place of supply is in Malaysia.

Supplies made outside Malaysia are considered to be out of the scope of GST.


PLACE OF SUPPLY OF GOODS

The place of supply of goods is in Malaysia if the supply involves goods which are removed:-
- from a location in Malaysia to another location in Malaysia; or
- from a location in Malaysia to a location outside Malaysia (export – zero rated)

The place of supply of goods is outside Malaysia if the supply involves goods which are moved:-
- from a location outside Malaysia to another location outside Malaysia (out of scope); or
- from a location outside Malaysia to a location in Malaysia (importation of goods)

Although the place of supply is outside Malaysia, the goods are subjected to GST on importation unless the importation is done under a suspension (eg ATS) or relief arrangement.


PLACE OF SUPPLY OF SERVICES

The place of supply of services is treated as in the country where the supplier belongs.

A supplier belongs in Malaysia if:-
- he has in Malaysia a business or other fixed establishment and no such establishments elsewhere; or

- he has no business or fixed establishments anywhere, but the country where he usually resides or legally constituted (in the case of a company) is Malaysia; or

- he has business or fixed establishments in Malaysia and elsewhere and the country of the establishment most directly concerned with the supply is Malaysia.

Where a supplier belongs in Malaysia, every supply of services provided by him is within the scope of GST. GST would then be chargeable.

GST is also chargeable on imported services if the services are consumed in Malaysia even if the supplier does not belong in Malaysia