EVENT MANAGEMENT SERVICE PROVIDED TO FOREIGN CLIENT

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.

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

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

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.

Taken from GST Guide on Telecommunication Services:

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.

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).

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"?

Read the link to Singapore IRAS above.

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