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Overseas suppliers selling goods on consignment
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Overseas suppliers selling goods on consignment
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- Posts : 4
Join date : 2015-04-24
Re: Overseas suppliers selling goods on consignment
Where did you get the idea that overseas suppliers selling goods to Malaysian customers are required to register GST?
joseph- Posts : 277
Join date : 2014-09-25
Re: Overseas suppliers selling goods on consignment
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- Posts : 4
Join date : 2015-04-24
Re: Overseas suppliers selling goods on consignment
Are you the overseas supplier?
joseph- Posts : 277
Join date : 2014-09-25
Re: Overseas suppliers selling goods on consignment
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.
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.
joseph- Posts : 277
Join date : 2014-09-25
Re: Overseas suppliers selling goods on consignment
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- Posts : 4
Join date : 2015-04-24
Re: Overseas suppliers selling goods on consignment
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.
joseph- Posts : 277
Join date : 2014-09-25
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