Deemed Supply

Generally, goods or services supplied without consideration is regarded as not a supply and is not subject to GST.

However, under certain circumstances a supply of goods or services without consideration may be deemed as a supply (deemed supply) and GST is chargeable at 6%.

List of deemed supply is as follows:-
1.  Business gift of value of more than RM500.
2.  Disposal of business assets without consideration
3.  Private use of business assets
4.  Supply of services to connected persons

How about cash given as a present, which exceed RM 500 /person/ year (for Hari Raya, Chinese New Year etc), is it deemed supply? Generally money is not good and shall not be taxable under GST.

You are right! Money is neither goods nor services and is not subject to GST. Money cannot be consumed. When you use the money to purchase goods subsequently, you will be subject to GST.

Therefore, you will not be taxed when you receive money as a gift, because then you will be subjected to double tax.

If our company sponsor an event activity to a company or Institution, The sponsorship will be in money and more than RM10k, so how's the treatment for this kind of transaction??

If there is benefits in return, e.g. your company's name is prominently mentioned in the event activity, the sponsorship money is considered as consideration for advertising/promotional services provided by the company/institution. The company/institution will have to raise a Tax Invoice to your company and charge GST.

If there is no benefits in return, or merely an acknowledgement that your company sponsored the event, then such cash donation is not a supply and not subject to GST.

The word is publicity, not so much about advertising/promotional services.

We have some old CPU & Accessories, and decided to sell to our employees, for the business Fixed assets sell to employees, is it treat as deem supply to employees?

Is it need to charge 6% to our employees for the CPU sold??
or
We have to bear the output tax???

Hi

If the company sponsors shopping vouchers to customers, will it fall under gift rule? Because it is equivalent to cash sponsor to customers.

Thank you.

Is your voucher monetary (RM50 Cash Voucher) or non-monetary (free iPhone 6)?

If monetary, no GST upon issuance. If non-monetary, subject to Gift Rule.

We have some old CPU & Accessories, and decided to sell to our employees, for the business Fixed assets sell to employees, is it treat as deem supply to employees?

Is it need to charge 6% to our employees for the CPU sold??
or
We have to bear the output tax???

If you sell with consideration, it is a supply of goods.

Let's say, you sell an old PC to your staff at RM100 -> then issue a tax invoice for RM106, RM6 being the GST charged.

Should you decide to sell it at RM100 (GST-inclusive), then GST amount is RM100 x 6/106 = RM5.66.

Is the trade offer for example buy 5, foc 1, is this also categories under gift rules & we need to account for output tax?

No, B5F1 the F1 is a discount. Only account for output tax based on the discounted sales amount.