Out of Scope Supply

Out of Scope Supply are supplies that are not within the scope of GST and therefore not chargeable to GST.

Below are out of scope supply:-

• Non business supply

• Supply of goods made outside Malaysia (eg supply of goods from China to UK)

• Supply of services made by a person who does not belong in Malaysia except for imported services

• Business below RM500K threshold

• Government supply except selected prescribed services

• Supply by statutory bodies and local authorities with respect to regulatory and enforcement functions; and

• Supply of goods or services made within or between designated areas (Labuan, Langkawi and Tioman)

Hi Joseph,

One of our customer is an international company based in Singapore, they have a contract with end user in Malaysia and they outsource the service to us. We have been sending bills to their Singapore office, but supporting end user in Malaysia. Is it consider export?

Thanks

Thank you.

1) Are you acting as an agent to the Singapore company or as a principal?
2) Are you billing their Malaysian customers?

Acting as an agent.
We have never billed their Malaysian customers.

Thanks

Yes, exported services and can be zero-rated as per Item 12 of the GST (Zero-Rated Supply) Order 2014. Please note the exception 12(a) and 12(b).

Hi Joseph,

Free Zones like PKFZ does it consider not within the scope of GST like those in Designated Areas such as Langkawi or Labuan?

Thanks

Sorry, I have no knowledge about Free Zones. Customs has a guide on Free Industrial Zone & Licensed Manufacturing Warehouse. Please read.