Types of GST Supply

Taxable Supply 6%

  • Room Rate

  • Advanced Payment

  • Extra Charge

  • IDD call

Non-taxable Supply 0%

  • Security Deposit

  • Cancellation charges

Standard tax in Hotel Industry

Time share program

  • Charges or fees levied under the time share program are subject to GST
  • Facilities if provided as a package under the program, for example swimming pool, security services are not subject to GST if there is no charge.
  • If service is charged separately, than it is subject to GST.
  • Complimentary rooms for business associates put up for private use
  • Such complimentary rooms are subject to GST.
  • GST is chargeable based on the open market value.

Wedding package

  • Wedding package offered by hotel includes breakfast, buffet, meals, ancillary services such as floral decoration, services of toast master and room for bridal ceremony and bridal party.
  • The whole wedding package is treated as single taxable supply and subject to GST.

Hotel club facilities

  • Hotel’s club membership fees are subject to GST.
  • Hotel’s club facilities provided such as gym and swimming pool are subject to GST.

Gift provided to hotel guest

  • Purchase of gift on behalf of hotel’s guest at their request :
  • The hotel will include this cost as a separate charge.
  • The gift provided is a taxable supply and therefore subject to GST.

Out of Scope Supply in Hotel Industry

  • Supply of goods made outside Malaysia.
  • Supply of services made by a person who does not belong in Malaysia other than supply of imported services.
  • Grant / donation
  • Employment services provided to employers
  • Dividends received
  • Supply of goods or services made within or between designated area ( Labuan, Langkawi, & tioman)
  • Cancellation fees ( considered as Private Transaction)

Exempted Supply in Hotel Industry

  • Incidental exempt supplies in accommodation premises include
  • Deposit of money.
  • Currency exchange.
These are regarded as incidental exempt supplies and input tax on them are attributable to taxable supply and input tax is claimable.