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 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
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.
These are regarded as incidental exempt supplies and input tax on them are attributable to taxable supply and input tax is claimable.