Of late last year the Malaysian Royal Customs Department has did an update on the GST registration for individual supply for commercial property. My article dated October 9 2015 on GST for individual supply was written and immediately after that, on the 28th of October, the new decision take effect. Very flip flop right?
The RMC and MoF does not regard the individual as having an investment but supplying the property as a business gain. Shake your head with disappointment right?? All I can say is good luck to your grand children.
Below are the the latest decision by the Director General of Royal Malaysian Customs.
Whether an individual has to be charge GST when making a supply of his commercial property?
a) An individual is liable to be registered if his total taxable supply of the current month and the next 11th months exceed Rm500,000.00
b) Any individual who is not GST registered is treated as carrying out a business if at any one time owns the following:-
- more than 2 commercial properties
- more than 1 acre of commercial land; OR
- commercial property or commercial land worth more then RM 2 million
c) Any individual mentioned in paragraph (b) is liable to be registered for GST if the followings ensued:-
- has the intention to supply any of his commercial properties or commercial land; AND
- the total value of such supply exceeds the prescribed threshold in 12 months periods.
d) ‘at any one time’ mentioned in paragraph (iii) means at any point of time in his lifetime commencing after the effective date.
e) Any individual is treated as carrying out a business an making a supply of taxable service if the following ensued:-
- he is supplying any lease, tenancy , easement , license to occupy or rent ; AND
- his annual turnover for such supply has exceeded the prescribed threshold in the period of 12 months.
Sources: GST Royal Customs Malaysia Department
+All data and information is correct at time of upload. These articles are for information and basic educational purposes only.