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Industry Guide:

Shipping Industries

 
Please click here to download complete guide.

 

FREQUENTLY ASKED QUESTIONS 

1. I am a tugboat operator in Kota Kinabalu Port. I bought a tugboat from a supplier in Labuan. Will I be charged GST by my supplier? 

No, your supplier will not charge you GST, however you need to pay GST for the importation of the tugboat. Please refer Guide on Designated Area for more information. 

2. I own a powerboat and it is leased to a hotel in Langkawi. The guest of the hotel will charter my boat for sightseeing around Langkawi. As a GST registered person do I need to charge GST on the leasing of the powerboat?

No GST is chargeable for any supply made in the designated area. 

3. Is handling services provided to a foreign owned yacht subject to GST?

Yes, yacht is not a qualifying ship therefore it is not entitled for zero rating.

4. I operate a fishery jetty which is under the purview of the Fishery Development Authority of Malaysia (LKIM). I will charge handling services to the fishermen which includes mooring charges and provision of ice to the fishermen. If I am GST registered person, do I need to charge GST for my services?

A trawler is a qualifying ship, therefore it qualifies for zero rating treatment for the handling services provided by you. As a GST registered person you need to charge the fishermen zero rate for the handling services. 

5. A powerboat operator sends its boat to me for repair and maintenance services. As a GST registered person do I need to charge GST?

Yes, you need to charge GST because powerboat is not a qualifying ship. 

6. I have a company in Port Dickson which manages powerboats belonging to a few individuals. I charge the owners of the powerboats for the services of managing the powerboats. Can I zero rate my services?

No. Powerboats which are used for recreational purposes do not qualify for zero rating.

7. My company is appointed by a Malaysian shipping company to issue classification certificate for a ship which is built in Japan. Do I need to charge GST for the classification service if I am a GST registered person?  

Although the classification service is performed in Japan, for GST purposes it is considered as a supply of service made in Malaysia and the supply is treated as zero rated. Please refer to Guide on Supply for further information regarding “place of supply”.

8. My company is engaged to afloat a sunken boat in a river. As a GST registered person do I need to charge GST?  

No. Salvage services is subject to GST at zero rate.

9. I own a few containers which are not registered with any standardization organization. Currently, the containers are used for transportation of cargo by land. As a GST registered person, do I have to charge GST if I sell the containers?  

Yes. The sale of the containers is subject to GST at standard rate because the containers do not adhere to the standardization requirement. 
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L & Co Plt.

Johor
18A & 20, Jalan Sasa 2, Taman Gaya, 81800 Ulu Tiram, Johor, Malaysia.
Tel +607-859 0410
Fax +607-863 1003
Penang
S1-3, 1-21-01, Suntech @ Penang Cybercity (1575), Lintang Mayang Pasir 3, 11950 Bayan Baru, Penang, Malaysia
Tel +604-377 7075
Fax +604-619 2699
 
     

What Our Client Say

     
L & Co always carry their services in professional way – well planning, in time, precise, friendly and professional. While we are stuck with problems, they can always advice us with industrial best practices and their views.
 
YM Tan
ICT Automation (M) Sdn Bhd
www.ict.com.my
 
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