MAS to Charge 6% GST

[Mr.Bandit 0]

KUALA LUMPUR: Malaysia Airlines’ customers will be charged the 6% Goods & Services Tax (GST) on applicable goods and services supplied by the national carrier when it comes into effect on April 1.

Malaysia Airlines said on Monday this implementation adhered to the government’s announcement during the tabling of its Budget 2014 on Oct 25, 2013.

“The GST, however, will be replacing the company’s existing Sales Tax and Service Tax,” it said.

Malaysia Airlines said to be fully compliant, it would enhanceits tax invoices issued to customers to enable them to claim GST with input tax credits, where entitled.

For more information, please visit: http://www.malaysiaairlines.com/my/en/footer/goods-and-services-tax.html and refer to Malaysia Airlines’ GST Frequently Asked Questions (FAQ).

source : http://www.thestar.com.my/Business/Business-News/2015/03/30/Malaysia-Airlines-to-charge-customers-GST/?style=biz

 

KUALA LUMPUR: Malaysia Airlines’ customers will be charged the 6% Goods & Services Tax (GST) on applicable goods and services supplied by the national carrier when it comes into effect on April 1.

Malaysia Airlines said on Monday this implementation adhered to the government’s announcement during the tabling of its Budget 2014 on Oct 25, 2013.

“The GST, however, will be replacing the company’s existing Sales Tax and Service Tax,” it said.

Malaysia Airlines said to be fully compliant, it would enhanceits tax invoices issued to customers to enable them to claim GST with input tax credits, where entitled.

For more information, please visit: http://www.malaysiaairlines.com/my/en/footer/goods-and-services-tax.html and refer to Malaysia Airlines’ GST Frequently Asked Questions (FAQ).

source : http://www.thestar.com.my/Business/Business-News/2015/03/30/Malaysia-Airlines-to-charge-customers-GST/?style=biz

 

since GST news is really hot nowadays, so it means that taxes to be paid will be based on fare price? as the current one for domestic flight is RM9 and international one is RM65 where it applicable.

Edited March 30, 2015 by Wan

[Mohd Suhaimi Fariz 2]

KUALA LUMPUR: Malaysia Airlines customers will be charged the 6% Goods & Services Tax (GST) on applicable goods and services supplied by the national carrier when it comes into effect on April 1.

 

Malaysia Airlines said on Monday this implementation adhered to the governments announcement during the tabling of its Budget 2014 on Oct 25, 2013.

The GST, however, will be replacing the companys existing Sales Tax and Service Tax, it said.

Malaysia Airlines said to be fully compliant, it would enhanceits tax invoices issued to customers to enable them to claim GST with input tax credits, where entitled.

For more information, please visit: http://www.malaysiaairlines.com/my/en/footer/goods-and-services-tax.html and refer to Malaysia Airlines GST Frequently Asked Questions (FAQ).

source : http://www.thestar.com.my/Business/Business-News/2015/03/30/Malaysia-Airlines-to-charge-customers-GST/?style=biz

 

since GST news is really hot nowadays, so it means that taxes to be paid will be based on fare price? as the current one for domestic flight is RM9 and international one is RM65 where it applicable.

GST is applicable only to domestic flights.

[Mike P 0]

Of course no GST imposed while buying perfume on the air right?

[Zharif Zaini 0]

how will this effect the airfare?

[Mr.Bandit 0]

It's 1st April. The airfare see a hike with Gst implementation from base airfare with current airline imposed tax to domestic and International flight.

[Mr.Bandit 0]

MAS (include Maswings ) is not the only one airline carrier to charge GST. AK, FY follow the same trend

[Mushrif A 3]

Ironically, the GST is also applied on the airport tax charges. I know that the "airport tax" label is a bit of a misnomer, but you now get the situation of a tax-on-tax.

[Alif A. F. 0]

With effect from April 1, 2015, Goods & Services Tax (GST) will be implemented throughout Malaysia.

What does this mean to travelers shopping at airports managed by Malaysia Airports? Why should travelers shop at airports?

What are the advantages of shopping at airports?

What about GST Refund?

This Playbook serves to answer some of the more commonly-asked questions clearly.

Our goal is to minimise confusion, particularly during the initial period of GST implementation.

We invite you to read through each of the sections.

 

Source: http://www.malaysiaairports.com.my/?m=highlights&c=event&id=674

Edited April 1, 2015 by Alif A. F.

[Dr Chuo Hock Tieng 0]

good to know...

 

flying KCH KUL BKK on MH is zero rated

flying KCH KUL KCH on MH is standard rated

flying KCH SIN on MH is zero rated

flying KCH SIN on MI is zero rated

 

http://www.malaysiaairlines.com/my/en/footer/goods-and-services-tax.html

Edited April 1, 2015 by Dr Chuo Hock Tieng

[flee 5]

It's 1st April. The airfare see a hike with Gst implementation from base airfare with current airline imposed tax to domestic and International flight.

Airfares remain the same. But total cost of domestic tickets will increase as GST is added to the total cost of the ticket. Only international flights do not carry GST because they are considered as "exports".

[Suzanne Goh 0]

Airfares remain the same. But total cost of domestic tickets will increase as GST is added to the total cost of the ticket. Only international flights do not carry GST because they are considered as "exports".

 

You are right - international tickets do not attract GST, however the Airport Tax for KUL does - it goes from RM 65 to RM 68.90 or something like that.

 

One more thing to note, on domestic flights, MH has chosen not to absorb the GST on ancillary charges, and instead incorporates a rounding profit in the fee. A premium seat is now RM 22 from 20 and normal seat RM 11 from 10 - indicating a 10% rise even though GST is 6%

[Mushrif A 3]

That GST on seat selection fee also applies on international flights involving a M'sian port. But it seems to be imposed only on regional flights.

 

I noticed for long haul flights where seat selection costs RM150 or RM50 depending on seat location - no GST is imposed. Maybe MH is making pure margin on these that it decides to absorb the GST?

[Suzanne Goh 0]

That GST on seat selection fee also applies on international flights involving a M'sian port. But it seems to be imposed only on regional flights.

 

I noticed for long haul flights where seat selection costs RM150 or RM50 depending on seat location - no GST is imposed. Maybe MH is making pure margin on these that it decides to absorb the GST?

 

Ah i didn't notice that - looks like you're right - MH has chucked the extra fee on an ancillary charge that i think was not likely to have attracted GST anyway so it becomes pure profit. Haven't checked the long haul one though - but if there's no GST applicable, MH isn't really absorbing anything is it? The question is of course then, is GST applicable for ancillary charges for INTERNATIONAL flights?