20180329 (Thu)
GST in Real Estate. What are they?
There are two parts to this. One is the GST on the service. Another is GST on the Goods Sold. One is on service rendered and the other is the goods sold – the property. They are two separate things. First, GST on service rendered. It has been discussed yesterday. Today is about GST on the real estate. There are two categories, one is residential and another is commercial/land. Residential is exempted. Commercial/land above RM2 mio would require the payment of GST. However, the seller has to collect, not the agent or the lawyer or the purchaser. Next is the issue of input and output GST. Output tax is the RM6 of RM100 paid by purchaser. Input tax is the part you can claim back from Director General if you have paid for GST when acquiring the goods earlier on. If you had paid RM4 as GST for this property, you just need to pay the remaining RM2 for GST on this sale. According to the latest “GST General Guide” (amended on 25 January 2017), the registered person may be allowed to claim input tax on the goods he holds at the time of registration based on the approved amount by the Director General.
(Ref: https://www.3ecpa.com.my/taxation-and-gst/gst-and-commercial-property-in-malaysia/)