#1 What’s Goods and Service Tax (GST)?

GST, also known as VAT (value added tax) in many countries, is a multi-stage consumption tax on goods and services. GST shall be levied and charged on the taxable supply of goods and services made in the course or furtherance of business in Malaysia by a taxable person. 

#2 What is the difference between standard-rated, zero-rated and exempt supply in the context of Malaysian GST?

Standard-rated supplies are goods and services that are charged GST, currently set at 6%. GST is collected by a GST-registered business on behalf of the Government. 
Zero-rated supplies are taxable supplies that are subjected to GST at 0%. 
An exempt supply is not a taxable supply. Exempted supplies are non-taxable supplies. An exempt supplier cannot charge GST and therefore cannot claim GST input credits. 

#3 How does this impact me as a guest on AirAsia and AirAsia X flights?

As AirAsia Berhad and AirAsia X Berhad are Malaysian GST registrants, Malaysian GST will be applied for flight as follows:

• All Malaysian domestic flight bookings (fares, fees and add-ons) are standard-rated (GST at 6%)
• All international flight bookings are (fares, fees and add-ons) zero-rated.
• Fly-thru’s flight bookings are zero-rated provided that the journey starts with or ends with an international flight.
• International multi-city flight bookings have the same GST impact as international flights. 

Remarks: Passenger Service Charge (Airport Tax) plus Malaysian GST at 6% is applicable to all of the above.

#4 Is GST charged for Passenger Service Charge (Airport Tax)?

Passenger Service Charge (also commonly known as Airport Tax) which is collected by airlines from guests on behalf of MAHB (Malaysian Airport Holdings Berhad) will be charged GST at 6% for all domestic or international flights. Flights departing from Labuan, Langkawi and Tioman will be exempted this charge. PSC and Malaysian GST at 6% is applicable to all carrier codes for flights departing from airports in Malaysia (excluding flights departing from Labuan, Langkawi and Tioman).

#5 How do I check Passengers Service Charges for airports in Malaysia?

Please refer to this website. 

Note that AirAsia and AirAsia X is not liable for any changes information on independent webpages.

#6 I have purchased domestic flight (KUL-PEN) prior to 1st April 2015, and I would like to purchase checked my baggage and meals (add-ons) on 1st April 2015, do I have to pay GST?

Yes you will be charged GST. Since you purchased your domestic flight before 1st April 2015, AirAsia did not collect the Malaysian GST. However, as you added the checked baggage weight and meals on 1st April 2015, this will incur a 6% GST.

#7 Should I change my flight on 1 April 2015 (KUL-PEN), is this taxable as well?

Flight changes made to Malaysian domestic travel from 1st April 2015 will be charged a 6% GST. If you are changing your flight date or time, GST at 6% will be charged on the fare difference and flight change fee. Any add-on upgrades and add-on fees are also standard-rated at GST 6%.

#8 Where can I check on the fares and fee charges for both AirAsia and AirAsia X?

Log on to this website. 

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