GST Effect: Domestic Travel vs. International Travel

25 MARCH 2015

GST EFFECT: DOMESTIC TRAVEL VS. INTERNATIONAL TRAVEL

GST effect on Travelling

Most of our spending goes towards transport, accommodation and dining when we travel. An Industry Guide published by the Royal Malaysian Customs Department defined the application of GST in the travel industry and here’s how we, as a consumer, will be affected it when you travel Domestically and Internationally from April 1, 2015.

 

GST Effect on the cost of your holidays

GST affect travelling

*Amended and updated on 26 March 2015

A few other things…

  • If a local travel agent has commissioned another travel agent to run an inbound package, GST will be charged on the commission payable.
  • GST on Domestic Travel is quite straightforward.
  • GST on International Travel will have both standard-rated (6%) and zero-rated elements especially in tour packages. (Eg: the price package for London will be zero-rated but GST will be imposed on commission, airport tax and the passage service charge.)
  • No news on airlines absorbing the GST for local flights, thus domestic flight tickets will cost more from April onwards.

Know what you are paying for, it's up to us to understand how GST works. 

(Content source: The Rakyat Post) 


JQ Lee
Editor

JQ Lee talks and writes for a living. That's because she loves sharing interesting things to the world. With a Degree in Communication and Media Management, this petite Gen-Y will not stop chasing her passion in writing and broadcasting. She dreams to host a travel show and be a radio announcer someday, hopefully soon.

Stalk this wacky fair Asian girl at www.jqtalks.comInstagram and Twitter

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