What is GST (Goods & Services Tax)?
The list of Frequently Asked Questions provided are for guidance only and are subject to change from time to time.
What is GST?
GST was implemented on 1 April 2015 to replace the previous Sales and Service Tax. The introductory GST rate in Malaysia is 6% and will be calculated based on the value of the goods or services. GST is a multi-stage consumption tax, levied on the supply of goods and services at every stage of the supply chain, unless specifically exempted. As announced by the government on 16 May 2018, effective 1 June 2018, the supply of goods and services made in Malaysia, as well as the import of goods and services subject to the Goods and Services Tax (GST) at the standard rate of 6%, will now be subject to GST at zero rate (0%).
Are supplies by Lazada subjected to GST?
As a GST registered person, Lazada should account for GST at prevailing Standard Rate which is now 0% on the taxable supplies made such as commission, payment fees, shipping fees and etc
Can I claim back the GST which I have paid for?
You may only claim the GST if you are a GST registered seller and it is still subjected to other restrictions such as mixed supply, availability of valid tax invoice and etc. Please refer to Customs guide of Guide on Input Tax Credit for further understanding.
Must tax invoices be in the form of hard copy?
No, tax invoices can be in the form of electronic form;soft copy. Lazada may provide seller with electronic documents such as tax invoice, receipt, credit note, debit note, or any other document.
How is GST charged by Lazada?
If Lazada charge seller a fee of RM1,000, this amount is subject to GST at 0%. Therefore, a total RM1,000 will be charged to the seller
Is the sale price of the product inclusive of GST?
Price of all items in Lazada website is final and no GST is included in the price effective 1 June 2018.
What is the GST treatment for Designated Area?
As Goods and Services Tax (Imposition of Tax for Supplies in respect of Designated Areas) Order 2014 has been revoked effective 1 June 2018, all supplies to Designated Area will be subjected to prevailing Standard Rated 0%
What is zero rated goods?
As Goods and Services Tax (Zero-rated Supply) Order 2014 has been revoked effective 1 June 2018, all zero-rated supplies will be subjected to prevailing Standard Rated 0%.
As a GST registered seller, what are seller’s responsibility?
The sales made to buyer via Lazada Market Place model (dropshipping / FBL) is purely a supply by seller. Seller should account the GST accordingly on each of the supply to buyer and comply with any other requirements under the GST legislation. Seller shall keep all the records related to this supply. Seller should ensure valid tax documents to be produced to customer for the orders via Lazada platform as highlighted in MP Agreement under Seller Undertakings clause.
The use of Tax Invoice / Invoice facility provided by Lazada is at your discretion. Seller is fully responsible to check the accuracy of the document before sending it to customer. If you have issued the tax Invoice to customer, any adjustment pertaining to the order such as return order, wrong figures and etc should be adjusted according to the GST rules.
Check out our tutorial videos and easy to learn deck by visiting Lazada University for more information.