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.
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.
Are supplies by Lazada subjected to GST?
Lazada will account for GST on the taxable supplies made such as commission, payment fees and shipping fees.
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 charges seller a fee of RM1000, this amount is subject to GST at 6%. Therefore, a total RM1060 will be charged to the seller.
Is the sale price of the product inclusive of GST?
For GST registered seller, the sale price updated in Lazada Seller Center is supposed to be inclusive of GST unless the item is zero rated as per GST rules. Seller should select the correct the tax class accordingly
What is the GST treatment for Designated Area?
For GST registered seller:
For the purpose of GST, goods supplied from Malaysia to designated areas are zero-rated as stated in the Goods and Services Tax (Zero Rated Supply) Order 2014. However, services supplied from Malaysia to designated area are subject to GST as they are local supplies. Therefore, only goods are subject to 0% and services such as shipping fee or surcharge are still subject to 6%. If the good is standard rated (6%), when it is delivered to Designated Area, the GST will be reduced accordingly from the sale price after seller discount.
Eg: Sale price is RM106 and seller discount is 10%.
Price after discount = 106 – [10% x 106 = 10.6] = 95.4
GST included in Price after discount = 95.4 / 1.06 x 6% = 5.4
So, nett paid price by customer = 95.4 – 5.4 = 90
However, if the good is already zero rated, no GST adjustment required.
What is zero rated goods?
All the items as listed in Goods and Services Tax (Zero Rated Supply) Order 2014. You may refer to this link. If you are selling sundry goods, you may also refer to this guideline for further details.
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.