Donald has an unit of office with market value around RM800,000 which is vacant. His wife, Daisy, urge him to sell it before 1st April 2015 as she understands that office unit is a standard rated supply and thus Donald will have to register for Goods and Services Tax (“GST”) from the Royal Malaysian Custom Department (“RMCD”) and charge GST if he sells the same after the implementation date. Is that true?


GST shall be charged by a taxable person (person liable to be registered if his total taxable supply in 12 months exceed RM500,000) in the course or furtherance of business on any taxable supply of goods or services in Malaysia.

As such, upon the GST implementation date, David does not need to charge GST as the sale of his unit of office would not be treated as carrying out business notwithstanding the sale is more than RM500,000 in a 12 months period. This was further confirmed by the RMCD through their Panel Decision 4 published in the official GST website.

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