Frequently asked questions
1) What is the GST treatment if a hotel charges a customer on no show?
- No show charges is subject to GST.
- It cannot be treated as penalty since the supply of room, has been made to customer.
2) What is the GST treatment on rooms that are provided with furnished sleeping accommodation, spa, gym and laundry services to hotel guests?
- Supply of room with furnished sleeping accommodation is subject to GST
- Recreational facilities such as spa, masseur services, compact gym and laundry services are taxable supplies and subject to GST at standard rate
- If services provided are not part of the room accommodation services, these services should be stated in a separate bill with the amount and GST charged indicated
- If it is provided as part of the accommodation package, then these services are to be considered as a single supply for charging GST
3) A hotel making extreme promotion package, charges RM 1.00 per night stay as an annual event during school holidays. On what value should GST be charged?
- GST is to be charged on the actual amount paid