gst on advertising
TRANSCRIPT
Guide On Advertising Services
Loh Boon How, CA
Draft as an 28 Jan 14
What is the type of advertising
1. A personality supplied directly to the person whoseproducts are advertised
Example : The football team wearing the jersey withsponsors name.
2. The display of a sponsor’s name in return for apayment.
3. Supplies of services used in connection with specificadvertising, promotion or sponsorship
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What is the type of advertising
Example : a master advertising film, tape, record,poster, picture or photograph.
4. A promotional campaign by an advertising agency tolaunch a client’s new product
Example : trade events or promotional booth for thepublic in general.
5. Web site advertising – access to all = 0 rated
- viewers in M’sia – Std rate
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Who provider advertising services?
Media owner Television
Newspaper
Magazines
Radio
Outdoor advertisement(Billboards)
Online advertising (phone & internet)
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What is advertising services?
1 Advertising space Hardcopy print
Outdoor advertisement
2 Advertising space Online advertising
3 Advertising time Broadcasting in television
Broadcasting in radio
4 Advertising in circulation
In physical
In digital form
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Who are the supplier of services
From media
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Media Owner Advertisers
Supplier of services
Who are the supplier of services
From
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Media Owner Advertisers
Supplier of services
Media / advertising
agencies
Supplier of services
As principal
Who are the supplier of services
From
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Media OwnerAdvertisers
Supplier of services
Media / advertising agencies
Supplier of services
As an agent
The role of advertising agency
Standard rate Zero rate
The circulation is inMalaysia
The circulation is outside Malaysia contract with local advertising agency
The circulation is outside Malaysia contract with oversea advertising agency
Oversea circulation
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What is the taxable supplies?
How Where
1 Advertising time Radios
Television
2 Advertising place billboard
3 Promotionalactivities
Telephone directory
Electronic location
Creative artwork services
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When is the time of supply?
When the advertising services is performed,
When the payment is received,
When the tax invoice is issued
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When is the basic tax point
Media Owner Creative and production services
When it is viewed / broadcaster
When the creative work and artwork is created and accepted
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Where is the supply?
Advertising Agency
Circulated in Malaysia Standard rate
Television and radio channels inMalaysia (Whether the advertiseris oversea / local)
Standard rate
The place of subscribers inMalaysia
Standard rate
Circulated outside Malaysia Zero rate
Billboard in Designated area No GST
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Where is the supply
Advertising Agency
Advertise oversea newspaper
Out of the scope ofGST
Both Malaysia and oversea Zero rate if 51%circulated in oversea
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Media planner
Contract with the overseas holding company for its group of companies
Zero rate
Provide a production work for a Malaysian client (Oversea usage)
Standard rate
Where is the supply
Media planning
Local media planner pay service fee tooversea advertising agency
Zero rate
International flight through magazinesand media (Circulated outside Malaysia)
Zero rate
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An approved charities
The supply services by advertisingagency - as a principal (Without anycharge)
GST (Relief from tax)
Order
The supply services by media owner Standard rate
Where is the supply
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An approved charities
The supply services by advertisingagency - as an agent (Without anycharge)
Standard rate
The supply services by mediaowner
GST relief treatment
Advertising on a charity’s web-site Standard rate
How is the sponsorship GST treatment
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Sponsorship
Monetary sponsorship Not GST
In return provides advertising in his own web-site
GST based on the open market value
Waiving of pitch fee Recover the GST paid (A GST adjustment)
How is the licenses GST treatment
Licenses
Temporary occupation of land(placement billboard)
Out of scopeGST
A permit fee for billboardadvertising to local authority
Out of scopeGST
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What is the treatment ofcomplimentary copies
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Complimentary Copies
Free magazines given to readersor potential clients
Restricted to RM500 gift rules
Copies of current issues oncomputer (places anadvertisement in that issue)
Not GST part ofthe package
supplied
Thank You
B. H. Loh & Associates
Address :
No. 1-3-15, Goldhill Complex,
Tingkat Paya Terubong 1,
11060 Penang.
H/P No. : 016-4893382
Email : [email protected]
Web-site / facebook : bhloh.com.my
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