GST Guide for Property Buyers and Investors

Sale and Rental / Lease Transaction

Residential :
1. No GST (supply is exempt-rated GST)

Maintenance Fees
No GST for maintenance of residential stratified properties (exempt-rated).

Commercial :
1. GST shall be charged, on the following conditions:

- Vendor is selling a commercial property in furtherance of business. Example: property developer selling commercial properties to investors.

- The commercial property is under the name of the Vendor, either a company of individual or sole proprietor for GST, any of whom that have 12-month combined business revenue of at least RM500,000.

- If the vendor sells 2 or more commercial properties whereby valued at more than RM500,000 within a 12-month periodm then the vendor must be GST-registered and charged GST.

- If the total rental income received by the Landlord which is derived from all commercial properties under its ownership over 12 month period is at least RM500,000.

- If the vendor is GST-registered by voluntary registration.

2. For new purchase of commercial properties, GST is charged at each stage of progressive payment.

3. Personal and household incomes are out of scope from GST.

Residential - all kinds of houses, apartments, condominiums, serviced apartments.

Commercial - shoplots, offices, retail lots, SoHos, SoVos, SoFos, factories, serviced residences that are managed by a GST-registered operator, hotel, motel, inn, hostel, warehouses, comping ground, time-sharing properties.

Provision of GST exemption: any long term accommodation under lease or rental agreement that can prove a unit being used for residential purpose only.

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