WHATT? GST on Malaysian Bloggers?!

by - November 18, 2014

Ok, I may be over exaggerated but this is important.
With next year's GST hot on heels, how will it impact all of us as bloggers?

If you do not know what is GST, it stands for Goods and Services Tax;
also known as Value Added Tax (VAT), part of Malaysian Budget 2015.
This implementation is to substitute our current Sales and Service Tax (SST)
Due to take off on the 1st of April 2015, GST will weight 6% from our everyday goods consumption and services as compared to our current Sales Tax (10% on manufacturers and wholesaler aka importer) and Service Tax aka Government Service Tax (6% tax on service providers and our annual-credit-card-fee of RM50 / RM25 for supplementary credit card holders)

We don't feel the influence of the Sales Tax because they only affect manufacturers and importers with yearly minimal revenue of RM100,000.
As for the Service Tax, unless you have been staying under your house roof for the past years of your life and not used ANY services from our daily Starbucks coffee, restaurants selling dim sums, etc,
like it or not, we all have been doing our good citizen role and paid this un-exemptable tax.

Good to know Info*

There are certain basic goods and services that are exempted from GST. That includes basic foods, residential accommodation, education, health services, public transportation, domestic consumption of water and electricity (up to 200kwH, which is about RM50?) as well as RON 95, Diesel and LPG fuel (Thank Goodness!)


OK. Back to main topic.

"How will it impact on Malaysian Bloggers?"
"If I blog on leisure, am I subject to GST as well?"

To be frank, I am concern about this as well.

It is said that any sort of businesses that earns less than RM500,000 annually are excepted from GST registry, thus not required to pay or collect GST from their consumers.
(Estimation of preceding sales for the next 12 months)
However, NGOs, if they are involved indirectly in any business activity of making taxable supplies, they will be subjected to GST.

"Are Bloggers considered as NGOs?"
I don't think so. Bloggers are individuals.
We don't WORK for an organization (Unless we are paid by a specific company to work for them but I am not so sure about how we should classify that).
Though, we all may belong to certain blogger groups.

In my opinion, I think bloggers should not be charged GST as blogging is one way we express or thoughts on products. We don't pay tax for writing customer feedback, don't we?

I read this topic somewhere on the net and it got me thinking. If GST is on us as bloggers, just imagine how many bloggers will drop out from writing blogs. It will be horrifying.

It would be good to hear some thoughts on this issue.


More info: 

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