6. The following categories of ship are consider ‘purpose of zerocated wth regards to services in relat in Second Schedule of Goods and Services (Zero-Rated Supply) Order 2014 lasian ship registered under Part Is, MSO 1952 and used for ight transportation or passenger ransporation incades ten, = RORO vessel, = tanker: ~ er: ~ conventional cargo vessel i9n owned ship registered under Pat le, MSO 1952; ‘any forelgn registered ship used for intemational shipping of feight or passenger transportation; oF (any vessel owned or operated by the government ofa freign stale, (©) vessels that are permanenty moored as attractions eg. floating ship ‘museum: (©) vessels wich are designed or adapted for recreation or pleasure &.g cruise, powerboats or yachts; (boats propelled by oars eg ifeboats, decorative traditional boas (©) barges not set propties whether or not repstored under Part Il, MSO 1952 or foreign registered; (9 dredges: Cube on siipeInG nousTRY (@) Malaysian government vesse's; (any Malaysian ship registered under Parti, MSO 1952 and used for ‘other purpose (other than freight transportation or passenger transportation) () any foceign registered ship used for other purpose (other than freight ‘ransportatin or passenger transportation): (any vessel leensed under section 474 MSO 1962; or 10) Yost andracetia on ete ine ante eto ‘ach Regt 81200 (IYRA) 8. Under Section 5, of MSO 1952, Minster of Transport may decare any port, ‘or place tobe @ port. Thus, any references with regards lo potin Second Schedule of Goods and Senices (Zero-Rated Supply) Order 2014 refers fo port which is ectared by Minster or a place declared as a port under the Merchant Shipping Ordinance 1960 of Sabah or the Merchant Shipping Ordinance 1960 of Sarawak 9. The imi ofthe pot shall extend upto high-water mark, and may include any piers, jetties, landing places, wharves, quays, docks and other similar works, \whether wihin or without the ine of high-water mark, and, subject to any rights of ptvate property therein, any parton ofthe shore or bank wthin fy yards of high water mark. 10. Generally in shipping industry, any supply of goods or services in Malaysia {is subject to GST a standard rate. However, supply of services o a ship can only and Servos (Zero-Rated Suppy) Ord ND ao1y : Tf dhe sip 1% berg used Rov uriness purposes -(Gude on SaPemNG NOUSTRY Supply of Goods ‘Sale of ship, vessol or floating structure of any description 11. The sale ofa ship, vessel, ating structure of any description i treated 35 ‘8 supply of goods and subject to GST at standard rate Hi ¢ sold locally of lnmpored. The supply & zero-aed if the goods is exported, ae regard to goods mentioned in paragraph 11, building the whole gods pdr contact vhae the vee pepe of he gods wl be tarforeé ater 13. la contractor engages a subcontractor to bulé goods, the subcontractor wal have to charge GST tothe main contractor forthe service provided Example 4: FH Shipping Sdn Bhd (FHSB) which i located i Lumut, Perak sels ‘8 RORO vessel toa local customer. The ssl of the RORO vessel is subject to GST at standard rate Example 2 RBY Petroleum imported an alg tom Korea and intend to use the 9 in Malaysia, = RBY has to pay GST on importation ofthe ol rig when i i Imported ito Malaysia, Example 3: [Ship Solution Sdn Bhd eels a tanker toa foreign company which oes not have an estabishment in Malaysia. Later. the tanker is registered in Singapore. The sale is subject to GST at zro-ated Example 4: ‘Ship Solution Sdn Bhd sels a vessel to @ company in designated ‘70a (DA). The sale is subject to GST at zerovated. ‘The folowing ilustrations provide the GST treatment on supply of goods. Senario 1: The buyer ofthe goods Is in Malaysia ‘Supply of ship, vessel and floating structure of any desertion16. Ship stores means. goods intended for consumption by the crew and ‘passengers on board of ship but excusing spare pats and equipment. Goods ‘brought on board by the crew or passengers as their personal belongings or for ptvale use, are nol ship stores, Please refer to glossary for more detis on ship sores wich qualifies fr ze rating 1 on a voyage to oF fom a place outside Malaysia {international voyage) is 2erorated under tem 4, ofthe Fist Schedule of Goods and Services (Zero-Rated Supply) Order 2014 18, The supply of ship stores Is not zeroated for ships which are not for International voyage. 18. However, supplies of ship stores are also zero-rated for ships that ply at et sales culy Thee goose are ally te a Shp _Atthe same time, 22 Holding also supples ship stores fo 9 private: ‘owned yacht bound fr sal around the work + This supply is standard rated supply because itis made toa private yacht ‘Bunker oi 20. Bunker ols any fuel required forthe operation ofa ship. Bunker of is part of ship stoves, 21. The supplies of Bunker ll fo the folowing ships are ero-ated: (@) ships on intemational voyages. (©) ships nat ply between ports of Peninsular Malaysia and East Malaysia but make stops atthe port in Singapore or indonesia in between the journeys. 22 Domestic travel ships such as fetes, cruises and non-cargo vessels Ike tughoats and dredges are not ented supply of bunker ol at 2 zeroate 23. Goods for use 2s merchandise forsale by real to persons carried on 25. The folowing itustrations provides various scanaro for zero-ated supply of hip stores, spares and bunker wth regards to ship on intemational voyage that Involves domestic voyage: