Touch n Go expenses – toll
- While purchasing touch n go card, RM 10 card fee can deemed as registration fee (tx) or has to put in toll (tx)? As per general information, gst tax code for toll is only EP.
- For top up toll card, some places will charge 6% GST, so can it deemed as services charges (tx) or toll (tx)?
Looking for your advice.
Purchase and Top up
Touch n Go is a reload card, which mean it can be used in many places, not only at toll station, for example pay parking fee in some parking facility. So, cannot assume Touch n Go is same as Toll charge as exempt supply.
Purchase of Touch n Go card (the physical card itself) is standard rated supply (TX). The amount of top up of Touch n Go is not a supply (OP).
However, the service charge on the top up of Touch n Go is standard rated. For example , when you reload Touch n Go at petrol station, there is reload service charge RM0.53 (include GST) with GST and it is not incurred on the amount the your top up.
GST treatment on the usage of Touch n Go is determined by the type of usage itself, just like using cash to pay for expenses. For example, if Touch n Go is use to pay parking fee, then it is standard rate or if it is for toll, it is exempt supply. Touch n Go is acted like cash.
Reference: Touch ‘n Go GST FAQ