Premium of company passenger car insurance can claim input tax?

I know we can’t claim for repair, maintenance and refurbishment, but how about car insurance?

Asked on August 6, 2015 2015-08-06 01:15:34 Business (商家)
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8 Answer(s)

Info from custom,

Block input tax for passenger car ONLY on the

  1. Purchase
  2. Repair
  3. Maintenance, upkeep and refurbishment.

Others related expenses is under “running cost”, therefore it is not blocked. For example

  1. Petrol RON97
  2. Car insurance
  3. Parking fee
Answered on August 29, 2015. 2015-08-29 04:42:51

hi Admin,

may i know where can find the above info from custom..



on November 4, 2015. 2015-11-04 06:25:24
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Passenger vehicle is blocked item – BL
Only commercial vehicle can claim input tax – TX

Answered on August 6, 2015. 2015-08-06 02:09:00

Can I say all the expenses related to passenger car, like parking fee, petrol, are blocked items as well?  It’s really confusing.

on August 6, 2015. 2015-08-06 05:05:51
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You may do so as long as it is for passenger car. But there are certain expenses which is not blocked item such as road tax = OP because it is a Government service.

Answered on August 6, 2015. 2015-08-06 08:39:03
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Hi admin, how about passenger car under company name but staff & director  use for private n business purpose?

Answered on November 18, 2015. 2015-11-18 09:11:43

following answer

on January 26, 2016. 2016-01-26 03:41:58
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I suggest you follow Admin’s advice mentioned above.

Answered on November 18, 2015. 2015-11-18 09:46:51
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Please follow the informations given by Admin.

Answered on January 26, 2016. 2016-01-26 10:32:19
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How about test drive vehicle for car dealer?

Answered on April 27, 2017. 2017-04-27 03:19:12
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Input tax incurred by a taxable person in respect of the following supplies shall be excluded from any credit under GST:-
(a) the supply to or importation by him of a passenger motor car;
“passenger motor car” means a vehicle which is legally licensed and constructed, modified or adapted for the purpose to carry or capable to transport and commonly available or used on public roads in Malaysia. The specification and features of a passenger motor car is to have seats of not more than nine passenger including the driver and the unladen weight does not exceed three thousand kilograms but does not include:
(i) hire and drive car which is licensed under Land Public Transport Act 2010 and Tourism Vehicle Licensing Act 1999;
(ii) a motor car supplied to or imported by a taxable person for the purposes of being let on hire or sold by that taxable person who is a dealer of motor vehicles licensed under the Second-Hand Dealers Act 1946;
(iii) an approved vehicle used for driving instructional purposes by a driving school or driving institute permitted under Motor Vehicles (Driving Schools) Rules, 1992;
(iv) a motor car which forms part of the stock in trade of a motor manufacturer or a motor dealer; or
(v) any motor car which is used exclusively for the purposes of business as approved by the Director General which includes:
 test drive car ‐ a car used for a limited period in order to assess its performance and reliability. (Only for car dealer); or
cars used for security purposes – a car used by security officers only for patrol in the company’s compound to protect the business premise; or
 cars used in providing technical assistance ‐ a car used mainly in providing technical assistance to company’s clients e.g. maintenance services, breakdown services, repair services; or
 serve as an integral part in the running of a business (cannot continue business without them). It is a business that requires the use of passenger motor cars e.g. leasing of cars, taxi rental business;
 and must fulfil all the following conditions:
• the motor car is registered in the name of the company;
• the motor car is not let on hire;
• there is no intention to make available the motor car for private use;
• the motor car is kept at the business premises, used for business trips and must not be taken home overnight by any employee; and
• the motor car bears the business name.

(Also please refer to GST GUIDE ON INPUT TAX CREDIT As at 4 JANUARY 2017)

Answered on April 27, 2017. 2017-04-27 08:56:01
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