What is deemed supply?

1 Answer(s)

Generally, any goods or services supplied without consideration (generally without received payment) is regarded as not a supply and is not subject to GST.

However, under certain circumstances where a supply is taken place even though no good or service is provided or no consideration is paid, it is call Deemed Supply. For example,

  1. Amount spanning Gift rule (value of the gift which more than RM500 for a single person in one year)
  2. Transfer or disposal of business assets without consideration
  3.  Private use of business assets
  4.  Non business use of business assets
  5.  Supply of free service to connected person
  6.  Imported services is payable by the recipient of the services using the reverse charge mechanism
  7. The remaining inventory for the person who deregistered from GST

 In short, when there is a taxable supply taken place but no tax invoice to be issued yet still need to account the output tax prescribed by Customs, then the supply is Deemed supply.

Answered on September 13, 2015. 2015-09-13 02:52:23
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