TAX CODE : OP

This refers to purchase of goods outside the scope of GST. An example is purchase of goods overseas and the goods did not come into Malaysia, the purchase of a business transferred as a going concern. For purchase of goods overseas, there may be instances where tax is imposed by a foreign jurisdiction that is similar to GST (e.g. VAT). Nonetheless, the GST registered trader is not allowed to claim input tax for GST/VAT incurred for such purchases.

This is because the input tax is paid to a party outside Malaysia.

EXAMPLE : HOTEL EXPENSES INCURRED IN THE UK FOR BUSINESS PURPOSES.