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Maltese Laws |
C 645
AN ACT to amend the Value Added Tax Act, Cap. 406.
BE IT ENACTED by the President, by and with the advice and consent of the House of Representatives, in this present Parliament assembled, and by the authority of the same, as follows:-
(2) This Act shall come into force on such date or dates as the Minister of Finance may by notice in the Gazette appoint, and different dates may be so appointed with respect to different provisions thereof, except for article 20 which shall be deemed to have come into force on the 1st January 1999.
1. Short title and commencement
2. Interpretation
3. Administration
Short Title and commencement.
Substitution of Arrangement of Act.
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4. Charge to tax
5. Taxable person and economic activity
6. Operations constituting supplies, intra community acquisitions and importations
7. Place of supply, intra community acquisitions and importations
8. Time of supply, intra community acquisitions and importations
9. Exemptions
10. Registration of taxable persons
11. Registration of taxable persons carrying on small undertakings
12. Registration of persons making intra-community acquisitions
13. General provisions with respect to registrations
14. Further classification of registered persons
15. Notice relating to certain transactions
16. Information by taxable persons not registered under this Part
17. Tax period
18. Taxable value
19. Rate of tax
20. Persons liable for the payment of the tax
21. Payment of the tax
22. Output tax, input tax and credit for input tax
23. Deductions
24. Refund of excess credit
25. Refunds to persons not registered under article 10
26. Claim for refund under article 25
27. Tax returns
28. Adjustments to tax returns
29. Presumption as to declarations in tax returns
30. Declarations by exempt persons and other statements, etc
31. Power to make assessments where a return has not been furnished
32. Power to make assessments when a return has been furnished
33. Power to make assessments on other persons
34. Assessments
35. Additional and revised assessments
36. Presumption as to amounts shown in assessments
37. Administrative penalty for incorrect tax return
38. Administrative penalty for default in the furnishing of a tax return or other declarations or statements
39. Administrative penalty for default in application for registration or giving a notice
40. Administrative penalty for default by any person registered under article
11
41. Reduced and increased penalties
42. Reasonable excuse
43. Appeal against an assessment
44. Other matters that may be referred to Appeal
45. Value Added Tax Appeals Board
46. Matters regulated by the Ninth Schedule
47. Appeal to the Court of Appeal
48. Records to be kept
49. Inclusion of tax in the price of supplies
50. Tax Invoice
51. Documents to be provided in other cases
52. Production of invoices by persons to whom a supply is made
53. Inspections
54. Access to places of habitation
55. Information held by certain licensed persons
56. Official secrecy
57. Special cases
58. Suit by the Commissioner
59. Executive title
60. Restrictions on the release of imported goods
61. Powers relating to imported goods
62. Special privilege
63. Security for tax due on supplies
64. Shorter period for the delivery of a return
65. Judicial auction
66. Representatives
67. Appropriation of payment
68. Refunds
69. Repayment of tax that was paid but not due and of overpaid tax
70. Diplomatic and consular arrangements
71. Repayment of tax in other cases
72. Validity of notices, etc
73. Delivery and service of notices, etc
74. Interest
75. Power to make regulations
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76. Failure to apply for registration, or to keep or deliver records and returns
77. Irregularities in records, etc and false representations
78. Recurrent offences
79. Obstruction of officials
80. Offences relating to importations
81. General offence
82. Offences by principal officers of bodies of persons and by employers
83. Prosecution
84. Compromise penalty
85. Saving
86. Interpretation of certain contracts
1. Supplies: general rule
2. Energy
3. Rights over property
4. Delivery on deferred terms
5. Hire purchase
6. Transfer of goods under a contract for commission
7. Contract of works
8. Obligation to refrain from an act or to tolerate an act
9. Incidental supplies
10. Exchange
11. Supplies by disclosed agents
12. Supplies by undisclosed agents
13. Supply for consideration of goods forming part of an economic activity
14. Application of goods forming part of an economic activity
15. Private use of goods forming part of an economic activity
16. Transfer of a going concern
17. Transfer of goods to another Member State
18. Intra-community acquisitions
19. Importations
1. Supply of goods: general rule
2. Goods installed or assembled
3. Goods supplied on board ships, aircraft or trains
4. Distance sales
5. Supply of services: general rule
6. Services relating to immovable property
7. Transport and ancillary services
8. Cultural, etc activities
9. Valuation of and work on movable property
10. Services supplied where the customer is established
11. Telecommunication services and electronically supplied services
12. Intermediaries
13. Intra-community acquisitions: general rule
14. Place of intra-community acquisitions under an identification number assigned under this Act
15. Importations
1. Date of the chargeable event in the case of supplies of goods
2. Date of the chargeable event in the case of supplies of services
3. Date when tax on supplies becomes chargeable
4. Date when tax on exempt intra-community supplies becomes chargeable
5. Date of the chargeable event in the case of intra-community acquisitions
6. Date when tax on intra-community acquisitions becomes chargeable
7. Date of the chargeable event and when tax becomes chargeable in the case of importations
1. Exports
2. International goods traffic
3. Intra-community supplies
4. International transport and ancillary services
5. Brokers and other intermediaries
6. Sea vessels
7. Aircraft
8. Gold
9. Food
10. Pharmaceutical goods
11. Transport
1. Immovable property
2. Insurance services
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3. Credit, banking and other services
4. Cultural and religious services
5. Sports
6. Services related to certain exempt services
7. Services supplied by independent groups
8. Services by non-profit making organisations to their members
9. Lotteries
10. Postal services
11. Health and welfare
12. Education
13. Supplies of goods in respect of which the supplier had not qualified for input tax credits
1. Intra-community acquisitions made for the purpose of a subsequent supply
2. Acquisitions of goods whose supply or importation is exempt
3. Acquisitions of goods where the tax would be refundable
4. Duty suspension regime
5. Food
6. Investment gold
7. Goods subject to the margin scheme
1. Importation of goods whose supply is exempt
2. Goods exempt from customs duty
3. Goods transported from a third territory
4. Catches of fish
5. Re-importation
6. Food
7. Investment gold
1. Food
2. Food supplied in the course of catering
3. Pharmaceutical goods
4. Immovable property
5. Non-profit making organisations
6. Investment gold
1. Threshold at the time of application
2. Persons registered under article 10
3. Threshold of persons registered under article 11
4. Turnover
5. Relevant period
6. Calendar quarter
7. Entry Threshold and Exit Threshold
8. Information to be given to the Commissioner
Table
1. The acquisitions threshold
2. The value of intra-community acquisitions
1. Distance sales threshold
2. Value of distance sales
Taxable value of supplies: items 1 to 8
Taxable value of intra-community acquisitions: items 9 to 10
Taxable value of importations: items 11 to 13
1. Composition of the Board
2. Secretary to the Board
3. Competence of the Board
4. Appeals against assessments
5. Payment of the tax
6. References to the Board
7. Procedures of the Board
1. Eligibility for credit for input tax
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2. Evidence of input tax
3. Tax which is not to be treated as input tax
4. Tax partially treated as input tax
5. Attribution of input tax
6. Partial attribution
7. Adjustment relating to input tax on the acquisition of capital goods
8. Alternative methods of partial attribution
9. Rounding up
10. Bad debts relief
11. Deductions on account of a reduction in the taxable value of supplies or intra-community acquisitions
12. Saving provision
1. Records to be kept by persons registered under article 10
2. Matters to be included in the accounts
3. The value added tax account
4. Correction of mistakes by means of an adjustment in a subsequent tax return
5. Annual value added tax account
6. Exceptions
7. Records of intra-community acquisitions
8. Records of distance sales
1. Form of tax invoice
2. Contents
3. Categories of supplies
4. Tax invoice by retailers
5. Currency
6. Supplies on which no tax is chargeable
7. Reverse charge
8. New means of transport
9. Margin scheme
10. Document provided by a person to himself
11. Invoices by electronic means
1. Interpretation
2. Obligation to issue receipt
3. Receipt issued by a fiscal cash register
4. Door to door sales of gas, milk or bread
5. Supplies from pumps of leaded petrol, unleaded petrol and diesel (gas)
oil
6. Supplies of food and beverages by a canteen situated in a work or study area
7. Supplies of goods by means of vending machines
8. Services supplied by means of machines
9. Accounting for fiscal receipts supplied or approved by the
Commissioner
10. Exemption from obligation to issue fiscal receipt
11. Obligation to retain and produce receipt
12. Fiscal cash register
13. Fiscal taxi meter
1. Interpretation
2. Time of supply
3. Date when services are performed
4. Free supply
5. Invoices and receipts for professional services
6. Tax on services where tariffs of fees are established by law
7. Tax claimed from third parties
8. Option to adopt invoice basis
9. Professional services
1. Interpretation
2. Second-hand goods dealer
3. Supplies
4. Taxable value
5. Applicable option
6. Input tax
7. Separate accounting
8. Purchase invoice
9. Sales invoice
10. Option available for second-hand goods dealers
11. Sales by public auction
12. Repossessed goods
1. Interpretation
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Substitution of article 2 of the principal Act.
2. Application
3. Services supplied to be deemed as a single transaction
4. Place of supply
5. Taxable value
6. Input tax
7. Supplies outside the Community
8. Powers of the Commissioner
9. Records
1. Meaning of investment gold
2. Option for taxation
3. Special obligations for traders in investment gold
“Interpretation.
2. (1) In this Act, unless the context otherwise requires - “accession date” means the 1st May 2004;
“accommodation”, when provided on a bed and breakfast, half board or full board basis, includes the provision of any services
normally falling within the meaning of accommodation on such a basis and included in the price therefor;
“acquisitions threshold” means the threshold determined in accordance with Part Two of the Sixth Schedule;
“administrative penalty” means a penalty imposed in virtue of the provisions of Part V;
“assessment” means an assessment that may be made in virtue of the provisions of Part V but does not include a provisional assessment;
“Board” means the Value Added Tax Appeals Board established in terms of article 45;
“Commissioner” means the Commissioner of Value Added Tax appointed in terms of the provisions of sub- article (1) of article 3
or any public officer or other person to whom a delegation has been made in accordance with sub-article (2) or (3) of that article
while he is acting within the terms of that delegation;
“Community” means the territories of the Member
States as defined in the Fifteenth Schedule;
“customs duty suspension regime” has the meaning assigned to it in the Fourth Schedule;
“distance sale” has the meaning assigned to it in the Third Schedule;
“economic activity” has the meaning assigned to it in article 5;
“established” shall be construed in accordance with the provisions of sub-articles (2) and (3) of this article;
“excise goods” means the goods defined in the
Sixteenth Schedule;
“exempt supply”, “exempt acquisition” or “exempt importation” means a supply, an intra-community acquisition or an importation
which is exempt in terms of article 9;
“exempt with credit supply” is a supply to which
Part One of the Fifth Schedule applies;
“exempt without credit supply” is a supply to which
Part Two of the Fifth Schedule applies;
“goods” means any asset the supply of which is treated as a supply of goods in terms of the Second Schedule;
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“goods forming part of an economic activity” means goods, including fixed assets, used by a taxable person for the purpose of
his economic activity;
“importation” has the meaning assigned to it in the Second Schedule, and “imported” shall be construed accordingly;
“importer” with respect to imported goods means the person in whose name the goods are at the time when tax on the importation
becomes chargeable in accordance with the Fourth Schedule;
“input tax” has the meaning assigned to it in article
22(2) and “input tax credit” has the meaning assigned to it in article 22(3);
“intra-community acquisition” has the meaning assigned to it in the Second Schedule;
“intra-community supply” means a supply of goods that are transported by or on behalf of the supplier or the person to whom the
supply is made from a Member State to another Member State;
“Malta” has the meaning assigned to it by the
Constitution and includes the continental shelf thereof;
“Member State” has the meaning assigned to it in the Fifteenth Schedule;
“Minister” means the minister responsible for finance;
“new means of transport” means a means of transport to which paragraph (a) hereof applies and which meets the conditions of paragraph
(b) hereof-
(a) this paragraph applies to a vessel exceeding 7.5 metres in length, an aircraft the take- off weight of which exceeds 1,550 kilograms
or a motorised land vehicle the capacity of which exceeds 48 cubic centimetres or the power of which exceeds 7.2 kilowatts, intended
for the transport of passengers or goods except for:
(i) a sea-going vessel which is used for navigation on the high seas and carrying passengers for reward, or for the purpose of
commercial, industrial or fishing activities, or for rescue or assistance at sea, or for inshore fishing but does not include ships’
provisions; and
(ii) aircraft used by airlines operating for reward chiefly on international routes;
(b) the conditions that must be met for the purpose of this definition are:
(i) in the case of a land vehicle, that it was supplied not more than six months after the date of first entry into service or
has not travelled more than 6,000 kilometres;
(ii) in the case of sea vessels, that it was supplied not more than three months after the date of first entry into service or has
not sailed for more than 100 hours;
(iii) in the case of an aircraft, that it was supplied not more than three months after the date of first entry into service or has
not flown for more than 40 hours;
“non-taxable legal person” means a person, other than a physical person, who is not a taxable person;
“non-taxable person” means a person who is not a taxable person;
“output tax” has the meaning assigned to it in article 22(1); “person” includes a physical person, a body of
persons, a public authority and any entity capable of
carrying on an economic activity;
“provisional assessment” means a provisional assessment made in terms of article 32;
“public authority” means the Government of Malta, a department or division of the Government of Malta, a local council set up
in accordance with the Local Councils Act, an authority vested with distinct personality set up by an Act of Parliament or a corporation
constituted by an Act of Parliament;
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“self-supply” means the use or application of goods forming part of the economic activity of a person that does not consist of
the delivery of goods to or the performance of services for another person but which is treated as a supply of goods or a supply
of services in terms of the Second Schedule;
“supply” means an operation which is treated as a supply of goods or a supply of services in terms of the Second Schedule;
“tax” means the value added tax chargeable under this Act but does not include an administrative penalty or interest;
“tax invoice” means an invoice or a document serving as invoice that contains the information required by the Twelfth Schedule;
“tax period” means a period determined in accordance with article 17;
“tax return” means the return required to be furnished in terms of article 27;
“taxable acquisition” means an intra-community acquisition on which tax is chargeable in terms of article
4 and which is not exempt from tax in terms of article 9;
“taxable importation” means an importation on which tax is chargeable in terms of article 4 and which is not exempt from tax in
terms of article 9;
“taxable person” has the meaning assigned to it in article 5;
“taxable supply” means a supply on which tax is chargeable in terms of article 4 and which is not exempt from tax in terms of
article 9;
“taxable value” means the value of a supply, of an intra-community acquisition or of an importation determined in accordance with
the Seventh Schedule;
“third territory” means any territory which is not a
Member State;
“transport” and “transported” include dispatch and dispatched;
“value added tax identification number” means an individual number assigned by the competent authority of a Member State that
has a prefix in accordance with ISO International Standard 3166 - alpha 2, and “a person identified for value added tax purposes
in a Member State” means a person to whom such an individual number has been assigned and who, for the purpose of a supply, communicates
that number to the supplier”;
(2) The provisions of this sub-article and of sub-article (3) shall apply for the purpose of determining the place where a person
is established:
(a) a taxable person is established in a country if he has established his economic activity or has a fixed place of establishment
from which he carries on that economic activity in that country or, being a physical person who has not fixed his economic activity
or who does not have a fixed place of establishment in any country, has a permanent address or usually resides in that country;
(b) a non-taxable legal person is established in a country if it is constituted under the law of that country or if it has a fixed
place in that country from which it carries on its activities;
(c) a non-taxable physical person is established in the country where he has a permanent address or usually resides.
(3) Where, in terms of sub-article (2), a taxable person falls to be treated as established in Malta and in another country with
respect to the same transaction, and where it is necessary for the proper application of any provision of this Act that he should
be treated as established only in one of those two countries, he shall, to the extent that it is so necessary, be treated as established
only in the country with which that transaction is more closely connected.”.
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Substitution of article 4 of the principal Act.
Amendment of article 5 of the principal Act.
4. Subject to the other provisions of this Act there shall be charged, levied and collected on account of the Government a value added
tax -
(a) on every supply of goods or of services that takes place in Malta made on or after the 1 January 1999 for consideration by a taxable
person acting as such other than a supply made by a person registered under article
11;
(b) on every intra-community acquisition made for consideration on or after the accession date in Malta where -
(i) it is an acquisition of goods, other than new means of transport and excise goods, made by a taxable person acting as such who
is registered under article 10 or 12 or a non-taxable legal person who is registered under article 12 pursuant to an intra-community
supply that -
(A) takes place outside Malta; and
(B) is made by a taxable person acting as such who is not eligible, with respect to that supply, for an exemption under a special scheme for small undertakings in force in a Member State;
or
(ii) it is an acquisition of new means of transport made by any person; or
(iii) it is an acquisition of excise goods made by a taxable person or a non-taxable legal person;
(c) on every importation that takes place in Malta on or after 1 January 1999.”.
(a) for the marginal note thereof there shall be substituted
“Taxable person and economic activity”;
“Charge to tax.(b) sub-articles (1) and (2) thereof shall be renumbered as sub-articles (2) and (3) respectively;
(c) there shall be added the following new sub-article (1): “(1) “Taxable person” means a person who carries on
an economic activity, whatever the purpose or result of that
activity.”;
(d) in sub-article (3) as renumbered the words “to this Act” shall be deleted and there shall be added the words “and where
such treatment as non-taxable persons would lead to significant distortions in competition”;
(e) immediately after sub-article (3) as renumbered there shall be added the following:
“(4) A person who does not carry on an economic activity within the meaning of the foregoing provisions but who, from time to
time, makes an intra-community supply of new means of transport shall, for the purpose of any such supply, be treated as a taxable
person.
(5) For the purpose of this article “employee” means an individual bound to an employer by a contract of employment or by other
legal ties creating the relationship of employer and employee as regards working conditions, remuneration and the employee’s liability
and includes the holder of an office;”.
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Substitution of article 6 of the principal Act.
“Operations constituting supplies, intra- community acquisitions and importations.
6. The provisions of the Second Schedule shall apply for the purpose of determining any question as to whether an operation is
to be treated as:
(a) a supply of goods, a supply of services, an intra-community acquisition or an importation;
(b) made for consideration;
(c) made by a taxable person acting as such.”.
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Substitution of article 7 of the principal Act.
“Place of supplies, intra- community acquisitions and
importations.
7. The provisions of the Third Schedule shall apply for the purpose of determining the place where a supply or an intra-community acquisition or an importation takes place.”.
Substitution of article 8 of the principal Act.
“Date of the chargeable event and date when tax becomes chargeable .
8. The date when a chargeable event takes place and the date when tax thereon becomes chargeable shall be determined in accordance with the provisions of the Fourth Schedule.”.
Substitution of article 9 of the principal Act.
“Exemptions.
9. (1) There shall be exempt from tax -
(a) the supplies to which Part One or Part Two of the Fifth Schedule applies;
(b) the intra-community acquisitions to which
Part Three of the Fifth Schedule applies;
(c) the importations to which Part Four of the Fifth
Schedule applies.
(2) Any provision contained in or under any law empowering the Minister to grant an exemption from import duties on the importation
of goods chargeable under the Import Duties Act shall be construed as empowering the Minister to grant, in the same circumstances,
in the same manner, and subject to the same conditions and limitations provided for in any such provision, an exemption from tax
chargeable under this Act on the importation of the said goods.”.
Substitution of Part III and Part IV of the principal Act.
Registration of taxable persons.
10. (1) A taxable person established in Malta who is not registered under this article or under article 11 shall apply to
be registered under this article by not later than thirty days from the date on which he makes a supply for consideration in Malta
other than an exempt without credit supply.
(2) Paragraph (1) does not apply to a person who is treated as a taxable person only by reason of the fact that he makes, from
time to time, an intra-community supply of new means of transport
(3) A taxable person established in Malta who is not registered under this article shall, if so requested by the Commissioner,
apply to be registered under this article within thirty days from the date on which he is served with a notice containing such a
request.
(4) A taxable person who is not established in Malta, who is not registered under this article and who is liable for the payment
of the tax on a supply in terms of article
20 shall apply to be registered under this article by not later than thirty days from the date of that supply.
(5) Any person who is not a person registered under this article and who carries on or intends to carry on an economic activity
may apply to be registered under this article.
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this article:
(6) The Commissioner shall register under
(a) every person who in his opinion is liable to apply for registration in terms of sub-articles (1), (3) or (4);
(b) any person who has made an application in terms of sub-article (5) if the Commissioner is satisfied that that person carries on
or intends to carry on an economic activity and -
(i) is likely to be entitled, if he becomes so registered, to claim input tax credits under the provisions of article 22; or
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Registration of taxable persons carrying on
a small undertaking.
(ii) has made or is likely to make an intra- community acquisition in Malta for the purpose of operations carried out outside Malta;
(c) any person whose registration under article
11 is cancelled in accordance with sub-article (5)
thereof.
(7) Every person registered under this article shall within fifteen days from the happening of any of the following events notify
that event in writing to the Commissioner:
(a) a change in circumstances that affects the particulars declared in the application for his registration under this article or
otherwise furnished to the Commissioner in connection with his registration or appearing in the registration certificate;
(b) the cessation or transfer of his economic activity or part thereof;
(c) such other event as may be prescribed.
(8) Without prejudice to sub-article (3) of article 11, the Commissioner may at any time cancel the registration of a person under
this article if he has reason to believe that that person would not, if he were not so registered, be required to apply for registration
or entitled to be registered under this article.
11. (1) When a taxable person established in Malta who is not registered under this article carries on an economic activity
which qualifies as a small undertaking in terms of the provisions of the First Part of the Sixth Schedule he may apply to the Commissioner
to be registered under this article.
(2) The Commissioner shall register under this article any person who has made an application under sub- article (1) if he is satisfied
that that person is eligible for such registration.
Registration of persons who make intra- community acquisitions.
(3) When a person is, immediately before his registration under this article, registered under article 10 the Commissioner shall,
upon the registration of that person under this article, cancel the registration under article 10.
(4) A person registered under this article -
(a) may, at any time, apply to the Commissioner for the cancellation of his registration under this article;
(b) shall, within thirty days from the date on which his economic activity does no longer qualify as a small undertaking in terms
of the relevant provisions of Part One of the Sixth Schedule, apply to the Commissioner for the cancellation of that registration.
(5) When a taxable person makes an application for the cancellation of his registration under this article or where the Commissioner
has reason to believe that the economic activity of a person does no longer qualify as a small undertaking in terms of the relevant
provisions of Part One of the Sixth Schedule, the Commissioner shall cancel the registration of that person under this article and
register that person under article 10.
(6) Without prejudice to sub-article (5), the Commissioner may at any time cancel the registration of a person under this article
if he has reason to believe that that person does not carry on or has ceased to carry on an economic activity or that it is not likely
that his economic activity will include any activities other than exempt without credit supplies.
12. (1) When a taxable person who is not registered under article 10 or a non-taxable legal person intends to make an intra-community
acquisition in Malta and, on account of that acquisition, the value of his intra-community acquisitions in Malta during the calendar
year in which he makes that acquisition exceeds the acquisitions threshold he shall apply to be registered under this article, unless
he is already so registered, by not later than the date of that acquisition.
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(2) A taxable person who is not registered or liable to be registered under article 10 or a non-taxable legal person may, unless
he is registered under this article, at any time apply to be registered under this article.
(3) The Commissioner shall register under this article any person who in his opinion is liable to apply for such registration in
terms of sub-article (1) or who makes an application for registration when he is so entitled in terms of sub-article (2).
(4) When a person is liable to apply for registration in terms of sub-article (1) on account of an intra-community acquisition,
the registration of that person under this article shall be deemed to be effective as from the date of that acquisition.
(5) A person registered under this article in the circumstances mentioned in sub-article (1) may apply for the cancellation of
his registration at any time after the expiration of the calendar year following that in which he was so registered if the value
of his intra-community acquisitions has not exceeded the acquisitions threshold in the year in which he makes such an application
or in the preceding calendar year.
(6) A person registered under this article upon an application in accordance with sub-article (2) may apply for the cancellation
of his registration at any time after the expiration of two consecutive calendar years following the year in which he was so registered
if the value of his intra-community acquisitions has not exceeded the acquisitions threshold in the year in which he makes such an
application or in the preceding calendar year
(7) The value of intra-community acquisitions for the purpose of this article shall be determined in accordance with Part Two of
the Sixth Schedule
(8) The Commissioner shall cancel the registration of a person under this article:
General provisions with respect to registrations.
(a) if that person is registered under article 10, in which case the cancellation shall take effect upon the said registration;
Provided that if that person ceases to be registered under article 10 on a date when he would not have been entitled to apply for
the cancellation of his registration under this article had he remained registered under this article, the Commissioner shall, on
that date, register that person again under this article;
or
(b) if that person is entitled to have his registration under this article cancelled and applies for such a cancellation in accordance
with sub-article (5) or (6), in which case the cancellation shall take effect on the 1
January of the year in which the application is made..
13. (1) An application for registration or for the cancellation of a registration under this Part shall be made on such
form as the Minister may by regulations prescribe and shall contain the particulars specified in that form.
(2) The Commissioner shall allocate a registration number to every person registered under article 10, 11 or 12 and shall deliver
a registration certificate to every such person containing the registration number, the article under which the registration was
made, the effective date of the registration and such other particulars as the Commissioner may deem appropriate. The Commissioner
may change the registration number of any person as he may consider necessary and shall notify that person of any such change.
(3) A registration number allocated under article
10 or 12 shall have the prefix “MT” in accordance with ISO International Standard 3166 - alpha 2. A registration number allocated
under article 11 shall not have such a prefix and shall not be treated for any purposes of this Act as a value added tax identification
number.
(4) When the registration of a person under article
10, 11 or 12 is cancelled the Commissioner shall serve a notice on that person indicating the effective date of the cancellation.
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Further classification of registered persons.
Notice relating to certain operations.
(5) The cancellation of the registration of a person shall not relieve that person from any liability incurred under this Act in
virtue of anything done before the date of the cancellation or from the obligation to make an application for a fresh registration
in any of the circumstances under which he is required to apply for registration in terms of any provision of this Part.
(6) The Minister may by regulations make provision for the registration of a number of persons as one person or for a person to
be registered separately in respect of different branches or departments of his economic activity in such circumstances, in respect
of such supplies and subject to such conditions as may be specified in the said regulations.
(7) The Minister may by regulations exempt any person or class of persons from any of the provisions of this Part and may by such
regulations make such an exemption subject to such conditions and limitations as may be prescribed.
14. Without prejudice to the other provisions of this Part the Commissioner may classify persons registered under this Part by
reference to the description or sector of their activities and such other matters as he may deem necessary or appropriate and any
classification so made shall unless the contrary is proved be deemed to be a correct classification for the purpose of determining
the applicability or otherwise of any provision of this Act to which the classification may be relevant.
15. (1) Any person who is not registered under article 10 or 12 and who intends to make an intra-community acquisition of
a new means of transport shall give notice thereof to the Commissioner by not later than the date of that acquisition.
(2) Any person who is not registered under article
10 and who intends to make an intra-community supply of a new means of transport shall give notice thereof to the Commissioner by
not later than the date of that supply.
(3) Any taxable person or non-taxable legal person who is not registered under article 10 or 12 and who intends to make an intra-community
acquisition of excise goods shall give notice thereof to the Commissioner by not later than the date of that acquisition.
Information by persons who are not registered under this Part.
Tax period.
(4) When a taxable person who is not registered under article 10 or a non-taxable legal person becomes liable for the tax on a
supply made to him in terms of article 20(2) he shall give notice to the Commissioner within thirty days from the date on which he
receives an invoice or similar document for that supply.
(5) A notice to the Commissioner under this article shall be given with respect to each transaction to which this article applies
on such form as the Minister may by regulations prescribe.
16. Every taxable person or non-taxable legal person who is not registered under this Part shall supply any such information
relating to the date of the commencement or cessation of his activity, the nature of that activity and the transactions made in the
course or furtherance thereof as may be prescribed.
17. (1) The Commissioner shall allocate a tax period to every person registered under article 10.
(2) Except as otherwise provided in this article a tax period means a period of three calendar months commencing on the first day
immediately following the end of the preceding tax period.
(3) The Minister may by regulations prescribe in respect of such class or classes of persons as may be specified in the said regulations
a tax period of more or less than three months.
(4) The first tax period for a person shall commence on the date that person is registered under article 10 and end on such date
as may be determined by the Commissioner.
(5) When, during a tax period of a person, his registration under article 10 is cancelled, that period shall end on the last day
of the month in which that cancellation is made and shall be the last tax period of that person, saving the allocation of a new tax
period to that person should he be subsequently registered again under article 10.
(6) The Commissioner may by means of a notice served on a person registered under article 10 in any particular case vary any tax
period for that person in such manner as may be specified in that notice.”.
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Taxable value.
Rate of tax.
Persons liable for the payment of the tax.
18. The taxable value of supplies, intra-community acquisitions and importations shall be established in the manner laid down in
the Seventh Schedule.
19. (1) The tax chargeable on every taxable supply, other than a supply referred to in sub-article (2), shall be at the rate
of fifteen per cent of the taxable value of the supply.
(2) The tax chargeable on every taxable supply specified in the Eighth Schedule shall be at such rate or rates, not being higher
than fifteen per cent or lower than five per cent of the taxable value of the supply, as specified in that Schedule.
(3) The tax chargeable on every taxable intra- community acquisition of goods shall be that applicable to the supply of like goods
in terms of the foregoing provisions of this article.
(4) The tax chargeable on every taxable importation, other than a supply referred to in sub-article (5), shall be at the rate of
fifteen per cent of the taxable value of the importation.
(5) The tax chargeable on every taxable importation as may be specified in the Eighth Schedule shall be at such rate or rates, not
being higher than fifteen per cent or lower than five per cent of the taxable value of the importation, as may specified in that
Schedule.
20. (1) Saving the other provisions of this article - (a) the payment of the tax on a taxable supply
shall be a liability of the person who makes the supply;
(b) the payment of the tax on a taxable acquisition shall be a liability of the person who makes the acquisition;
(c) the payment of the tax on a taxable importation shall be a liability of the importer.
(2) The payment of the tax on a taxable supply made by a person who is not established in Malta and who is
not registered under article 10 to a person established in Malta shall be a liability of the person to whom the supply is made if
the supply is -
(a) a supply of goods made to a taxable person registered under article 10 or 12 or to a non-taxable legal person registered under
article 12 who is identified as such on a tax invoice for that supply, where:
(i) the person who supplies the goods is identified for value added tax purposes in another Member State and has made an exempt
intra- community acquisition of those goods in Malta for the purpose of that supply; and
(ii) the goods acquired under the said intra- community acquisition were transported from a Member State, other than the State where
the taxable person who made the supply is so identified, to the person to whom the supply is made; and
(iii) the supplier designates the person to whom the supply is made as the person liable to pay the tax on that supply;
or
(b) a supply of services made to a taxable person which in terms of the Third Schedule is treated as taking place where the customer
is established; or
(c) a supply of goods or of services, other than a supply to which paragraph (a) or (b) refers, made to a taxable person registered
under article 10.
(3) When a person mentions the tax on an invoice or a document serving as invoice for a supply he shall, unless he is the person
liable for the tax in terms of the foregoing provisions of this article, be jointly and severally liable for the tax on that supply
together with that person.
(4) A person who is a representative of another person in terms of article 66 shall, within the limits set out in that article,
be jointly and severally liable for the tax together with the person of whom he is a representative.
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Payment of the tax.
21. (1) Every person registered under article 10 shall pay to the Commissioner by not later than the date on which he is required
to furnish a tax return for a tax period an amount equivalent to the excess, if any, of the output tax for that period over the deductions
that he has a right to make in accordance with article 23: Provided that that person may set off any excess tax credit for a previous
tax period that has not been refunded or become refundable in terms of article 24 against any tax payable in accordance with this
sub-article.
(2) Every person liable for the payment of the tax in accordance with sub-articles (1) or (3) of article 20, other than tax payable
in accordance with sub-article (1) of this article, shall pay that tax to the Commissioner by not later than the fifteenth day of
the month following that during which it becomes chargeable.
(3) Every person liable for the payment of the tax in accordance with article 20(2), other than tax payable in accordance with
sub-article (1) of this article, shall pay that tax to the Commissioner by not later than the fifteenth day of the month following
that during which he is required to deliver the notice specified in article 15(4).
(4) Interest shall be due on any tax which is not paid by the date on which it becomes payable at the rate of one per cent for
each month or part thereof during which that tax remains unpaid or at such other rate as may be prescribed.
(5) The payment of the tax shall be accompanied by the delivery to the Commissioner of the respective form as the Minsiter may by regulations prescribe: Provided that tax on importations shall be payable to the Comptroller of Customs on behalf of the Commissioner and shall be made at such place and be accompanied by such forms as the Comptroller may direct.
Output tax, input tax and credit for input tax.
22. (1) The output tax of a person registered under article 10 is the tax on supplies and on intra-community acquisitions
that becomes chargeable during that period and for which that person is liable in terms of sub-articles (1) and (2) of article 20;
(2) The input tax of a taxable person is the tax that becomes chargeable on:
(a) supplies made to him,
(b) intra-community acquisitions made by him, and
(c) importations made by him,
to the extent that the supplies so made and the goods so acquired or imported have been or are intended to be wholly used by him in
the course or furtherance of his economic activity.
(3) Subject to sub-article (5) -
(a) the input tax credit for a tax period of a person registered under article 10 is an amount equivalent to so much of the input
tax of that person that becomes chargeable during that period as is attributable to supplies made or intended to be made by him,
being supplies to which sub-article (4) of this article applies;
(b) the input tax credit for the last tax period of a person whose registration under article 10 has been cancelled is an amount
equivalent to so much of the input tax of that person that becomes chargeable during that period as is attributable to supplies made
by him up to the end of that period, being supplies to which sub-article (4) of this article applies;
(4) This sub-article applies to: (a) taxable supplies;
(b) exempt with credit supplies;
(c) supplies which take place outside Malta which would, if made in Malta, be treated under the provisions of this Act as taxable
supplies or as exempt with credit supplies;
(d) operations exempt from VAT, relating to:
(i) supplies by persons licensed under the Insurance Business Act or the Insurance Brokers and other Intermediaries Act, of insurance
and re- insurance services, including related transactions, in respect of which they are so licensed;
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Deductions.
(ii) the granting and negotiation of credit and the management of credit by the person granting it;
(iii) the negotiation of or any dealings in credit guarantees or any other security for money and the management of credit guarantees
by the person who is granting the credit;
(iv) transactions, including negotiation, concerning deposit and current accounts, payments, transfers, debts, cheques and other
negotiable instruments, but excluding debt collecting and factoring;
(v) transactions, including negotiation, concerning currency, bank notes and coins normally used as legal tender;
(vi) transactions, including negotiation, excluding management and safekeeping, in shares, interest in companies or associations,
debentures and other securities, excluding documents establishing title to goods,
when the customer is established outside the Community or when those operations are directly linked with goods to be exported to a
country outside the Community.
(5) The right to an input tax credit, the amount of the credit and the manner in which input tax is attributable to supplies are
subject to the conditions, limitations, revisions and adjustments set out in the Tenth Schedule.
23. Every person registered under article 10 who furnishes a tax return for a tax period shall have the right to deduct from the
output tax for that period:
(a) the input tax credit for that period;
(b) any other deductions to which he may be entitled for that period in accordance with the Tenth Schedule.
Refund of excess credit to persons registered under article
10.
Refunds to persons not registered under article
10.
24. (1) Saving the other provisions of this Act, when the deductions allowable to a person registered under article
10 for a tax period exceed the output tax of that person for that period the excess shall be an excess credit of that person for that
period.
(2) The amount of excess credit of a person registered under article 10 for a tax period shall, to the extent that it is not set
off against any amount due by that person to the Commissioner in accordance with article 21(1), be a refund payable to that person
by not later than five months from the expiration of the time allowed for the furnishing of the tax return for that tax period or
from the day on which the said return has been furnished to the Commissioner, whichever is the later.
(3) Interest shall be due to a person to whom a refund is due in accordance with this article at the rate specified in or prescribed
in terms of article 21(4) from the date by which the refund is payable in accordance with this article until the date when it is
paid or when a cheque or draft for the payment thereof is given or posted to that person by the Commissioner.
(4) For the purpose of any such verifications as he may consider necessary to ascertain the amount refundable, the Commissioner
may, by notice in writing to the person to whom a refund is due, extend the time limit referred to in sub-article (2) by not more
than twelve months: provided that the running of interest on the said refund shall not be meanwhile suspended.
25. (1) A person who is not registered or liable to be registered under article 10 but who is treated as a taxable person by
reason of the fact that he makes an exempt supply of new means of transport may claim a refund of the tax charged on the supply to
him or the intra-community acquisition or importation by him of that new means of transport: provided that the refund shall not exceed
the tax that would be chargeable if the supply by him of the new means of transport in question were a taxable supply.
(2) A taxable person who is not registered or liable to be registered under article 10 and who is not established in Malta but is
established in another Member State may claim a refund of his input tax.
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Claim for refund under article 25.
(3) A taxable person who is not registered or liable to be registered under article 10 and who is not established in the Community
may claim a refund of his input tax if, in terms of the laws of the country in which he is established, a taxable person established
in Malta would be entitled to a comparable benefit with respect to value added tax or similar taxes levied in that country.
(4) When goods transported from a third territory are imported into Malta by a non-taxable legal person, and when the place of
arrival of the goods transported is a Member State other than Malta, the importer may claim a refund of the tax on the importation
of those goods if he establishes that his acquisition of those goods was subject to value added tax in that other Member State.
26. A claim for a refund referred to in article 25 shall be made on such form as the Minister may by regulations prescribe and
shall be made within such time, be accompanied by such documents and information and be subject to such limitations and conditions
as may be prescribed.”.
Amendment of article 27 of the principal Act.
(a) in sub-article (1) thereof, for the words “Every registered person who is not an exempt person” there shall be substituted
the words “Every person registered under article 10”;
(b) for sub-article (2) thereof there shall be substituted the following:-
“(2) Every person whose registration under article 10 is cancelled shall furnish the Commissioner with a tax return relating
to the last tax period within thirty days from the date on which he is served with a notice referred to in sub-article (3) of article
13 or within such longer period as may be specified in the said notice: provided that this sub-article does not apply when the registration
under article 10 is cancelled in the circumstances mentioned in sub-article (3) of article
11.”.
(c) in sub-article (3) thereof –
(i) immediately after the words “A tax return” there shall be added the words “furnished by a person registered under article
10”; and
(ii) for the words “on the form as prescribed in the Tenth Schedule to this Act” there shall be substituted the words “such
form as the Minister may by regulations prescribe”.
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Substitution of article 28 of the principal Act.
“Adjust- ments to tax returns.
28. (1) Subject to sub-article (2), a person registered under article 10 who has made an incorrect declaration in a tax return
furnished to the Commissioner for a tax period may correct the declaration by the delivery of such form as the Minister may by regulations
prescribe. The provisions of article 27(4) with respect to tax returns shall apply mutatis mutandis to the delivery of the said form.
(2) An incorrect declaration in a tax return may be corrected by means of an adjustment in a subsequent tax return without the
need for the delivery of a form as required by sub-article (1) to the extent allowed by and in the manner provided in the Eleventh
Schedule, and when a correction has been so made the tax return shall not be deemed, with respect to the matters so corrected, to
have contained any understatement or overstatement for the purpose of article
37(2)”.
b) immediately after the words “When a person” there shall be added the words “registered under article 10”; and
c) for the words “article 28 of this act.” there shall be substituted the following:-
“article 28: Provided that any such adjustment shall not give rise to any reduction in the tax liability or a tax credit or refund
with respect to that tax period if it is made after the expiration of six years from the end of the year in which that tax period
ends.”.
Amendment of article 29 of the principal Act .
Substitution of article 30 of the principal Act.
“Further declarations and statements.
30. (1) Every person registered under article 11 shall furnish the Commissioner with periodical declarations relating to his
economic activity on such form and at such intervals as the Minister may by regulations prescribe.
C 678
Amendment of article 31 of the principal Act.
Amendment of article 32 of the principal Act.
(2) A person registered under article 12 shall furnish the Commissioner with declarations of his intra- community acquisitions
on such form and at such intervals as the Minister may be regulations prescribe.
The provisions of article 27(4) with respect to tax returns shall apply mutatis mutandis to the delivery of the said form.
(3) Every taxable person shall make a recapitulative statement of exempt intra-community supplies on such form and at such intervals
as the Minister may by regulations prescribe.
(4) Every taxable person and non-taxable legal person shall make such statements and shall produce such information and documents
as may be reasonably required by the Commissioner for any purpose of this Act or as may be prescribed.”.
(a) immediately after the words “a person liable to furnish a tax return” there shall be added the words “under article 29”;
and
(b) for the words “and the input tax” there shall be substituted the words “and the deductions”.
(i) immediately after the words “furnished by a person” there shall be added the words “registered under article 10”; and
(ii) the words “of the output tax and the input tax of that person for that period and of the administrative penalty to which
that person became liable” shall be deleted.
(b) in sub-article (2) thereof, immediately after the words
“shall contain” there shall be added the word “all”; and
(c) in sub-article (3) thereof, for the words “and the input tax” there shall be substituted the words “and the deductions”.
17. Article 33 of the principal Act shall be amended as follows:- (a) in the marginal note thereto, for the word “exempt” there
shall be substituted the word “other”;
(b) the present provision shall be renumbered as sub-article
(1) thereof:
(c) for the words “he was classified as an exempt person” in sub-article (1) thereof as renumbered, there shall be substituted
the words “he was registered under article 11”;
(d) after sub-article (1) thereof, as renumbered there shall be added the following sub-article:
“(2) When a person who is not registered under article
10 and who is liable to pay tax under this Act does not pay the tax within the time allowed in terms of this Act for the said payment,
the Commissioner may make an assessment of the tax payable by that person.
(3) When a person who is not registered under article
10 or 11 becomes liable to an administrative penalty under this Act the Commissioner may make an assessment of the administrative
penalty to which that person became liable and serve that assessment on that person at any time within six years from the date on
which that administrative penalty was payable.”.
18. For subarticle (2) of article 34 of the principal Act, there shall be substituted the following:
“(2) An assessment may be made by reference to such information, estimations or criteria as the Commissioner may, in his judgement, deem appropriate, and the Commissioner may also attribute the taxable value of taxable supplies, the output tax, the deductions allowable and the tax payable or excess credit resulting in respect of a number of tax periods to a particular tax period, provided that the person subject to the said aggregated assessment shall not be made liable to more tax, administrative penalty or interest than he would have been liable to had the amounts been attributed to particular tax periods.”.
19. For article 36 of the principal Act there shall be substituted the following:-
C 679
Amendment of article 33 of the principal Act.
Amendment of article 34 of the principal Act.
Amendment of article 36 of the principal Act.
C 680
“Presumption as to
amounts shown in assessments.
36. Where an assessment is made on any person any amount of tax, deductions or administrative penalty assessed in that assessment shall, except if and to the extent that the assessment is cancelled or revised, be deemed for any of the purposes of this Act to be and to have always been the tax, the deductions and the administrative penalty properly due and allowable with respect to the tax period or the transactions to which that assessment refers.”.
Amendment of article 37 of the principal Act.
Amendment of article 38 of the principal Act.
(a) in sub-article (1) thereof, immediately after the words “furnished by a person” there shall be added the words “registered
under article 10”;
(b) in sub-article (2) thereof –
(i) for the words “makes an adjustment of” there shall be substituted the word “corrects”; and
(ii) for the words “Article 28” there shall be substituted “sub-article 28(1)”; and
(c) in sub-article (3) thereof-
(i) for the words “by a registered person” there shall be substituted the words “by a person registered under article
10”; and
(ii) for the words “that person does not make an adjustment of” there shall be substituted the word “to the extent that that
person does not correct”.
(a) in the marginal note thereto, after the words “of a tax return” there shall be added the words “or other declarations
and statements”;
(b) the present provision shall be numbered as sub-article
(1) thereof;
(c) immediately after the words “Any person” in sub-article (1) thereof as renumber there shall be added the words “registered
under article 10”; and
(d) after sub-article (1) thereof, as renumbered, there shall be added the following:-
“(2) Any person who, being required to furnish a declaration or statement in terms of article 30, does not furnish that declaration
or statement within the time laid down in the relevant provisions of this Act shall be liable to an administrative penalty of ten
liri for every month or part thereof that elapses from the date by which the declaration or statement should have been furnished in accordance
with this Act and the date when it is furnished to the Commissioner.”.
(a) in the marginal note thereto, for the words “in application for registration” there shall be substituted the words “in
applying for registration or giving a notice”;
(i) for the words “under this Act” there shall be substituted the words “under article 10”; and
(ii) for the words “in terms of the said provisions and the earlier of the date on which the registration is furnished” there
shall be substituted the words “and the earlier of the date on which the application for registration is furnished”
(b) after sub-article (1) thereof, as numbered there shall be added the following:
“(2) Any person who, being required to apply for registration under article 12, does not make such an application within
the time laid down in the relevant provisions of this Act shall be liable to an administrative penalty of the higher of -
(a) one per cent of the tax chargeable on the intra-community acquisitions in respect of which he is required to make such application;
and
(b) ten liri
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Amendment of article 39 of the principal Act.
C 682
Amendment of article 40 of the principal Act.
Amendment of article 44 of the principal Act.
for every month or part thereof that elapses from the date on which the application should have been made and the earlier of the date
on which the application is furnished to the Commissioner and the date when that person is registered by the Commissioner.
(3) Any person who, being required to give a notice under article 15, does not give that notice within the time laid down in the
relevant provisions of this Act shall be liable to an administrative penalty of ten liri for every month or part thereof that elapses from the date on which the notice should have been given and the date when that notice
is given to the Commissioner.”.
person” there shall be substituted the words “person registered under article 11”;
(b) for the words “An exempt person who does not remain eligible to be classified as an exempt person” there shall be substituted
the words “Any person registered under article 11 who does not remain eligible to be so registered”; and
(c) for the word “classification”, wherever it occurs, there shall be substituted the words “registration under article
11”.
following:
“(b) any tax chargeable on a supply or an acquisition other than tax assessed in an assessment and any deductions that may be
claimed against such tax;”;
(b) in paragraph (c) thereof, immediately after the words “taxable supply” there shall be added the words “or a taxable acquisition”;
(c) in paragraph (e) thereof, immediately after the words
“of a supply” there shall be added the words “or of an acquisition”;
(d) in paragraph (f) thereof, for the words “a registered person” there shall be substituted the words “a person registered
under article 10”; and
(e) for paragraph (k) thereof there shall be substituted the following:
“(k) the imposition of any administrative penalty in cases where such a penalty has been imposed in virtue of article 37,”.
C 683
Substitution of article 48 of the principal Act.
“Records to be kept.
48. (1) Every taxable person established in Malta shall keep full and proper records of all transactions carried out in the
course or furtherance of his economic activity.
(2) Every person who is liable to tax on any transaction or who identifies himself as a person registered under this Act for the
purpose of any transaction shall keep full and proper records of any such transaction.
(3) Every taxable person and every non-taxable legal person shall keep full and proper records of all intra- community acquisitions
made by him.
(4) The records referred to in sub-articles (1), (2) and (3) shall be kept and stored in such manner, contain such details and
be supported by such information, documents and accounts as set out in the Eleventh Schedule and such records, information, documents
and accounts shall be retained for a period of at least six years from the end of the year to which they relate, or such other period
or periods as the Minister may, in special cases, by regulations prescribe.
(5) The Commissioner may at any time within the period specified in sub-article (4) of this article request any person to produce
the records, documents and accounts required to be kept by him in virtue of this article.”.
(a) for the marginal note thereto there shall be substituted the following “Inclusion of tax in the price for supplies”;
Amendment of article 49 of the principal Act.
C 684
Substitution of articles 50 and 51 of the principal Act.
(b) the present provision shall be renumbered as sub-article
(1) thereof; and
(c) immediately after sub-article (1), as numbered there shall be added the following:
“(2) Where the amount of tax chargeable under this Act is not identified in a payment for a taxable supply or in a price charged,
otherwise than in an invoice or a document serving as invoice issued by a taxable person to another taxable person, for a taxable
supply that payment or price shall be deemed to be inclusive of tax.
(3) Where the amount of tax chargeable under this Act is not identified in the price charged for a supply on an invoice or a document
serving as invoice issued by a taxable person to another taxable person that price shall be deemed to be exclusive of tax.”.
27. For articles 50 and 51of the principal Act there shall be substituted the following:-
“Tax invoice.
50. (1) Every person registered under article 10 who makes a supply, other than an exempt without credit supply, to another person
who identifies himself for the purpose of that supply by means of a value added tax identification number shall provide that other
person a tax invoice within thirty-one days from the earlier of:
(a) the date when the goods are delivered or the services are performed;
(b) the date on which a payment for that supply is received.
(2) When there is an application, disposal, transport or use of goods for which no consideration is charged or paid but which is
deemed in terms of the Second Schedule to be a supply made by a person for consideration, that person shall, if he is a person registered
under article 10, issue a tax invoice in which he indicates himself both as the person who made the supply and as the person to whom
the supply is made.
(3) Every taxable person shall issue a tax invoice within the time stated in sub-article (1) in respect of every distance sale
made by him.
“Documents to be provided in other cases.
(4) Where a person provides a document to himself which purports to be a tax invoice in respect of a taxable supply made to him
by a person registered under article
10, that document may, subject to the provisions of the Twelfth
Schedule, be treated as the tax invoice required to be issued and delivered by the supplier in terms of this article.
(5) A tax invoice shall be issued in the form and in the manner and shall contain the particulars set out in the Twelfth Schedule.”.
51. Any taxable person or non-taxable legal person who makes any supply, other than a supply in respect of which a tax invoice
is required to be issued in terms of article 50, shall provide to the person to whom the supply is made an invoice, receipt or other
document which shall be issued in the form and in the manner and shall contain the particulars set out in the Thirteenth Schedule.”.
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“(5) Nothing contained in this article shall, after the accession date, prevent the disclosure by the Commissioner, of any information
that is required to be disclosed in terms of Council Regulation (EEC) number 218/92 of 27 January 1992 on administrative cooperation
in the field of indirect taxation (VAT) or of any such other Council Regulation as may be prescribed.
(6) For the purposes of this article, any information disclosed to the Commissioner by the fiscal authorities of another Member
State in terms of any Council Regulation referred to in sub-article (5) shall be treated as information relating to and obtained
for the purposes of this Act.”.
Amendment of article 53 of the principal Act.
Amendment of article 56 of the principal Act.
Substitution of article 57 of the principal Act.
C 686
“Special cases.
57. (1) The provisions of the Fourteenth Schedule shall apply with respect to the following operations, as defined in the said
Schedule:-
(a) operations of tour operators and travel agents and of other persons acting as principals or intermediaries and carrying out operations
commonly carried out by tour operators and travel agents;
(b) operations relating to second hand goods, works of art, collectors’ items, and antiques;
(c) operations carried out by retailers; (d) professional services;
(e) operations relating to civil, mechanical and electrical engineering contracts;
(f) operations relating to investment gold;
(g) the supply of electronic services by persons established outside the Community;
(h) such other operations as may be designated by an order as may be made, amended, substituted or replaced by the Minister and published
in the Gazette.
(2) With respect to operations to which the Fourteenth Schedule applies and the obligations of persons involved in such operations
that Schedule shall have effect notwithstanding anything to the contrary contained in the other provisions of this Act: provided
that the other provisions of this Act shall apply to the said operations and obligations insofar as they are not inconsistent with
anything contained in the said Schedule.”.
Amendment of article 63 of the principal Act .
31. Article 63 of the principal Act shall be amended as follows:
(a) in sub-article (1) thereof the word “registered” shall be deleted; and
(b) immediately after sub-article (2) hereof, there shall be added the following:
“(3) The co-contracting party of the person liable to pay the tax shall be held jointly and severally liable for the payment
of the tax.
(4) The provisions of sub-article (3) shall not apply to an operation referred to in article 20(1) when and to the extent that
the co-contracting party proves that he has paid the price and the related tax due to the supplier.”.
32. In article 64 of the principal Act, for the words “a registered person” there shall be substituted the words “a person registered under article 10”.
33. For article 65 of the principal Act there shall be substituted the following:-
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Amendment of article 64 of the principal Act.
Substitution of article 65 of the principal Act.
“Judicial auction.
65. (1) Where any assets belonging to an economic activity of a person are sold by judicial auction pursuant to any proceedings
exercised by a creditor or by creditors of that person, and where that sale is treated as a supply of goods in terms of the relevant
provisions of the Second Schedule and is subject to tax under this Act, the registrar of the court under the authority of which the
sale is made shall, after notifying the person or persons appearing to be interested therein, remit to the Commissioner from the
proceeds lodged in court, with preference over any other person not having a prior claim to that of the Commissioner as provided
for in article 62, the tax chargeable on that supply.
(2) Any interested person may oppose the remittance referred to in sub-article (1) by means of writ of summons filed against the
Commissioner within six working days from the date of the notification referred to in the said paragraph.
(3) No bid animo compensandi shall be approved for the purposes of article 331 of the Code of Organisation and Civil Procedure unless the tax chargeable, if any,
on that supply has been lodged in court and remitted by the Registrar in accordance with sub-article (1).”.
34. Sub-article (2) of article 66 of the principal Act shall be amended as follows:
(a) the present provision shall be renumbered as paragraph
(a) thereof;
(b) in paragraph (a) thereof, as numbered after the words “not established in Malta” there shall be added the words “and
is not established in the Community,” and for the words “the said person.” there shall be substituted the words “the said
person;”.
Amendment of article 66 of the principal Act.
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(c) immeditely after paragraph (a) thereof, as numbered there shall be added the following:
“(b) when a person who is not established in Malta, but is established in the Community, is, or is required to be registered
under this Act, he may, by means of a notice in writing to the Commissioner, nominate as his representative, any person resident
in Malta who is acceptable to the Commissioner;
(c) for the purpose of this sub-article, the Minister may by regulations prescribe the conditions regulating such appointment.”.
Amendment of article 68 of the principal Act.
Amendment of article 69 of the principal Act.
Amendment of article 70 of the principal Act.
Substitution of article 71 of the principal Act.
35. For subarticle (1) of article 68 of the principal Act there shall be substituted the following:
(i) tax paid shall not be refundable except in the circumstances provided in Part IV or articles 69, 70 and 71.”.
36. Sub-article (4) of article 69 of the principal Act shall be amended as follows:-
(a) for the words “sub-article 2 of article 22” there shall be substituted the words “article 21(4)”; and
(b) in paragraph (a) thereto, for the words “article 26” there shall be substituted the words “article 24”.
37. Article 70 of the principal Act shall be amended as follows:- (a) for the marginal note thereto shall be substituted
“Diplomatic and consular arrangements”;
(b) sub-articles (1), (2) and (4) thereof shall be deleted; and
(c) sub-article (3) thereof shall be renumbered as the whole provision.
38. For article 71 of the principal Act there shall be substituted the following:
“Repayment of tax in other cases.
71. The Minister may by regulations provide for the repayment by the Government, subject to such limitations, conditions and formalities
as may be prescribed in the said regulations, of:
(a) an amount not exceeding the tax chargeable on supplies made to non-taxable physical persons of goods exported by them outside
Malta;
(b) tax paid on the supply of goods that are exported by the persons acquiring them in the framework of their humanitarian, charitable
or teaching activities;
(c) tax paid on supplies to, or intra-community acquisitions and importations by, persons or classes of persons eligible under
such schemes as may be specified in the regulations.
39. Article 75 of the principal Act shall be amended as follows:- (a) In paragraph (g) thereof, for the words “this Act;” there
shall be substituted the words “this Act.”; and
(b) Paragraph (h) thereof shall be deleted.
40. In paragraph (a) of article 76 of the principal Act immediately after the words “article 10” there shall be added the words “or 12”.
41. Article 77 of the principal Act shall be amended as follows:- (a) in paragraph (a) thereof, immediately after the words
“taxable supply” there shall be added the words “or any intra-
community acquisition”;
(b) paragraphs (f) to (m) thereof shall be renumbered (g) to
(n) respectively;
(c) immediately after paragraph (e) thereof, there shall be added the following new paragraph:
“(f) is an employee or agent of another person, and whose functions in that capacity include that of providing or producing a
tax or other invoice or document which that other person is required to provide or to produce in terms of article 50, 51 or 52, fails
to provide or produce such tax or other invoice or document or provides any such tax or other invoice or document which is incorrect
or misleading in any material respect;”
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Amendment of article 75 of the principal Act.
Amendment of article 76 of the principal Act.
Amendment of article 77 of the principal Act.
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Amendment of article 82 of the principal Act.
Amendment of article 84 of the principal Act.
Amendment of article 85 of the principal Act.
(d) in paragraph (h) thereof as renumbered, for the words “classified for the purposes of this Act as an exempt person” there shall be substituted the words “registered under article 11”;
(e) in paragraph (i) as renumbered thereof:
(i) for the words “classified as an exempt person for the purposes of this Act” there shall be substituted the words “registered
under article 11”;
(ii) for the word “so classified” there shall be substituted the word “so registered”; and
(iii) for the word “classification” there shall be substituted the word “registration”;
(f) in paragraph (j) as renumbered thereof:
(i) for the words “classified as an exempt person for the purposes of this Act” there shall be substituted the words “registered
under article 11”; and
(ii) for the word “classified for the purposes” there shall be substituted the word “registered for the purposes”; and
(g) in paragraph (k) as renumbered thereof:
(i) for the words “ classified as an exempt person for the purposes of this Act” there shall be substituted the words “registered
under article 11”; and
(ii) for the word “so classified” there shall be substituted the word “so registered”.
42. In subarticle (2) of article 82 of the principal Act for of the words “Where any thing” there shall be substituted the words “In addition and without prejudice to any liability of an employee or other person, where any thing”.
43. In sub-article (3) of article 84 of the principal Act for the words “seven days” there shall be substituted the words “fifteen days”.
44. Article 85 of the principal Act shall be amended as follows:- (a) in sub-article (1) thereof:
(i) for the words “supply of goods made before the effective date” there shall be substituted the words “supply of goods
made before the 1 January 1999”; and
(ii) for the words “under that Act before the effective date” there shall be substituted the words “under that Act before
that date”;
(b) in sub-article (2) thereof, for the words “before the effective date” there shall be substituted the words “before the
1
January 1999”; and
(c) sub-article (3) thereof shall be deleted.
45. Articles 86, 87, 88 and 90 of the principal Act shall be deleted and article 89 there of shall be renumbered as article 86 thereof.
46. In article 86 as numbered of the principal Act for the words “the effective date”, wherever they occur, there shall be substituted the words “1 January 1999”.
47. For the Schedules to the principal Act there shall be substituted the following schedules:
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Deletion of articles
86, 87, 88 and 90 and renumbering of article 89 of the principal Act.
Amendment of article 86 of the principal Act.
Substitution of the Schedules to the principal Act.
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(Article 5(3))
The activities listed in the second column of the public authorities listed in the first column of this Schedule shall be deemed to be activities performed in the course or furtherance of an economic activity.
First column Public authority | Second column Activities |
Malta Drydocks Corporation | All activities |
Mediterranean Conference Centre | All activities |
Any public authority | Sale of leaded petrol, unleaded petrol and diesel (gas) oil, bottled gas and the supply of electricity and the supply of steam; The supply of water and gas; Production and sale of numismatic coins and medals; Telecommunications; The transport of goods; Port and airport services; Passenger transport; Supply of new goods manufactured for sale; The transactions of agricultural intervention agencies in respect of agricultural products carried out pursuant to Regulations on the common organisation of the market in these products; The running of trade fairs and exhibitions; Warehousing; The activities of commercial publicity bodies ; The activities of travel agencies; The running of staff shops, co-operatives and industrial canteens and similar institutions; Transactions of a commercial nature of radio and television bodies; Private hire of patrol boat, helicopter and equipment; Inspection of ships’ hulls by divers; Security duties with banks and similar activities; Provision of meteorological services; Book binding; Sale of bread; Sale of impounded motor vehicles; |
C 693
First column Public authority | Second column Activities |
The provision of accommodation facilities to visiting youths, student groups and individuals; Sale of drugs and vaccines; Sale and cleaning of grave sites; Laboratory analysis; Testing for standards and issuing of certificates for exported goods; Giving technical advice in connection with technical problems to private industries; Printing services to government departments and parastatal entities; Sale of other publications; Quarantine services; Sale of milk powder, eggs and dairy produce; Sale of vegetables; Sale of livestock; Sale of decorative trees, fruit trees, vine rootings, fruit plants, shrubs and flowers; Sale of wheat, straw and manure; Sale of fish and fishing equipment; Bowser water services Services of grafting, pruning and spraying; Rent and provision of cold storage facilities and sale of ice; Services of civil abattoir; Provision of telephonic communications; Acting as contractor for cleaning services; Sale of compost; Repairs to damage; Carpentry works; Hiring of plant and vehicles; Supply of metal trades goods; Repairs to plant and vehicles; Sale of prints; Sale of food prepared by students as part of their daily training; |
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5. The supply of services of brokers and other intermediaries who act in the name and for the account of another person when
these persons take part in operations exempted by items 1, 2, 6, 7, 8, 9 and 10 of this Part of the Schedule.
6. (1) The supply of vessels>
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(d) which, in the opinion of the Commissioner, is managed and administered in accordance with the provisions of its statute and
for the purpose of its stated objects;
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(2) In giving his approval in terms of paragraph (2) of this item the
Commissioner may -
(a) require that the same method shall continue to be used for such period as he may specify<
(b) impose such other conditons and require such warranty as he deems appropriate.
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Transitory provisions.
Special transitory provisions with respect to certain importations.
48. (1) A person who, immediately prior to the coming into force of article 10 of the principle Act as substituted by article
10 of this Act, was registered under the principal Act, shall unless he is deemed to be registered under article 11 of the principal
Act as substituted by this Act, in terms of subarticle (2) of this article, be deemed to be on the date of the coming into force
of the said article 10 as substituted a person registered under the said article 10 as so substituted.
(2) A person who immediately before the coming into force of article 11 of the principal Act as substituted by article 10 of the
Act, was classified under the principal Act as there in force as an exempt person shall on the date of the coming into force of the
said article 11 of the principal Act as so substituted be deemed to be a person registered under article 11 and as not registered
under article 10, both of the principal Act as substituted by article 10 of this Act.
(3) Nothwithstanding the repeal of articles 86, 87, 88 and
90 by article 45 of this Act and of subarticle 85 (3) by article 44 of this Act, the provisions of the said articles as in force before
the coming into force of articles 44 and 45 of this Act shall continue to regulate the matters therein regulated occuring during
the times therein indicated.
(4) For the avoidance of doubt it is hereby provided that the Value Added Tax Act enacted by Act XXIII of 1998 shall be deemed
to have always been in force since the coming into force thereof in accordance with the provisions thereof and that all amendments
made thereto since its enactment have been in force since the date of their coming into force as therein provided and this notwithstanding
any dispute or claim with regard to the regularity of their passage in the House< and the provisions of this subarticle shall
be sufficient authority for its continued legal effect (subject to such amendments subsequently made) and for the validation of anything
done or omitted to be done in accordance with its provisions.
49. (1) When goods>
(a) entered Malta before the accession date, and
(b) were placed upon entry into Malta under a customs duty suspension regime, and
date,
(c) were not released from this regime before the accession
the provisions in force at the time the goods were placed under this regime shall continue to apply after the accession date until
the goods cease to remain under this regime.
(2) The happening of any of the following events on or after the accession date shall be treated as an importation in Malta>
(a) the removal, even if irregular, of the goods in Malta from the temporary importation regime under which they were placed before
the accession date<
(b) the removal, even if irregular, of the goods in Malta from a customs duty suspension regime, other than temporary importation
and transits, under which it has been placed before the accession date<
(c) the termination in Malta of an internal transit procedure that started before the accession date within the Community for the
purposes of a supply of goods carried on before the accession date for consideration into the territory of the Community by a taxable
person acting as such. A supply of goods by mail shall for this purpose be treated as an internal transit procedure<
(d) the termination in Malta of an external transit procedure that started before the accession date<
(e) any irregularity or any violation committed in Malta during an internal transit procedure that started in the conditions referred
to in paragraph (c) or during an external transit procedure referred to in paragraph (d)<
(f) the use in Malta, by any person, of goods that have been supplied to him before the accession date into the territory of
another Member State, if>
(i) the supply of these goods was exempted or was liable to be exempted for reason of exportation< and
(ii) these goods have not been imported in Malta before the accession date.
(3) When an importation of goods takes place in any of the circumstances mentioned in sub-article (2), no taxable event takes
place if>
(a) the goods are transported outside the Community, or
(b) the goods imported within the meaning of paragraph (2)(a) are not a means of transport and are transported to the Member State
from which they were exported and to the person who exported them< or
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(c) the goods imported within the meaning of paragraph (2)(a) are a means of transport which have been acquired or imported, before
the accession date, in the general conditions of taxation of a Member State and#or, did not benefit from an exemption or a refund
of the value added tax for reason of their exportation. This condition is deemed fulfilled when the date of the first entry into
service of this means of transport is earlier than the 1st of January 1996.”.
(4) Terms and phrase used in this article shall have the same meaning assigned to them in the principal Act as ameded by this Act
and shall be construed accordingly.
(5) The provision of item 19 of the Second Schedule and of item 15 of the Third Schedule (both of the principal Act as substituted
by article 47 of this Act) shall be without prejudice to the provisions of this article.”.
Objects and Reasons
The main object of this Bill is to bring the provisions of the Value Added Tax Act, in line with the European Acquis and in accordance with Malta’s Negotions in the Treaty of Accession to the European Union.
Ippubblikat mid-Dipartiment ta’ l-Informazzjoni (doi.gov.mt) — Valletta — Published by the Department of Information (doi.gov.mt) — Valletta
Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press
Prezz Lm3.04ç – Price Lm3.04c
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