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Maltese Laws |
VALUE ADDED TAX ACT
To make provision for the imposition of a value added tax in place of an excise tax system on imports, products and services.
1st January, 1999
ACT XXIII of 1998, as amended by Legal Notices 17, 21, 22, 28, 29, 30, 60, 89, 116, 142,
198, 199, 200, 201, 217, 223 of 1999, 11, 271, 272, 273 and 274 of 2000, and 23, 24, 25, 93 and 94 of 2001; Act VI of 2001; Legal Notices 149, 171, 233, 234 and 235 of 2001, 180, 205,
387, 388 and 389 of 2002, and 39, 375 and 384 of 2003, and 149 of 2004; Acts X of 2003, and
II and III of 2004; Legal Notices 250, 376, 436, 489 and 520 of 2004; Act XIII of 2005; Legal
Notices 171, 181, 186 and 334 of 2006; Acts IV, XIX and XXXII of 2007; Legal Notices 121,
122, 123, 124, 426, 443, 444, 445, 446, 447 and 448 of 2007, 105 and 335 of 2008, and 34, 86,
132, 133, 137, 234 and 235 of 2009; Acts II of 2009 and I of 2010; Legal Notices 71, 72, 73,
286, 425, 444, 499, 523, 532, 533, 534, 535 and 536 of 2010, and 61, 234, 379, 380, 381, 382,
499 and 500 of 2011; Acts IV, V and XXII of 2011; and Legal Notices 38 and 39 of 2012.
.
ARRANGEMENT OF ACT
Articles
Part I Preliminary 1 - 3
Part II Scope of the Tax 4 - 9
Part III Registration and tax period 10 - 17
Part IV Determination and Payment of the Tax 18 - 26
Part V Returns, Assessments, Penalties and Appeals 27 - 47
Part VI Records and Information 48 - 56
Part VII Special Cases 57
Part VIII Collection, Security and Refunds 58 - 71
Part IX Miscellaneous 72 - 75
Part X Offences and Punishments 76 - 84
Part XI Transitional Provisions 85 - 86
SCHEDULES
FIRST SCHEDULE Activities of Public Authorities
SECOND SCHEDULE Sup p l i es, In tra- Co mmu ni ty Acq u i s it io ns and
Importations
THIRD SCHEDULE Place of Supplies, Intra-Community Acquisitions and
Importations
FOURTH SCHEDULE Time of Supplies, Intra-Community Acquisitions and
Importations
FIFTH SCHEDULE Exemptions
Part One - Exempt with credit supplies
Part Two - Exempt without credit supplies
Part Three - Exempt intra-community acquisitions
Part Four - Exempt importations
Part Five - Definitions
SIXTH SCHEDULE Thresholds
Part One - Small undertakings
Part Two - Acquisitions threshold
Part Three - Distance sales threshold
SEVENTH SCHEDULE Taxable Value
EIGHTH SCHEDULE Rate of Tax
NINTH SCHEDULE Appeals to the Value Added Tax Appeals Board
TENTH SCHEDULE Deductions
ELEVENTH SCHEDULE Records
TWELFTH SCHEDULE Tax Invoice THIRTEENTH SCHEDULE Fiscal Receipt FOURTEENTH SCHEDULE Special Cases
Part One - Professional services
Part Tw o - Second -han d go ods, wor k s of art, collectors’ items and antiques
Part Three - Supp lies by retailers an d by civ il, mechanical and electrical engineering contractors
Part Four - Travel agents Part Five - Tax in danger Part Six - Investment gold
Pa rt Se ven - Spe c ia l sch e m e fo r e l ec tron i cal ly supplied services
FIFTEENTH SCHEDULE Territories of the Community
SIXTEENTH SCHEDULE Excise goods
PART I
"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;
"acqui siti on s th resho l d" m eans t h e t h reshol d d e termi n ed 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 th e p r o v i s io ns of Part V bu t do es n o t i n cl
ud e a p r o v i s io nal assessment;
"Board" means the Value Added Tax Appeals Board established in terms of article 45;
"Commissio n er" means th e Co mmissio n er fo r Revenue appointed in terms of the provisions of article 3(1) or any
public officer or o ther person to who m a delegati on h as been m ade in accordance with subarticle (2) or (3) of that article
while he is acting within the terms of that delegation;
"Com mun i t y " means th e t e rri to ri es of the Me mber St a t es as defined in the Fifteenth Schedule;
"customs duty suspension regime" has the meaning assigned to it in the Fourth Schedule;
"d istance sal e " has the meaning assigned to it in the Third
Schedule;
"economic activity" has the meaning assigned to it in article 5;
"established " shal l be con s trued in accordance wi th the provisions of subarticles (2) and (3) of this article;
"ex c ise goo ds" mean s t h e good s d e fi ned in t h e Si xteent h
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;
"goo ds" m eans any asset t h e su ppl y of wh ich is t r eat ed as a supply of goods in terms of the Second Schedule;
"go ods f o rmin g p a r t o f an econo mic acti vit y " mean s goo ds,
Short title. Interpretation.
Substituted by:
X. 2003.3.
Amended by:
XXII 2011.5.
including fixed assets, used by a taxable person for the purpose of his economic activity;
"imp ort a ti on " has the meanin g assig n ed to i t in th e Secon d
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;
"i ntra-co m mu nity suppl y" means a su pply of g oods t h at 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 takeoff 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" m e ans 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 enti ty capable of c a rryi ng on an
eco no mi c 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;
"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;
" t ax pe riod" means a period determine d in ac corda n ce 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 t e rms of article 4 and which
is n o t exempt from tax in terms of article 9;
"taxable import at io n " m e an s an im po rt at io n o n wh i c h 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 sup p ly, of an intra- communit y acqui sit i on or of an import a tio n determin
ed i n accordance with the Seventh Schedule;
Cap. 363.
"thi rd t e r r it or y" m e an s any t e rri to ry wh ich i s no t a Member
State;
"transport" and "transported" include dispatch and dispatched;
"value added tax identification n umber" 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 wh o, fo r the purp
o se of a supply, communicates that number to the supplier.
(2) The provisions of this subarticle and of subarticle (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 subarticle (2), a taxable person falls to b e treat ed as establi sh ed in Malta an d in anot her co untr
y w ith 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.
Administration. Amended by: XXII 2011.5.
(2) The Commissioner may delegate to any public officer any of the rights, duties, powers and other functions vested in him ,
conferred to him or imposed upon him by this Act.
(3) The Commissioner may delegate to any other person such of the rights, duties, powers and other functions vested in him , conferred
to him or imposed upon him by this Act as the Minister may direct in writing:
Provided that the Commissioner may not delegate those rights, du ti es, powers and other func tio ns vested in him if
th at
person is not considered by the Commissioner as a fit and proper person to exercise those rights, duties, powers and other functions
and that such person shall be subject to the obligations imposed by article 56.
PART II
(a) on every supply of goods or of services that takes place in Malta made on or after 1 January 1999 for consideration
by a taxable person acting as such other than a supply made by a person registered under article
11 or by a person who is exempted from registration under article 11, as the Minister may by regulations
prescribe;
(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.
Charge to tax. Substituted by: X. 2003.4. Amended by: IV. 2011.73.
(2) Saving the provisions of subarticle (3) an economic activity means an activity carried on by a person, other than an employee
acting as such, and consisting of any one or more of the following -
(a) any trade or business;
(b) any profession or vocation and the provision of any personal services;
(c) the exploitation of tangible or intangible property for
Taxable person and economic activity. Amended by:
X. 2003.5.
the purpose of obtaining income therefrom on a continuing basis;
(d) the provision by a club, association or organisation (for a subscription or other consideration) of the facilities
or advantages available to its members;
(e) the admission, for a consideration, of persons to any premises.
(3) The activities of a public authority acting in the exercise of the functions assigned to it by law shall not be deemed to be
an economic activity except as and to the extent provided in the First Schedule and except where such treatment as non-taxable persons
would lead to significant distortions in competition.
(4) A person who does not carry on an economic activity within t he m eaning of the foregoi ng p rov ision s but who, fro m t im
e 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.
Operations constituting supplies, intra- community acquisitions and importations. Substituted by: X. 2003.6.
(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.
Place of supplies, intra-community acquisitions and importations. Substituted by:
X. 2003.7.
Date of the chargeable event and date when tax becomes chargeable. Substituted by:
X. 2003.8.
Exemptions. Substituted by: X. 2003.9.
(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 Mi nist er to grant an ex emp t i on from i m port dut ies on th
e importation of goods chargeable under the Import Duties Act shall be co ns true d as em p ow erin g t he M in ist er to g r an t, in t h e s am e ci rcumstan ces, in th e sam e mann er, an
d subj ect t o t h e 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.
PART III
10.(1)(a) 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.
(b) A taxable person established in Malta who is not registered under this article or under article 11 and who supplies services
within the territory of another Member State for which the tax is payable solely by the recipient 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.
(2) Paragraph (a) of subarticle (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.
(6) The Commissioner shall register under this article:
(a) every person who in his opinion is liable to apply for registration in terms of subarticles (1), (3) or (4);
(b) any person who has made an application in terms of subarticle (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
Cap. 337.
Registration of taxable persons. Substituted by: X. 2003.10. Amended by:
II. 2009.37.
provisions of article 22; or
(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 subarticle (5) thereof.
(7) Every person registered under this article shall within fifteen days from the happening of any of the following even
ts 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 article 11(3), 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.
Registration of taxable persons carrying on a small undertaking. Substituted by:
X. 2003.10.
(2) The Commissioner shall register under this article any person who has made an application under subarticle (1) if he
is satisfied that that person is eligible for such registration.
(3) When a person is, immediately before his registration under this article, registered under artic le 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 cancell a t i on of hi s regist rat i on u nder t h i s ar ticle
o r w h ere th e 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 pro v isio ns o f Part On e of the Si xth Schedu le, th e Commissioner shall cancel the registration of
that person under this
article and register that person under article 10.
(6) Without prejudice to subarticle (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.
(2) For the purpose of subarticle (1), 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) A taxable person established in Malta, other than a taxable person registered under article 10, who receives services for which
he is liable to pay the tax pursuant to article 20(2), shall apply to be registered under this article by not later than the date
on which he receives a service.
(4) The Commissioner shall register under this article any person who in his opinion is liable to apply for such registration
in terms of subarticles (1) or (3) or who makes a n a p p l i c a t i o n f o r registration when he is so entitled in terms of
subarticle (2).
(5) When a person is liable to apply for registration in terms of subarticle (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.
(6) A person registered under this article in the circumstances mentioned in subarticle (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.
(7) A person registered under this article upon an application in accordance with subarticle (2) may apply for the cancellation
of his registrati on at any tim e af ter th e ex pirati on of two con secuti ve calendar years following the year in which he was
so registered if the value of his intra-community acquisitions has not exceeded the acquisi tion s threshol d in the y e ar in wh
ich he makes such an application or in the preceding calendar year.
(8) A person registered under this article in the circumstances mentioned in subarticle (3) may apply for the cancellation of his
registration at any time if he no longer receives supplies of services for
Registration of persons who make intra-community acquisitions. Substituted by:
X. 2003.10. Amended by:
II. 2009.38.
which he is liable to pay the tax pursuant to article 20(2).
(9) The value of intra-community acquisitions for the purpose of this article shall be determined in accordance with Part Two of
the Sixth Schedule.
(10) The Commissioner shall cancel the registration of a person under this article -
(a) if that person is registered under article 10, in which case the cancellation shall take effect from the effective
date of 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 subarticle (6) or (7) or (8), in which case the cancellation shall take effect on 1 January of the year in which the application
is made.
General provisions with respect to registrations. Substituted by:
X. 2003.10.
(2) The Commissioner shall allocate a registration number to every person registered under article 10, 11 or 12 and shall deliver
a registra tion ce rtificate to ever y such perso n cont aining the registration number, the article under which the registration
was made, the ef fective da te of th e regi strat i on and su ch o t her particulars as the Comm issioner m a y 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 h a ve th e p r ef ix "M T" in acc or dan ce w ith
I S O In ter n at io nal 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.
(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 ci rcum stan ces un der wh ich he is required to ap ply 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 regis t ered se pa rately in res p e c t of dif f ere n t branches or dep artments of his econom ic act ivity in such circum st
ances, 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 s u ch regulations make such an exemption subject to s u c h conditions and limitations as may be prescribed.
(2) Any person who is not registered under article 10 and who in tends to make an intra-community supply of a ne w 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.
(4) 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.
Further classification of registered persons. Substituted by:
X. 2003.10.
Notice relating to certain operations. Substituted by:
X. 2003.10. Amended by:
III. 2004. 114; XIII. 2005.41.
(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 class es 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
Information by persons who are not registered under this Part. Substituted by: X. 2003.10.
Tax period. Substituted by: X. 2003.10.
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.
PART IV
Taxable value. Substituted by: X. 2003.10.
Rate of tax. Substituted by: X. 2003.10. Amended by: II. 2004.66;
III. 2004.114.
(2) The tax chargeable on every taxable supply specified in the Eighth Schedule shall be at such rate or rates, not being higher
than eighteen 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 an importation referred to in subarticle (5), shall be at the rate
of eighteen 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 eighteen per cent or lower than five per cent of the taxable value of the importat ion, as may specified in
that Schedule.
Persons liable for the payment of the tax.
Substituted by: X. 2003.10.
Amended by: II. 2009.39.
(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 or a non- taxable legal person identified for purposes of Value Added Tax
in terms of item 2(1) in Part Two of the Third Schedule; 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 or article 12, or to a non-taxable legal person identified for purposes of Value Added Tax:
Provided that, for the purposes of this subarticle, a taxable p e rson who has a fixed establishment wi thin Malta shal l be regarded
as a taxable person who is not established within Malta when the following conditions are met:
(i) he makes a taxable supply of goods or of services within Malta;
(ii) an establishment which the supplier has within
Malta does not intervene in that supply.
(3) When a person mentions the tax on an invoice or a document serving as an 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.
Payment of the tax.
Substituted by:
X. 2003.10.
Amended by:
XIII. 2005.42;
II. 2009.40;
V. 2011.28.
Cap. 395.
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 artic l e 20(1) or (3), other than tax
payable in accordance with subarticle (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 w i t h sub a rt ic le (1 ) o f th is art i c l e, shal l pay t h at t a x to t h e Com mi ssion er by not l at er than
the fi fteenth day of the second month next following either the date of invoice or of the month during which the consignment or
the supply of services is received, as the case may be, whichever is the earlier.
(4) Interest shall be due on any tax which is not paid by the date on which it becomes payable at the rate of zero point seven
five per cent (0.75%) for each month or part thereof during which that tax remains unpaid or at such other rate as may be prescribed:
Provided that the running of interest on any amount of tax due which is the merit of an appeal before the Board of Appeal, shall
be suspended for the period that exceeds two months from the date of the last sitting o f the Boar d of Appeal relating to such
appeal and the date when a decision is given by the Board or a final j udgem e n t is del i vered by t h e Court of App e al
(Inferi o r Jurisdiction), as the case may be:
Provided further that the Minister may by regulations prescribe conditions under which part or all the interest incurred under
this subarticle may be remitted. Such regulations may also m ake prov isi on fo r th e rem issio n o f any i nte rest du e u nde
r the Value Added Tax Act, 1994, and under the Customs and Excise Tax Act.
(4A) Notwithstanding the other provisions of this article, no interest shall be due where a return required to be furnished
under article 27 is furnished in an electronic format through t h e est a blished web portal designated for the purpose by the
Commissioner, together with payment of the tax due on the return, no t later than seven days fol l owin g th e date on which t h
e tax becomes payable under the provisions of this Act.
(5) The payment of the tax shall be accompanied by the delivery to the Commissioner of the respective form as the Minister
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. Substituted by:
X. 2003.10.
(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 subarticle (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 subarticle (4) 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 subarticle (4) applies.
(4) This subarticle 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 Intermediaries Act, of insurance and reinsurance services, including related transactions, in respect of which they are so licensed;
(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
Cap. 403. Cap. 487.
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.
Deductions. Substituted by: X. 2003.10.
(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. Substituted by:
X. 2003.10. Amended by:
XIII. 2005.43; I. 2010.67.
Cap. 372.
(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 th e 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 d a y o n w h ich th e said ret u r n h a s been fu rni s hed to the Commissioner, whichever is the later:
Provided that where a person to whom a refund is payable in terms of this subarticle has, by the date the refund claim is made, failed
to submit a return of incom e in respect of the y ear of assessment 1999 or any subsequent years of assessment by the date required
to be submitted in terms of the provisions of the Income Tax Management Act and such failure persists until the date such refund
becomes payable, any such refund shall not be paid to such person and shall be withheld by the Commissioner until such time as the
said return of income is submitted; and provided further that notwithstanding any other provisions of this Act, no interest shall
be due by the Commissioner in respect of the period during which the said re fund was withheld on accoun t of failure to submit a
return of income for the purposes of the Income Tax Management Act.
(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:
Provided that no interest shall be due for any period during w h i c h su ch person f a i l s to pr od uce in fo rmati o n
and , o r documentation as may be requested by the Commissioner, for the verification of the amount claimed.
(4) For the purpose of any such verifications as he may consider necessary to ascert ain 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 subarticle (2) by not more
than twelve months: Provided that the running of interest on the said refund shall not be meanwhile suspended.
(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.
(3) A taxable person who is not registered or liable to be regi st ered u nder article 10 and who is no t est a bl ished
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.
Refunds to persons not registered
under article 10. Substituted by: X. 2003.10.
PART V
Claim for refund under article 25. Substituted by:
X. 2003.10.
Tax returns. Amended by: X. 2003.11.
during which that tax period ends.
(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 no tice referred to in article 13(4)
or within such longer period as may be specified in the said notice: Provided that this subarticle does not apply when the registration
under article 10 is cancelled in the circumstances mentioned in article 11(3).
(3) A tax return furnished by a person registered under article
10 shall contain a declaration of the output tax and the deductions for tha t pe riod and it shall cont ai n su ch o t her de clarations
and particulars and be m a d e o n such form as the Minister m a y by
regulations prescribe.
(4) A tax return shall not be deemed to have been furnished unless it is full and complete in all material respects and unless
and unt il the tax result ing to be payable in accordance with the declarati ons made therei n has been paid to the Com missi oner:
provided that when a p a y m ent is m a de by a person to the Commissioner in circumstances which indicate that that person intended
that payment to relate to a tax return, that payment shall be deemed t o relate to th at tax return for the purposes of thi s sub
art icl e wi tho ut pr ejud ice t o the power of the Commissioner under any other provision of this Act to appropriate that payment
in any other manner.
Adjustments to tax returns.
Substituted by: X. 2003.12.
28. (1) Subject to subarticle (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 subarticle (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 understa te ment or overstatement for the purpose of article
37(2).
Presumption as to declarations in tax returns.
Amended by: X. 2003.13.
(2) A person registered under article 12 shall furnish the Commissioner with declarat i ons of his int r a-commun
i t y acquisitions and purchases made for which the customer is liable for the payment of the tax pursuant to articles 20(2)(b) and 20(2)(c) o n s u c h form an d a t s u ch int e rv al s as the M i ni st er 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 on such form and at such in tervals a s the Ministe r may by regulations
prescribe for the following supplies:
(a) exempt intra-Community supplies of goods;
(b) services, other than services that are exempted from the tax in the Member State where the transaction is taxable, and for which
the recipient is liable to pay the tax;
made to taxable persons and non-taxable legal persons identified for purposes of Value Added Tax.
(4) Every taxable person and non-taxable legal person shall ma ke such statements and sha l l produce such information and
documents as may be reasonably required by the Commissioner for any purpose of this Act or as may be prescribed.
Further declarations and statements. Substituted by: X. 2003.14. Amended by:
II. 2009.41; I. 2010.68.
(2) An assessment made for a tax period of a person in virtue of this arti cl e shall not r e lieve that p er so n fr om h i s
oblig at ion to furnish a tax return for that period and from his liability to any or to further administrative penalties in accordance
with the relevant provisions of this Act.
(3) When a tax return for a tax period is furnished after an assessment has been made in accordance with subarticle (1) the
Commissioner may cancel that assessment without prejudice to his power to make further assessments in terms of the other provisions
of this Act.
(4) The cancellation of an assessment as aforesaid shall not relieve the person who has been in default from his liability
to an administrative penalty in accordance with the other provisions of this Act.
Power to make assessments where a return has not been furnished. Amended by:
X. 2003.15.
Power to make assessments when a return has been furnished. Amended by:
X. 2003.16; XIII. 2005.44;
IV. 2011.74.
Provided that where the provisional assessment refers to the adjustment relating to input tax on capital goods mentioned in the Tenth
Schedule, it shall be served by not later than six years from the end of the adjustment period mentioned in the said schedule.
(2) A provisional assessment shall indicate clearly that it is a provision al assessmen t an d that it may b e fol l owed by an
assessment within the time limits specified in subarticle (3). Save a s afores aid a provisiona l as ses s me nt shall conta i n
a l l the particulars that are required to be given in an assessment and such further particulars as the Commissioner may deem appropriate.
(3) After the expiration of a period of not less than thirty days and not more than six months from the service on a person of
a provisional assessment in respect of a tax period the Commissioner may make an assessment of the output tax and the deductions
of t hat person for that period and of th e adm in istrativ e penal ty to which that person became liable and serve that assessment
on that person.
(4) The assessment made in virtue of subarticle (3) may not contain any variations to the amou nts specifi ed in the r e lative
provisional assessment except for -
(a) variations requested by or agreed to by the said person; (b) variations consisting in the substitution for amounts
shown in the provisional assessment of amounts that are equal or closer to those declared in the relative tax
return.
(5) The Commissioner may, for the purposes of this Act, cancel an y prov isi ona l assessmen t ra ised by him, and issue a fresh
provisional a ssessment, and such cancellation sha ll be without prejudice to the raising of a fresh provisional assessment required
to be raised under t h is Act in repl acement of the p r ovisional assessment so cancelled which shall be deemed not to have been
raised.
Such fresh provisional assessment has to be raised within the time limit specified in subarticle (1).
Power to make assessments on other persons. Amended by:
X. 2003.17.
(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 ti me all ow ed i n ter ms of t his Act fo r th e sai d p
aym ent , th e 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 liabl e to an administr ative penalty under this Act the
Commissioner may make an asse ssmen t of th e ad mi ni st ra tiv e 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.
(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 ma de liable to more ta x, administrative pe nalty or interest than he would have been liable to had the amounts been attributed to particular tax periods.
Assessments. Amended by: X. 2003.18.
the tax period or the transactions to which that assessment refers.
(a) the excess, if any, of the correct amount of output tax over the output tax as declared in the return; and
(b) the excess, if any, of the deductions as declared in the return over the correct amount of the deductions.
(2) Where a person corrects an understatement or overstatement as is referred to in subarticle (1) in accordance
with the provisions of article 28(1) before he is served with a provisional
Additional and revised assessments.
Presumption as to amounts shown in assessments. Substituted by:
X. 2003.19.
Administrative penalty for incorrect tax return. Amended by:
X. 2003.20; XIII. 2005.45;
L.N. 426 of 2007; L.N. 105 of 2008;
II. 2009.42.
assessment fo r that period, t h at person becomes li able to an administrative penalty in an amount equivalent to ten per cent of
the total of -
(a) the excess, if any, of the correct amount of output tax over the output tax as declared in the return; and
(b) the excess, if any, of the deductions as declared in the return over the correct amount of the deductions.
(3) Where a tax return for a tax period furnished to the Commissioner by a person registered under article 10 who only
supplies goods or services listed under Part One of the Fifth Schedule to this Act, does not contain a full and correct statement
of the matters required to be declared by that person in that return and to the extent th at th at person does not correct su ch
an understatement or overstatement in accordance with the provisions of article 28 before he is served with an assessment for that
period he shall, unless that person has in virtue of that default become liable to a higher administrative penalty under the other
provisions of this article, be liable to an administrative penalty of one hundred and fifty euro (€150).
(4) Where, during the course of an investigation, a person co- operates with the Commissioner, accepts an agreement and within
one month from the signing of the agreement pays the amount of tax due, the agreed administrative penalty and the interest due, that
person shall be liable to an administrative penalty in an amount equivalent to 10 per cent of the amount of tax due.
Administrative penalty for default in the furnishing of a tax return or
other declarations and statements.
Amended by: X. 2003.21; XIII. 2005.46;
L.N. 426 of 2007; L.N. 105 of 2008; II. 2009.43.
(a) one per cent of the excess, if any, of the output tax over the deductions, disregarding any excess credit brought forward
from a previous tax period, as declared in the return; and
(b) twenty euro (€20),
for every month or part thereof that elapses from the date by which the tax return should have been furnished in accordance with this
Act and the date when it is furnished to the Commissioner:
Provided that where the tax payable is less than two hundred and fifty euro (€250), such administrative penalty shall not exceed
the equivalent of the tax payable to the nearest euro or fifty euro (€50), whichever is the greater, and it shall not exceed two
hundred and fifty euro (€250) in all other cases.
(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
euro (€10) 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:
Provided that such administrative penalty shall in no case exceed one hundred and twenty euro (€120) for each such declaration
or statement.
(a) one per cent of the excess, if any, of the output tax over the deductions for the first tax period following the registration;
and
(b) twenty euro (€20),
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 registration is furnished to the Commissioner and the date when that person is registered by the Commissioner.
(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 or the services received or both such intra-community
acquisitions and services received, in respect of which he is required to make such application; and
(b) twenty euro (€20),
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 twenty euro (€20) 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:
Provided that such administrative penalty shall in no case exceed two hundred and fifty euro (€250) for each such notice.
Administrative penalty for default in applying for registration or giving a notice. Amended by:
X. 2003.22; XIII. 2005.47; L.N. 426 of 2007; L.N. 105 of 2008; II. 2009.44.
(a) ten per cent of the excess, if any, of the output tax over the deductions for the first tax period following the cancellation of his registration under article 11; and
Administrative penalty for default by person registered under article 11. Amended by:
X. 2003.23; XIII. 2005.48;
L.N. 426 of 2007; L.N. 105 of 2008;
II. 2009.45.
(b) one hundred euro (€100),
for every month or part thereof that elapses from the date on which th e ap pl icat io n sh ou ld hav e b e en made in term s o f
th e sai d provisions and the earlier of the date on which the application is furnished to the Commissioner and the date when the
registration under article 11 is cancelled by the Commissioner:
Provided that such administrative penalty shall in no case exceed five hundred euro (€500).
Liability to administrative penalties.
Reasonable excuse. Amended by: XIII. 2005.49. Substituted by: II. 2009.46. Amended by:
V. 2011.29.
(a) no administrative penalty shall be due by a person for any default if that person proves that there is a reasonable
excuse for the default;
(b) if a person does not prove that there is a reasonable excuse for a default, but the Commissioner is of the view that the
default resulted from particular circumstances that merit a mitigation of the administrative penalty,
he may, in his discretion, remit part of the administrative penalty for that default;
(c) if the Commissioner is of the view that the default resulted from a genuine mistake he may remit in whole or in part the
administrative penalty for that default;
(d) no administrative penalty under article 38 shall be due where a return required to be made in terms of article
27 or a declaration required to be made in terms of
article 30(1) is furnished in an electronic format through the established web portal designated for the purpose by the Commissioner,
together with payment
of the tax due on the return, not later than seven days from the date on which the said return or declaration should have been submitted
under the provisions of
this Act.
(2) For the purposes of subarticle (1)(a) and (b) -
(a) an insufficiency of funds to pay any tax due; or
(b) when reliance is placed on any other person to perform any task, the fact of that reliance or any dilatoriness or inaccuracies
on the part of the person relied upon,
shall not constitute a reasonable excuse.
(3) Notwithstanding the provisions of articles 43 and 44, the use of the Commissioner ’s discretion for the purpose of subarticle
(1) ( b ) and ( c ) shall n o t be qu estio ned in any appeal or in any
reference made to the Value Added Tax Appeals Board.
(4) The Minister may by regulations prescribe other conditions under which part of, o r all, t h e adm inistrative penalty incurred
under articles 37 to 41 may be remitted. Such regulations may also make provision for the remission of any administrative penalties
due under the Value Added Tax Act, 1994, and under the Customs and Excise Tax Act.
Cap. 395.
(a) the registration of a person under this Act or the cancellation of such a registration;
(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;
(c) whether a transaction made or to be made by a person is a taxable supply or a taxable acquisition or not or whether an importation
of goods made or to be made by a person is a taxable importation or not;
(d) any tax chargeable on the importation of goods;
(e) the place, the time or the taxable value of a supply or of an acquisition;
(f) the amount of deductions allowable to a person registered under article 10 for any tax period;
(g) any security required by the Commissioner under this
Act;
(h) whether any refund of tax claimed by any person is due or payable to that person or not;
(i) any question of law not falling within the foregoing provisions of this article;
(j) any matter which, in terms of any provision of this Act, or of any regulations made under this Act, may be referred to appeal;
(k) the imposition of any administrative penalty except where it is imposed as a result of an assessment,
th at question may be referred to the Value Added Ta x Appe als Board by any person who shows to the satisfaction of the Board t
h at he has a d i r e ct i n terest i n t h at qu esti on or by t h e Commissioner.
Appeal against an assessment.
Other matters that may be referred to Appeal.
Amended by: X. 2003.24;
II. 2009.47.
Value Added Tax
Appeals Board.
Matters regulated by the Ninth Schedule.
Appeal to the Court of Appeal. Amended by:
VI. 2001.30; IV. 2007.36;
L.N. 426 of 2007; L.N. 105 of 2008.
composition and competence of the Board, and the regulation of the procedures of the Board.
(i) where the total amount of tax, administrative penalty, and interest for the tax period or periods under appeal up to the date
of receipt of the appeal by the Value Added Tax Appeals Board is less than one million and one hundred and fifty thousand euro (€1,150,000),
to the Court of Appeal (Inferior Jurisdiction); and
(ii) where the total amount of tax, administrative penalty, and interest for the tax period or periods under appeal up to the date
of receipt of the appeal by the Value Added Tax Appeals Board is of one million and one hundred and fifty thousand euro (€1,150,000)
or more, to the Court of Appeal.
Cap. 12. (2) The board established under article 29 of the Code of Organization and Civil Procedure may make regulations governing appeals under this article.
(3) The Minister responsible for justice may by regulations under this subarticle establish the fees payable in the registry
of the court in relation to the filing of judicial acts in connection with appeals to the Court of Appeal or to the Court of Appeal
(Inferior Jurisdiction), as the case may be, under this Act:
Provided that until fees are so established by the Minister,
Cap. 12.
Records to be kept.
Substituted by:
X. 2003.25.
Amended by:
IV. 2007.37.
the fees contained in Schedule A to the Code of Organization and
Civil Procedure shall apply.
PART VI
(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- com m unity acquisitions
made by him.
(4) The records referred to in subarticles (1), (2) and (3) shall b e ke pt and stored in such m anne r, cont ain such det ail
s 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 subarticle (4), request any person to produce, or
may rem ove from any perso n , in clud ing a th ird party, the records, documents, accounts and electronic data required to be kept
by him in virtue of this article and to make copies thereof:
Provided that, if there is evidence that after being requested by the Commissioner by means of a notice in writing, that such person
fai l ed to pro duce with out any reasonable e x cuse any records, documents, accounts and electronic data within thirty days from
the date of service of such notice, such person shall not be al lowed to produ ce such records, do cu ments, account s and electronic
data at a later stage after the issue of the provisional assessment or assessments or before the Board of Appeals or in any Court
of law:
Provided further that when reliance is placed on any other person to perform any task, the fact of that reliance or any delay or inaccuracy
on the part of the person relied upon shall not constitute a reasonable excuse for the purposes of this subarticle.
(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 in voice 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 ide n tified in the price charged for a su pp l y on an in vo ice
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.
Inclusion of tax in the price for supplies.
Amended by: X. 2003.26.
(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 pe rson shall, if he is a person
registered under article 10, issue a tax invoice in which he indicates
Tax invoice. Substituted by: X. 2003.27. Amended by: IV. 2011.75.
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 subarticle (1) in respect of every distance sale made
by him.
(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.
Documents to be provided in other cases.
Substituted by: X. 2003.27.
Production of invoices by
persons to whom a
supply is made.
Amended by:
XIX. 2007.2.
(2) Any person who transports goods in the course of an economic activity, on his own behalf or on behalf of or to third part ies, sh al l be i n po ssessio n at an y t ime of an i d en tif icatio n document and a tax i nvo ice or a deliv ery no te or a transpo r t document showing a description of all the goods being transported, the value of the goods, the unit quantity, the date of the delivery, the destination address, the name and address and value added tax registration number of the supplier and the name and address and value added tax registration num ber of the perso n to whom the supply is made. In the course of an inspection of the means which is transporting the goods, a copy of the aforementioned documents sh all up on dem and be produ ced to th e Co mm issio ner o r to any other officer authorised by the Commissioner. A person who fails to produce the documents as required in accordance with t h e provisions of this sub-article or whose goods are not found to be in agreement with the said document, shall be guilty of an offence against this Act.
Inspections. Amended by: X. 2003.28; III. 2004.115; XIX. 2007.3.
(a) to enter and inspect any premises where an economic activity is carried on or suspected to be carried on or where any goods,
assets, books, records or documents relating to such activity are kept or suspected to be kept, and to stop, enter and inspect any
means which is
transporting goods or any means for the transport of goods, to direct the delivery of the said means to another location
and to open the said goods to verify the quantity and value of goods with invoices, books, records or documents relating
to such goods to determine whether or not value added tax has been accounted for under the provisions of this Act;
(b) to inspect and to require the production of any books, records or documents, including machine readable information, or
a copy or extract thereof relating to the economic activity of any person;
(c) subject to the provisions of article 55, to require any person to give such information as may be requested for the purpose
of determining whether any taxable or exempt with credit supplies have been made by or to that person or whether any
intra-community acquisitions or importations have been made by that person or the value of any such supplies, acquisitions
or importations and to request the attendance of any person at the office of the Commissioner for the purpose of providing
such information;
(d) to request the particulars including the name, surname, address and the production of the Identity Card of any person suspected
to be in breach of any of the provisions of this Act or of any regulations made under this Act; and
(e) when a taxable person established in Malta stores invoices which he issues or receives by an electronic means guaranteeing
on-line access to the data and when the place of storage is in a Member State other than that in which he is established,
the Commissioner shall have the right to access by electronic means, download, and use such invoices for the purpose of
ensuring compliance with the provisions of this Act.
54. If access is required for the purposes of article 53(a) to any premises occupied in whole or in part for the purpose of habitation, such access shall require the prior warrant signed by
a Magistrate and shall not take place between seven o’clock in the evening and seven o’clock in the morning.
(2) This subarticle refers to -
(a) a bank licensed under the Banking Act;
Access to places of habitation.
Information held by certain licensed persons.
Cap. 371.
Cap. 403. Cap. 370.
Cap. 370. Cap. 345.
Official secrecy.
Amended by:
X. 2003.29;
IV. 2007.38.
(b) an insurance company in respect of long term insurance business which is carried on pursuant to a licence granted
under the Insurance Business Act;
(c) any person licensed to carry on investment business under the Investment Services Act;
(d) a collective investment scheme licensed under the
Investment Services Act;
(e) a stockbroker licensed under the Malta Stock
(2) No person appointed under or employed in carrying out the provisions of this Act shall be required to produce in any court,
tribunal, board or committee of inquiry any document or to divulge an matter coming under his notice in the performance of his duties
under this Act except as may be lawfully required for the purpose of carrying into effect the provisions of this Act, or for the
purpose or in the course of any appeal made in accordance with this Act or a prosecution for any offence against any of the provisions
of this Act.
(3) Notwithstanding the other provisions of this article, the Co mm issi oner may perm it t h e Au dito r Gen e ral or
any officer authorised by the Auditor General to have access to any records or documents as may be necessary for the performance
of his official d u t i es an d fo r thi s p u rpose th e A udi to r Gene ral an d an y such authorised officer shall be deemed to
be a person employed in the administration of this Act.
(4) Notwithstanding the provisions of the other subarticles of this article or of any other law, the Commissioner shall furnish
to the Commissioner of Inland Revenue, to the competent authority designated under the Eco-Contribution Act and to the Comptroller
of Customs such information, being information obtained by the Co mmissi oner f o r any of the pu rpo s es of thi s Act, as may
b e directed by the Minister.
(5) Nothing contained in this article shall, after the accession d a te, prev ent the d i sclosur e by th e Com m i s si oner
, of any information that is required to be disclosed in terms of Council Regulation (EEC) No 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 subarticle (5) shall be treated as information relating to and obtained for
the purposes of this Act.
PART VII
(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 provisio n s 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.
PART VIII
(2) Subject to the provisions of subarticle (3), action for the payment of tax and administrative penalties may be taken by the
Commissioner at any time within six years from the date on which such tax or administrative penalty becomes payable.
(3) The running of the period referred to in subarticle (2) shall be interrupted by a demand note served through registered post
by the Commissioner or by any judicial act filed by the Commissioner before the expiration of such period demanding the payment of
the amount claimed.
Special cases. Substituted by: X. 2003.30.
Suit by the Commissioner. Amended by: IV. 2007.39.
Executive title. Amended by: XIII. 2005.50.
Cap. 12.
59. (1) Any notice issued by the Commissioner showing any amount of tax and administrative penalty due by a person shall, unl ess
the co ntrary is pro v ed , be suff icient evidence that that amount is due to the Comm issioner by that person and shall co nstitut
e an executive ti tle wit h in the meanin g and for th e pu rposes of Title VII of Part I of Book Second of the Code of Organization and Civil Procedure.
(2) The Commissioner may request the payment of any tax and administrative penalty payable by any person in terms of this Act by
means of a demand note, and if the payment requested is not made within thirty days from the date when the said demand note is served
on that person, the Commissioner may proceed to enforce payment in virtue of the executive title referred to in subarticle (1) after
two days from the service on that person of an intimation for payment made by means of a judicial act. Upon the lapse of the period
of two days mentioned in this sub-article the Commissioner shall be entitled to register in the public registry or land registry,
as the case may be, a note of privilege for the amount demanded in the j u d i c i al a c t wh ic h no te of priv i l ege shall be
registered by a n y advocate or notary.
Cap. 12. (3) The provisions of article 468 of the Code of Organization and Civil Procedure shall apply with respect to any warrant issued on the strength of an executive title mentioned in this article and to the paying
out of the proceeds of the sale by auction of the property seized, and no opposition or reservation in the schedule of deposit shall
stay the paying of any sum deposited in court following any such warrant as aforesaid.
Restrictions on the release of imported goods.
(a) where the importation of those goods is an exempt importation; or
(b) where the tax on the said importation has been paid in accordance with this Act; or
(c) with the authorisation of the Commissioner.
(2) An authorisation for the purpose of paragraph (c) of subarticle (1) may be given under such conditions and against the granting of such security as the Commissioner may establish.
Powers relating to imported goods.
Cap. 37. Cap. 337.
(2) Any provision in the Customs Ordinance or in the Import Duti es Act or in any regulations made thereunder relating to the application of the proceeds from a sale of imported goods towards the payment of import duties due on those goods shall be construed as providing for the application of the said proceeds towards the
payment of import duties and of any tax due under this Act on the importation of those goods.
62. The Commissioner shall have a special privilege over the assets forming part of the economic activity of a person in respect of any
tax due by that person under this Act and the said tax shall, notwithstanding anything contained in any other law, be paid in preference
to a debt having any other privilege, excepting a debt having a general privilege and a debt mentioned in article 2009(a) or (b) of the Civil Code.
(2) When a payment has been demanded from a person in accordance with subarticle (1), that person may, instead of making
the said payment, furnish such security for the tax payable as may be acceptable to the Commissioner.
(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 subarticle (3) shall not apply to an operation referred to in article 20(1) when and to the extent
that the co-co n tracting p a rty pro v es that he has paid the price and the related tax due to the supplier.
(5) Where it appears to the Commissioner that it is necessary for the protection of Government revenue, he may, at any time, under
conditions approved by the Minister, require a taxable person, as a condition for that person to supply goods or services, to give
such security, or further security, for that amount and in such manner as the Commissioner may determine, for the payment of any
tax that is or may become due by him under this Act.
Special privilege.
Cap. 16. Security for tax
due on supplies.
Amended by:
X. 2003.31;
IV. 2007.40.
Shorter period for the delivery of a return.
Amended by: X. 2003.32.
Judicial auction. Substituted by: X. 2003.33. Amended by:
L.N. 181 of 2006; L.N. 186 of 2006.
Cap. 12.
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 subarticle (1) by means of a sworn application filed against
the Commissioner within six working days from the date of the notification referred to in the said subarticle.
(3) No bid animo compensandi shall be approved for the pu rpo s es o f art i cl e 33 1 of th e Co de o f Org a ni zat io n an d Ci vi l Procedure unless the tax chargeable, if any, on that supply has been lodged in court and remitted by the Registrar in accordance with subarticle
(1).
Representatives.
Amended by:
X. 2003.34.
(2) (a) When a person who is not established in Malta and is not established in the Community, is or is required to be registered un der
t h is Act any person resident in Malta to whom he makes a taxable supply or who is his agent or who otherwise has a business relationship
with him shall, if so designated by the Commissioner by means o f a n otice in wr iting , an d unl ess ano ther person res i dent
in Malta and a ccepta ble to the C ommissioner has been so desi gn ate d by t hat fi rst - men tion e d person, b e a represen tative
o f the said person.
(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 wri tin g t o the Commi ssi oner, n o min at e as his represent ati ve, an y person re si den
t in Mal ta who i s acceptable to the Commissioner.
(c) For the purpose of this subarticle, the Minister may by regulations prescribe the conditions regulating such appointment.
(3) (a) Subject to the provisions of subarticle (5) a representative of a person shall be liable in the same manner
and to the same extent as the person of whom he is a representative for all the obligations imposed by or under this Act.
(b) Anything done or omitted to be done by a representative acting as such shall for the purposes of this Act
be deemed to have been done or omitted to be done by the person of whom he is a representative.
(c) Any notice served on or any refund paid to a representative in his capacity as such under any of the provisions
of this Act shall be deemed to have been served on or to have been made to the person of whom he is a representative.
(d) The existence of or the designation of a person as a representative of another person shall not relieve the latter person from
any obligation or liability under this Act.
(4) A representative who has under his management or control any funds or property belonging to or due to the person of whom he
is a representative sh all not disp ose of such f u nd s or p r o p e rt y unless he has made adequate provision for any tax due
under this Act.
(5) A representative shall be jointly and severally liable with the person of whom he is a representative for the tax due by that
person: provided that where the representative has acted in good faith and is not knowingly in breach of subarticle (4) or of any
other obligation under this Act, his liability under this subarticle shall be limited to the funds or to the value of any property
under his management or control which belongs or is due to the person of whom he is a representative.
(2) Subject to the provisions of subarticle (1) when an administrative penalty is due by a person, other than a
penalty that may be kept in abeyance in terms of the provisions of the Ninth Schedu le to thi s Act, any paymen t made b y t h
at person to the Commissioner shall, notwithstanding any declaration of that person to the cont rary, be approp riated to such administrative
pe nalty before it is appropriated to any tax.
(3) Subject to the other provisions of this article, when tax due by a person, other than tax that may be kept in abeyance in terms
of the provisions of the Ninth Schedule to this Act, became due on more than one occasion any payment made by that person to the
Commissioner shall, notwithstanding any declaration of that person to the contrary, be appropriated to that amount of tax that became
due at the earliest of those occasions before it is appropriated to the tax that became due on subsequent occasions.
Appropriation of payment.
(2) When any amount is refundable by the Commissioner to a person by whom any interest, administrative penalty or tax is due, the Commissioner may deduct such tax, interest or administrative penalty from that amount to the same extent to which that amount, h a d it been a payment mad e by th at person , wo uld fall to be
Refunds. Amended by: X. 2003.35.
Repayment of tax that was paid but not due and of overpaid tax. Amended by:
X. 2003.36.
Diplomatic and consular arrangements. Amended by:
X. 2003.37.
appropriated to such interest, penalty or tax in accordance with the provisions of article 67 and in the same order: provided that
a deduction under this subarticle may also be made with respect to tax that may be kept in abeyance in terms of the provisions of
the Ninth Schedule to this Act.
(3) A refund due in accordance with any provision of this Act shall be payable without any further appropriation other than this
Act by warrant under the hand of the Minister.
(2) The Minister may by regulations prescribe the manner and the time within which a claim for a repayment under subarticle (1)
m a y be mad e an d su ch co nd iti on s and li m itat i o n s, in clud in g a minimum amount in respect of which a repayment may
be claimed, as he may deem fit.
(3) Where it results from a decision given on an appeal made in accordance with this Act, that any amount of tax paid by a person
was not due, the Commissioner shall refund such amount to that person within thirty days from the date such decision becomes res judicata.
(4) Interest at the rate specified in or prescribed in terms of article 21(4) shall be due on a refund to which subarticle (3)
refers for t h e period en di ng on th e d a te whe n t h e refun d is p a id or a cheque or draft is posted by the Commissioner
to the person to whom the refund is payable, which interest shall run -
(a) if and to the extent that the amount refundable had been claimed as excess credit in a tax return furnished to the Commissioner
by the appellant, from the date established in accordance with article 24;
(b) if and to the extent that the amount refundable was paid by the appellant as a condition for the validity of his appeal in accordance
with the provisions of the Ninth Schedule to this Act, from the date on which that amount was paid to the Commissioner;
(c) in any other case, from the date the refund is payable in accordance with subarticle (3).
prescribed, and on the production of such evidence as he may deem necessary, refund the tax so paid to the said person.
(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.
PART IX
(2) In the case of a body of persons it shall be sufficient if only the name of the body of persons appears on any notice, warrant or p r oceeding, i n cl udin g any pro c eed i ng i n the Court o f App e al, issued or made under or for the purposes of this Act.
Repayment of tax in certain cases. Substituted by:
X. 2003.38.
Validity of notices, etc.
(2) Any notice required to be given under this Act by the Commissioner or any other person may be served either personally
or by being sent by post. Unless the contrary is proved service of a notice sent by post shall be proved by means of evidence that
the notice was properly addressed and posted and shall be deemed to have been effected in the case of an address in Malta not later
than the third day following the day when it was posted, and in the case of an address outside Malta the day succeeding that on which
the notice would have been received in the ordinary course by post: Provided that a cheque or draft posted by the Commissioner shall
be deemed to be a payment for the amount thereof made on the date it is posted.
(3) For the purposes of subarticle (2) a notice shall be deemed t o hav e been pr op erly ad dressed if i t h a s b e en ad dressed
to a person’s business or private address, and an address furnished by a person to the Commissioner shall be deemed to be an address
of that person unless and until a notice of a change of address is given
Delivery and service of notices, etc.
Cap. 252.
Interest. Cap. 123. Cap. 372.
Power to make regulations. Amended by:
X. 2003.39.
by that person to the Commissioner.
(4) The Minister may by notice in the Gazette establish the closing times for the offices of the Commissioner and any period
laid d o w n in or u n d e r t h is Act fo r the fur n i s hi ng, del i v e r y or service of a ret u rn, no tice o r other do cument
t o or on th e Commissioner or for any payment to the Commissioner shall be deemed to expire at the closing time of the last day
of that period.
(5) When the date on which any return, notice or other document is to be furnished, delivered or served or deemed to be
served or on which a payment is to be m a de in terms of any provision of this Act falls, were it not for the provisions of this
subarticle, on a Saturday or a Sunday, or on a national day or a public holiday as established in the National Day and Other Public Holidays Act, that date shall be deemed to fall on the first working day, other than a Saturday, following the said Saturday, Sunday, national
day or public holiday.
Tax Management Act -
(a) interest paid or payable under this Act by the Commissioner to any person shall be treated as income of that person;
(b) interest paid or payable under this Act by any person to the Commissioner shall be treated as expenses incurred in the
production of the income of that person;
(c) administrative penalties paid or payable under this Act by any person to the Commissioner shall not be treated as expenses incurred
in the production of the income of that person.
(a) amend, cancel or substitute any of the Schedules, except for the Ninth Schedule, to this Act;
(b) prescribe any matter which may in any particular case be deemed necessary for the purpose of avoiding significant distortions
in competition which might otherwise result from the application of any of the provisions of this Act;
(c) make provision for the rounding up or down of any amount in any computation made for any of the purposes of this Act,
or for disregarding any small amounts in any such computation;
(d) prescribe anything that may be prescribed in virtue of the provisions of this Act;
(e) prescribe any conditions and determination that may, in accordance with this Act, be imposed or made by the Commissioner;
(f) prescribe any other matter for securing the payment of the tax and generally for giving effect to the provisions of this Act;
(g) amend, revoke or substitute any regulations made under this Act.
PART X
(a) fails to apply for registration at the time and in the manner required by article 10 or 12;
(b) fails to keep or to store records, documents and accounts for the time and in the manner required by this Act or any
regulations made under this Act;
(c) fails to furnish a tax return or any additional return, statement or information or to produce any books, records, documents
and accounts, or fails to pay any tax or administrative penalty due when required to do so in virtue of this Act or of any
regulations made under this Act;
(d) supplies goods or services having failed to provide the security requested by the Commissioner under article
63(5),
shall, on conviction, be liable to a fine (multa) of not less than seven hundred euro (€700) and not exceeding three thousand and five hundred euro (€3,500) and, on a request
by the prosecution, the court shall order the offender to comply with the law within a time suff icient for the purpose, but in any
case no t exceeding th ree months, and in default the offender shall be liable to the payment o f a further fine (multa ) of not less than five euro (€5) and not exceeding twenty euro (€20) for every day that the default continues after the lapse
of the time fixed by the Court:
Provided that the offen der m ay, within thirty days af ter f inal judgement, apply to the Court which convicted him, requesting a
total or partial remission of the penalty imposed under this article. The Court may grant a total or partial remission of such penalty
provided that the prosecution, with the written concurrence of the Commissioner to be filed with any reply to such application, agrees
t o such request. An y such ap pli c at io n sh all be serv ed o n t h e prosecution which shall reply within fifteen working days
from such notification.
Failure to apply for registration, or to keep or deliver records and
returns.
Amended by:
X. 2003.40;
XIII. 2005.51;
IV. 2007.41;
L.N. 426 of 2007;
XXXII. 2007.82;
L.N. 105 of 2008;
II. 2009.49.
(a) knowingly fails to account for any taxable supply or any intra-community acquisition made by him in the records, documents and
accounts required by this Act or any regulations made under this Act;
(b) gives any return, statement or information required for any of the purposes of this Act which he knows to be incorrect or misleading
in any material respect;
(c) falsifies any records, documents or accounts required to be kept under this Act or prepares or draws up or
Irregularities in records, etc., and false representations. Amended by:
X. 2003.41; XIII. 2005.52;
IV. 2007.42;
L.N. 426 of 2007;
L.N. 105 of 2008;
II. 2009.50;
IV. 2011.76.
helps in the preparation or drawing up or makes use of any false records or documents;
(d) with the intent of concealing any evidence which he knows or is reasonably expected to know to be relevant for any
purpose of this Act destroys, erases, damages or conceals any stored information or any records, documents or accounts, or
is in possession of or supplies to another person any software application that would erase, destroy, damage or conceal any
stored information or any such records, documents or accounts;
(e) fails to provide or produce a tax or other invoice or document as and when required by article 50, 51 or 52 or provides any
such tax or other invoice or document which is incorrect or misleading in any material respect or fails to provide to
the Commissioner, without any valid reason, all copies of any used or unused manual fiscal receipts where required by the
Commissioner;
(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;
(g) provides an invoice or other document in respect of a supply showing tax to be chargeable on that supply in a case where he knows
that no tax is chargeable or where the tax chargeable is less than that shown or otherwise knowingly adds to or includes in a price
for a supply any amount purporting to represent tax which is not due or which is higher than the tax due;
(h) applies to be registered under article 11 in circumstances indicating that he knows or could with due diligence
have known that he is not entitled to be so classified;
(i) being registered under article 11 and not being eligible to remain so registered does not apply for the cancellation
of that registration in the manner required and within the time laid down in this Act;
(j) being registered under article 11 purports in connection with any transaction not to be so registered for the
purpose of obtaining any financial gain;
(k) not being registered under article 11 purports in connection with any transaction to be so registered for the purpose
of obtaining any financial gain;
(l) having added to or included in a price for goods or
services supplied by him to another person any amount purporting to represent tax chargeable under this Act, knowingly fails to
account for that amount in his records and accounts or to pay that amount to the Commissioner;
(m) acquires possession of or deals with any goods, or accepts the supply of any services having reason to believe that the
tax on the supply of the said goods or services has been or will be evaded;
(n) supplies or offers to supply to another person goods or services the acquisition or dealing with which or the acceptance of which
would render that other person guilty of an offence in virtue of paragraph (m);
(o) supplies or offers to supply to another person and, or puts up for sale goods, without being in possession of a fiscal cash register
or manual fiscal receipt books as issued or approved by the Commissioner;
(p) being a credit or financial institution which supplies money or grants credit by way of a loan account facility or
by means of any other kind of facility to a customer in connection with the supply of goods or services by third parties to
that customer for the construction, re-construction, repair, refurbishment or maintenance of immovable property or for
fixtures related thereto, and which effects payment for such goods or services either directly to the vendor or supplier
thereof or to a third party or to the customer subject to an understanding or to an express or implied condition that the amount
paid will be passed on to the said vendor or supplier, by the debit of the customer ’s loan account or other facility,
on the basis of supporting documents, including contracts, invoices, receipts, architects’ or other certificates,
or similar documents, submitted by or on behalf of the customer or by or on behalf of suppliers, contractors or other third parties,
and which fails to inform the Commissioner of the names and VAT registration numbers of the said suppliers,
contractors or other third parties as aforesaid, other than the customer, to whom it has directly or indirectly made payments
as specified in this paragraph, in the form required by the Commissioner, as well as of the amounts of such payments, by
not later than the end of the calendar quarter immediately following the calendar quarter during which it directly or
indirectly made any payment as aforesaid,
shall be guilty of an offence and shall, on conviction, be liable -
(i) to a fine (multa) of not less than six thousand euro (€6,000) and not exceeding ten thousand euro (€10,000) for an offence committed under
paragraphs (c) and (d); and
(ii) to a fine (multa) of not less than seven hundred euro (€700) and not exceeding three thousand five hundred euro (€3,500) for an offence under
the other paragraphs,
and, in ad dition, for any of fenc e as above referred to in all paragraphs, except for paragraph (p), to a further fine (multa) equal to ten times the endangered tax or to imprisonment of not more than six months or to both such fines and imprisonment.
In addition, on a request by the prosecution, the court shall order the offender to comply with the law within a time sufficient for
the purpose, but in any case not exceeding one month, and, in default, the offender shall be liable to the payment of a further fine
(multa) of not less than five euro (€5) and not exceeding twenty euro (€20) for every day on which the default continues after the lapse
of the time fixed by the Court.
Recurrent offences.
Amended by:
XIII. 2005.53;
L.N. 426 of 2007;
L.N. 105 of 2008;
II. 2009.51.
76 or article 77 and is again convicted of an offence under either of the said articles committed within six months from the date
of the
previous conviction, the fine (multa) shall in no case be less than one thousand and two hundred euro (€1,200).
(2) Where a person has been convicted of four offences com m i tted under either of the articles aforesaid i n a period
of t w enty -f our mo nth s , t h e cou r t sh all on t h e l a test of t h e said convictions impose a fine (multa) of not less than two thousand and five hundred euro (€2,500) and in addition to the punishment for that conviction order the suspension
for a determinate time of not less than one week and not more th an one month of all licences, permits, warrants or other authorisation
granted by the Police or by any other authority to carry on the economic activity or activities to which the offences relate.
Obstruction of officials. Amended by:
L.N. 426 of 2007; L.N. 105 of 2008;
II. 2009.52.
(a) obstructs, hinders, impedes or does anything which is calculated to obstruct, hinder or impede, or molests or assaults the Commissioner
or any person duly engaged in the exercise of any power or duty conferred or imposed on him by or under this Act;
(b) being a person in charge of any premises which the Commissioner or any person authorised by the Commissioner is
empowered to enter in terms of article 53(a) fails to allow access to the said premises to the Commissioner or authorised officer or fails to take such measures as may be reasonably
required of him for the purpose of any such access or of any inspection of that premises or of any goods, assets,
books, records or documents kept therein,
shall be guilty of an offence and shall, on conviction, be liable to a fine (multa) of not less than five hundred euro (€500) and not more t h an two th ousan d and fiv e h undred eu ro (€ 2,5 00), o r t o
imprisonment of not more than six months, or to both such fine and
imprisonment.
80. (1) The provisions of articles 18 and 62 of the Customs Ordi nance shall apply to this Act as if all references to duties contained in those articles were references to tax due under this Act, and
any person who is in contravention of the provisions of the said articles construed as aforesaid in relation to any goods whose importation
is subject to tax under this Act shall, without prejudice to any liability incurred under the said Ordinance, be guilty of an offence
under this Act and shall on conviction, be liable to a fine (multa) equivalent to three times the tax payable or to a fine (multa) of three hundred and fifty euro (€350), whichever shall be the g r ea te r, so how ev er tha t on e t h ird of t h e sa id amo
unt sh al l be deem ed as a ci vil debt due to th e Comm issioner , or to imprisonment for a term not exceeding two years
or to both such fine and imprisonment and the offender may be either detained or proceeded against by summons, in the same manner
and form, and subject to all other provisions laid down in the Criminal Code.
(2) The provisions of article 77 of the Customs Ordinance shall apply in relation to goods whose importation is subject to tax under this Act as if any reference contained therein to the
duty therein mentioned were also a reference to the tax chargeable under this Act.
(3) The importation of goods subject to tax under this Act shall , for all purpo ses of an y law, be deemed as a prohibit
e d importation unless the said tax is duly paid or, where the payment of the tax has been postponed in accordance with any provisions
of t h is Act, th e co nd itio ns i m posed i n con n ect i on wi th such a postponement are duly observed.
81. Any person who knowingly contravenes or fails to comply with any of the prov isions of th is Act or any regulations made under this
Act shall be guilty of an offence and shall on conviction, unless the offence is subject to a greater punishment under any ot he
r pr ovision of this Act or any other la w, be liable to a fine (multa) of not less than two hundred and fifty euro (€250) but not ex ceed in g on e t h o u san d and tw o hu nd red eu ro (€ 1, 200
), o r t o imprisonment for a term not exceeding three months, or to both such fine and imprisonment.
(2) Where anything is done or omitted to be done by an employee in the course of his employment, or by any person acting on behalf of the registered person, whether such other person is an employee or not, the provisions of this Part shall apply as if such
Offences relating to importations. Amended by: XIII. 2005.54;
L.N. 426 of 2007; L.N. 105 of 2008; II. 2009.53.
Cap. 37.
Cap. 9. Cap. 37.
General offence.
Amended by:
L.N. 426 of 2007;
L.N. 105 of 2008;
II. 2009.54.
Offences by principal officers of bodies of persons and by employers. Amended by:
X. 2003.42.
thing were done or omitted to be done both by the said employee or other person and by the employer or registered person: provided that such an employer or registered person shall not be guilty of an offence in virtue of this subarticle if he proves that he was unaware and could not with reasonable diligence be aware of such an act or omission and that he did everything within his power to prevent that act or omission.
Prosecution. 83. (1) No proceedings under this Part shall be taken except at the instance or with the sanc ti on of the Co m m i ssio n er, a n d proceedings that have been so taken may, at any time before final judgment, be withdrawn at the request of the Commissioner.
Cap. 9. (2) Notwithstanding the provisions of the Criminal Code, the Att o rn ey General shall have a r i ght of appeal t o th e Co urt of C r i m i n al A p p eal from a ny ju dg men t gi ven
b y t h e Co urt o f Magistrates in respect of criminal proceedings under this Part.
(3) The institution of proceedings or the imposition of a penalty for any offence under this Part shall not relieve any
person from prosec ut io n un der any o t h e r l a w or fro m li ab il it y to t h e payment of any tax or administrative penalty
for which he is or may be liable under this Act, and the institution of proceedings or the imposition of a penalty for any offence
under any other law or the payment of any tax or administrative penalty under this Act shall not relieve any person from any prosecution
or penalty under this Part.
Cap. 9. Cap. 446.
(4) Article 21 of the Criminal Code and the Probation Act shall not apply with respect to any conviction under this Act.
(5) In any criminal proceedings under this Part the Commissioner personally or any other officer designated
by him may, notwithstanding the provisions of any other law, produce the evidence, plead and otherwise conduct the prosecution instead
of or jointly with the police.
(6) Should the evidence of the Commissioner or of the officer designated by him as aforesaid be required as part of the case for
the prosecution, he shall be heard before assuming the duties of a pros ecuting officer unless the ne cess ity of his giving evidence
arises at a later stage: provide d that the Comm issioner or other officer as aforesaid may state the facts constituting the offence
before giving evidence.
Compromise penalty. Amended by: X. 2003.43; XIII. 2005.55;
L.N. 426 of 2007; L.N. 105 of 2008;
II. 2009.55.
84. (1) Notwithstanding any other provisions of this Act, the Commissioner may, in the case of an offence under this Act, enter into
an agreement in writing with the offender whereby the said o ffend er pay s a su m equ ival ent to t he fin e ( mu lta ) th at m ay be imposed by way of penalty in accordance with this Act on the co n v i c ti on of t h a t perso n fo r t h e sai d
offen ce, so h o w e ve r th at wh ere a mi ni mu m an d a maxi mu m amo u n t is p r o v i d ed f o r i n respect of the fine (multa) that may be so imposed, the sum payable pursuant to the said agreement shall be a sum equivalent to the said minimum amount increased
by one half of the difference between the said minimum and maximum amounts, and upon the signing of any su ch agreement by the
Comm issi oner and the offender all
criminal liability of the offender under this Act with regard to the offences in relation to which the agreement has been entered
shall be extinguished.
(2) The provisions of subarticle (1) shall apply also in any case where the offender has been charged before a court in relation
to the offence but before final judgment has been given in the case:
Provided that where proceedings before a court have not be en c o mme nc ed, the sum payable in acc ordance with a n y agreement as
contemplated in subarticle (1) shall be reduced by ten per cent.
(3) Notwithstanding the provisions of subarticle (1) and subarticle (2) the Commissioner may in the case of an offence
by any person against the provisions of article 76(b) or of article 77(e), enter into an agreem en t w ith th e of fend er, whereby the said offender pays to the Commissioner two hundred euro (€200) in
the case of a first offence, four hundred euro (€400) in the case of a second offence and eight hundred euro (€800) in the case
of a third offence, within fifteen days from th e receipt of a no tice by the Commissioner to this effect, and upon the
payment of such fine (mult a ), all criminal liability under th is Act with regard to the offences in relation to which the fine (multa) has been paid, shall be extinguished.
(4) Any sum due in virtue of an agreement entered into in terms of subarticle (1) or subarticle (3) shall be due to the Government
as a civil debt. The Commissioner shall not enter into an agreement as is refer r ed to in sub a r ticle ( 1 ) or sub a r ticle (
3 ) unless su ch agre ement is accompanied b the payment of the sum due or a sufficient security for its payment.
(5) The provisions of this article shall be without prejudice to any proceedings or forfeiture instituted or having effect in virtue
of any other law.
(6) The said agreement and the payment of the fine (multa) so i m po sed sh all be w i t h o u t pr ej ud ice to an y t a x, int e rest an d administrative penalty due under this Act.
PART XI
January 1999 and with respect to anything required to be done or n o t t o be do ne und er t h at Act b e fo re t h at date
subject to the
provisions of the other articles of this Part.
(2) The provisions of the Expenditure Levy Act and of the
Value Added Tax Act, 1994,‡ shall continue to apply to the extent
Saving. Amended by: X. 2003.44. Cap. 395.
Cap. 341.
*The original subarticle (1) has been omitted under the Statute Law Revision Act,
1980.
†Repealed by this Act.
‡Repealed by Act XII of 1997 (Cap.395).
that they were applicable immediately before the 1 January 1999.
Interpretations of certain contracts. Amended by:
X. 2003.45, 46. Substituted by:
II. 2004.67. Amended by:
IV. 2011.77.
Cap. 395.
86. (1) Where, in the execution of a contract made before the effective date, any goods or services are supplied on or after the effect
ive date and t hat supply is a taxable supply, th at contract shall, for all the purposes of any law be interpreted as if the parties
to tha t contract had agre ed to a change in the consideration stipulated therein to reflect the diff er ence, if any, between the
system under the Customs and Excise Tax Act and that applicable under this Act.
(2) Where in the execution of a contract made before the date of coming into force of any change made in the rate of tax in terms
of article 19, any goods or services are supplied on or after the date of coming into force of such change, and the supply is a taxable
su pply, that contract shall, for al l the pu rposes of any l a w, b e interpreted as if the parties to that contract had agreed
to a change in th e consideration stipulated therein to reflect the diff erence between the rate of tax applicable before the change
and the rate of tax applicable after the change.
(3) Subarticle (2), with the application where necessary also of su barticle (1) an d o f articles 85 and 88 , shal l appl y i
n th e interpretation of contracts made between the 1st January 1995 and
th e 3 0 th Ju ne 19 97 an d bet w een t h e 1 st Ju ly 19 97 an d th e 3 1 st December 19 98 where the supply is made on o r after th e 1 st January 2004.
(4) Subarticles (1), (2) and (3) shall not apply -
(a) where it results from all the relevant circumstances that the consideration determined in accordance with the contract
had already made provision for the said adjustment or that the parties had excluded any adjustment to the consideration
on account of such difference;
(b) where or to the extent that the supply was, in terms of the said contract due to take place before the effective date or the date
of coming into force of any change referred to in subarticle (2), as the case may be, and the delay was due to a fault on the
part of the person who makes the supply.
FIRST SCHEDULE Amended by:
L.N. 198 of 1999;
[Article 5(3)]
L.N. 387 of 2002. Substituted by:
X. 2003.47.
Amended by:
L.N. 489 of 2004.
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 | S ale o f leaded pet r ol, unleaded petrol and diesel (gas) oil, kerosene, 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 ag en ci es in respect of agricultural product s carri ed ou t p u rsuan t to Regu latio ns on the comm on 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; Pri v ate hire of patrol boat, helicopt er and equipment; Inspection of ships’ hulls by divers; S e cu ri t y du ti es wi th b a nk s an d si mi lar activities; Provision of meteorological services; Book binding; Sale of bread; Sale of impounded motor vehicles; |
The provision of accommodation facilities to visiting you ths, stud en t groups and individuals;
Sale of drugs and vaccines;
Sale and cleaning of grave sites; Laboratory analysis;
T e sti ng for standards and issuin g of certificates for exported goods;
Gi vin g techni cal adv i ce in connec tion 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;
Sa le 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 b y stu dent s as part of their daily training.
SECOND SCHEDULE Substituted by: X. 2003.47.
[Article 6]
Amended by:
L.N. 426 of 2007;
L.N. 443 of 2007;
L.N. 105 of 2008;
L.N. 34 of 2009;
L.N. 532 of 2010;
L.N. 61 of 2011.
Supplies: general rule
1. Except as otherwise provided in this Schedule -
(a) a supply of goods is the transfer of the right to dispose of tangible property as owner;
(b) a supply of services means a supply that is not a supply of goods.
Energy
2. The supply of electricity, gas, heat or cooling energy and other sources of energy shall be treated as a supply of goods.
Rights over property
3. (1) The transfer of an asset which is immovable property by definition of the law shall be treated as a supply of goods:
provided that an emphyteutical grant for a period not exceeding fifty years shall be treated as a supply of a service.
(2) Subject to the other provisions of paragraph (1) of this item an assignment of any rights over property or of any intangible
property whether or not it is the subject of a document establishing title is a supply of services.
Delivery on deferred terms
4. The delivery of the possession of goods pursuant to an agreement for the sale of those goods on deferred terms shall be treated as a supply of those goods.
Hire purchase
5. The delivery of the possession of goods pursuant to an agreement for the hire of those goods for a certain period where the agreement expressly contemplates that the ownership of those goods will be transferred at a time not later than the date on which an agreed price has been paid in full shall be treated as a supply of those goods.
Transfer of goods under a contract for commission
6. The transfer of goods pursuant to a contract under which commission is payable on purchase or sale is a supply of those goods.
Contract of works
7. The delivery of goods pursuant to a contract of works, including a construction contract, whether or not the materials have been provided in full or in part by the cust omer, shall be treated as a supply of services, except in special circumstances as the Minister may, otherwise, by regulations prescribe.
Obligation to refrain from an act or to tolerate an act
8. An obligation to refrain from an act or to tolerate an act or situation is a supply of services.
Incidental supplies
9. (1) The provision by a person of goods for the purpose and in the course of maintenance or repair services supplied by that
person shall be treated as part of the supply of those services.
(2) Save as otherwise provided in the Act or any regulations made under the Act, where a supply in cludes the provision of both
goods and serv ices and the consideration for that supply does not distinguish between the consideration for the goods and the consideration
for the services, the supply shall be treated as a supply of goods or as a supply of services according to the principal nature of
that supply.
Exchange
10. In a contract of exchange each of the parties shall be deemed to make a supply of any goods and any services he transfers or pr ovide s pursuant to that contract.
Supplies by disclosed agents
11. When a supply is made through an intermediary who acts in the name and for the account of another person that supply shall be treated as a supply made by that other person.
Supplies by undisclosed agents
12. When goods or services are supplied through an agent who acts in his own name they shall be deemed to be supplied to that agent and supplied by that agent.
Supply for consideration of goods forming part of an economic activity
13. The transfer or disposal by a taxable person of goods forming part of his economic activity for consideration including:
(a) the sale by judicial auction pursuant to any proceedings exercised by a creditor or by creditors of that person;
(b) the transfer of such goods by order made by or in the name of a public authority or in pursuance of the law against payment of
compensation shall be treated as a supply of goods by that taxable person acting as such.
Application of goods forming part of an economic activity
14. (1) Subject to paragraph (3), the application by a person registered under article 10 of goods forming part of his economic
activity for his private use, or that of his staff, or the disposal thereof free of charge or, more generally, their application
for purposes other than those of his economic activity, where the value added tax on the said goods or the component parts thereof
was wholly or partly deducted shall be treated as a supply of goods for consideration by that taxable person acting as such.
(2) Paragraph (1) also applies with respect to the goods forming part of the economic activity of a person at the time when his
registration under article 10 is, for any reason, cancelled:
Provided that the Commissioner may exempt that person from accounting for the supply when he has reason to believe that the taxable
value is less than two hundred and fifty euro (€250).
(3) This item does not apply to -
(a) a gift of goods made in the course or furtherance of that activity, otherwise than as one forming part of a series
of gifts made to the same
person, where the cost to the donor is not more than fifty euro (€50);
(b) a gift of an industrial sample in a form not ordinarily available for sale to the public.
Private use of goods forming part of an economic activity
15. The use of goods forming part of an economic activity of a taxable person registered under article 10 by that person himself or by any other person for any purpose other than for the purpose of that economic activity, shall be treated as a supply of services for consideration made by that taxable person acting as such.
Transfer of a going concern
16. (1) Notwithstanding the other provisions of this Schedule, the transfer by a person of assets of his economic activity shall
be treated as neither a supply of goods nor a supply of services if:
(a) the assets are transferred to a person registered under article 10 to whom he transfers his economic activity, or part of
that economic activity which is capable of separate operation, as a going concern; and
(b) the said assets are to be used by the transferee in carrying on the same kind of activity, whether or not as part of an existing
economic activity, as that carried on by the transferor; and
(c) the said transfer is recorded in the records of the transferor indicating the registration number of the transferee.
(2) Subject to approval by the Commissioner, the provisions of paragraph (1) shall also apply where the transferee is not registered
under article 10, provided that the transferor did not q u al ify for a credit of the input tax attribut abl e to the acquisition
and the accumulation of the assets being transferred.
Transfer of goods to another Member State
17. (1) The transfer by a taxable person of goods forming part of his economic activity to another Member State shall be treated
as an intra-community supply of those goods for consideration.
(2) Goods shall be deemed to be transferred by a taxable person to another Member state if they are transported by or on his behalf
from Malta to anot her Member State ("the second State") for the purposes of his economic activity other than for the purposes
of any one of the following transactions:
(a) the installation or assembly of those goods, with or without a trial run, by or on behalf of the taxable person within the second
State;
(b) the supply of those goods under a transaction that constitutes a distance sale that takes place in the second State;
(c) the supply of those goods by or on behalf of the taxable person on board ships, aircraft or trains during the transport of passengers
where the point of departure of that transport is in the second State;
(d) the supply of those goods by the taxable person in the second State under a transaction which would be treated as an exempt with
credit supply in terms of the provisions of items 1 to 9 of Part One of the Fifth Schedule if made in Malta;
(e) the supply of services to the taxable person involving work on those goods physically carried out in the second State provided
the said goods are returned to that person in Malta on the completion of the said work;
(f) the temporary use of those goods in the second State for the purpose of the supply of services by the taxable person if that
person is established in Malta;
(g) the temporary use of those goods in the second State for a period not exceeding twenty-four months if the importation of those
goods into that State for temporary use would qualify for a full exemption from import duties;
(h) the supply of gas through a natural gas system situated within the territory of the Community or any network connected to such
a system, the supply of electricity or the supply of heat or cooling energy through heating or cooling networks, in accordance
with the conditions laid down in item 5 of Part One of the Third Schedule
(3) Where a transport of goods satisfies the conditions of any subparagraph of paragraph (2) and, at a subsequent stage, those
conditions are no longer met, the transport shall, at that subsequent stage, be treated as a transfer to which paragraph (1) applies.
(4) The Minister may by regulations prescribe simplification measures for the application of this item and of item 18, in accordance
with Article 395 of Council Directive 2006/112/EC or in virtue of any other article in substitution therefor.
Intra-community acquisitions
18. (1) An intra-community acquisition is:
(a) the acquisition of the right to dispose as owner of goods which are transported by or on behalf of the supplier or the person
acquiring them from a Member State to the person acquiring them in another Member State; or
(b) the use in a Member State by a taxable person for the purpose of his economic activity of goods transported by him or on his
behalf from another Member State within the territory of which those goods were produced, extracted, purchased, acquired or imported
by him for the purpose of his economic activity, where the transport of those goods would, if made from Malta to another Member
State, be treated as a transfer of goods to another Member State in accordance with item 17;
(c) the acquisition by a non-taxable legal person of goods imported by that person into the Community and transported to a Member
State other than the State of importation.
(2) Any transaction which is treated under this Act as a supply of goods or a supply of goods for consideration shall also be
treated as involving an acquisition of the right to dispose as owner of those goods or an acquisition of those goods for consideration.
Importation
19. Importation means:
(a) the entry into Malta before the accession date of goods transported from any other country;
(b) the entry into the Community on or after the accession date of goods transported from a third territory excluding, however:
(i) goods which fulfil the conditions laid down in Articles 9 and 10 of the Treaty establishing the European Economic Community;
and
(ii) goods covered by the Treaty establishing the European Coal and
Steel Community that are in free circulation.
THIRD SCHEDULE Substituted by: X. 2003.47.
[Article 7]
Amended by:
L.N. 124 of 2007;
L.N. 444 of 2007.
Substituted by:
L.N. 133 of 2009.
Amended by:
L.N. 533 of 2010.
Part One
Place of supply of goods
Supply of goods: general rule
1. Except as otherwise provided in this Schedule -
(a) a supply of goods that are not transported takes place where the goods are at the time when they are placed at the disposal
of the person acquiring those goods;
(b) a supply of goods that are transported takes place where the goods are at the time when the transport of those goods begins;
(c) when the transport of goods begins outside the Community and ends in a Member State the supply of those goods by the importer
and any subsequent supply up to the acquisition of those goods takes place in the Member State where they are imported.
Goods installed or assembled
2. A supply of goods that are installed or assembled, with or without a trial run, b y or on b e half of the su pplier take s place w h ere the goods are install e d or assembled.
Goods supplied on board ships, aircraft or trains
3. A supply of goods on board ships, aircraft or trains during the part of a t r anspo r t of passen g ers effected in the Community
takes p l ace at the poi nt of departure of the transport of passengers and, for the purpose of this item -
(a) "part of the transport of passengers effected in the Community" means the part of the transport effected, without a
stop in a third territory, between the point of departure and the point of arrival of the transport of passengers;
(b) "the point of departure of the transport of passengers" means the first point of passenger embarkation foreseen within
the Community, where relevant after a leg outside the Community;
(c) "the point of arrival of the transport of passengers" means the last point of disembarkation of passengers foreseen
within the Community of
passengers who embarked in the Community, where relevant before a leg outside the Community;
(d) a return trip shall be treated as a separate trip.
Distance sales
(a) the goods are not:
(i) new means of transport; or
(ii) goods that are installed or assembled by or on behalf of the supplier in the Member State where the transport
ends; or
(iii) goods that are supplied under a transaction subject to a margin scheme on second hand goods, works of art, collectors’
items and antiques in the Member State where the transport begins;
(b) when the transport ends in Malta, the goods are acquired by a person who is not registered under article 10 or article 12;
(c) when the goods are transported from Malta the purchaser is not identified on the invoice for that sale by a value added
tax identification number assigned by the Member State where the transport ends.
(2) A distance sale takes place in the Member State where the transport of the goods in question ends, provided that a distance
sale of goods which are not excise goods shall be treated as taking place in the Member State from where the goods are transported
if the following conditions are met:
(a) in the case goods transported to Malta -
(i) the total value of supplies of goods transported to Malta by the same supplier during the year in which the distance sale
takes place, including the value of the distance sale in question, or during the calendar year immediately preceding that
year does not exceed the Distance Sales threshold determined in accordance with Part Three of the Sixth Schedule; and
(ii) the supplier has not made a valid election in the Member State from where the goods are transported in terms of which
the distance sale is to be treated as taking place in Malta;
(b) in the case of goods transported from Malta -
(i) the total value of supplies of goods transported to the Member State where the transport ends by the supplier of the distance
sale in question during the year in which that sale takes place or during the calendar year immediately preceding that
year does not exceed the threshold above which, in accordance with the value added tax legislation of that State, distance sales
are subject to tax in that State by reason of their value; and
(ii) the supplier has not made a valid election in Malta in terms of which the distance sale is to be treated as taking place
in the Member State where the transport ends.
(3) A valid election for the purpose of paragraph (2)(b)(ii) shall be made by means of a notice in writing to the C o mmissioner on a form acceptable to the Commissioner specifying the
date from which it applies, not being earlier than thirty days from the date on which it is furnished, and shall apply to all distance
sales made
during the calendar year in which the election is made and for the two subsequent calendar years.
Supplies of gas through a natural gas system, of electricity and of heat or cooling energy through heating and cooling networks
5. (1) The place of supply to a taxable dealer of the supply of gas through a natural gas system situated within the territory
of the Community or any network connected to such a system, the supply of electricity or the supply of heat or cooling energy through
heating or cooling networks shall be deemed to be the place where that taxable dealer has established his business or has a fixed
establishment for which the goods are supplied or, in the absence of such a place of business or fixed establishment, the place where
he has his permanent address or usually resides.
For the purposes of this paragraph, "taxable dealer" shall mean a taxable person whose principal activity in respect of
purchases of gas, electricity, heat or cooling energy is reselling those products and whose own consumption of those products is
negligible.
(2) Where a supply of gas through a natural gas system situated within the territory of the Community or any network connected
to such a system, the supply of elect r icity or th e sup p ly of heat or co olin g energy t h roug h heating or cool ing networks
is not covered by paragraph (1), the place of supply shall be deemed to be the place where the customer effectively uses and consumes
the goods:
Provided that where all or part of the gas, electricity or heat or cooling energy is not effectively consumed by the customer, those
non-consumed goods shall be deemed to have been used and consumed at the place where the customer has established his business or
has a fixed establishment for which the goods are supplied. In the absence of such a place of business or fixed establishment, the
customer shall be deemed to have used and consumed the goods at the place where he has his permanent address or usually resides.
Part Two
Place of supply of services
Definitions
1. For the purpose of applying the rules concerning this Part:
(a) a taxable person who also carries out activities or transactions that are not considered to be taxable supplies of goods or services
in accordance with article 4 shall be regarded as a taxable person in respect of all services rendered to him;
(b) a non-taxable legal person who is identified for VAT purposes shall be regarded as a taxable person.
General rules
2. (1) The place of supply of services to a taxable person acting as such shall be the place where that person has established
his business. Howe ver, if those services are provided to a fixed establishment of the taxable person located in a place other than
the place where he has established his business, the place of supply of those services shall be the place where that fixed establishment
is located. In the absence of such place of establishment or fixed establishment, the place of supply of services shall be the place
where the taxable person who receives such services has his permanent address or usually resides.
(2) The place of supply of services to a non-taxable person shall be the place wh ere t he su ppl ier has est abl ished hi s busi
ness. How ever, if t hose servi ces are provided from a fixed establishment of the supplier located in a place other than the place
where he has established his business, the place of supply of those services shall be the place where that fixed establishment is
located. In the absence of such place of establishment or fixed establishment, the place of supply of services shall be the place
where the supplier has his permanent address or usually resides.
Supply of services by intermediaries
3. The place of supply of services rendered to a non-taxable person by an intermediary acting in the name and on behalf of another person shall be the place where the underlying transaction is supplied in accordance with this Act.
Supply of services connected with immovable property
4. The place of supply of services connected with immovable property, including the services of experts and estate agents, the provision of accommodation in the hotel sector or in sectors with a similar function, such as holiday camps or sites developed for use as camping sites, the granting of rights to use immovable property and services for the preparation and coordination of construction work, such as the services of architects and of firms providing on-site supervision, shall be the place where the immovable property is located.
Supply of transport
5. (1) The place of supply of passenger transport shall be the place where the transport takes place, proportionate to the distances
covered.
(2) The place of supply of the transport of goods, other than the intra- Community transport of goods, to non-taxable
persons shall be the place where the transport takes place, proportionate to the distances covered.
(3) The place of supply of the intra-Community transport of goods to non- taxable persons shall be the place of departure.
For the purpose of this paragraph:
(a) "Intra-Community transport of goods" shall mean any transport of goods in respect of which the place of departure
and the place of arrival are situated within the territories of two different Member States.
(b) "Place of departure" shall mean the place where transport of the goods actually begins, irrespective of distances covered
in order to reach the place where the goods are located and "place of arrival" shall mean the place where transport of
the goods actually ends.
Supply of cultural, artistic, sporting, scientific, educational, entertainment and similar services, ancillary transport services and valuations of and work on movable property
6. (1) The place of supply of services in respect of admission to cultural, artistic, sporting, scientific, educational,
entertainment or similar events, such as fairs and exhibitions, and of ancillary services related to the admissions, supplied to
a taxable person, shall be the place where those events actually take place.
(2) (a) The place of supply of services and ancillary services, relating to cultural, artistic, sporting, scie ntific, educational,
entertainment or similar activities, such as fairs and exhibitions, including the supply of services of the organisers of such activities,
supplied to a non-taxable
person shall be the place where those activities actually take place.
(b) The place of supply of the following services to a non-taxable person shall be the place where the services are physically carried
out:
(i) ancillary transport activities such as loading, unloading, handling and similar activities;
(ii) valuations of and work on movable tangible property.
Supply of restaurant and catering services
7. The place of supply of restaurant and catering services other than those physically carried out on bo ard ships, aircraft or tr ains during the section of a passenger transport operation effected within the Community, shall be the place where the services are physically carried out.
Hiring of means of transport
8. (1) The place of short-term hiring of a means of transport shall be the place where the means of transport is actually put
at the disposal of the customer.
(2) For the purposes of this item, "short-term" shall mean the continuous possession or use of the means of
transport throughout a period of not more than thirty days and, in the case of vessels, not more than ninety days.
Sup pl y of re sta u ran t and ca teri ng services f o r consu m pt io n on boa rd sh ip s, aircraft or trains
9. (1) The place of supply of restaurant and catering services which are physically carried out on bo ard ships, aircraft
or tr ains during the section of a passenger transport operation effected within the Community, shall be at the point of departure
of the passenger transport operation.
(2) For the purposes of paragraph (1), "section of a passenger transport operation effected within the Community"
shall mean the section of the operation effected, without a stopover outside the Community, between the point of departure and the
point of arrival of the passenger transport operation.
"Point of departure of a passenger tr ansport operation" shall mean the first scheduled point of passenger embarkation within
the Community, where applicable after a stopover outside the Community.
"Point of arrival of a passenger transport operation" shall mean the last scheduled point of disembarkation within the Community
of passengers who embarked in the Community, where applicable before a stopover outside the Community.
In the case of a return trip, the return leg shall be regarded as a separate transport operation.
Supply of electronic services to non-taxable persons
10. (1) The place of supply of electronically supplied services, when supplied to non-taxable persons who are established in a
Member State, or who have their permanent address or usually reside in a Member State, by a taxable person who has established his
business outside the Community or has a fixed establishment there from which the service is supplied, or who, in the absence of such
a place of business or fixed establishment, has his permanent address or usually resides outside the Community, shall be the place
where the non-taxable person is established, or where he has his permanent address or usually resides.
(2) For the purpose of this item, electronically supplied services include
services relating to websi t e supply, webhosting, d i stance main tenance of programmes and equipment, supply of software and updating
thereof, supply of images, text and information, and making available of databases, supply of music, films and games, including games
of chance and gambling games, and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events,
and the supply of distance teaching.
Where the supplier of a service and the customer communicate via electronic mail, that shall not of itself mean that the service supplied
is an electronically supplied service.
Supply of services to non-taxable persons outside the Community
11. The place of supply of the following services to a non-taxable person who is established or has his permanent address or usually
resides outside the Community, shall be the place where that person is established, has his permanent address or usually resides:
(a) transfers and assignments of copyrights, patents, licences, trade marks and similar rights;
(b) advertising services;
(c) the services of consultants, engineers, consultancy firms, lawyers, accountants and other similar services, as well as
data processing and the provision of information;
(d) obligations to refrain from pursuing or exercising, in whole or in part, a business activity or a right referred to in this item;
(e) banking, financial and insurance transactions including reinsurance, with the exception of the hire of safes;
(f) the supply of staff;
(g) the hiring out of movable tangible property, with the exception of all means of transport;
(h) the provision of access to a natural gas system situated within the territory of the Community or to any network connected to
such a system, to the electricity system or to heating or cooling networks, or the transmission or distribution through these systems
or networks, and the provision of other services directly linked thereto;
(i) telecommunications services;
(j) radio and television broadcasting services;
(k) electronically supplied services, in particular those referred to in item
10(2) of this Part.
Where the supplier of a service and the customer communicate via electronic mail, that shall not of itself mean that the service supplied
is an electronically supplied service.
Prevention of double taxation or non-taxation
12. (1) In order to prevent double taxation, non-taxation or distortion of competition, the Commissioner may, with regard
to services the place of supply of which is governed by items 2, 8 and 11 of this Part:
(a) consider the place of supply of any or all of those services, if situated within Malta, as being situated outside the Community
if the effective use and enjoyment of the services takes place outside the Community;
(b) consider the place of supply of any or all of those services, if situated outside the Community, as being situated within Malta
if the effective use and enjoyment of the services takes place within Malta.
However, this provision shall not apply to the electronically supplied services where those services are rendered to non-taxable persons
not established within the Community.
(2) The provisions of paragraph (1)(b) shall apply to telecommunications services and radio and television broadcasting services, as referred to in paragraph (j) of item 11, supplied to non-taxable persons who are established in Malta, or who have their permanent address or usually reside
in Malta, by a taxable person who has established his business outside the Community or has a fixed establishment there from which
the services are supplied, or who, in the absence of such a place of business or fixed establishment, has his permanent address or
usually resides outside the Community.
Part Three
Place of Intra-Community Acquisitions
Intra-community acquisitions: general rule
1. An intra-community acquisition takes place where the goods are when the transport of the goods to the person acquiring them ends.
Place of intra-community acquisition under an identification number assigned under this Act
2. (1) Without prejudice to item 1, when a taxable person makes an intra- community acquisition on which he is identified
as registered under article 10 the acquisition shall be deemed to take place in Malta unless the person acquiring the goods establishes
that the acquisition has been treated as taking place in another Member State and subject to value added tax in that State in terms
of provisions in force under the law of that State corresponding to item 1.
(2) For the purpose of paragraph (1) an intra-community acquisition of goods shall be deemed to have been subject to value added
tax in a Member State in terms of provisions in force under the law of that State corresponding to item 1 if all the following conditions
are fulfilled:
(a) it is made for the purpose of a subsequent supply of those goods in that other Member State;
(b) the subsequent supply is made to a taxable person or a non-taxable legal person identified for value added tax purposes in the
Member State of destination;
(c) the person to whom the subsequent supply is made is designated by the supplier as the person liable for the payment of the tax
on that supply;
(d) the taxable person registered under article 10 reports the subsequent supply in the recapitulative statement required in terms
of article 30(3).
Part Four
Place of Importations
Importations
1. An importation of goods takes place where the goods are at the time when the chargeable event takes place.
Amended by: L.N. 17 of 1999; L.N. 28 of 1999; L.N. 89 of 1999; L.N. 116 of 1999; L.N. 142 of 1999; L.N. 199 of 1999; L.N. 11 of 2000; L.N. 274 of 2000; L.N. 23 of 2001; L.N. 171 of 2001; L.N. 233 of 2001; L.N. 180 of 2002; L.N. 205 of 2002; L.N. 39 of 2003. Substituted by:
X. 2003.47. Amended by:
L.N. 71 of 2010.
FOURTH SCHEDULE [Article 8]
Date of the chargeable event in the case of supplies of goods
1. (1) In the case of a supply of goods the chargeable event takes place on the date when the goods are delivered.
(2) For the purpose of paragraph (1), when the delivery of goods, other than goods referred to in paragraph (3), gives rise to
successive statements of account or payments the goods shall be treated as delivered, up to the value covered by those statements,
on the last day of each period to which such statements of account or payments refer:
Provided that, when a continuous supply of goods does not give rise to statements of account or payments during a year, it shall be
regarded as being delivered at least at intervals of one year.
(3) Paragraph (2) does not apply to the delivery of goods pursuant to a contract for the hire of goods for a certain period or
for the sale of goods on deferred terms, which provides that in the normal course of events ownership shall pass at the latest upon
payment of the final instalment.
Date of the chargeable event in the case of supplies of services
2. (1) In the case of a supply of services, the chargeable event takes place on the date when the services are performed.
(2) For the purpose of paragraph (1), when the supply of services gives rise to successive statements of account or payments they
shall be treated as performed, up to the value covered by those statements, on the last day of each period to which such statements
of account or payments refer:
Pro v id ed t h at, w h en a co nt inu ous su pp ly of serv ices do es n o t gi ve ri se to statements of account or payments during
a year, it shall be regarded as being completed at least at intervals of one year.
(3) Notwithstanding the provisions of paragraph (2), when a supply of services fo r wh ich VAT i s payable p u rsuant to article
2 0 (2 )( b ) of the Act is sup p lied continuo usl y over a p e riod of more than one year and it does not gi ve ri se to statements of account
or payments during that period it shall be regarded as being completed on expiry of each calendar year until such time that the supply
comes to an end.
Date when tax on supplies becomes chargeable
3. The tax on a supply which takes place in Malta, other than a supply to which item 4 applies, becomes chargeable on the earlier
of the following two dates:
(a) the date when the chargeable event takes place;
(b) the date when a payment is made for the supply to the extent covered by that payment:
Provided that where a tax invoice is issued within thirty days from the date dete rm in ed u n d e r the fore goi ng prov isio ns
o f th is su bsecti o n th e t a x beco mes chargeable on the date of the invoice.
Date when tax on exempt intra-community supplies becomes chargeable
4. The tax on an exempt intra-community supply becomes chargeable on the earlier of the following two dates -
(a) the fifteenth day of the month following the date when the chargeable event takes place;
(b) the date on which a tax invoice is issued for that supply.
Date of the chargeable event in the case of intra-community acquisitions
5. In the case of an intra-community acquisition of goods the chargeable event takes place on the date which would be the date of the chargeable event had those goods been supplied in the Member State where the acquisition is made.
Date when tax on intra-community acquisitions becomes chargeable
6. The tax on an intra-community acquisition becomes chargeable on the earlier of the following two dates -
(a) the fifteenth day of the month following the date of the acquisition;
(b) the date on which a tax invoice is issued to the person making the acquisition for the supply of goods in question.
Date of the chargeable event and when tax becomes chargeable in the case of importations
7. (1) When goods are, on importation, placed under a customs duty suspension regime the chargeable event
takes place and the tax becomes chargeable on the date when they cease to remain subject to that regime.
(2) When goods are, on importation, subject to customs duties, to agricultural levies or to charges having equivalent effect established
under a common policy, the chargeable event takes place and tax becomes chargeable when the chargeable event for those Community
duties takes place and those duties become chargeable.
(3) In the case of an importation of goods that is not subject to the Community duties referred to in paragraph (2), the chargeable
event takes place and tax becomes chargeable when, if the importation were subject to those duties, the chargeable event for those
Community duties would take place and those duties would become chargeable.
(4) "Customs duty suspension regime" means any of the following arrangements and procedures to the extent that they
provide, under the customs legislation of a Member State, for the temporary exemption from duty chargeable on the entry of goods
into that State while the conditions required under those arrangements and procedures are met:
(a) the temporary storage of goods;
(b) the placing of goods in a free zone or free warehouse; (c) customs warehousing or inward processing;
(d) | the admittance into territorial waters of | goods | on | drilling | and |
(e) | production platforms; the temporary entry of goods into that State; | ||||
(f) (g) | external transit procedures; internal transit procedures. |
Amended by: L.N. 24 of 2001. Substituted by: X. 2003.47. Amended by:
L.N. 250 of 2004; L.N. 520 of 2004; L.N. 334 of 2006; L.N. 121 of 2007; L.N. 445 of 2007; L.N. 234 of 2009; L.N. 286 of 2010; L.N. 425 of 2010; L.N. 534 of 2010; L.N. 379 of 2011; L.N. 499 of 2011; L.N. 38 of 2012.
FIFTH SCHEDULE [Article 8]
Part One
Exemptions with credit
This Part applies to the supplies listed herein subject to the definitions contained in Part Five.
Exports and like transactions
1. (1) The supply of goods dispatched or transported to a destination outside the Community by or on behalf of the seller.
(2) The supply of goods transported to a destination outside the Community by or on behalf of a purchaser not established within
Malta, with the exception of goods transported by the purchaser himself for the equipping, fuelling and provisioning of pleasure
boats and private aircraft or any other means of transport for private use.
(3) The supply of services other than those exempted by item 5, consisting of work on movable goods acquired or imported for the
purpose of undergoing such work within Malta, and transported outside the Community by the performer of the services or by the customer
if not established within Malta, or on behalf of either of them.
International goods traffic
2. (1) The supply of goods intended to be placed or while they are placed under a customs duty suspension regime.
(2) The supply of services other than those exempted by item 6, consisting in work on movable goods that are intended to be placed
or while they are placed under
a customs duty suspension regime.
Intra-community supplies
3. (1) The intra-community supply of goods to a person who is identified on the relative invoice as a person identified for
value added tax purposes by a valid and active value added tax identification number in a Member State other than Malta, excluding:
(a) a supply made by a person registered under article 11;
(b) a supply that is subject to the special scheme of the profit margin in terms of Part Two of the Fourteenth Schedule.
(2) The intra-community supply of new means of transport to a person who is not identified for the purpose of that supply by a
value added tax identification number.
(3) The intra-community supply of excise goods to a person who is not identified for the purpose of that supply by
a value added tax identification number where the transport of the goods is carried out in accordance with Article 7 (4) and (5),
or Article 16 of Directive 92/12/EEC, excluding:
(a) a supply made by a person registered under article 11;
(b) a supply that is subject to the special scheme of the profit margin in terms of Part Two of the Fourteenth Schedule.
(4) The intra-community supply of goods referred to in item 17(1) of the Second Schedule which would benefit from the exemption
referred to in paragraph (1) of this item if it were made on behalf of another taxable person, excluding a supply that is subject
to the special scheme of the profit margin in terms of Part Two of the Fourteenth Schedule.
International transport and ancillary services
4. (1) The international transport of persons; the transport of luggage and motor vehicles accompanying passengers
and the supply of services related to the international transport of passengers.
(2) The transport of goods from a third territory and the supply of services ancill ary thereto, where the valu e of these transport
and ancillary services are included in the taxable value of the importation of those goods.
(3) The transport of goods which is directly connected with the export of those goods outside the Community.
(4) The transport of goods that are subject to a customs duty suspension regime. (5) The supply of services used for the
purposes of transport referred to in
paragraph (3) and (4) and relating to the loading, unloading, transhipment, handling,
stowage, weighing, measuring, control, valuation, storage, supervision or delivery.
(6) The supply of services relating to customs formalities on importation into or exportation outside the Community or on transit.
(7) The intra-community transport of goods effected to or from the islands composing the autonomous regions of Azores
or Madera as well as ancillary services thereto.
Brokers or other intermediaries
5. The supply of services of brokers and other intermediaries who act in the
na me and for the a ccount of another pe rso n w h en th ese p e rson s t a ke part i n operations exempted by items 1, 2, 6, 7, 8,
9 and 10 of this Part of the Schedule.
Sea vessels
6. (1) The supply of vessels:
(a) used for navigation on the high seas and carrying passengers for reward or used for the purpose of commercial, industrial or fishing
activities;
(b) used for rescue or assistance at sea or for coastal fishing; (c) of war.
(2) The supply to constructors, owners or operators of the vessels referred to in
(1) of equipment incorporated or used therein.
(3) The supply of services consisting of the modification, maintenance, chartering and hiring of the vessels referred
to (1) or equipment referred to in (2).
(4) The supply to the owners or to the operators of vessels referred to in (1) of goods for the fuelling or provisioning thereof:
provided that -
(a) with respect to vessels used for coastal fishing, this exemption is not applicable for board provisioning, and
(b) with respect to war vessels, this exemption is limited to the fuelling and provisioning destined for vessels defined in subheading
89.01 of the Customs Tariff, leaving the country and bound for foreign ports or anchorages.
(5) The supply of services other than those referred to in (3), carried out for the direct needs of vessels referred to in (1),
with the exception of war vessels, and for the direct needs of their cargo such as towage, pilotage, mooring, rescue services, valuation,
use of the ports, services provided to the ship-owners by the maritime agents acting as such, services necessary for the entrance,
departure or stay of the vessels in p o rts, and assistance provi ded to th e passengers or the crew fo r the account of the shipowners.
Aircraft
7. (1) The supply of aircraft destined to be used by airline operators for reward chiefly for international transport of passengers
and/or goods.
(2) The supply to constructors, owners or operators of aircraft referred to in (1)
of equipment incorporated or used therein.
(3) The supply of services consisting of the modification, maintenance, chartering and hiring of aircraft referred
to in (1) or equipment referred to in (2).
(4) The supply to the owners or to the operators of aircraft referred to in (1) of goods for the fuelling or provisioning thereof.
(5) The supply of services other than those referred to in (3), carried out for the direct needs of aircraft referred to in (1)
and for the direct needs of their cargo such as towage, pilotage, rescue services, valuation, use of the airports, services provided
to a i rcraft operators by their agents act ing as such, services necessary for the landing, take off or stay in airports, and assistance
provided to the passengers or the crew for the account of the airline operators.
Gold
8. (1) The supply of gold to the Central Bank of Malta.
(2) The supply of investment gold, including investment gold represented by certificates for allocated or unallocat ed gold or
traded on gold accounts and including, in particular, gold loans and swaps, involving a right of ownership or claim in respect of
investment gold, as well as transactions concerning investment gol d i nvol vin g futu res an d forward con t ract s leadi ng to
a transfer of righ t o f ownership or claim in respect of investment gold.
(3) The supply of services of agents who act in the name and for the account of another when they intervene in the supply of investment
gold for their principal.
(4) The exemptions in paragraphs (2) and (3) shall be subject to the option for taxation in terms of Part Six of the Fourteenth
Schedule.
Food
9. The supply of food for human consumption, excluding food supplied in the course of catering.
Pharmaceutical goods
10. The supply of pharmaceutical goods.
Transport
11. The supply of -
(a) transport by the scheduled bus service consisting of scheduled trips on scheduled routes;
(b) scheduled inter-island sea transport of passengers by authorised carriers and other scheduled sea transport of passengers recognised
as such by the Commissioner;
(c) special regular services consisting in the carriage of school pupils and students to and from an educational establishment recognised
as such by the Commissioner;
(d) special regular services consisting in the carriage of workers to and from their place of work.
In paragraphs (c) and (d) the term "special regular services" has the meaning assigned to it in the Passenger Transport Services Regulations or
any other regulations replacing those regulations.
Supplies of goods on board cruise liners
12. The supply of goods for consumption on board cruise liners where the place of taxation in terms of item 3 of the Third Schedule
to the Act is deemed to be in Malta.
Part Two
Exemptions without credit
This Part applies to the supplies listed herein subject to the definitions contained in Part Five. Items 2 and 3 are without prejudice
to item 5 of Part One.
Immovable property
1. (1) The letting of immovable property excluding -
(a) the letting of or the provision of accommodation in any premises which for the purpose of the said letting or accommodation is
required to be licensed in virtue of the Malta Travel and Tourism Services Act, or any Act which may be substituted therefor or
in a holiday camp or camping
site;
(b) the letting of premises and sites for parking vehicles where such premises or sites have been designated by the Commissioner
as parking areas or which fall to be treated as such in terms of such regulations as may be prescribed;
(c) the letting of permanently installed equipment and machinery and the hire of safes;
(d) the letting of property by a limited liability company to a person registered under article 10 for the purpose of the
economic activity of that other person;
(e) the letting of immovable property for not more than thirty days by a taxable person in the course of an economic activity, except
for:
(i) the letting referred to in sub-paragraphs (a), (b), (c) and (d); (ii) the letting of space for artistic and cultural activities;
(iii) the letting for the purposes of habitation of any premises which for the purpose of the said letting, those premises are
not required to be licensed in virtue of the Malta Travel and Tourism Services Act, or any other Act which my be substituted therefor;
(iv) the letting of premises used or intended to be used as garages, stores or similar uses.
(2) The transfer of immovable property.
Insurance services
2. The supply by persons licensed under the Insurance Business Act or the Insurance Intermedia ries Act, of insuranc e and reinsu rance se rvices, including related transactions, in respect of which they are so licensed.
Credit, banking and other services
3. (1) The granting and the negotiation of credit and the management of credit by the person granting it.
(2) 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.
(3) Transactions, including negotiation, concerning deposit and current accounts, payments, transfers, debts, cheques
and other negotiable instruments, but excluding debt collection and factoring.
(4) Transactions, including negotiation, concerning currency, bank notes and coins normally used as legal tender.
(5) Transactions, including negotiation, excluding management and safekeeping, in shares, interest in companies
or associations, debentures and other securities, excluding:
(a) documents establishing title to goods; (b) certain interest in immovable property;
(c) rights in rem giving the holder thereof a right of user over immovable property;
(d) shares or interests equivalent to shares giving the holder thereof de jure
or de facto rights of ownership or possession over immovable property
or part thereof.
(6) The supply of services consisting of the management of any investment scheme, provided that these services are limited
to those activities that are specific to and essential for the core activity of the scheme:
Provided further that investment schemes shall refer to ‘collective investment schemes’ as defined under the
Investment Services Act and ‘retirement schemes’ as defined under the Special Funds (Regulation) Act.
Cultural and religious services
4. (1) Religious services.
(2) The supply of such cultural services and goods closely linked thereto as may be approved by the Minister.
Sports
5. The supply by non-profit making organisations of such services related to sport or phy si cal recreat ion an d provid e d to persons t a king part in sp ort or educational education as may be approved by the Minister.
Services related to certain exempt services
6. (1) The supply of staff by religious and philosophical institutions recognised as such by the Commissioner
fo r the pu rpose of pr oviding services referred to in paragraph (2) or (4) of item 11 or in paragraph (1) or (2) of item 12 of
this Part with a view to spiritual welfare.
(2) The supply of goods and services by a non-profit making organisation in the course of an activity designed to raise funds
to be used for the provision of goods and services which are exempt in terms of paragraph (2) or (4) of item 11 or of paragraph (1)
or (2) of item 12 of this Part: provided the activity is recognised by the Commissioner as being exclusively designed for the said
purpose and provided that this exemption is not likely to cause distortion of competition.
Services supplied by independent groups
7. Services supplied by independent groups of persons whose activities are exempt from or not subject to value added tax, for the purpose of rendering to their members the services directly necessary for the exercise of their activity, where these groups merely claim from their members exact reimbursements of their share of th e jo int expen s es, prov ided that such exemp tio n i s not li kely to produce distortion of competition.
Services by non-profit making organisations to their members
8. The supply of services for the benefit of their members in return for a subscription fixed in accordance with their rules by non-profit making organisations with aims of a political, trade union, religious, patriotic, philosophical, philanthropic or civic nature or whose main purpose is to represent and promote the common business or professional interests of their members: provided that in any case where, i n th e op in io n o f th e Mi n i st er, th is ex em pt io n i s li kel y t o cause di st or ti on of competition, this exemption shall be subject to such exceptions or limitations as the Minister may by order in writing determine.
Lotteries
9. Government lotto and lotteries, the supply of agency services related thereto, and such other supplies related to
gambling as may be approved by the
Minister.
Postal Services
10. The supply of public postal services, other than passenger transport and telecommunication services, and of goods, including postage stamps, incidental thereto.
Health and Welfare
11. (1) The supply of services by a person in the exercise of any profession regulated by the Health Care Professions Act or any
Act which may be substituted therefor.
(2) The provision of care or medical or surgical treatment in any government hospital or institution or in any other hospital
or institution approved by the Minister for the purposes of this paragraph.
(3) The supply of human organs, blood and milk.
(4) The supply of welfare services, including services supplied by homes for the elderly, and se rvic es for th e prot ect io
n an d care of chil dr en and young peop le, supp lied by any governm e nt institution or by any i n stitution or organisation recognised
by the Commissioner as a non-profit making institution or approved by the Minister for the purpose of this paragraph as any institution
whose activities fall within the social and welfare policy of the government.
(5) The supply of transport services for sick, injured or disabled persons in vehicles specially designed for that purpose.
(6) The supply of goods where the said supply is connected with and essential for the supply of services referred to in paragraphs
(2) and (4) of this item by the hospital, institution or home, as the case may be, supplying the said services.
Education
12. (1) The provision of education or educational research, including distance learning, by a government school or institution,
by the University of Malta, by a sch ool o r in st ituti on reg istered un der th e Ed ucation Act, or b y any edu cat ional establishment
recognised as such by the Commissioner.
(2) The provision of education or educational research, including distance learning, of a kind provided by a school or
university, or of religious instruction, by a non-profit making institution recognised as such by the Commissioner.
(3) Tuition given privately by teachers acting in an independent capacity in subjects which are normally taught in the course
of education provided by a school or university but excluding tuition in recreational, physical or sporting activities or disciplines.
(4) Any training in the arts which is provided by an organisation accredited by the Register for the Accreditation in the Training
of the Arts.
(5) The supply of goods where the said supply is connected with and essential for the supply of services referred to in paragraphs
(1), (2), (3) and (4) by the school, institution, university, teacher or organisation, as the case may be, supplying the said services.
Supplies of goods in respect of which the supplier had not qualified for input tax credits
13. The supply of goods which were acquired by that person or which were
manufactured or produced from components acquired by that person under a supply in respect of which that person did not qualify for
any input tax credit.
Broadcasting
14. The activities of public radio and television bodies other than those of a commercial nature.
Water
15. The supply of water services by a public authority.
Part Three
Exempt intra-community acquisitions
This Part applies to the intra-community acquisitions listed herein subject to the definitions contained in Part Five.
Intra-community acquisitions made for the purpose of a subsequent supply
1. The intra-community acquisition of goods by a taxable person not established in Malta and who is identified
for value added tax purposes in another Member State if all the following conditions are fulfilled:
(a) the acquisition of the goods is made for the purpose of a subsequent supply of those goods in Malta by that person;
(b) the goods acquired have been directly transported from a Member State other than that where that person is identified
for value added tax purposes to the person to whom the subsequent supply is made;
(c) the person to whom the subsequent supply is made is a taxable person or a non-taxable legal person registered under article 10
or 12;
(d) the person to whom the subsequent supply is made is liable for the payment of the tax on that supply.
Acquisitions of goods whose supply or importation is exempt
2. The intra-community acquisition of goods the supply of which if made by a taxable person in Malta would in all ci rc umstances be an exempt supply or the importation of which if made into Malta would in all circumstances be an exempt importation.
Acquisitions of goods where the tax would be refundable
3. The intra-community acquisition of goods by a person who is not registered or required to be registered under article 10 where that person would in all circumstances be entitled to a refund of the tax that would be due on that acquisition were it not exempt.
Duty suspension regime
4. The intra-community acquisition of goods intended to be placed under a customs duty suspension regime.
Food
5. The intra-Community acquisition of food.
Investment gold
6. The intra-community acquisition of investment gold, saving the option for taxation in terms of Part Six of the Fourteenth Schedule.
Goods subject to the margin scheme
7. The intra-community acquisition of goods that are supplied under a transact io n su bject t o a m a rg in schem e
o n se cond h a nd go ods, w o rks o f art , collectors’ items and antiques in the Member State where the transport begins.
Part Four
Exempt importations
Thi s Par t appl ie s to t h e im po rt ati o n s l i ste d h e r e in sub j ec t t o th e d e fi ni ti on s contained in Part Five.
Importation of goods whose supply is exempt
1. The importation of goods the supply of which by a taxable person in Malta would in all circumstances be an exempt supply.
Goods exempt from customs duty
2. (a) The importation of goods whose definitive importation into Malta is exempt from customs duties other than as provided for in
the Import Duties Act.
(b) goods that are intended to be placed under a customs duty suspension regime.
Goods transported from a third territory
3. The importation of goods transported from a third territory and imported into Malta where the supply of these goods by the
importer is an exempt supply in virtue of paragraph (1) or (4) of item 3 of Part One of this Schedule.
The exemption provided for under this item shall apply in cases when the importation of goods is followed by the supply of goods exempted
under paragraph (1) or (4) of item 3 of Part One of this Schedule only if at the time of importation the importer has provided to
the Comptroller of Customs the following information:
(a) his VAT identification number issued in terms of article 10 of this Act; (b) the VAT identification number of the customer, to whom the goods are
supplied in accordance with paragraph (1) of item 3 of Part One of this
Schedule, issued in another Member State, or his own VAT
identification number issued in the Member State in which the dispatch or transport of the goods ends when the goods are subject to
a transfer in accordance with paragraph (4) of item 3 of Part One of this Schedule;
(c) the evidence that the imported goods are intended to be transported or dispatched from Malta to another Member State.
In addition, the Comptroller of Customs may impose conditions including the production of further documentation and security.
Catches of fish
4. The importation into ports by sea fishing undertakings of their catches, un proc essed or aft e r un derg o i n g preser vation for marketing but before being supplied.
Re-importation
5. The re-importation by the person who exported them outside the
Community:
(a) of goods in the state in which they were exported outside the
Food
Community;
(b) of goods which have undergone outside the Community repair, transformation or adaptation, or after having been
made-up or reworked abroad: provided that this exemption is limited to the value of the goods at the time they were exported outside
the Community.
6. The importation of food.
Investment gold
7. The importation of investment gold, saving the option for taxation in terms of Part Six of the Fourteenth Schedule.
Im portat i on of g a s, el ectricity, heat or co olin g energ y, thro u gh syst ems o r networks
8. The importation of gas through a natural gas system or any network connected to such a system or fed in from a
vessel transporting gas into a natural gas system or any upstream pipeline network, of electricity or of heat or cooling energy through
heating or cooling networks.
Part Five
Definitions
For the purposes of this Schedule, the following terms shall have the meaning assigned to them in this Part.
Food
1. "Food" means the goods specified in the Customs Tariff contained in the
First Schedule to the Import Duties Act under:
(a) Chapter 1 but excluding items falling under subheadings 0101.10.10.00;
0106.11.00.00; 0106.12.00.00; 0106.19.90.00; 0106.20.00.00;
0106.31.00.00; 0106.32.00.00; 0106.39.90.00; 0106.90.00.00.
(b) Chapters 2 to 4 inclusive, but excluding items falling under subheadings
0206.10.10.00; 0206.29.10.00; 0206.80.10.00 and 0206.90.10.00 in
Chapter 2, and 0301.10.10.00 and 0301.10.90.00 in Chapter 3.
(c) Items falling under subheadings 0504.00.00.00; 0505.90.00.00;
0506.90.00.00; 0508.00.00.00; 0510.00.00.00; 0511.10.00.00;
0511.91.10.00; 0511.91.90.00; 0511.99.90.00 in Chapter 5.
(d) Items falling under subheadings 0601.20.10.00; 0602.10.10.00;
0602.20.10.00; 0602.20.90.00; 0602.90.10.00; 0602.90.20.00;
0602.90.30.00 in Chapter 6.
(e) Chapters 7 to 12 inclusive, but excluding items falling under subheadings 1207.30.90; 1207.99.91.00; 1209.30.00.00;
1209.99.10;
1209.99.91.00; 1209.99.99.00; 1211.90.30 in Chapter 12.
(f) Chapter 13 excluding items falling under subheadings 1301.10.00.00;
1302.11.00; 1302.14.00; 1302.19.05; 1302.19.30; 1302.19.91;
1302.19.98; 1302.20.10; 1302.20.90.
(g) Chapters 15 to 20 inclusive, but excluding items falling under subheadings 1501.00.11.00; 1502.00.10.00; 1503.00.11.00;
1503.00.19;
1503.00.30.00; 1505.00.10.00; 1505.00.90.00; 1507.10.10.00;
1507.90.10.00; 1508.10.10.00; 1508.90.10.00; 1511.10.10.00;
1511.90.91.00; 1512.11.10.00; 1512.19.10.00; 1512.21.10.00;
1512.29.10.00; | 1513.11.10.00; | 1513.19.30.00; | 1513.21.11.00; |
1513.21.19.00; | 1513.29.30.00; | 1514.11.10.00; | 1514.19.10.00; |
1514.91.10.00; | 1514.99.10.00; | 1515.11.00.00; | 1515.19.10.00; |
1515.21.10.00; | 1515.29.10.00; | 1515.30.10.00; | 1515.30.90.00; |
1515.40.00.00; | 1515.50.11.00; | 1515.50.91.00; | 1515.90.15.00; |
1515.90.15.90; | 1515.90.21.00; | 1515.90.31.00; | 1515.90.40.00; |
1515.90.60.00; | 1516.20.10.00; | 1517.90.93; | 1518.00.10.00; |
1518.00.31.00; | 1518.00.39.00; | 1518.00.91.00; | 1518.00.95.00; |
1518.00.99.00; | 1520.00.00; | 1521.10.00.10; | 1521.10.00.90; |
1521.90.10.00; | 1522.00.10; | 1522.00.31.00; | 1522.00.39.00; |
1522.00.91.00; | in Chapter 15 | and 1702.90.10; | 1704.10.11.00; |
1704.10.19; 1704.10.91; 1704.10.99; 1704.90.10; 1704.90.55;
1704.90.61; 1704.90.65; 1704.90.71; 1704.90.75 and 1704.90.81 in
Chapter 17 and 2006.00.10 and heading 2009 in Chapter 20.
(h) Chapter 21 but excluding items falling under heading 2105.00 and subheadings 2106.90.20.00; 2106.90.98.33; 2106.90.98.37
and
2106.90.98.39.
(i) Subheadings 2202.90.10.10; 2202.90.91.00; 2202.90.95.00;
2202.90.99.00; 2209.00.11.00; 2209.00.19.00; 2209.00.91.00;
2209.00.99.00 in Chapter 22.
(j) Chapter 23 but excluding items falling under subheading 2307.00. (k) Subheading 2501.00.91.00 in Chapter 25.
(l) Subheadings 3301.90.21.00; 3302.10.29.00; 3302.10.40.00;
3302.10.90.00 in Chapter 33.
Food supplied in the course of catering
2. (1) "Food supplied in the course of catering" means food which is suitable for immediate consumption, whether such
food is consumed in the place where it is supplied or not, and consisting of -
(a) meals or snacks;
(b) milkshake, tea, coffee and chocolate supplied in liquid form;
(c) ice cream or products containing ice cream except in family packs. (2) For the purposes of paragraph (1) hereof -
(a) "meals or snacks" means and includes:
(i) hot and cold dishes including antipasto and dessert;
(ii) sandwiches, toast, potato chips, sausage rolls, pizza, pastizzi,
qassatat and similar snacks;
(iii) biscuits, cakes, confectionery and similar items but excluding those sealed in a package by the manufacturer and supplied
in that original sealed package and those items which individually weigh
500 grams or more;
(b) "family pack" means ice creams consisting of one component of not less than 350 grams in weight.
Pharmaceutical goods
3. "Pharmaceutical goods" means the goods specified in the Customs Tariff contained in the First Schedule to the Import Duties Act under:
(a) Chapter 30 except for items falling under sub-headings 3001 and 3002
where the use of items under these sub-headings is not for therapeutic or prophylactic purposes; 3005 and 3006.
(b) Subheading 3301.90.30.00 in Chapter 33. (c) Subheading 3507.10.00.00 in Chapter 35. (d) Subheading 3824.90.64.00 in Chapter 38.
(e) Subheadings 9619 00 21 and 9619 00 29 in Chapter 96. (f) Subheadings 9619 00 51 and 9619 00 59 in Chapter 96.
(g) Heading 9020 excluding items falling under subheading 9020.00.10 [heading 9021 excluding items falling under subheadings
9021.21.10 and 9021.21.90] and 9022 in Chapter 90.
Immovable property
4. (1) Saving the provisions of paragraph (2) of this item "immovable property" includes any asset that is
immovable property by definition of the law.
(2) "Letting of immovable property" includes -
(a) the provision of any accommodation under any title in immovable property and any other form of supply of the
use of immovable property;
(b) an emphyteutical grant for a period not exceeding 50 years; (c) the letting of space for artistic and cultural activities.
Non-profit making organisations
5. A "non-profit making institution or organisation" means an institution or organisation:
(a) whose objects are clearly defined in its statute; (b) whose objects expressly exclude profit making;
(c) whose statute provides that no part of its income or property is available directly or indirectly to any member, proprietor or
shareholder;
(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;
(e) which does not systematically aim to make a profit.
Investment gold
6. "Investment gold" has the meaning assigned to it in Part Six of the
Fourteenth Schedule.
Amended by: L.N. 29 of 1999. Substituted by: X. 2003.47. Amended by:
L.N. 122 of 2007; L.N. 426 of 2007; L.N. 105 of 2008; L.N. 137 of 2009.
SIXTH SCHEDULE
Part One
[Article 11]
Small undertakings
Threshold at the time of application
1. (1) Subject to paragraph (2), the economic activity of a person who applies for registration under article 11 qualifies as
a small undertaking at the time of the application if his turnover for the relevant period is less than the Entry Threshold.
(2) When a taxable person applies for registration under article 11 at the commencemen t o f h i s eco nomi c acti
vi ty or with in thi r ty days t h erefrom his economic activity qualifies as a small undertaking at the time of the application
and continues to qualify as a small undertaking up to the end of the calendar quarter fo ll owi n g th at durin g whi c h h e co
mm enced his economic activity if the Commissioner is satisfied that the turnover of that person for the period of twelve months
commencing on the date of the commencement of that economic activity will not exceed the Entry Threshold.
Persons registered under article 10
2. (1) Notwithstanding the provisions of item 1, the economic activity of a person registered under article 10 does not qualify
as a small undertaking at any time during the first thirty-six full calendar months from the date of the said registration:
Provided that a person who is treated as registered under article 10 in virtue of subarticle (6) of the said article of this Act shall
be treated for the purpose of this item as having been registered under that article on the date on which he was first registered
under this Act.
(2) Without prejudice to the provisions of paragraph (1) of this item, the economic activity of a person registered
under article 10 does not qualify as a small undertaking if the turnover of that person for the relevant period exceeds the Exit
Threshold.
Threshold of persons registered under article 11
3. The economic activity of a person registered under article 11 continues to qualify as a small undertaking as long as the turnover of that person for the relevant period does not exceed the Entry Threshold.
Turnover
4. (1) Subject to the other provisions of this item, the turnover of a person for the purposes of this Part is the total taxable
value of all supplies made by that person in the course or furtherance of his economic activity during the relevant period, excluding:
(a) exempt without credit supplies;
(b) a transfer of a business as a going concern;
(c) transactions which are treated under this Act as supplies made by a person to himself;
(d) the sale or disposal of fixed assets.
(2) Without prejudice to paragraph (1) of this item, where a person registered under article 11 provides both goods and services,
the applicable threshold shall be determined in accordance with the principal nature of the supply, taking account of the total value
of all the supplies.
(3) When it appears to the Commissioner that the turnover for the relevant perio d ha s b een ne gat i v e ly a ffect
ed by specific extra o rd inary circ umsta n ces, including the temporary suspension of the economic activity, the turnover will
be the amount obtained after such adjustment as the Commissioner might deem appropriate in the circumstances.
(4) In the case of a company established in Malta that forms part of a group of co mpanies the turnover shall be deem ed to be
the to tal of t h e am ounts of the turnover of all companies established in Malta that form part of that group. In this paragraph
"group of companies" means two or more companies which are controlled by the same person, and for the purpose of this definition
a person shall be deemed to control a company if he owns, directly or indirectly, more than 50% of the shares or the voting rights
of that company or of another company which controls, within the said meaning, that company.
(5) For the purpose of computing the turnover for a period that commenced before the 1 January 1999 the taxable value and the
description of supplies made before that date and all other terms relevant for that purpose shall be construed according to their
meaning under this Act as if those supplies were made after that date.
Relevant period
5. (1) For the purposes of this Part, and subject to paragraph (2), the relevant period on any particular date is a period of
twelve months ending on the last day of the calendar quarter preceding that in which that particular date falls.
(2) Where the first day of the twelve-month period referred to in paragraph (1) de te rmined on a particular date pr ecedes the
date of the commencement of th e economic activity, the relevant period on that particular date is a period commencing on the first
day of the calendar quarter following that during which the economic activity was commenced and ending on the last day of the calendar
quarter preceding that in which that particular date falls.
Calendar quarter
6. For the purposes of this Part, "calendar quarter" is a period of three calendar months ending on the 31 March, the 30 June, the 30 September and the 31 December, as the case may be.
Entry Threshold and Exit Threshold
7. For the purposes of this Part the Entry Threshold or the Exit Threshold is the amount in the Second or Third Column respectively
in the Table in this Part that co rresponds t o the category in the Fi rst Colu mn o f that Tab le with in whi ch the economic activity
of that person has been classified by the Commissioner:
Provided that the Entry or the Exit Threshold for a relevant period of less than twelve months determined in accordance with paragraph
(2) of item 5 is a proportion of the relative threshold calculated by dividing that threshold by four and multiplying the result
by the number of calendar quarters included in the relevant period so determined.
Information to be given to the Commissioner
8. A person who applies for registration under article 11 shall give all informat ion that th e Com m i s si oner
m a y reaso n ably request for th e purpo se of applying the provisions of this Part.
TABLE
First Column | Second Column | Third Column | |
Category | Entry Threshold € | Exit Threshold € | |
A | Economic activities consisting principally in the supply of goods | 35,000 | 28,000 |
B | Economic activities consisting principally in the supply of services with a relatively low value added | 24,000 | 19,000 |
C | Other economic activities | 14,000 | 12,000 |
The acquisitions threshold
Part Two
[Article 12]
Acquisitions Threshold
1. The Acquisitions Threshold is the equivalent of Eur 10,000 using the latest conversion rate before 1 January of the year in
respect of which that threshold is relevant, last published by the Central Bank of Malta if that year is the year 2008 or previous,
and by the European Central Bank if that year is the year 2009 or after.
The value of intra-community acquisitions
2. For the purpose of determining whether the value of intra-community acquisitions in any particular case exceeds the
Acquisitions Threshold or not the value of the intra-community acquisitions in question shall be taken to be the taxable value that
would be determined in accordance with the relevant provisions of the Seventh Schedule if they were taxable intra-community acquisitions,
provided that no account shall be taken of the value of:
(a) intra-community acquisitions of new means of transport and of excise goods;
(b) value added tax paid or due in a Member State other than Malta on the intra-community supply of the goods in question.
Part Three
[Item 4 of the Third Schedule] Distance Sales Thresholds
Distance Sales Threshold
1. The Distance Sales Threshold for any calendar year is the equivalent of Eur
35,000 using the latest conversion rate before 1 January of the year in respect of which that threshold is relevant, last published
by the Central Bank of Malta if that year is the year 2008 or previous, and by the European Central Bank if that year is
the year 2009 or after.
Value of distance sales
2. For the purpose of determining whether the value of distance sales in any
particular case exceeds the Distance Sales Threshold or not the value of the sales of the goods in question shall be taken to be the
taxable value that would be determined in accordance with the relevant provisions of the Seventh Schedule if they were taxable supplies,
excluding the value of any excise goods.
SEVENTH SCHEDULE Substituted by: X. 2003.47.
Taxable value of supplies
[Article 18]
Amended by:
L.N. 335 of 2008.
1. Except as otherwise provided in the other provisions of this Schedule, the taxable value of a supply shall be the total value
of the consideration paid or payable to the supplier by the purchaser, the customer or any other person for the supply, including
any subsidy directly linked to the provision of that supply, but excluding the value added tax chargeable under this Act on that
supply.
2. The taxable value of a supply shall include, insofar as they are not included in the value determined under item 1:
(a) taxes, duties, levies, fees and other charges (excluding the value added tax chargeable under this Act) payable by reason of the
supply;
(b) incidental expenses, such as commissions, packing, transport and insurance costs charged by the supplier to the purchaser
or customer even if they are covered by a separate agreement or a separate document.
3. The taxable value of a supply shall not include:
(a) price reductions by way of discounts for early payment;
(b) rebates and other price reductions allowed directly by the supplier to the customer and accounted for at the time when
the tax becomes chargeable;
(c) penalties and interests charged for late payment after the time of the supply;
(d) disbursements paid in the name and for the account of the person to whom the supply is made, and resulting from documents held
by the supplier to have been so paid, which are entered in the records of the supplier in a suspense account;
(e) any amount charged to the customer by way of a deposit on returnable packing of goods where the deposit is lower than
the cost of the packing.
4. When, after a supply takes place -
(a) the consideration for that supply is reduced by way of a price discount or rebate allowed to the customer for bona fide commercial
reasons;
(b) the consideration for that supply is not payable or is repayable to the customer on account of the rescission of the contract
for that supply which is declared by means of a definitive judgment or arbitration
award or is agreed to by the parties in writing on grounds that would have been sufficient in a court of law for that rescission;
(c) the amount due as consideration for that supply becomes a bad debt,
the taxable value of that supply shall be reduced accordingly: provided that no adjustment shall be made to the tax chargeable on
that supply by reason of such a reduction except in the manner provided in the Tenth Schedule.
5. (1) When the consideration is paid or payable wholly or partly in kind or where the value of the consideration for a supply
cannot be readily determined, the taxable value of that supply shall be, to the extent that the consideration is so paid or cannot
be so determined, its open market value.
(2) The open market value of goods or services means the price which they would fetch if sold or provided in the open market on
the date and in the state they were in when the said goods are delivered or the said services are performed.
6. (1) The taxable value of a supply consisting of the application or disposal of goods for which no consideration is charged
or paid but which is deemed in terms of the Second Schedule to be a supply of goods made for consideration, and the taxable value
of a transport of goods that is treated as a supply in terms of item 17 of the Second Schedule (Transfer of goods to another Member
State), is the purchase price of tho se or si mi lar good s or, in t he abse nce o f a purchase price, the co st price, determined
at the time of the supply.
(2) The taxable value of a self-supply of services is the full cost to the person making the supply of providing those services.
7. The taxable value of a supply consisting in the transfer of goods by order made by or in the name of a public authority or
in pursuance of the law against payment of compensation is the compensation for that transfer.
8. Where any amount relevant for the determination of the taxable value of a supply is expressed in foreign currency the exchange
rate applicable shall be the last selling rate determined by the Central Bank before the date when the supply takes place.
Taxable value of intra-community acquisitions
9. The taxable value of a taxable intra-community acquisition is the amount which would represent the taxable value in terms
of this Schedule of the supply pursuant to which that acquisition is made if that supply were a taxable supply, and shall include
a ny excise duty paid or pa yable in a Member St ate by the pe rs on making that acquisition on the goods acquired.
10. (1) When the taxable value of an intra-community acquisition includes excise tax paid or payable in a Member State
other than Malta and the person who makes the acquisition qualifies for a refund of that excis e tax, the value of that acquisition
shall be reduced proportionately.
(2) When an intra-community acquisition is treated as taking place in Malta by reason of the fact that it was made by a person
identified for the purpose of that acquisition by a value added tax identification number issued by the Commissioner and is subsequently
also treated as taking place and subject to tax in another Member State by reason of the fact that the transport of the goods ends
in that State, the chargeable value of that acquisition under this Act shall be reduced by the amount subject to tax in that other
Member State.
(3) When the value of a supply pursuant to which an intra-community acquisition is m ade is reduced after that acquisition
takes place for any of the reasons mentioned in item 4 the taxable value of the acquisition shall be reduced accordingly.
(4) When the taxable value of an intra-community acquisition is reduced in any of the cir c um stances m e nt ion e d i n t h
is item , th e tax on th at acqui si tio n corresponding to that reduction shall, if paid, be treated as tax paid but not due for
the purposes of article 69 of this Act.
Taxable value of importations
11. Subject to the other provisions of this Schedule, the taxable value of an importation of goods shall be the value established
in terms of the Import Duties Act for the determination of the value on which duty ad valorem is chargeable under that Act, and all the relevant provisions of that Act shall apply mutatis mutandis, and for the purpose of this item the references in the said provisions to the Comptroller of Customs shall be construed as references
to the Comptroller of Customs acting on behalf of the Commissioner.
12. The value established under item 11 shall be increased, insofar as they are not included in the value determined in accordance
with item 11, by:
(a) any taxes, levies, duties and other charges due outside Malta, any import duties chargeable on the said importation
under the Local Manufactures (Promotion) Act, any excise duty payable under the Excise Duty Act by reason of the importation
of those goods;
(b) incidental expenses, such as commissions, packing, customs agency costs and transport and insurance costs incurred up to
the delivery of the goods to the destination in Malta indicated on the document by means of which the goods are imported or, in
the absence of such an indication, the place of the first transfer of the goods in Malta;
(c) costs for the transport of the goods to another destination within the
Community if that destination is known at the time of the importation.
13. The taxable value of an importation shall not include:
(a) rebates and other price reductions allowed directly by the supplier to the customer and accounted for at the time of the importation;
(b) price reductions by way of discount for early payment.
Amended by:
L.N. 273 of 2000;
L.N. 25 of 2001;
L.N. 388 of 2002;
L.N. 375 of 2003;
L.N. 384 of 2003;
L.N. 149 of 2004.
Substituted by:
X. 2003.47.
Amended by:
L.N. 251 of 2004;
L.N. 376 of 2004;
L.N. 436 of 2004;
L.N. 123 of 2007;
L.N. 446 of 2007;
L.N. 235 of 2009;
L.N. 499 of 2010;
L.N. 523 of 2010;
L.N. 381 of 2011;
L.N. 500 of 2011;
L.N. 39 of 2012.
EIGHTH SCHEDULE [Article 19(2)]
Th e tax char geable under this Act on the taxabl e value of the supplies or importations in the case of item 7, described in the first column of the Table in this Schedule shall be at the rate specified in the second column of that Table.
First Column | Second Column |
Description | Rate |
1. Accommodation The letting of or the provision of accommodation in any premises which for the purpose of the provision of such accommodation is required to be licensed in virtue of the Malta Travel and Tourism Services Act, or any other Act which may be substituted therefor: | 7% |
Provided that wher e the price char ged for the s u pply of accommodation includes the su ppl y of g oods or services not falling within the meaning of accommodation the taxable value of the supply of accommodation shall be deemed to be eighty percent of the said price and twenty percent of that price shall be deemed to be the taxable value of supplies not described in this Column. | |
2. The supply of electricity in accordance with Article 102 of Council Directive 2006/112/EC or any other article in substitution therefor. | 5% |
3. Confectionery and similar items The goods falling under CN code in the Common Customs Tariff: (a) 1207.30.90 and 1207.99.91; (b) 1302.11.00; 1302.14.00; 1302.19.05; 1302.19.30; 1302.19.91; 1302.19.98; 1302.20.10 and 1302.20.90; (c) 1503.00.19; 1517.90.93; 1520.00.00 and 1522.00.10; (d) 1702.90.10; 1704.10.11; 1704.10.19; 1704.10.91; 1704.10.99; 1704.90.10; 1704.90.55; 1704.90.61; 1704.90.65; 1704.90.71; 1704.90.75 and 1704.90.81; (e) 2006.00.10 and 2009; | 5% |
(f) family packs as defined in item 2(b) of Oart Five of the Fifth Schedule to the Act falling under CN codes 2105.00.10; 2105.00.91 and 2105.00.99; (g) 2501.00.10; (h) 3302.10.21. | |
4. Medical accessories The goods falling under CN code in the Common Customs Tariff: (a) 2905.45.00; (b) 3001 and 3002 except where the use of items under these sub-headings is for therapeutic or prophylactic purposes; 3005 and 3006; (c) 3306 and solutions for contact lenses falling under CN code 3307.90.00; (d) 3407.00.00; (e) 3822.00.00; 3824.90.61 and 3824.90.62; (f) 9619 00 31 and 9619 00 39; (g) 7015.10.00; (h) 9001.30.00; 9001.40.41; 9001.40.49; 9001.40.80; 9001.50.41; 9001.50.49; 9001.50.80; 9004.90.10; 9004.90.90; 9021.21.10 and 9021.21.90. | 5% |
5. Printed matter The goods falling under CN code in the Common Customs Tariff: (a) 4820.20.00; (b) Chapter 49 but excluding items falling under CN code 4905.10.00; 4906.00.00; 4907.00.10; 4907.00.90.00; 4908.10.00; 4908.90.00; 4909 and 4911.91.00. | 5% |
6. Items for the exclusive use of the disabled: (a) raised toilet seats for use by disabled persons falling under CN code 3924.90.90; (b) pressure relief cushions for use by disabled persons falling under CN codes 4014.90; 8714.20.00 and 9404.90; (c) padded/inflatable toilet seats for use by disabled persons falling under CN codes 4016.95.00 and 4016.99.98; (d) pressure relief mattresses for use by disabled persons falling under CN codes 6306.41.00; 6306.49.00; 9404.21 and 9404.29; (e) white sticks for use by disabled persons falling under CN code 6602.00.00; (f) walking sticks and ferrules for use by disabled persons falling under CN code 6603.90.00; (g) gutter frames for use by disabled persons falling under CN codes 7325.10; 7325.99; 7326.19; 7326.90 and 7907.00; (h) hoists for use by disabled persons falling under CN codes 8425.11.90 and 8425.19.91; | 5% |
(i) platform lift/swimming pool lifters for use by disabled persons falling under CN codes 8428.10.91 and 8428.20.99; (j) chairlifts for use by disabled persons falling under CN code 8428.60.00; (k) bath tub lifters for use by disabled persons falling under CN code 8428.90.98; (l) braille typewriters for use by disabled persons falling under CN code 8469.12.00; 8469.20.00 and 8469.30.00; (m) amplifiers for communication devices for people with impaired hearing for use by disabled persons falling under CN codes 8518.40.91 and 8518.40.99; (n) children special walkers, prone standers and wheelchairs (manual) for use by disabled persons falling under CN code 8713.10.00; (o) wheelchairs (electrical) for use by disabled persons falling under CN code 8713.90.00; (p) car adaptation-handcontrols, swivel seats for use by disabled persons falling under CN codes 9401.30.10 and 9401.30.90; (q) toilets frames/surrounds for use by disabled persons falling under CN code 9401.79.00; (r) special feeder chairs for use by disabled persons falling under CN code 9402.90.00; (s) lifts to get wheelchair into a car for use by disabled persons falling under CN code 8428.90.98; (t) mouthsticks for use by disabled persons falling under CN code 9608.39.90; (u) special seats/buggies/wheelchairs for use by disabled persons falling under CN code 8713.10.00. | |
7. The importation of works of art, collector’s items and antiques as defined in paragraphs 1, 2 and 3 of Part Two of the Fourteenth Schedule. | 5% |
8. Minor repairing of: (a) bicycles; (b) shoes and leather goods; (c) clothing and household linen (including mending and alteration. | 5% |
9. Domestic care services such as home help and care of the young, elderly, sick or disabled. | 5% |
10. Admission to museums, art exhibitions, concerts and theatres. | 5% |
NINTH SCHEDULE Substituted by: X. 2003.47.
[Article 46]
Composition of the Board
Amended by:
L.N. 426 of 2007;
L.N. 105 of 2008;
II. 2009.56.
1. (1) The Value Added Tax Appeals Board (in this Schedule referred to as "the Board”) shall be composed of a Chairman
and two other members who shall be appointed by the Minister for a period of three years.
(2) The Minister may appoint a panel of persons to serve as Chairmen and a panel of persons to serve as other members of the Board,
in which case the members shall serve in accordance with such distribution of duties, including provision for inability of members
to serve and other circumstances, as the Minister may establish.
(3) A member of the Board may not be removed during the period for which he ha s been appo inted except for prov ed misbehaviour
or inability to perform his functions.
(4) The provisions of articles 733 to 739 inclusive of the Code of Organization and Civil Procedure shall apply to the Chairman and to the other members of the Board with respect to appeals before and references to the Board in the
same manner as they apply to judges with respect to a cause brought before a court.
(5) A person shall be disqualified from being appointed or continuing to be a member of the Board if he is a member of the House
of Representatives.
(6) In the case of a vacancy in the Board which cannot be filled in accordance with a distribution of duties established in terms
of paragraph (2) of this item the Atto rn ey Ge neral sh all ap po in t a person t o fil l th at vac ancy in the hearing and determination
of the case in which the vacancy occurs.
(7) The members of the Board shall receive such remuneration as the President of Malta may determine.
(8) The members of the Board shall not be personally liable for any act or default of the Board done or omitted to be done
in good faith in the course of the operations of the Board.
Secretary to the Board
2. (1) There shall be a secretary to the Board, who shall be a public officer designated as secretary by the Minister.
(2) The Minister may designate other public officers as deputy secretaries.
Competence of the Board
3. (1) The Board shall be competent to hear any appeal against an assessment and to confirm, reduce or increase any taxable
value or credit or tax assessed by the Commissioner, or cancel the assessment or make such other declaration or order as it deems
fit.
(2) The Board shall be competent to determine any matter referred to it in accordance with article 44 of this Act.
(3) The Board may, in any decision, make such order on the costs of the case as
it may deem appropriate.
Appeals against assessments
4. (1) An appeal against an assessment shall not be valid unless:
(a) a return for the tax period to which the assessment refers has been delivered to the Commissioner before the appeal is
entered; and
(b) all tax payable by the appellant which is not in dispute has been paid;
and
(c) an amount of five per cent of the tax which is in dispute in terms of that appeal or one hundred euro (€100), whichever is the higher, has been paid; and
(d) it is made within thirty days from the date of the service of the notice against which the appeal is made; and
(e) it is made on such form and in such manner as may be prescribed; and
(f) a payment of such administrative fees as may be prescribed has been made.
(2) The onus of proving that any taxable value assessed by the Commissioner is excessive or that any credit assessed by the Commissioner
is insufficient shall lie on the appellant.
(3) The Board may refuse to consider any evidence as sufficient for the purpose of paragraph (2) of this item if the appellant
has failed to keep the records and do cu m e nt s req u ired to be kept by this A c t or fails t o pr oduce such recor d s or documents.
(4) The Board shall deliver its decision in writing and shall cause a copy of the decision to be served on the appellant.
Payment of the tax
5. (1) When a valid appeal has been made against an assessment, the payment of so much of the tax assessed which is in dispute
as is not required to be paid before the appeal is made in accordance with item 4(1)(c) may be kept in abeyance until the appeal is finally determined: provided that the running of interest on the said tax shall not
be meanwhile suspended.
(2) The running of the period referred to in article 58(2) shall be suspended in respect of any tax or administrative penalty
for any time during which the payment thereof may be kept in abeyance in terms of this item.
(3) Where the tax payable as a result of a decision of the Board on an appeal against an assessment exceeds the tax shown to be
payable in the said assessment, the excess shall be payable by not later than the end of the month during which the said decision
is served on the appellant and interest at the rate specified in article
21(4) of this Act shall be due on such excess from the said date for any period during which such excess remains unpaid.
References to the Board
6. (1) A reference to the Board of any matter referred to in article 44 may not be made unless it has first been raised in correspondence
with the Commissioner and shall be made by means of an application in writing which shall state clearly all the facts relevant to
that matter and the manner in which, in the opinion of the applicant, that matter should be determined.
(2) A reference to the Board on a question referred to in article 44(k) (the imposition of an administrative penalty) shall not be valid unless it is made by not later t h an t w o years fro m t h e date
o n whi c h a no tice of the i m po si tion of the administrative penalty in question was given to the person on whom it was imposed.
(3) The Board shall, after hearing all parties having an interest in the matter, and obtaining all relevant information, decide
the matter and cause its decision to be served on the parties.
Procedures of the Board
7. (1) The Board shall have the power to summon any person to give evidence or to produce books or other documents and the Chairman
shall have the power to administer an oath to any person appearing before the Board.
(2) The Minister may by regulations prescribe the manner in which an appeal or application is to be made to the Board, the place
where the Board shall hold its sittings, the manner in which the parties may be assisted, the administrative fees payable on appeals
, the records to be k e pt by the Board, t h e fun c tio ns o f t h e secretary to the Board, and generally any matter relating to
the procedures of the Board.
TENTH SCHEDULE Substituted by: X. 2003.47.
[Articles 22 and 23]
Eligibility for credit for input tax
Amended by:
L.N. 426 of 2007;
L.N. 105 of 2008;
L.N. 86 of 2009;
L.N. 535 of 2010;
L.N. 382 of 2011.
1. Except as the Commissioner may otherwise allow no credit for input tax for a tax period shall be allowed to a person unless a claim is made in accordance with any relevant provision of this Act.
Evidence of input tax
2. (1) No amount shall be treated as input tax of a person unless that person proves that t h e tax was chargeable on supp lies
o f goo ds and services or intra- community acquisitions or importations of goods which have been or which will be used by him in
the course or furtherance of his economic activity.
(2) Except as the Commissioner may otherwise allow, no amount shall be treated as input tax of a person unless:
(a) it is supported by -
(i) a tax invoice in respect of the tax relating to goods or services supplied to him; or
(ii) a tax invoice in respect of the tax relating to goods acquired by him under an intra-community acquisition; or
(iii) a document of importation indicating him as the importer in respect of the tax on an importation; and
(b) with respect to any tax on a supply which in terms of this Act is payable by that person or on an intra-community acquisition,
he has reported that tax as due by him in his tax return; and
(c) the document referred to in paragraph (a) is held by that person and produced, if requested, to the Commissioner; and
(d) the amount of the tax is properly accounted for in the records held by that person to the extent required for the purposes of
the Act.
Tax which is not to be treated as input tax
3. (1) Subject to paragraph (2) of this item, no amount shall be treated as input tax of a person to the extent to which it
represents tax chargeable on:
(a) the supply to that person or the intra-community acquisition or importation by that person of:
(i) tobacco or tobacco products; (ii) alcoholic beverages;
(iii) works of art, collectors’ items and antiques;
(iv) motor vehicles, vessels or aircraft including the supply thereof for hire or leasing arrangements;
(v) goods and services for the purpose of repairing, maintaining, fuelling and keeping any item to which item
(iv) of this subparagraph applies;
(b) the supply of any goods and services or the intra-community acquisition or importation of any goods used in the provision by that
person of receptions, entertainment or hospitality except where the said provision is made for consideration in the normal
course of that person’s economic activity;
(c) the supply of any goods and services or the intra-community acquisition or importation of any goods used in the provision by that
person to his employees or, in the case of a body of persons, to its officers or employees, of transport or entertainment:
provided that this provision shall not apply to transport provided by that person to his employees on vehicles with a seating capacity
of not less than seven.
(2) The provisions of sub-paragraphs (i) to (v) of paragraph (1)(a) shall not apply to:
(a) goods supplied to or acquired under an intra-community acquisition or imported by a person for the purpose of resale, whether
in the state in which they were acquired or imported or after treatment or processing or inclusion in other goods supplied by that
person, in the normal course of that person’s economic activity;
(b) motor vehicles, vessels or aircraft supplied to or acquired under an intra-community acquisition or imported by a person
and used by him for the purpose of the carriage of goods or passengers for a consideration;
(c) vessels and aircraft supplied to or acquired under an intra-community acquisition or imported by a person for the purpose of
being provided by him under a charter or hire agreement;
(d) motor vehicles supplied to or acquired under an intra-community acquisition or imported by a person for the purpose
of being provided
by him for hire with a driver or for self-drive hire (excluding fuelling for such self-drive vehicles), or of being used for driving
instructions, provided they are so used, in each case, in the normal course of that person’s economic activity;
(e) motor vehicles designed and manufactured for the carriage of goods and so designed and manufactured with seating accommodation
normally adjacent to the driver or with seating accommodation for nine persons or more;
(f) vessels or aircraft used for the carriage of goods or personnel in the course of an economic activity or where the use
of such vessels or aircraft constitutes a specific and essential element for the performance of the economic activity which
would otherwise give rise to a right of deduction in terms of article 22.
(3) In this item, "works of art, collectors items and antiques" shall have the meaning assigned to it by Part B of the
Fourteenth Schedule.
(4) Tax paid or payable on any supply to or on any intra-community acquisition or importation by a person in the name and for
the account of another person in respect of disbursements that, in terms of the Seventh Schedule, do not form part of the taxable
value of supplies made to that other person shall not be treated as input tax of the first mentioned person.
Tax partially treated as input tax
4. (1) Where any goods or services are or will be used but not wholly used in the course or furtherance of an economic activity,
there shall be treated as input tax such proportion of the tax chargeable on the supplies, intra-community acquisitions or importations
in question, taking into account the proportion of the use of those goods or services in the course or furtherance of the economic
activity to their total use.
(2) In the case of immovable property forming part of the business assets of a taxable person and used both for purposes of the
taxable person’s business and for his private use or that of his staff, or, more generally, for purposes other than those of his
business, VAT on expenditure related to this property shall be deductible in accordance with the principles set out in this Schedule
only up to the proportion of the property’s use for purposes of the taxable person’s business which give him the right to deduct.
By way of derogation from item 15 of the Second Schedule, changes in the proportion of use of immovable property referred to in paragraph
(1) shall be taken i n to account in accordan ce with the principles pro v ided for in item 7 of th is Schedule.
(3) The provisions of paragraph (2) shall also apply in relation to VAT on expenditure related to capital goods other
than immovable property forming part of the business assets of a taxable person.
For the purpose of this paragraph "capital goods" shall have the meaning assigned to it in the Value Added Tax (Adjustments
relating to Input Tax on Capital Goods) Regulations (S.L.406.12).
Attribution of input tax
5. (1) Any input tax of a person registered under article 10 for a tax period which is exclusively attributable to supplies
to which article 22(4) applies shall be
allowed as a credit for that period.
(2) Any input tax which is exclusively attributable to supplies other than those referred to in paragraph (1) shall not be allowed
as a credit.
(3) Any input tax for a tax period which is attributable both to supplies to which article 22(4) applies and also to other supplies
shall be partially allowed as a credit for that tax period, which portion shall be determined in accordance with item 6 or 8.
Partial attribution
6. (1) The portion of input tax allowable as a credit to a person in terms of item
5(3) shall be calculated as follows:
(a) the total value of supplies to which article 22(4) applies made by that person during all the tax periods ending during
a calendar year is divided by the total value of supplies made by that person during those tax periods;
(b) the result obtained under paragraph (a) shall be the definitive ratio for the year referred to in that paragraph and the provisional ratio for the following year;
(c) the input tax credit of that person for each tax period ending during a calendar year shall be calculated provisionally by multiplying
the value of the input tax of that person for that tax period by the provisional ratio for that year;
(d) the total input tax credit of that person for all the tax periods ending during a calendar year shall be calculated definitively
by multiplying the total input tax for those periods by the definitive ratio for that year;
(e) the difference between the total input tax for the tax periods ending during a year calculated provisionally under paragraph
(c) and the definitive calculation for that year under paragraph (d) shall represent tax due by that person or a deduction allowable to that person, as the case may be, which tax or deduction shall
be accounted for in the tax return for the first tax period that ends in the year following that for which the provisional calculation
was made: provided that the tax or deduction in respect of a year during which the registration of a person under article 10 is
cancelled shall be accounted for in his last tax period.
(2) For the purposes of paragraph (1):
(a) the value of supplies not subject to tax under this Act shall be determined in the manner applicable for the determination
of the taxable value of taxable supplies;
(b) there shall be excluded from the value of the supplies made by that person -
(i) the value of any supply of capital goods used in his economic activity;
(ii) the value of self-supplies;
(iii) the value of any supply which is not made by a taxable person acting as such.
Adjustment relating to input tax on the acquisition of capital goods
7. (1) Where the input tax credit of a person ("the owner") for any tax period during a calendar year ("the year
of acquisition") includes tax on the supply to that
person or the intra-community acquisition or importation by that person of capital goods, an adjustment should be made to the input
tax already allowed, if the input tax for any year during an adjustment period is allowable at a rate which is higher or lower than
that already allowed in the year of acquisition.
(2) The Minister may by regulations:
(a) define the capital goods to which this item applies;
(b) define the period or periods of adjustment applicable to capital goods; (c) prescribe the method in which the adjustment shall be calculated and the
manner in which it shall be effected.
Alternative methods of partial attribution
8. Where it appears that the method of attributing input tax laid down in item 6 do es not give a fair and reasonable result, the Commissioner may by notice in writing to a registered person direct that the said method shall not apply to the attribution of input tax to the supplies of that person and where such a direction has been given, that person shall adopt such other method of partial attribution as the Minister may by regulations prescribe.
Rounding up
9. (1) A fraction resulting from any computation made in accordance with this
Schedule shall be rounded up to the nearest euro.
(2) Where the amount of input tax which results to be not allowable as a credit for a tax period pursuant to an apportionment
made in accordance with items 6 or 8 is less than €20 multiplied by the number of months or part thereof included in that tax period
that amount shall, notwithstanding the said provisions, be treated as allowable as a credit for input tax.
Bad debt relief
10. (1) Where a person registered under article 10 of this Act shows to the satisfaction of the Commissioner that an amount due
to him as consideration for a supply made to another person has, during a tax period, become a bad debt and that output tax has been
paid or is payable by the said person in respect of that supply, that person may claim the amount of the output tax corresponding
to the bad debt to be allowed as a deduction by way of a ba d de bt relief in addition to any other de duction allo wable to him
as an input tax credit in accordance with the other provisions of this Schedule for that tax period or for such subsequent tax period
as the Commissioner may allow.
(2) A claim for a deduction by way of a bad debt relief shall be subject to such directives as the Commissioner may give as to
the circumstances in which it may be made and the documents or other evidence that should be produced.
(3) The recovery of a bad debt in respect of which a deduction has been allowed in terms of this item or of a part of such a debt
shall, to the extent of the amount recovered, be treated as a taxable supply taking place at the time when the said debt or part
thereof is recovered and shall be accounted for accordingly by the person to whom the deduction had been so allowed.
Deductions on account of a reduction in the taxable value of supplies or intra- community acquisitions
11. (1) Where, in terms of the Seventh Schedule, the taxable value of a supply
or an intra-community acquisition is reduced after that supply or acquisition takes place any output tax correspo nding to that reduction
shall be allowable as a deduction to the person by whom that output tax was paid or is payable for the tax period during which the
cause for the reduction occurs.
(2) The deduction allowable under this item is subject to the condition that the person claiming it has properly accounted for
the output tax on the taxable value in question before the reduction.
(3) A claim for a deduction under this item shall be subject to such directives as the Commissioner may give as to the documents
or other evidence that should be produced.
Saving provision
12. The provisions of this Schedule are without prejudice to the provisions of the Fourteenth Schedule and, in particular, to the limitations provided for in that Schedule to the right of input tax credit allowable in the case of supplies subject to a margin scheme.
Amended by: L.N. 60 of 1999; L.N. 200 of 1999; L.N. 217 of 1999; L.N. 272 of 2000; L.N. 93 of 2001; L.N. 235 of 2001; L.N. 389 of 2002. Substituted by:
X. 2003.47. Amended by: L.N. 72 of 2010.
ELEVENTH SCHEDULE [Article 48]
Records to be kept by persons registered under article 10
1. Every person registered under article 10 shall keep the following records and documents:
(a) proper accounts and records of his economic activity; (b) a value added tax account;
(c) an annual value added tax account;
(d) copies of all tax invoices issued by him; (e) all tax invoices received by him;
(f) documentation relating to customs and, where applicable, excise procedures with respect to importation and exportation
of goods by him;
(g) copies of all fiscal receipts issued by him in terms of the Thirteenth
Schedule to this Act;
(h) all credit notes, debit notes and other documents issued by him or received by him which evidence an increase
or a decrease in the consideration for any supplies, intra-community acquisitions or importations;
(i) a register of goods transported by him or on his behalf out of Malta but within the Community for the purpose of transactions
referred to in item
17 of the Second Schedule (Transfer of goods to another Member State), showing:
- a description of the goods;
- their quantity;
- their value;
- their movements;
- a description and the quantity of the goods not transported back;
and
- the date and the reference to the documents issued, if any, relating to these operations;
(j) a record of movable tangible goods transported to him from another Member State by or on behalf of a taxable person
identified for purposes of value added tax in that other State for the purpose of the valuation of or works on those goods showing:
- a sequential number;
- the date of receipt of the goods;
- the name and address of the customer;
- the value added tax identification number of the customer;
- the quantity of the goods received;
- a description of the goods received;
- the date of the transport of the processed goods after valuation to the customer;
- the quantity and the description of the goods that are not transported back to the client;
- the date and a reference to the documents issued relating to the services supplied.
Matters to be included in the accounts
2. The accounts of the economic activity of every person registered under article 10 shall be kept in such a way as to
enable the following matters to be readily ascertained:
(a) the total value, exclusive of tax, of the supplies made by him during each tax period;
(b) the total value, exclusive of tax claimed as input tax credit, of his inputs for each tax period;
(c) the output tax and any other tax payable by that person for each tax period;
(d) the input tax credits, the deductions, the excess tax credit and the tax refundable, for each tax period;
(e) the calculation, where input tax credit is allowable under a partial attribution method, of the provisional input
tax credit for each tax period, of the definitive input tax credit for each year and of the adjustments to the input
tax credit;
(f) sub-totals, breakdowns and notes to the accounts as are necessary to readily identify the source of the information shown in
the value added tax account.
The value added tax account
3. (1) The value added tax account shall be a separate account held for each tax period of the taxable person and shall contain
all the information, including all the totals, sub-totals and breakdowns, required to be furnished in the tax return for that period.
(2) The value added tax account shall contain a cross reference to the matters referred to in item 2 that enables the matching
and reconciliation of all information contained therein.
Correction of mistakes by means of an adjustment in a subsequent tax return
4. (1) Where a person registered under article 10, in a return for a tax period furnished to the Commissioner -
(a) overstates or understates the output tax and the overstatement or understatement does not exceed five per cent of the
output tax declared in the said return, and/or
(b) overstates or understates the credit for input tax and the overstatement or understatement does not exceed five per cent of the
credit for input tax declared in the said return,
he may correct the mistake by making the necessary entries in the value added tax account and in the tax return for the tax period
during which the overstatement or understatement is discovered.
(2) No correction may be made in accordance with this item for any tax period which commences later than six months from the expiration
of the tax period to which the mistake refers.
(3) When a correction is made in terms of this item the value added tax account shall contain a clear reference to the tax period
to which the mistake refers and to all the documents relating to relative transactions.
(4) A mistake in a tax return may not be corrected by means of a correction in a subsequent tax return except to the extent allowed
and in the manner provided in this item.
Annual value added tax account
5. The annual value added tax account shall be an account drawn up for every calendar year and shall show the totals of all values entered in the value added tax account for each of the tax periods ending during that calendar year.
Exceptions
6. (1) The Commissioner may, in any particular case or classes of cases, require such additional records or documents
to be kept, or allow such variations to the records and documents to be kept in accordance with this Schedule as he may deem appropriate
for any of the purposes of the Act.
(2) This Schedule shall be subject to the general requirements of article 48 and without prejudice to any additional records and
accounts that may be required under any special provision contained in the Act or in any regulations made under the Act.
Records of intra-community acquisitions
7. Every taxable person who is not registered under article 10 and every non- ta xa bl e leg a l p e r s o n sh all kee p r eco
rd s in su f f ici e n t d e ta il a s t o en ab le t h e determination of the value of intra-community acquisitions made by him
in Malta including:
(a) a description of the goods and the consideration paid on each acquisition;
(b) the relative invoices;
(c) all other information relevant for the purposes of determining the value of intra-community acquisitions for the purposes of Part
Two of the Sixth Schedule;
(d) all other supporting documents.
Records of distance sales
8. Every taxable person shall keep records in sufficient detail as to enable the determination of the value of distance sales
made by him of goods transported from Malta including:
(a) a description of the goods and the consideration charged on each sale; (b) a copy of the relative invoices;
(c) all other information relevant for the purposes of determining the value of distance sales for the purposes of Part Three of the
Sixth Schedule;
(d) all other supporting documents.
Records pursuant to tax payable as per article 20(2).
9. Every taxable person who is not registered under article 10 and every non- taxable legal person identified for VAT purposes
shall keep records in sufficient detail as to enable the determination of the value of the purchases made by him in Malta pursuant
to article 20(2) including:
(a) a description of the services and/or goods and the consideration paid; (b) the relative invoices;
(c) all other supporting documents.
TWELFTH SCHEDULE Substituted by: X. 2003.47.
Form of tax invoice
[Article 50(5)]
Amended by:
L.N. 171 of 2006;
L.N. 426 of 2007;
L.N. 448 of 2007;
L.N. 444 of 2010.
1. Save as the Commissioner may otherwise allow, a document shall not constitute a tax invoice unless:
(a) all the particulars required by this Schedule are properly and fully stated; or
(b) the invoicing requirements set out in Directive 2006/112/EC are fully complied with.
Contents
2. Saving the other provisions of this Schedule, a tax invoice shall contain the following particulars:
(a) the date of issue;
(b) a sequential number, based on one or more series, which uniquely identifies the invoice;
(c) the name and address of the supplier and the Value Added Tax identification number under which he made the supply;
(d) the name and address of the person to whom the supply is made and the Value Added Tax identification number under which he acquired
the goods or services supplied to him;
(e) where an intra-Community supply takes place, any reference indicating such intra-Community supply;
(f) a description sufficient to identify the quantity and nature of the goods or the extent and nature of the services supplied;
(g) the date on which the supply was made or completed or the date on which a payment on account of the supply was made insofar
as that date can be determined and differs from the date of issue of the invoice;
(h) the taxable value per rate or exemption, the unit price exclusive of tax and any discounts or rebates if they are not included
in the unit price;
(i) the amount of tax chargeable, if any, at each rate so chargeable; (j) the total amount of tax chargeable, if any.
Categories of supplies
3. A tax invoice may also contain the type of the supply by reference to the categories as follows:
(a) a supply by sale;
(b) a supply of goods under a hire-purchase agreement or in terms of which the ownership of the goods is deferred;
(c) a supply on hire;
(d) a supply under a contract of exchange;
(e) a supply consisting in the delivery of goods made from materials provided by the customer;
(f) a supply by sale on commission;
(g) a supply on sale or return or similar terms; (h) an export;
(i) any other supply.
Tax invoice by retailers
4. A tax invoice which is required to be provided by a retailer need contain only the following particulars:
(a) a serial number of the transaction; (b) the date of the supply;
(c) the name, address and the Value Added Tax identification number of the supplier;
(d) the Value Added Tax identification number of the person to whom the supply is made;
(e) a description sufficient to identify the goods supplied;
(f) for each description, the quantity of the goods, the rate of tax chargeable thereon, and the price payable, including the tax;
(g) the total amount of tax chargeable:
Provided that a fiscal receipt issued by means of a fiscal cash register as d e fined in the Thirteenth Schedule to this Act, shall
be deemed to satisfy the requirements of this item if it contains, in addition to the particulars required by the said item, the
machineprinted registration number of the person to whom the relative supply is made.
Currency
5. The tax chargeable under this Act shall be expressed in € and shall be computed on the € equivalent of the taxable value determined in accordance with the Seventh Schedule.
Supplies on which no tax is chargeable
6. When a tax invoice refers to supplies on which no tax is chargeable, it shall indicate a brief reference to the relevant provisions
of this Act, or the appropriate provisions of Council Directive 2006/112/EC, or any other indication on the grounds of which no tax is chargeable, and may distinguish between:
(a) supplies made outside Malta; (b) exempt with credit supplies;
(c) exempt without credit supplies.
Reverse charge
7. Where the customer is liable for the tax on the supply, the invoice shall contain an indication to this effect by the inclusion of the words "Reverse Charge" and a brief reference to the provision in the Act, or the appropriate provisions of Directive 2006/112/EC under which the reverse charge procedure is provided, or any indication that the supply is subject to the reverse charge procedure.
New means of transport
8. In an invoice for the intra-Community supply of a new means of transport the description of the goods supplied shall contain the particulars referred to in the definition of new means of transport under article 2.
Margin Scheme
9. When an invoice refers to a supply to which a margin scheme applies under any of the provisions of the Fourteenth Schedule it shall contain an indication to this effect by the inclusion of the words "Margin Scheme" and a reference to the relevant scheme.
Document provided by a person to himself
10. When a taxable supply is made to a person and no tax invoice is provided for that supply, that person may provide a document to himself with respect to that supply and that document shall constitute a tax invoice if it complies with the requi rements of t h is Sch e du le and if it is so ap proved by the Co mm i s sion er: provided that no such approval shall be required if that person is the person liable for the tax on that supply.
Invoices by electronic means
11. Invoices containing the details specified in item 2, and subject to the
acceptance by the customer, may be sent by electronic means, provided that the authenticity of the origin and the integrity of the
contents are guaranteed as may be provided for by national legislation with regard to the use of electronic signatures, or as may
be required and approved by the Commissioner.
Substituted by: X. 2003.47. Amended by:
L.N. 234 of 2011.
Interpretation
THIRTEENTH SCHEDULE [Article 51]
1. In this Schedule, unless the context otherwise requires -
"fiscal cash register" means a cash register which conforms with the requirements specified in item 13 of this Schedule;
"fiscal receipt" means a receipt or invoice issued on a form supplied or approved in wr iting by the Comm is sioner and
containing all the information and details required to be specified thereon in accordance with the said form, or a receipt issued
by means of a fiscal cash register, or by a fiscal taxi meter;
"fiscal taxi meter" means a meter which conforms with the requirements specified in item 14 of this Schedule.
Obligation to issue receipt
2. Subject to the other provisions of this Schedule, every person who makes a supply, other than an exempt without credit supply
shall, except where he is required to issue a tax invoice in respect of that supply, issue a fiscal receipt in accordance with this
Schedule for the consideration paid to him for that supply and such fiscal receipt shall, unless issued before the payment is made,
be issued and delivered to the person who effects the payment or to the person to whom the supply is made immediately after payment
has been effected, to the extent covered by that payment:
Provided that in respect of a supply for which no consideration is paid but which is deem ed to have been made for a co nsideration
in accordance with the Second Schedule to this Act, the fiscal receipt shall be issued on the date of that supply.
Receipt issued by a fiscal cash register
3. (1) Subject to the provisions of items 4, 5, 6 and 7 of this Schedule, a fiscal receipt issued by a person who is a retailer
or whose business includes supplies of food referred to in item 2 of Part Five of the Fifth Schedule to the Act shall be issued by
means of a fiscal cash register: provided that in respect of any supply made by such person in any period during which he is unable,
for a reasonable cause, to issue a fiscal receipt by means of a fiscal cash register, he shall issue a fiscal receipt on a form supplied
by the Commissioner.
(2) A fiscal receipt which is required to be issued for the provision of a taxi service shall be issued by means of a fiscal taxi
meter: provided that in respect of any supply m ade by such person in any period during which he is unable, for a reasonable cause,
to issue a fiscal receipt by means of a fiscal taxi meter, he shall issue a fiscal receipt on a form supplied by the Commissioner.
(3) For the purposes of paragraphs (1) and (2) of this item, the following shall not be deemed to constitute a reasonable cause:
(a) not being in possession of a fiscal cash register or a fiscal taxi meter;
(b) not being in possession of stationery or other material required for the functions of the fiscal cash register or a fiscal taxi
meter;
(c) defects in the functioning of a fiscal cash register or a fiscal taxi meter except where prompt and reasonable measures
have been taken to remedy such defects.
Door to door sales of gas, milk or bread
4. (1) A person who makes supplies from a vehicle consisting in door-to-door delivery, or in the delivery to the public on a
public road, of gas, milk and milk products or bread shall not be required to issue a fiscal receipt for every such supply if he
issues one fiscal receipt (hereinafter in this item referred to as "a daily receipt") which accounts for all the said supplies
made on each day in the manner prescribed in the other provisions of this item.
(2) A daily receipt shall be a fiscal receipt which accounts for the difference between the goods loaded on the vehicle from which
the said supplies are made and the goods remaining on the vehicle after the said supplies are made for that day as if such difference
represented goods supplied in one supply.
(3) A person who issues daily receipts shall keep the originals therefor together with the other records he is required to keep
for the purposes of this Act.
(4) A person who issues daily receipts shall be required to issue fiscal receipts in accordance with the other items of this Schedule
in respect of any supplies not referred to in this item.
Supplies of bread by bakers
5. (1) A person who makes supplies of bread from the bakery where that bread has been baked may apply in writing to the Commissioner
for authorisation to issue one fiscal receipt (hereinafter in this item referred to as "a daily fiscal receipt"), which
daily fiscal receipt shall account for all the said supplies made on each day in the manner prescribed in the other provisions of
this item.
(2) A daily fiscal receipt shall be a fiscal receipt which accounts for all the separate supplies of that date as if such goods
were supplied in one separate supply.
(3) The Commissioner may, by notice in writing, at any time withdraw such authorisation without giving reasons.
(4) A person who issues daily fiscal receipts shall keep the originals thereof together with the other records he is required
to keep for the purposes of this Act.
(5) A person who issues daily fiscal receipts shall be required to issue fiscal receipts in accordance with the other items of
this Schedule in respect of any other supplies not referred to in this item, unless such other supplies refer to relatively small
amounts.
Supplies from pumps of leaded petrol, unleaded petrol and diesel (gas) oil
6. (1) A person who makes supplies from pumps, other than automated pumps, of leaded petrol, unleaded petrol and diesel (gas)
oil, shall not be required to issue a fiscal receipt for every such supply if he issues one fiscal receipt (hereinafter in this item
referred to as "a daily receipt") which accounts for all the supplies made on
each day in the manner prescribed in the other provisions of this item.
(2) A daily receipt shall be a fiscal receipt which accounts for all the said supplies of that day as if such goods
were supplied in one supply.
(3) A person who issues daily receipts shall keep the originals thereof together with the other records he is required to keep
for the purposes of this Act.
(4) A person who issues daily receipts shall be required to issue fiscal receipts in accordance with the other items of this Schedule
in respect of any supplies not referred to in this item.
Supplies of food and beverages by a canteen situated in a work or study area
7. (1) A person who makes a supply of food and beverages in a canteen situ ated in a work or stud y area may apply
in writing to th e Commissioner for authorisation to issue one fiscal receipt in respect of the supply of food and another fiscal
receipt in respect of the supply of beverages (each such receipt hereinafter in this item referred to as "a daily receipt")
which daily receipt shall account for the said separate supplies made on each day in the manner prescrib ed in the other provisions
of this item.
(2) The daily receipts shall be the fiscal receipts which account for all the said separate supplies of that day as if such goods
were supplied in two separate supplies, one in respect of food and one in respect of beverages.
(3) The Commissioner may, by notice in writing, at any time withdraw such authorisation without giving reasons.
(4) A person who issues daily receipts shall keep the originals thereof together with the other records he is required to keep
for the purposes of this Act.
(5) A person who issued daily receipts shall be required to issue fiscal receipts in accordance with the other items of this Schedule
in respect of any supplies not referred to in this item.
Supplies of goods by means of vending machines
8. (1) A fiscal receipt in respect of supplies of goods made by means of a vending machine shall account for the difference
in the goods stocked in the machine every time and immediately after goods are loaded therein and the goods stocked in the machine
immediately before goods are loaded again therein as if that difference represented goods supplied in one supply: provided that the
first receipt to be made in accordance with th is item by a person who is a registered person on the 1st January, 1999 shall account
for the difference in the goods stocked in the machine on the 1st January 1999 and the goods stocked therein immediately before the
first time in 1999 that goods are loaded therein.
(2) A person who makes supplies of goods by means of a vending machine shall take readings of stocks every time goods are loaded
into the machine and shall keep a record of such readings and the original of all receipts issued in accordance with this item together
with the other records he is required to keep for the purposes of this Act.
Services supplied by means of machines
9. (1) A fiscal receipt in respect of supplies of services made by means of a machine operated by coins shall be issued every
time coins are withdrawn from the machine, and shall account for the value of the coins so withdrawn as if that value represented
the value of services supplied in one supply.
(2) A person who makes supplies referred to in paragraph (1) of this item shall keep a record of coins withdrawn from and of coins
and goods stocked by him (if any) in the machine, and shall keep the original of all receipts issued in accordance with the said
paragraph together with the other records he is required to keep for the purposes of this Act.
(3) A fiscal receipt in respect of supplies of services made by means of a machine operated by an electronic card
or by any other token shall be issued every time a card or other token is supplied and shall account for the price charged or chargeable
for the supply of that card or token as if the supply of the card or other token represented the supply of services that can be supplied
by the use of that card or other token.
Accounting for fiscal receipts supplied or approved by the Commissioner
10. (1) Every person who is supplied with forms of fiscal receipts by the Commissioner shall account for all such forms
by keeping in his possession, and producing at the request of the Commissioner, all unused forms, and by keeping one copy and producing
to the Commissioner another copy of all receipts drawn out on such forms and of all cancelled forms.
(2) Copies of used and cancelled forms of fiscal receipts supplied by the Commissioner shall be delivered to the Commissioner
as soon as possible after the booklet or other form of binding in which the fiscal receipts have been supplied has been fully used
or at such other date as the Commissioner may require.
(3) Every person who issues fiscal receipts on forms approved by the Commissioner shall account for all such forms
in such manner as may be directed by the Commissioner, and for this purpose the Commissioner may give such directions regarding the
processing, recording and storing of the forms and of the information to be given therein as he may deem appropriate.
(4) Any person who fails to account for a form of fiscal receipt in the manner prescribed in this item shall be presumed, unless
the contrary is proved, to have failed to account for a taxable supply.
Exemption from obligation to issue fiscal receipt
11. (1) The Commissioner may, by means of a notice in writing, exempt any person, and may by means of a notice published in the
Gazette exempt any class of persons from any obligation imposed by this Schedule, and such exemption may be given for such time and
with such limitations and subject to such conditions as may be specified in the said notice.
(2) The Commissioner may at any time by means of a notice in writing or by means o f a notice publi s hed in the Gazett e, as
t h e case may be, revoke any exemption given in terms of this item.
Obligation to retain and produce receipt
12. Every person to whom a fiscal receipt is issued shall retain the receipt in his possession for a period of twenty-four hours and shall, upon a request made during the said time by the Commissioner or any officer authorised by the Commissioner, produce the said receipt to the Commissioner or such authorised officer.
Fiscal cash register
13. (1) A fiscal cash register shall -
(a) cater for the functions listed in paragraph (2) of this item; and
(b) be of a type specifically approved by the Commissioner by means of a notice published in the Gazette or approved for the purposes
of and in accordance with the Customs and Excise Tax Act or the Value Added Tax Act.
(2) The functions for which a fiscal cash register must cater for the purpose of subparagraph (a) of paragraph (1) of this item are:
(a) printing of an itemised receipt for the supplies made in each transaction indicating -
(i) the name and address of the supplier and the Value Added Tax registration number,
(ii) the goods or services supplied,
(iii) the quantity of each item supplied,
(iv) whether each item is taxable or exempt,
(v) the total, inclusive of tax, of the consideration paid for the supplies included in the transaction,
(vi) serial number of transaction,
(vii) the tax logo type as specified by the Commissioner, (viii) cash register serial number,
(ix) date and time of supply,
(x) and/or such other details as the Commissioner may require; (b) registering of all day-to-day transactions on a printed journal;
(c) storing of predefined data in an inaccessible and unalterable memory.
Fiscal taxi meter
14. (1) A fiscal taxi meter shall -
(a) cater for the functions listed in paragraph (2) of this item; and
(b) be of a type approved by Transport Malta in terms of the Technical Specifications published by Transport Malta according
to the Taxi Service Regulations, or any other regulations replacing those Regulations.
(2) The functions for which a fiscal taxi meter must cater for the purpose of paragraph (1)(a) of this item are:
(a) printing of a receipt for the supply made in each transaction indicating - (i) the name and the Value Added Tax registration
number of the
supplier,
(ii) the taxi permit number,
(iii) date and time of supply,
(iv) serial number of transaction,
(v) the service supplied and applicable rate,
(vi) the total, inclusive of tax, of the consideration paid for the supply, (vii) the tax logo type as specified by the Commissioner,
(viii) fiscal taxi meter serial number,
(ix) and/or such other details as the Commissioner may require;
(b) storing of predefined data in an inaccessible and unalterable memory.
FOURTEENTH SCHEDULE Amended by: L.N. 21 of 1999;
Interpretation
1. In this Schedule -
[Article 57]
Special cases
Part One
Professional Services
L.N. 201 of 1999; L.N. 94 of 2001. Substituted by:
X. 2003.47. Amended by:
L.N. 426 of 2007; L.N. 132 of 2009;
L.N. 73 of 2010.
"professional services" means any of the services specified in item 10 of this Part; "fiscal receipt" has the
meaning assigned to it in the Thirteenth Schedule to this
Act.
Time of supply
2. Subject to the other provisions of this Part, in the case of a supply of professional services the chargeable
event takes place on the earlier of:
(a) the date when a tax invoice or a fiscal receipt, as the case may be, is issued for the said supply, to the extent covered
by that invoice or receipt; and
(b) the date when a payment is made for that supply, to the extent covered by that payment.
Date when services are performed
3. When, for any purpose of the Act, it is necessary to determine the date when the services referred to in this item are performed,
the following provisions shall apply:
(a) The services of an advocate or of a legal procurator in assisting any party to judicial proceedings shall be treated as performed
on the date when a final decree or judgment in those proceedings is delivered by the court in which the proceedings have been instituted
(services relating to proceedings instituted in different courts being treated as supplied separately) or, when the advocate
or legal procurator abandons or is abandoned by his client at an earlier date, on such earlier date.
(b) The services of a judicial referee or of an expert appointed by a court or by a tribunal set up by law shall be treated as performed
on the date on which the report is filed in or made to the court or tribunal or, when the appointment is terminated on an earlier
date, on such earlier date.
(c) The services of an arbitrator shall be treated as performed on the date of the award or, when the appointment is terminated on
an earlier date, on such earlier date.
Free Supply
4. When no consideration is paid or payable for a supply of professional
services and where that suppl y is to be treated as a taxable supply made for a consideration pursuant to the provisions of the Second
Schedule to this Act, the cha r geable event shall be treated as ta k i ng p l ac e o n th e d a te de ter m in ed in accordance
with the Fourth Schedule without any reference to this Part.
Invoices and receipts for professional services
5. (1) Where a tax invoice is required to be issued for a supply of professional services, it shall be issued by not later than
thirty-one days from the date on which paym en t for the said suppl y of services i s m a de, t o the extent covered b y that payment:
Provided that in the case of a supply to which item 4 of this Part refers, the tax invoice shall be issued within thirty-one days
from the date on which the services are performed.
(2) Where a fiscal receipt is required to be issued for a supply of professional services it shall, unless it has been issued
before the payment has been made, be issued and delivered to the person who effects the payment or to whom the services have been
supplied, immediately after payment has been effected, to the extent covered by that payment:
Provided that in the case of a supply to which item 4 of this Part refers, the fiscal receipt shall be issued on the date when the
services are performed.
(3) A tax invoice or a fiscal receipt which includes fees for the supply of professional services shall not include
fees for any other supply.
Tax on services where tariffs of fees are established by law
6. (1) The tax chargeable on a supply of professional services shall be an amount over and above the amount resulting
to be chargeable for those services in terms of any tariff of fees established under any law in force in Malta.
(2) Nothing in this item shall be construed as requiring any person required by law to assess or declare the fees payable in accordance
with any such tariff to declare or assess also the said tax.
(3) In any action for the enforcement of the executive title referred to in article
25 3(c) of the Code of O rgani zatio n and Civil P r o cedure, the amount for which payment may be enforced shall be the amount shown in the taxed bill of costs in
question increased by any tax chargeable on the supply of professional services to which the taxed bill of costs refers as evidenced
by a tax invoice or a fiscal receipt or a certified copy thereof attached to the said bill.
(4) The provisions of paragraph (3) of this item shall be without prejudice to the right of the debtor to request the delivery
of the original tax invoice or the fiscal receipt in accordance with item 7 of this Part.
Tax claimed from third parties
7. The provisions of this item shall apply with respect to any action for the payment of fees for professional services brought
against any person other than the person to whom the services were supplied:
(a) the person against whom the action is brought shall not be bound to pay the amount relating to the tax, if any, chargeable on
the supply of the said services unless the original tax invoice or fiscal receipt for those services complying with the provisions
of paragraph (b) of this item is delivered to him, or, where the action is brought against a number of
persons jointly, to any one of them;
(b) a tax invoice or fiscal receipt delivered as aforesaid shall, in addition to the information required by the Act, contain -
(i) the following declaration signed by the person to whom the said services were rendered;
"I declare that no credit for input tax has been or will be claimed by me in respect of the professional services referred to
in this tax invoice/fiscal receipt.";
(ii) where the person against whom the action or claim is brought is a person registered under article 10, or, where the action
is brought against a number of persons jointly, when any one of them is a person registered under article 10, the name and Value
Added Tax identification number of the said registered person;
(c) when a tax invoice or fiscal receipt for fees for professional services complying with the provisions of paragraph (b) of this item is delivered to a taxable person who is bound at law to pay or reimburse the said fees it shall for the purposes of
this Act be treated as if it were a tax invoice for professional services supplied to him.
Option to adopt invoice basis
8. (1) Any person who supplies professional services may request the Commissioner to authorise him to determine
the date when the chargeable event in the case of those services takes place in the manner provided for in the Fourth Schedu le wi
thout any reference to this Part, and any p e rson w ho h a s been so authorised may request the Commissioner to authorise him to
account for the time of supplies in accordance with this Part.
(2) The Commissioner may refuse to grant an authorisation requested in accordance with paragraph (1) of this item for
any reason he deems appropriate or without assigning any reason and may grant such an authorisation subject to such conditions as
he may deem fit to im pose, including the payment of any amount determined by him to represent any tax which, in view of the change
in the manner of accounting for the tax, might otherwise remain unaccounted for.
Applicability of the Act
9. Save as otherwise provided in this Part, the provisions of this Act and of any regulations made under this Act shall apply to supplies of professional services.
Professional services
10. This part applies to -
(a) services performed by a person holding a warrant issued under any law in force in Malta to practise a profession acting
in an independent capacity in the exercise of that profession;
(b) services of a group of persons holding a warrant issued under any law in force in Malta to practise a profession whether
associated in a partnership or not but excluding a commercial partnership;
(c) services performed by an arbitrator pursuant to a submission for arbitration made in conformity with the Arbitration Act;
(d) services performed by a judicial referee or an expert appointed by a court or by a tribunal set up by law.
Part Two
Second-hand goods, works of art, collectors’ items and antiques
Interpretation
1. In this Part unless the context otherwise requires: (1) "works of art" means -
(a) pictures, collages and similar decorative plaques, paintings and drawings executed by hand by the artist, other
than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated
manufactured articles, theatrical scenery, studio back cloths or the like of painted canvasses;
(b) original engravings, prints and lithographs, being impressions produced in limited numbers directly in black and white or in colour
of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed
by him, but not including any mechanical or photomechanical process;
(c) original sculptures and statuary, in any material, provided that they are executed entirely by the artist sculpture casts the
production of which is limited to eight copies and supervised by the artist or his successor in title;
(d) tapestries and wall textiles made by hand from original designs provided by artists, provided that there are not more
than eight copies of each;
(e) individual pieces of ceramics executed entirely by the artist and signed by him;
(f) enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmiths’ and silversmiths’ wares;
(g) photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes
and mounts included.
(2) "collectors’ items" means -
(a) postage or revenue stamps, postmarks, first day covers, pre-stamped stationery and the like, franked, or if unfranked not being
of legal tender and not being intended for use as legal tender;
(b) collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical,
archaeological, palaeontological, ethnographic or numismatic interest.
(3) "antiques" means objects other than works of art or collectors’ items which are more than 100 years old.
(4) "second-hand goods" means tangible movable property that is suitable for further use as it is or after repair, other
th an works of art, collectors’ items or antiques and other than precious metals or precious stones.
(5) "second-hand goods dealer" means a taxable person who, in the course of his economic activity, purchases or acquires
for the purposes of his undertaking, or imports with a view to resale, second-hand goods and/or works of art, collectors’ items
or antiques, whether that person is acting for himself or on behalf of another person pursuant to a contract under which commission
is payable on purchase or
sale.
(6) "auctioneer" means any taxable person who, in the course of his economic activity, offers goods for sale by public
auction with a view to handing them over to the highest bidder.
(7) "principal of an auctioneer" means any person who transmits goods to an auctioneer under a contract under which
commission is payable on a sale subject to the following provisions -
(a) the auctioneer offers the goods for sale in his own name but on behalf of his principal;
(b) the auctioneer hands over the goods, in his own name but on behalf of his principal, to the highest bidder at a public auction.
Second-hand goods dealer
2. A second-hand goods dealer who makes supplies of second-hand goods, works of art, collectors’ items and antiques, shall charge and collect tax on the profit margin, in accordance with the other provisions of this Part.
Supplies
3. The supplies of goods referred to in item 2 of this Part shall be supplies of second-hand goods, works of art, collectors’
items and antiques, made by a second- hand goods dealer, which had been supplied to him in Malta -
(a) by a non-taxable person; or
(b) by another taxable person, in so far as the supply of goods by that other person is an exempt without credit supply; or
(c) by another taxable person who is registered under article 11, in so far as the supplies involve capital assets; or
(d) by another second-hand goods dealer, in so far as the supply of goods by that other second-hand goods dealer was subject to value
added tax in accordance with the other provisions of this Part.
Taxable Value
4. (1) The taxable value of the supplies of goods referred to in item 3 of this Part shall be the p r ofi t marg in m a de by
th e second-hand g oods dealer less the amount of value added tax relating to the profit margin. That profit margin shall be equal
to the difference between the selling price charged by the second-hand goods dealer for the goods and the purchase price.
(2) For the purposes of paragraph (1) of this item -
(a) "selling price" means everything which constitutes the consideration which has been, or is to be, charged by the second-hand
goods dealer to the purchaser, including subsidies directly linked to that transaction, taxes, duties, levies and charges and
incidental expenses such as commission, packaging, transport and insurance costs charged by the second-hand goods dealer to
the purchaser but excluding discounts and repayment for expenses paid out in the name and for the account of the purchaser;
(b) "purchase price" means everything which constitutes the consideration as defined in subparagraph (a) of this paragraph, paid, or to be paid, by the second-hand goods dealer to his supplier.
Applicable option
5. (1) Second-hand goods dealers shall have the option to apply the provisions of this Part, after having obtained the approval
in writing of the Commissioner, in respect of supplies of -
(a) works of art, collectors’ items or antiques which they have imported themselves;
(b) works of art supplied to them by their creators or their successors in title.
(2) Where a second-hand goods dealer exercises the option available under paragraph (1) of this item, such option shall
cover, at least, two calendar years.
(3) Where a second-hand goods dealer exercises the option available under paragraph (1) of this item, the taxable value
shall be determined in accordance with item 4 of this Part. Where the supplies refer to supplies to which subparagraph (a) of paragraph (1) of this item refers, the purchase price to be taken into account in calculating the profit margin shall be equal
to the taxable value on importation, plus the value added tax due or paid on importation.
Input Tax
6. (1) Taxable persons shall not be entitled to deduct the value added tax due or paid in re spect of goods wh ich have be en,
or are to be, supplied to them by second-hand goods dealers, where the supply of those goods has been subject to the provisions of
this Part.
(2) Where the second-hand goods dealer accounts for value added tax in terms of the provisions of this Part, he shall not be entitled
to claim back -
(a) value added tax due or paid in respect of works of art, collectors’ items or antiques which he has imported himself;
(b) value added tax due or paid in respect of works which have been, or are to be supplied, to him by their creators or their successors
in title;
(c) value added tax due or paid in respect of works of art which have been, or are to be, supplied to him by a taxable person other
than a second hand goods dealer.
Separate accounting
7. Where a second-hand goods dealer makes supplies to which this Part refers and other supplies, he must keep separa te accounts to distinguish between the supplies made to which this Part refers and those other supplies.
Purchase invoice
8. Where a supply of second-hand goods to a second-hand goods dealer has been made by a person who had not supplied the said
goods in the course of an economic activity, such dealer shall issue a purchase invoice at the time when the said goods have been
supplied to him, containing the following information -
(a) the purchase invoice number; (b) the date of the purchase;
(c) the name and address of the seller;
(d) the name and address of the purchaser;
(e) a description of the goods; (f) the total price paid;
(g) a cross reference to the entry of the transaction in the purchaser ’s account books;
(h) the signature of the seller.
Sales invoice
9. A second-hand goods dealer who makes any supply to which this Part refers shall not issue a tax invoice or any other document
showing an amount as being tax or as being attributed to tax, but shall issue a sales invoice containing the following information
and shall keep a copy thereof -
(a) the sales invoice number; (b) the date of the sale;
(c) the name, address and value added tax registration number of the seller; (d) the name and address of the purchaser;
(e) a description of the goods;
(f) the total price inclusive of tax;
(g) a cross reference to the entry of the transaction in the seller ’s account books;
(h) the following declaration signed by the seller:
"I declare that no credit for input tax has or will be claimed by me in respect of the goods sold on this invoice.".
Option available for second-hand goods dealers
10. (1) A second-hand goods dealer may account for value added tax in terms of the other provisions of the Act to any supply to
which items 2 and 3 of this Part refer, without any reference to this Part.
(2) Where a second-hand goods dealer so opts in respect of -
(a) the supply of works of art, collectors’ items or antiques which he has imported himself, he shall be entitled to claim back
the value added tax due or paid on the importation of those goods;
(b) the supply of works of art supplied to him by their creator, he shall be entitled to claim back the value added tax due or paid
for the work of art supplied to him;
(c) the supply of works of art supplied to him by a taxable person other than a second-hand goods dealer, he shall be entitled to
claim back the value added tax due or paid for the work of art supplied to him.
(3) The right to claim back input tax on supplies to which paragraph (1) of this item refers shall arise at the time of submitting
the value added tax return.
Sales by public auction
11. (1) Where an auctioneer makes a supply of second-hand goods, works of art, collectors’ items or antiques by public auction,
acting in his own name, pursuant to a contract under which commission is payable on the sale of those goods by public auction, on
behalf of -
(a) a non-taxable person; or
(b) another taxable person in so far as the supply of goods by that other registered person is made pursuant to a contract
under which commission is payable on purchase or sale and is an exempt supply in terms of Part Two of the Fifth Schedule to
the Act; or
(c) another taxable person who is registered under article 11 in so far as the supply of goods by that other person involves capital
assets and is made pursuant to a contract under which commission is payable on purchase or sale; or
(d) another second-hand goods dealer, in so far as the supply of goods by that other second-hand goods dealer is made pursuant
to a contract under which commission is payable on purchase or sale and is subject to value added tax in terms of the other provisions
of this Part,
the taxable value of each supply of goods shall be that s p ecified in the other paragraphs of this item.
(2) The taxable value of each supply of goods to which paragraph (3) of this item applies is the to tal amount invoiced to the
purchas er by the a u ctionee r in accordance with paragraph (4) of this item, less -
(a) the net amount paid or to be paid by the auctioneer to his principal, determined in accordance with paragraph (3) of this item,
and
(b) the amount of the tax due by the auctioneer in respect of that supply.
(3) The net amount paid or to be paid by the auctioneer to his principal shall be equal to the difference between -
(a) the price of the goods at the public auction, and
(b) the amount of the commission obtained or to be obtained by the auctioneer from his principal, under the contract whereby
commission is payable on the sale.
(4) An auctioneer must issue to the purchaser a sales invoice containing the following information -
(a) the sales invoice number; (b) the date of the sale;
(c) the name, address and value added tax registration number of the seller; (d) the name and address of the purchaser;
(e) a description of the goods;
(f) the auction price of the goods; (g) taxes, dues, levies and charges;
(h) incidental expenses such as commission, packing, transport and insurance costs charged by the auctioneer to the
purchaser;
(i) reference to the entry of the transaction in the seller ’s account books; (j) the following declaration signed by the seller:
"I declare that no credit for input tax has or will be claimed by me in respect of the goods sold on this invoice.";
and the sales invoice shall not show any amount of value added tax separately.
(5) The auctioneer to whom the goods were transmitted under a contract whereby commission is payable on a public auction
sale must issue an invoice to his principal, containing the following information:
(a) a consecutive invoice number; (b) the date of the transaction;
(c) the name and address of the principal;
(d) the name, address and value added tax registration number of the auctioneer;
(e) a description of the goods;
(f) the amount of the transaction (i.e. the auction price of the goods less the amount of commission obtained or to be obtained from
the principal);
(g) the signature of the principal:
Provided that where the principal is a taxable person, the invoice so drawn up shall serve as the tax invoice required to be issued
in ter m s of th e Tw e l ft h Schedule to the Act.
(6) Auctioneers who supply goods under the conditions laid down in paragraph
(1) of this item, must indicate in the suspense account of their accounts -
(a) the amounts obtained or to be obtained from the purchaser of the goods; (b) the amount reimbursed or to be reimbursed to the vendor of the goods;
and the above amounts must be substantiated by the relevant documentation.
(7) The supply of goods by an auctioneer shall be deemed to be made at the time when the sale of those goods by public auction
is effected.
Repossessed goods
12. Where any goods are repossessed -
(a) under the terms of a finance agreement, or
(b) by any insurer in the settlement of a claim under an insurance policy, or
(c) by a mortgagee in terms of his rights under a mortgage over a ship or aircraft,
and supplied by the person who repossessed them in the same condition as they were in at the time they were repossessed, the said
supply by that person shall be treated as neither a supply of goods nor as a supply of services.
Part Three
Supplies by Retailers and by Civil, Mechanical and
Electrical Engineering Contractors
1. This Part applies to: (a) retailers;
(b) civil, mechanical and electrical engineering contractors.
2. The Commissioner may direct that the time of supplies made by or to a taxable person to whom this Part applies shall be the
time whenever a payment is made or received, as the case may be, for any such supplies, to the extent of every such payment, and
that the taxable value of such supplies shall be determined by reference to every such payment made or received.
However, the foregoing does not apply to supplies of services in respect of which
VAT is payable by the customer pursuant to article 20(2)(b) of the Act.
3. A direction in terms of item 2 of this Part shall be given by notice in writing or by a notice published in the Gazette, and
may, by such notice, be amended or
withdrawn. Unless otherwise specified, such a direction shall apply to all supplies made by or to the person to whom it is made with
effect from the date of the said direction until that direction is withdrawn.
4. When a direction given in terms of item 2 of this Part is amended or withdrawn the Commissioner may require
the person to whom it had been given to pay tax in such am ount as the Com missioner m a y deem fair and reasonable to compensate
for the tax on supplies which, because of the amendment or withdrawal, might otherwise remain unaccounted for and such tax shall
be deemed for all the purposes of this Act to be tax chargeable on taxable supplies made by that person on the date that the amendment
or withdrawal becomes effective.
5. Notwithstanding the other provisions of this Part a direction given in terms of it em 2 of t h is Part shal l not apply to
an y supp ly referred to in items 14 (Application of goods forming part of an economic activity) and 15 (Private use of goods forming part of an economic activity) of the Second Schedule to this Act.
Part Four
Travel Agents
Interpretation
1. In this Part "travel agent" means and includes any person who, without mate rial alterations, buys in and re-sells travel, hotel, holiday and other related services to travellers, and shall include a tour operator.
Application
2. The provisions of this Part shall apply to the operations of travel agents, where the travel agent deals with the customer
in his own name and uses the supplies and services of other persons in the provision of travel facilities:
Provided that this Part shall not apply to a travel agent who acts only as an intermediary and merely makes a repayment of expenses
to another person in the name and for the account of the traveller.
Services supplied to be deemed as a single transaction
3. All transactions performed by a travel agent for the benefit of the traveller in connection with the journey shall be treated as a single supply of services supplied by him to the traveller.
Place of supply
4. The place of supply of services to which item 3 applies is the place where the travel agent is established.
Taxable value
5. The taxable value of supplies referred to in item 3 of this Part made by a travel agent shall be the difference between the
cost of those supplies to the travel agent inclusive of value added ta x and th e tot a l price ch arg e d to the travell e r exclusive
of value added tax, where the supplies are for the direct benefit of the traveller:
Provided that where a supply to a travel agent is required in terms of this Act to be supported by a tax invoice, the cost of that
supply shall only be taken into account for the purposes of this item if the travel agent holds such a tax invoice.
Input tax
6. Value added tax charged to the travel agent by other registered persons on supplies made by those registered persons to the
travel agent for the purpose of
supplies to which item 3 applies and for the direct benefit of the traveller shall not be eligible for deduction or refund.
Supplies outside the Community
7. If transactions entrusted by the travel agent to other taxable persons are performed by such persons outside the Community, the travel agent’s service shall be treated as the service of an intermediary which is exempt with credit in terms of item 5 of Part One of the Fifth Schedule. When these transactions are performed both inside and outside the Community, only that part of the travel agent’s services relating to transactions outside the Community shall be so treated as exempt with credit.
Powers of the Commissioner
8. The Commissioner may give such directives to, and require such information from, a travel agent as he may deem necessary for the application of this Part.
Records
9. A travel agent shall keep, in addition to the records required to be kept in terms of the other provisions of this Act, such
other records as may be necessary to readily ascertain the amount of tax chargeable under this Part.
Part Five
Tax in Danger
1. Where, in any particular contract of supply, and in order to secure the regular payment of the tax in terms of
the Act, the Commissioner may, by a notice in writing to the parties to the contract direct that the person to whom the supply is
made shall be d eemed to have m a de that suppl y t o h i m s el f i n t h e cou r se o r furtherance of his economic activity and
the provisions of the Act, including the obligation to account for and to pay the tax, shall be read and construed accordingly.
2. When a direction to which item 1 of this Part refers has been given by the Commissioner, the person to whom the supply is
made shall keep, in addition to the records required to be kept in terms of the other provisions of the Act, such other records as
may be necessary to ascertain the amount of tax payable under this Part.
3. When a direction has been given by the Commissioner in terms of item 1 of this Part, the tax invoice which is required to
be issued in terms of the Act by the person who makes t he supply shall, in lieu of t he inform at ion required by item
2(1)(j) of the Twelfth Schedule to the Act, indicate the words "direction in terms of the Fourteenth Schedule to the Act".
4. When a direction has been given by the Commissioner in terms of item 1 of this Part, such direction shall not in any way limit
the right to claim any input tax to which any of the persons to whom the direction has been given, may still be entitled to claim
in accordance with the other provisions of the Act.
Part Six
Investment Gold
Meaning of investment gold
1. (1) "Investment gold" means:
(a) gold, in the form of a bar or a wafer of weights accepted by the bullion markets, of a purity equal to or greater than 995 thousandths,
whether or
scheme small bars or wafers of a weight of 1g or less; (b) gold coins which:
(i) are of a purity equal to or greater than 900 thousandths, (ii) re-minted after 1800,
(iii) are or have been legal tender in the country of origin, and
(iv) are normally sold at a price which does not exceed the open market value of the gold contained in the coins by
more than 80%.
(2) Coins referred to in paragraph (1)(b) shall not, for the purpose of this Act, be considered to be sold for numismatic interest.
Option for taxation
2. (1) Taxable persons who produce investment gold or transform any gold into investment gold have a right of option for taxation
of supplies of investment gold to another taxable person which would otherwise be exempt in terms of Part One of the Fifth Schedule.
(2) An agent who, acting in the name and for the account of another, intervenes for his principal in a supply in respect of which
the supplier has exercised the option referred to in paragraph (1) has a right of option for taxation of the supply of his services.
(3) An option referred to in this item shall be exercised by means of an irrevocable notice in writing delivered
to the Commissioner. Such notice:
(a) shall specify clearly that it is a notice made pursuant to this item and indicate whether it is an option of the supplier or
an option of the agent;
(b) shall be made before the supplies to which it refers are made or by not later than thirty days after the date of any such supplies;
(c) shall specify the name and value added tax identification number of the taxable person to whom the supplies are made or to be
made and their taxable value.
Special obligations for traders in investment gold
3. Traders in investment gold keep account of all substantial transactions in investment gold and keep the documentation to allow identification of the customer in such transactions.
Interpretation
Part Seven
Special Scheme for electronically supplied services
1. In this Part, unless the context otherwise requires:
(1) "non-established taxable person" means a taxable person who has neither est a bl ish e d his business no r has a
fixed establishm ent in t h e terri tory o f the Community and who is not otherwise required to be identified for tax purposes under
article 10 of the Act.
(2) "Electronic services" and "electronically supplied services" means those services referred to in
paragraph (2) of item 10, Part Two of the Third Schedule to the Act.
(3) "Member State of consumption" means the Member State in which the
supply of electronic service is deemed to take place in accordance with paragraph (1)
of item 10, Part Two of the Third Schedule to the Act.
(4) "Value added tax return" means the statement containing the information necessary to establish the amount of tax
that has become chargeable in each Member State.
2. The Commissioner shall permit a non-established taxable person who supplies electronic services to a non-taxable person
who is established or has his permanent address or usually resides in a Member State to use a special scheme in accordance with the
provisions of this Part.
3. The non-established taxable person shall state to the Commissioner when his activity as a taxable person commences, ceases
or changes to the extent that he no longer qualifies for the special scheme. Such statement shall be made electronically.
The information from the non-established taxable person to the Commissioner when his taxable activity commences,
shall contain the following details for his identification, namely: name, postal address, electronic addresses, including web sites,
national tax number, if any, and a declaration that he is not identified for value added tax purposes within the Community. The non-established
taxable person shall notify the Commissioner within thirty days of any changes in the information submitted.
4. The Commissioner shall identify the non-established taxable person by means of a VAT regi st ration num ber. Based
on th e info rmat ion u s ed for this identification, the Member States of consumption may keep their own identifications systems.
The Commissioner shall notify the non-established taxable person with the
VAT registration number allocated to him by electronic means.
5. The Commissioner shall exclude the non-established taxable person from the identification register if:
(a) he notifies the Commissioner that he no longer supplies electronic services, or
(b) it can be otherwise assumed that his taxable activities have ended, or
(c) he no longer fulfils the requirements necessary to be allowed to use the special scheme, or
(d) he persistently fails to comply with the provisions of this Part.
6. The non-established taxable person shall submit to the Commissioner by electronic means a value added tax return for each
calendar quarter whether or not electronic services have been supplied. The return shall be submitted within 20 days following the
end of the tax period to which that return refers.
7. The value added tax return shall be made on such form as the Minister may by regulations prescribe.
8. The value added tax return shall be made out in euro. If the supplies have been made in other currencies, the exchan g e rate
valid fo r t h e l ast date of the reporting period shall be used when completing the value added tax return. The exchange rates
shall be those published by the European Central Bank for that day, or if there is no publication for that day, on the next day of
publication.
9. The non-established taxable person shall pay the value added tax when submitting the return. Payment shall be made
to a bank account denominated in euro, designated by the Commissioner.
making the deductions under article 23 of this Act, upon application, be granted a refund, under such conditions and subject to such
limitations as the Minister may by regulations prescribe.
11. The non-established taxable person shall keep records of the transactions covered by this special scheme in sufficient detail
to enable the tax administration of the Member St ate of consumption to determine that th e value adde d tax re turn referred to
in item 6 of this Part is correct. These records shall be made available electronically on request to the Comm iss i oner and to
the Member S t ate of consumption. These records shall be maintained for a period of 6 years from the end of the year when the transaction
was carried out.
Amended by: L.N. 22 of 1999; L.N. 30 of 1999; L.N. 223 of 1999; L.N. 271 of 2000; L.N. 149 of 2001; L.N. 234 of 2001. Substituted by:
X. 2003.47.
FIFTEENTH SCHEDULE [Article 2]
1. Subject to the other provisions of this Schedule, "Member State" means the area of application of the Treaty establishing the European Economic Community as defined in respect of that State in Article 299 of that Treaty excluding, with respect to the States listed in the Column One of the Table in this item, the territories listed in the Second Column:
Column One | Column Two Excluded Territories |
Federal Republic of Germany | The Island of Heligoland The territory of Busingen |
Finland | Aland Islands |
French Republic | The overseas departments |
Hellenic Republic | Mount Athos |
Kingdom of Spain | Ceuta Melilla The Canary Islands |
Republic of Italy | Livigno Campione d’Italia The Italian waters of Lake Lugano |
United Kingdom | Gibraltar The Channel Islands |
2. Notwithstanding the foregoing provisions the Isle of Man and the Principa lity of Monaco shall be treated
as territories of Member S t ates and transactions originating in or intended for:
(a) the Isle of Man shall be treated as originating in or intended for the
United Kingdom of Great Britain and Northern Ireland;
(b) the Principality of Monaco shall be treated as originating in or intended for the French Republic.
SIXTEENTH SCHEDULE Added by: X. 2003.47.
[Article 2]
Substituted by: L.N. 536 of 2010.
"Excise goods" means products under any of the following descriptions in so far as they are subject to excise duty in terms
of the Excise Duty Act:
(a) energy products including mineral oils; (b) alcohol and alcoholic beverages;
(c) manufactured tobacco:
Provided that gas supplied through a natural gas system situated within the territory of the Community or any network connected to
such a system shall not fall under the description of excise goods.
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