ATT Nru. XII la'I-I994 ACf No. XII of 1994 ATI' mahrug b·ligi mill- Parlamenl AN ACf enacted by the Parliame nt la' M alta .

Supplimtnlla/-Gazulla w/-Glltrn la' Ma/w, Nr/l.. 15,995, 12/a' Aw!Ss/l., }994

Taqsima A

MALTA

ATT Nru. XII la'I-I994

ACf No. XII of 1994

ATI' mahrug b·ligi mill- Parlamenl

AN ACf enacted by the Parliame nt

la' M alta .

of Malta.

AN ACT to make provision (or the Value

ATT bin jipprovdl ghal Ta:o:a fuq 11-

Valur Mlljud.

Added Tax.

T AQSIM A I

Prel.lmlnarl

Titolu fil-qosor u bidu fis-seMI

2. Tifsir

Exempt SuppUa

S«tion 11(I)(a)

PART ONE

utmptioM with Cndit

Section 25(1)(b)

E:lports

( \) The supply of goods which consists of the e:lport of those goods by the

wpplier.

(2) The supply of &oods 10 a uuable penon established in Malta who carries on

tbe busi ness of arranging or fi nancing thee:lport of goods, for the purpose of the export

of those goods by that penon without tile actual delivery oflhose goods to that person ,

provKIed tile &oods are actually exported without any processing or aJtentions and

wbject to wch condilklns, evidence or security as may be imposed or required by the

Commissio ner.

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2. Services OOfln«ted with exports

(I) The suppl y of serviOCll in procuring for a !Juable person the export of goods

from Malla o r Ihe s upply of goods or services outside Malta.

(2) The supply of services to 11 person established outside Malta consisting of

work on tangible mova ble property imported for tbe purpose of undergoing such work

in Malt a and eJCported out of Malta by the person who supplied those services or by his

customer.

3. Services to companies registered but not opera ting in Malta

1be supply of any services referred to in paragraph (c) of item 6 of the First

Schedule 10 Ihis Act to a company registered in Malta which does not carry on any

economic activity in Malta and which is not a company wbose capital or voting rights are

owned, directl y or indirectly, as to fifty pe r cen t or more, by ind ividuals who have a

permanent address or who usually reside in Malta .

Goods in bond , su pplies by dUl y free shops and Freepon activit ies

4. (I) A sale of goods which takes place while tbe goods are in a customs bond and

which is e ntered by the Comptrolle r of CustOITlll pur.mant to section 36 oflhe Customs

Ordinance or any provision amending o r replacing the said section.

(2) The su pply of goods and services by an operator of a duty free shop pursuant

to and in accorda nce with a licence iss ued under the Duty Frce Sho p R egulation s, \991

or any other provisions amending o r replacing the said regulations.

(3) A supply by a company of goods or se rvices which takes place within a

Freepon zone as defined in the Malta Freeports Act whe re the said supply constitu tes

an activity which the said company is licensed to carry on in terms of the said Act.

S.

Port services

(1) Services in respect of vesse ls entering any port and of laid up vessels in any

port for which dues are chargeab le in term s of the Port Dues Regu lations, Im.

(2) The use of a buoy wh ich is the property of o r which is unde r the control o r

management of or ope rated by the Malta Maritime Authority and chargeable in tenns

oftbe Bunyage Dues Regulations, 1979.

(3) Pilotage and mooring se rvices and services connected therewith for which

fees are chargeable in te rms of the Pilotage and Mooring:s Regulations, 1975.

(4) Tug assistance to vessels ente ring , leaving o r shifting in the Grand Harbour,

Marsamxeu Ha rbour or in Marsax lo kk Harbou r for which fees are chargeable in terms

of the T owage (Tariff of Rates) R egu lations, 1990.

(5) Services supplied by port wo rk e rs in connection with loading, unloading and

sllifting o f cargo as specified in the POrt Wo rkers Regulations, 1993.

(6) Services fo r which fees are chargeable in lermsof the Port (Passe nger Service

Charge) Regul ations, \985 .

lO4

(1) The supply of any services and cenificates. including registration . in

connection with the registration of ships and supplied in terms of the Merchant

Shipping Act and regula tions made under the said Act.

(8) Services supplied by the Malla Maritime Authorily in yachting centres u

specified in the Yachting Ce ntres Regulations, 1992.

(9)

Services supplied by the Malla Maritime Authority or by its contractor, asthe

case may be, and specified in the First, Second, Third, Fourth , Fifth and Seventh

Schedules to the Pon Rates Regulations, 1969. or in any special agreement entered inlo

by the said Authority in respect of any matter referred 10 in the said regulations and

providing for charges in place of any rates leviable under the same regulations.

(10) The licensing of boats in terms of the Police Licences Regulations, 1949.

6. International transport

The supply o f services consist ing in international transport of goods and

passengers.

7. Provisioning and fuelling of ships and aircraft

(1) The s upply of goods for the fuelling a nd pro visioning of vessels used for

navigation o n the high seas for the purpose of commercial, industri al or fishing

activi ties, of vessels used for rescue or assistance at sea, and of aircraft used by ai rlines

operating fo r reward in intemationaltra(fic.

(2) The supply of fuel to vessels for the purpose o f inshore fishing .

8. Supply, repairs e lc of ships and ai rcraft

(1 ) The su pply. repair , modifica tion. chartering and hiring o f vessels or airerafi

referred 10 in paragraph (1) of Item 7 o f this Schedule. and Ihe su pply, hiring, repai r and

main tenance of equipment, induding fishing e quipment, incorporated or used therein.

(2) The supply of services. ot her than those re fe rred to in paragraph (I) o f Ihis

item . to meet Ihe direct needs of the vessels and aircraft referred to in the said

paragraph o r of their cargoes.

9. Food

The supply of any food , as defined in Part Three of this Sl:hedule , excluding any

su pply offood which is subjccllo lax al the rate specificd in paragraph (b) of section 19

of this A ct in term: of the Fifth Schedule to this Act.

10. Ph armace utical goods

The supply of pharmaceutical goods, as defi ned in Part Three o f this Sl:hedule .

11. Health and Welfa re

(I) Th e supply o f services by a person in the exercise o f any profession regul ated

by the Medical and Kindred Professions Ordinance.

(2) The provision of care or medical or surgical treatment in any Government

hospital or institution o r in any othe r hospi tal or institution approved by the Minister

for the purposes of this paragraph.

(3)

The supply of human organs. human blood and human milk.

(4) The supply of welfare services, including services supplied by homes for the

elderly and homes for persons suffering fro m some permanent ph ysical or mental

disabi lity, ilnd services for the protection and care of children , young people and

persons suffe ring from some perr.1anent physical or menIal d isability, supplied by any

government institution or by any institut ion or o rganizat ion recognized by the

Commissioner as a non-profit making inst itution o r approved by the Minister fo r the

pwpose of Ihis paragraph as I n institution whose activities fall within the social and

we lfare policy of the government .

(S) The supply of transport services for sick, injured o r disabled per~ms in

vehicles speciall y equipped for that purpose.

(6) The suppl yo f goods where tbe &aid supply is connected with and esse ntial for

the supply of the services referred to in paragraph (2) and (4) of this item by the

hospital , institution or home, as the case may be, suppl yi ng the said services.

12. Education

(I) The provision of edueation or educational research, including distance

learning, by a governm ent school or institution, by th e University of Malta , by a school

or institution registered under the Educatio n Act or by an y educati onal establishment

recognized as such by th e Commissioner.

(2) The provisio n of education or edu cational research, including distance

learnin g. of B kind provided by B school or university, or of religious instruction. by a

non. prorit mak ing institu tion recognized as such by the Commissioner.

(3) Tuition give n pri vately by teachers actin g in an independent capacity in

subjects which are normall y taught in the course of education provided by a school or

university but excluding tu ition in rec reational , physical or sporting activities or

disciplines.

13 . Transport

The suppl y of -

(a) transport suppl ied by the scheduled bus service consisting of scheduled

trips on scheduled routes;

(b) sc heduled inter-island sea trips supplied by authorized carri ers;

(cJ sc hool transport su pplied by an educational establishment recognized as

suc h by the Comm issioncr or supplied to an y such establishment for the purposeof

being provided by it as schooltnmspon .

14 .

Investme nt Services

The supply of any of the services specified in the First Schedule to the Investment

Services Act . 1994.

15. Supply of gold

TIle supply of gold to the Cenh·al Bmtk of:M~1t3

16. Printed Matter

(1 ) The supply of books, book1eI~. copyboo ks. excTCIse books. brochu res,

pamphlets and leaf1e ts.

(2, The supply of newspape rs, journals and rcnodicIIIS.

(3) The supply of maps, charts and topographical plans, excluding plans or

drawings for industrial , engineeri ng, commercial or similar purposes.

(4) Th e supply of musical scores, whether manuscript o r printed, excluding

recorded music.

(5) The supply of any item listed in the foregoing paragraphs of this item on

electronic, magnetic. optic or any other machine readable media.

17. Water

The supply of water by a public authority, excluding the supply of water in any

package or container.

18. The supply of objects mentioned in item 8 of the Third Schedule.

PART TWO

Other Exemptions

19. Immovable property

(1) The letting of immovable property excluding-

(a)

the letting of or the provision of accomodation in any premises which for

the purpose of the said lctlingor 3C(:ommodation is required to be Ikensed in virtue

of the Hotels and Catering Establishments Act orofthe Guest HollSes and Holiday

Fumished Premsises Act or in a holiday cam p or campi ng 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 tenus of such regulations as may be prescribed;

(c)

the letting of penuanently insmlled equipment and machinery.

(2) The transfer of immovable property, including any right refe rred to in

paragraphs (a), (b) and (c) of section 310 of the Civil Code and any emphyteutical

grant, but excluding an emphyteutical grant for less than fifty years in respect of any

property referred to in sub-paragraphs (a), (b) and (c) of paragraph (I) of this item.

20. lnsur'l.nce services

The supply of insurance and reinsurance services, including related services

perfonued by insurance brokers and insu rance agents.

21. Credit. banking and other services

(1) The granting and the negot iation 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 granling the

credit.

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(3) Transaction s, inc luding negotiation, concemi ng deposit and cu rrent

accounts, payments, transfers, debts , cheques and other negotiable instruments, but

excluding debt collection and factating.

(4) Transactions, induding negotiation, concerning currency, bank notes and

coins normally used as legal tender.

(5) Transactions, including negotmllon, excluding management and

safekeeping, in shares, interest in companies or associations, debentures and o ther

securities, excluding documents establishing title tn goods.

Provided that nothing in Ihis item shall be construed as overriding the prol'isionsof

item 14 of this Schedule.

22. Postal services

The supply of services by the public postal services and of goods incidental thereto.

23. Cultural and religious services

(i)

Religious services

(ii) The suppl y of such cultural services as may be approved by the Minister,

24. Sports

The supply by non-profit making organizations of such services rehlled 10 sport or

physical recreation as may be a pproved by the Minister.

25. Services related to certain exempt services

(1) The supply of staff by a non-profit mak ing insti tuti on which is recognized as

such by the Commissioner for the purpose of providing services referred to in

paragraph (2) or (4) of item liar in paragraph (I) or (2) of item 12 of this Schedule.

(2) The su pply of goods and services by a non-profit ma king organiza ti on in the

course of an act ivity designed \0 raise funds to be used for the provision of goods and

services which are exempt in term sof paragraph (2) or (4) of item 11 o rof paragraph (I)

or (2) of item 12: provided the activi ty is recognized by the Com missioner as being

exclusively designed for the said purpose ,

26. Services by nan·profit maki ng organizations to their me mbers

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 organizations with aims of a

political. trade union, patriotic, ph il osophical, 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, in the opinion of the

Minister, th is e xemption is likely to causc distonion of competition . this exemption

shall be subject \0 such exceptions or limitations as the Minister may by order in writing

dete rmine.

27. Lolteries

Gove rnment 101\0 and 1olteries, the su pply of agency senices related thereto. and

such othe r supplies related to gambling as may be approved by the Minister.

PART THREE

For the purposes of this Schedule , the terms described in Ihis Part of the Schedule

shall have the mea ning assigned 10 them in Ihis Pa rt .

(a) M Food ~ means the goods specified in the Customs Tariff ron lained in the

First Schedule 10 the Import Duties Act undcr -

(i) aapler I excluding -

-

items falling unde r headi ng 0 1.06, and

-

animals kepI for sport, recreation and hobby. but including

rabbits and broile r pigeons

(ii)

Chaplers 2 10 4, inclusive

(ili)

Chapters 7 10 12, inclusive

(;v)

Chaptcni IS 10 20, incl usive

(v)

Cbaple r 21 excluding items falli ng under subheadings 2106.90.34

and 2106.90.39

Subheadings l2O'Z.90. 1 J and 2202.90.20 in Chapter 22

(vi)

Chapler 2J

(vii)

(viii)

Subheadi ng 2501 .00.90 in Cha ple r lS

(b) MPharmaceu tica l goods~ means the goods specified in the Tariff referred

to in paragraph ( I) of th is Schedule undcr -

Ci) Chapte r 30

(ii) Subheading 3407.00.10 in Cha ptcr 34

(iii )

napk ins ana napkin lincrs fa r babics and for ad ult incont inc nce

(iv) Subheadings 900 1.30.00, 9(X)l.40.00, 9001 . .50.00 and 9004.90.00 in

Chaptcr 90

(c) A non-profit maki ng institution or non. profi t making o rganization

means an institution 01' OI'ganization

(i)

.... hose objects arc clcarly defined in its sta tut c

(ii)

whose objocts expressly clIdude profit making;

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(ili) whose statute provides that no part of its income or property is

ava ilable directly or indirectly to any member, proprietor or share holde r;

(iv) which . in the opinion of the Commissioner, is managed and

administered in accordance with the provisions of its statute and for the

pllrpose of its stated objects;

which does not systematically aim to make a profit.

(v)

Exempt Importations

Section 1I (I )(b)

I. The re.importation of -

(a) goods which are re-imported un altered;

(b)

samples whieh had been temporarily e xported.

2. The importation of articl es wh ich are shown 10 the satisfaction of the

Comptroller of Custo ms to ha ve bee n awarded abroad to any person for distinction in

art, literature, science or sport, of for public service . or otherwise as a record of

meritoriolJs achi evem e nt o r conduct . and imported by or on behalf of that person.

3. The importation of artic les and materials by Malta Drydocks for theequipping

and the maintenance of th e Dockyard. or which arc required in connectio n with the

services rendered by that corporatio n, o th e r than articles and mate rials used in -

(a) goods produced by th at corpora tion and intended to be disposed of in

Malta , o r

(b) locall y regisu!red shi ps othe r than ships referred to in item 6 of the

Second Schedul ~ to this Act.

4. (I) The importat ion of artificial lim bs and o ther surgical appliances of a

similar nature, including spare parts and accessories fo r the relief of permanent bodily

disableme nt , provided that , in the case of spare parts and accessories. the Comptrolle r

of Customs is sa tisfied tha t they are imported fo r the puf1)OSC of making locally artificial

lim bs o r such o the r applia nces, and in valid cha irs which the Comptroller of Customs is

satisfied a re for the exclusive use of a persoll s uffe ring fro m some permane nt physic&.1

defect or disabil ity.

(2) The importation of goods which are specifically designed for the

educatio n, employment or social advance ment of a person suffering from some

permanent physical o r me ntal disabili ty, pro vided that the Comptroller of O lstOms is

satisfied thatlhe said goods are imported for the exclusive U"iC of such per~m .

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5. The imponation of bird rings for use b)' qualified bird ringers for the stud)' of

the migratory habits of birds.

6. TIle imponation of bona fide gifu of a non-commercial nature rece ived

occasionall), b)' a person from another person residing abroad and being intended for

the personal use of the consignee and his family . provided the gift is neither alcobot nor

alcoholic beverage nor tobacco or tobacco products and the tOlal C IF value of the gifts

on every single occasion does not exceed twent)'. five /iri.

7. The imponation of braille and any other article fOf the use of the blind

imported through a recognized institute. if the Comptroller ofCustoms is satisfied that

such anicles are imponed for the e",clusive use of a blind person.

8. TIle imponation of chalices. ciboriums. pp:cs. monstraOOC:5, thuribles.

incense boats. crosses. caodlestKU, crucifixes. hol)' statues (van). IK>ly oil vessels.

sanctuary lamps, Stations of the Cross, altar cards, cruets, reliquaries. processional

lan terns, tabernacles and doors of tabernacles. exposition thrones and organs, in tended

for divine worship and imponed to be used exclusively in connection with sut'h divine

worship in churches, chapcbor other Iocalitles intended solei)' forsucll worship. and of

churcb canopies used in pl'Ot'CSSion and t'hurcll bells.

9. The imponation of hearing·aid apparatus designed for the use of the deaf and

identifiable pans thereof.

10. The imponation of household and personal effects. furniture and o ther

domestic anicles (e",cluding firearn15 and weapons of all kinds) which in the opinion of

the Compt roller of CUSlOms have been in use within th at house ho ld b)' the importing

person or his family , and whieb are imponed by such person on removi ng his household

from another country to Malta provided th at such ankles are imported within si",

months from the date of arrival in Malta of the person importing them to take up

residence in Malta, or within sueh ot her period which the Co mptroller of Customs moy

allow.

11. The imponation of-

(a) passengers' ooggage. including wearing apparel and personal effects.

used, which the Comptroller of Customs is satisfied are intended for the

passengers' personal use, hut e,l[ciuding firearms and weapons of all kinds;

(b) such tobacco prodUClS. wines, spirits. loilet waters and perfumes as may

be allowed in accordance wilh the Convention concerning CUStoms Facilities for

Touring made at New York on the 4th June, 1954

(c) such goods bought forthe passenger'sown use or as borw/idt'gif'\S, other

than the goods mentioned in subparagraphs (i) and (ii) hereof up to a value of

LmSO. 50 however that where the tocal value of such goods eaceeds LmSO. Ihis

provision shaU nol apply and the tax t'ha rgeable on such goods shall be deducted by

Lm7.SO.

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12. The importlll io n of samples of no commercial va lue.

13. The importation of scien tific instrume nts o r apparatus, in tended e xcl usively

fo r education al purposes of pure scien tifIC research, provided -

(a) that such scie ntific instruments o r apparatus a re consigned to a publ ic o r

private scie ntific or educational institut ion approved by the Minister responsible

for educa tion fo r the purpose o f this provisio n and are used unde r the control and

responsibility o f such inst itution; and

(b) that instrume ntS o r apparatus of equivalent scientific value are not being

manufactured in Malta .

14. Th e importa tion of sou nd a nd video recordings -

(a) of an educa ti o nal , scienti fie o r cul tural characte r produced by the United

Nations or an y of its specialized agencies

(b) of a n ed uca tiona l na ture imported by a govern me nt schonl o r institu ti on,

by the University of Malta or by a school or instituti on registcred under the

Educa tion Act pro vi ded tha t the Director of Education certifies th at the materials

are solely of IIn educati o nal character a nd are to be used solely a nd e ntirely for

educational purposes by such school;

(c)

of language counes.

15. Sta tues and a rtistic decora tio ns cast abroad from origin als made by local

artists, provided permi ssion is obtain ed from th e ComptrOller of Customs before the

o riginal is forwarded ab road fo r casti ng.

16. Th e importation of goods the supply of which by a tllll able person would, in

all cases, be a n exe mpt suppl y in te rms of the Second Schedul e to this Act.

17 . The im portation of food as defined in Part Th ree of th e Second Sched ule to

this Act.

18. The importation of gold by the Cen tral Ban k of Malta.

19. The importa tion o f goods whe re the Commissione r is 51tisfied that the said

goods were imported for tempora ry use o nly, a nd subject to such ronditions and to the

provision of such security as the Comm issioner may impose o r require.

20. The impoTlation of goods which are ree xported without being re leased o r

immediately upon being released from a customs bond.

21. The importation of goods which are destroyed by the owner before they are

released or immediately upon being re leased from a custo ms bond under such

supe rvision and SUbject to such conditions as the Commissioner may require o r impose.

22. The importation of goods in to a Freepo Tl as defined in the Malta Freeports

Act: provided th at this exemption shall apply only to the exte nt that the said

importa tion is exempt from custo ms duty punuanl tO the said Act , and shall be subject

to all the conditions and limitations as are applicable unde r that Act '0 the said

e xemptio n from customs duty.

23. The importation of goods which is exempt from tax in virtue of an e xemption

granted under 5Ubseaion (l) of section 11 of this Act.

FOUR"t SCHEDULE

Section 18

I.

Except as o therwise provided in the othe r provisions of this Schedule, the

taxable value of a taxable s upply shall be the total value of the cons.ide ra tion paid or

payable to the s upplier by the pu rchaser. the custo mer o r any ot he r person for the

supply , bu t excluding the value added tax chargeable under this Act on that su pply.

2. Whe n the consideration is paid or payable wholly or partly in kind its value, to

the extent that it is so paid or payable. shall be its open market va lue .

3. The taxable value o f a taxable supply shall include

(a) taxes. duties, levies, fees and other eharges (excluding the value added

tax cha rgeable under th is Act) payable by reason of the s upply ;

(b) commissions, packing. transport and insurance costs and other

incidental expenses charged by the supplier to the purchaser or customer.

The taxable value of a tuable s upply shall be the amoun t after deducting

4. <a)

(b) pricc discounts and rebates allowed to the customer and accounted forat

the time of the s upply

(c) pricc discou nts and rebates allowed to the customer after the time of the

supply where the Commissioner issatisfied that they were so allowed fo r bona fide

commercial reasons.

5. Where the considerat;on fo r a tuabl e supply is lower than the open mark e t

value and the person making the supply and the person to whom the s upply is made a re

oot independent of each other, or where the value of the considera tion for a supply

cannot be readily determined. the taxable value ofthal supply shall be the open market

value of the goods o r services su pplied.

6. Fo r the purposes of the foregoing paragraphs

<a ) two persons shall be dee med not to be inde penden t of each o ther if.

wheth e r directly or indirectly. either of them has any ime rest in th e business or

prop.::rty o f the other, or both have a common interest in an y business orproperty.

o r some third person has an interest in the busin ess or property of bot h parties.

provided . in each case. that such inte rest has , in the opinion of the Commiss io ner.

influe nced the terms regulating agree men ts between those t""'o persollli.

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(b) th e open market val ue of goods or services mea ns the p.rice which they

WQuld fetch if sold or provided in the open market on the date and In the state th ey

are in when the said goods are delivered or the said services are performed.

7. When a transaction for which no consideration is p<aid or p<ayable is ~eemed to

be a supply of goods made by a person for a consideration by vinue of regulal10 ns ma de

for th e purposes of subs eel ion (2) of seclio n7 of lhis Act Ihe tuxab le va lue or that supply

shall be th e price wh ich would be payable by Ihat person if ~e were .to purchase at the

time of that supply goods idenlical o r si mi la r to the goods tn q ~estlOn , .o r, wh ere t~e

value cannot be SO ascenained, the cost o f producing the goods tn quest)Qn al the satd

time.

8. Whe n a Iransa"tion for which no consideration is paid or payablc is deemed to

be a supply of services made by a person fot a conside r-Itio n by vinue of regulations

made for the purpose;s of subsection (2) of section 7 or lhis Act the taxable value of that

supply shall be th e full (:OStto that perwn of providing those services.

9. Where an y value relevant for the de termination of the taxable value of a

taxable su pply is expressed in a fo reign currency the exchange Hlte applieahle sha ll be

the midd le rate determined by the Cenlral Bank for the dale when Ihe supply takes

place.

10. Where the amount of lax chargeab le unde r this Act is not iden tified in a

payment for a taxable supply that payment shall be deemed to ind ude the said tax.

11 . Where any arrangement or scheme has been estahlished by or unde r

regulations prescribed under this Act for the purpose of determining the taxahl e value

of taxable supplies in special classes of cascs such arrangeme nt or sche me shall appl y

notwithstanding these regulations or anything contained in this Act.

12. ( I) Subject to the other provisions of this item , the taxable value of an y

imported goods shall be thc value of the said goods at the ti me when the tax on th e said

imponation is payable in terms of subsection (2) of section 21 of this Act . which value

shall be establ ished in the same manner as that applicable in terms of Ihe Import Duties

Act for the determ ina tion of th e va lue on wh ich duty ad I'ufortm is chargeable under

that Act, and all the re leva nt provisio ns of that Act shall apply m U/afis mu lflrldis and for

the purposes of this paragra ph the references in the said provisions to th e Co mptroller

o f Customs shall be conslrued as refe rern.:es 10 the Com pt roller of Customs acting on

behalf of the Commisstoner.

(2) The v!llue eSla blished as afo resaid shall be increased by any im pon

du ti es chargeable on the importation of the said goods unde r th e Im port Duties Act. by

any levies chargeable on the said importation under the local Manufactu res

(Promotion) Act , by any excise duties payable in Mal ta by reason of the im ponation of

those goods and. in the case of motor vehicles. by the tax chargeable unde r the Motor

Vehicles Registra tion Tax Act.

(l) Where the said goods are tra nsfe rred in Malta before th e date on which

the tax on their import at ion becomes paya ble in termsof subsectto n (2) of section 211he

taxa ble value shall be th e value of lhe co nsideration paid or payable for the said transfer

or the value esta blished with th e othe r provisions of this item, whieheveris the higher.

,..

3 14

The provlSlons of the o ther items of this Schedule relating to the

(4)

dell~rmination of the value of the consideration paid or payable for a tu.ble supply

shall apply fo r the determi nation of the value of the consideration referred 10 in

paragraph (3) of th is ite m.

Fl r m SCHEDULE

Supptlft subjed lolM rile sp Ecified In pail 72'1", (b) ofl«tkM:l 19

Section 19(b)

I. The su ppl y of food purveyed at any eSlablishmen~, buildi ng or pre mises,

however dcscribed . wh ich is req uired to be classified a nd lice nsed as such in te nns of the

l-I olel5 and Catering Establ ishments Act and any regulations tha t may, from time 10

time:. be made in exercise of the powers conferred by section 16 of the said Act.

2. The su pply of food purveyed a t any o the r premises purveying prepar.:d food

against payment fo r consum plion on the pre mises. whet he r such food is prepared

therei n or not exclud ing-

(a) the supply of food in a club in an area restricted 10 purveying food Ind

beve rages solely to mem bers and their gueslJ

(b) the supply of food by a canteen 5ituated in a work or study area and

which exclusively .serves food and beverages 10 workers a nd s tudents the re in .

•• The supply of food 10 be consumed at a reCC'ption.

5. Th e supply of o ut side catering services.

6. The supply of accommoda tion in any premises which for the purposc o f the

provision of such accomr.1odat io n is required to be lice nsed in vinue of the li olels and

Ca te ring Eslablishments Act o r of Ihe Guest Ho uses a nd I-Ioliday Furnished Pre mises

A~ .

7. The supply of scrv~s 10 persons wppJied with accommodation in a ny

premises to which ite m 6 applies where such .serviCC's consist in ameni!ies provided

within the said premiscs.

8. In this Schedule the term M food ~ mea ns food as defined in Pan Three of the

Second Sched ul e to th is Act.

A

SIXT U SCUED ULE

Appeals to the Value Added Tu Appeals Board

Section 35

1. Composition of the Board

The Value Added Tall Appeals Board (i n thi~ Schcdule refcrrc d to as " the

( 1)

Board ~ ) 5hall be rompo5ed of a Chai rman and two me mbe rs who shall be appointed by

the Minister fo r III period of three years.

(2) The Minister may appoint a panel of persons to serve lIS Chai rmen .. nd a

panel of persons to serve as other members of the Board, in which case the me mbers

shall serve in accordance with such dist ributi o n of duties, includi ng provision fo r

ir.abi lily of members 10 se rve and ot hel ci rcu mstances. as the Minister may establish.

(3) A membe r of Ihe Board may oot be removed during the period for which he

has been appoint ed except fo r proved misbe haviour or inabi lity 10 perfonn his

functions.

(4) Th e provisio n5 of se<:tions 733 10 739 im:lusive of the Code of Organization

and Civil Procedu re shall a pply to the Chainn an and 10 the ot her members of the Board

with respect 10 appea ls before the Board in the sa me manner as they apply to j udges

wilh rcspecl lO a ca use brough t before a ooun.

(5) A person shall be disqualified from being appointed o r con tinuing 10 be a

nt ember of the Board if he is a membe r of th e House o f Rep resentatives.

(6) In Ihe caseofa vacancy in the Board which ca nno t be filled in accordance with

a distribution of dudes establ ished in terms o f SUbsection (2) of th is sectio n the Attorney

General shall appoin t a person to fi ll tha t vaca ncy in the hearing and determi nat io n 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 personall y liable for any act or default

of the Board done or omitted to be done in good fa ith in the course of the operat ions of

the Board.

2. Se<:relary to the Boa rd

(I) Th e re sha ll be a secretary to the Board, who sha ll be a public officer

designated as secretary by the Ministe r.

(2)

The Minister may designllte ot her public officers as deputy secretarics.

J.

Competence of the Board

( t ) The Board shall be competent to hea r any appeal against an assessment a nd

to confirm. reduce o r increase any IlllIable value o r credit or IU assessed by the

A 3 16

Commissioner. or canccl the assessment or make such other declaration or order as it

dee ms fit.

(2) The Board shall be rompetem 10 determine any mau er re ferred to it in

accord ance wit h section 33 of this Aa .

(3) The Board may. in I ny decision. make such order on the C05lsoflhe case as it

may deem appropri ate.

4. Appeals agai nst assessments

( I)

An appeal agai nst an assessmen t shall not be valid unless

(a) a return for tne ta:t pe riod to which tile asse" ment refers has been

del ivered to the Comm issione r before the appeal is entered ; and

(b)

alt tax payable by the appe llan t which is nOl in dispute has been paid : and

(c) 001 less than t ..... enty·five per cent ohhe tu: which is in dispute in teTInS of

that appeal has l>een paid: and

(d) it is made wi thin thirt y days from the date of the se rvice of the notice

aga i n~t which the appeal is made: and

(e)

il is made on such form and in such man ner as may be prescribed.

(2) The onus of proving that any ta:table value assessed by the Commissioner is

uccssive or that any credit assessed by the Commissioner is imu fficient shall lie on the

appellant.

(3) The Bonrd ma y refuse to consider any evidence as sufficient for the pu rpose

of paragraph (2) of this ilem if the appellant has failed to kee p the reco rds and

documen ts required to be kepI by this Act or fails to produce such records or

documents.

(4) The Board shall deliver its decision in writing and shall ca use a copy of th e

decision 10 be scrved on the appellam .

5. Paymen t of the taX"

( I) When a va lid appeal has been made agai nst an assessmen t . the payment of 50

much of the tall aW"Med which is in dispute as is nOt req uired to be pai d before the

appeal is made in accordance wi th ilem4( 1 Xc) of this Schedule maybe kept in abeyance

un til the appeal is fi nall y determined: provided that the ru nn ing of inle reSt on the said

tall shall not be meanwh ile suspended .

(2) The ru nn ingoft he period referred to in subsection (2) ofscction 47 olt his Act

shall be suspended in respect of any till or additional lax for any time durin g wh ich the

payme nt thereof ma y be kept in abeyance in terms of this item .

(3) Section 55 of this Act shall not appl y to any interest due on till the payment of

which has been kcpt in abeyance in te rms of the provisions of this ite m and to an y

additional tax due by refe rence 10 such tall .

(4) Where the tu payable 11.5 a resu lt of a decision of the Board on an appea l

against an assessment exceeds the tu 5hown to be payable in the said assessment, the

ellcess shall be payable by not later than the end of the mon th during wh ich the said

decision is se rved on the appellant an d interes t at the rate specified in subsecti on (2) of

section 22 of this Act shall be due on such CllceSS from thc said date for any pe riod

during which such ellcess remains unpaid.

6. References to the Board

(I) A reference to the Board of any maller referred to in section 33 of this Act

shall be made by means of an applica tion in wri ting which shall state clearl y all the facts

relevanl to that matter and the manner in wh ich, in th e o pinion of the applicant , th at

maller sho uld be detennim:d.

(2) 1lIe Board shall , afte r hea rin gall parties ha vi ng an interest in the matter, and

obtaining all relevant infonnation , decide the malleT and cause its decision to be served

on the parties.

7. Procedures oflhe Board

( I) The Board shall have the power tosummon any person to glveevidence o r to

produce books or other docum enu and the Chairm an shall have the powe r 10

administer an oath to any pe rson appea ring before th e Board.

(2) 1lIe Ministe r ma y by regulations prescribe the manne r in whi ch an appeal or

application is to be made to the Board, the place where the Board sha ll hold iusi u ings,

the manner in which the parties may be assisted, the fees payable on appeals, the

records to be kept by the Boa rd , the fu nctions of the secretary to the Board , and

ge nerally any matte r relating to the procedures of th e Board.

Passe d by th e House of Represe nt atives ~t Sitting No. 3 14 of the 30th Jul y, 1994.

LAWRENCE GONZt

Speaker

RI CH ARD J . CAUCHI

Clerk 10 Ihe House of RepreSenlal;"CS

Publisbrd by tM !kp:ntmr:ru oflnfu<m:l1Ion - Ca<lille

!ppubb!ik:alIIlId-D!parttmrnI13 . l-InfOfIlW2}011i KasttlJ'

Mitbugll fl-Istamperij. taI-G\-nn - Prtnred at IM G",",,,,,m,,,,r Prinung Pr=

Preu 56 c - Pric" 56 c

Administration

PART 11

or tbe Tu

Seo~

Charge \0 tax

Taxable slIpply and taxabl e importation

Taxable peMn

Supplies of goods and supplies of services

Place of supply

Time of supply

Reverse charge

J I.

Exemptions

PART III

Registration and Returns

Applicalion for registrat ion

Regislf81ion

Cancellation of registration

IS. T ax period

16. Returns

Ocnunzji

Ete nzjoni mill-obbligu li ssirdenunzja

Exemption from ob li gation to furnish return

PART IV

l>etermlnallon and Pay ment of Ihe Tax

Taxable va lue

Ral e of tax

Per.;ons liable for the payment of Ihe tax

Tim e wh en tax becomes due and payable

Payment of the tax on 18)[able supplies

Deducti ons

24. Input lax

C redit for input tax

EJicess credit

Refund of excess credi t

Further deductions

PART V

Assessments, Additional Tax and Appeals

29. Assessments

Addit ional tax

3\.

Reasonable excuse

Skuta ragonevo!i

Appeal against an assessment

Other matters that may be re ferred to Appeal

Value Added Tax Appeals Board

Matters regulated by the Sixth Sched ule

Appeal to the Coun of Appeal

PART VI

Recordll a nd Inrormation

Records to be kept

Price marki ng

Tax Invoice

Documents to be provided in OIher cases

Production of invoices by persons to whom a supply is made

Inspect ions

Access to place o f habitation

Inrormation held by certain licensed persons

Official secrecy

PART VII

Special Cases

Special cases

PART VIII

Collection. Security and Rdunds

47 .

Suit by the Co mmiss ioner

Kawta mi!l-Kummissarju

Executive title

Restrictions o n the release o f imported goods

Powe" relating 10 imported goods

Special privilegc

Security for tax due on su pplies

Security for credits . deductions and refu nds

Shorter period for the delivcry of a return

Appropriation of payment

Repayment of overpaid tax

International arrangeme nts

A

PART IX

Miscellaneous

Delivery and service of noticcs, etc,

Represen tatives

60. Interest

Power to make regulat ions

PART X

orrt'n~ and

Penaltie5

Failure to apply for registration. or to kee p or deliver records and returns

lrregularit ie.o; in records , returns , invoices and transactions

Obstruction of officials

Offences relating to importations

Gcne ral offence

Offences by principal officers of bodies of persons and by employers

Prosecution

f:fJ. Compromise penalty

PART X I

Transitional ProvislonJ

TAOSIMA XI

Dispotiujonij i~ TrallSitorji

Application for regist ration

Time of supplies

Continuous services

Importations of goods rcleased before first January t995

Interpretation of certain contracts

Repeal and Savinlt of the Expenditu re Levy Act

Transitory provision

SCHED ULES

First

Place of Supply of Services

S«o,d

Exempt Supplies

Third

Exempt Importations

Fourth

Taxable Value of Supplies and Importati ons

Fifth

Supplies subject to the Rat e of Tax specified in Paragraph (b)

of Section 19

Sixth

Appeals to the Value Add ed Tax Appeals Board

(L .S.)

UGO MIFSUD B ONN TC T

Presidenl

12th August , 1994

ACT No. XJJ 01 1994

AN ACT Io mlJkt P'Q~uioflfQ,'ht Va/ut Addtd Tax .

BE IT ENAC I EO by the President, by and with the advice and

conse nt of the Ho use of Representatives, in this prese nt Parliament

assembled, and by the autho rity of the same, as foUows:-

PART I

Preliminary

I . This A ct may be cited as the Value Added Tax A ct. 1994 and Stoon rl,lu""

shall come into fo reeo n such date as the mi niste r responsible fo r finance -...., ... "'.

may by notice in th e Gazelle appoint and different dates ma y be so

appointed for different provisions and different purposes o f this Act.

2. (I )

In this A ct , unless the contect o the rwise requi res -

"Board" means the Value Added Tax Appeals Board

established in te rms of section 34 of this Act;

"customs bond" means a bond as defi ned in section 2 of the

Import Duties Act ;

"economic activity" has the meaning assigned to it m

subsections (2) and (3) of section 6 of this Act;

-employee- means any individual bound to an employer by a

contraCl of employment or by other legal lies creating the

relat ionship of employer and employee as

working

conditions. remunera tion and the employee's

and shall

also incl ude a ny directors of a compa ny

- importer- means allY person having goods stand ing in his

name o n the books of the c ustoms departme nt ;

- input tax - mea ns a n amo unt determined in accordance with

sectio n 24 of Ihis Act;

- Malta- has the mea ning assigned 10 il by the Co nstitutio n a nd

includes the con tine ntal shelf

- Min ist'er- mea ns the Mill iSIC: r responsi ble for fina nce;

-output lax- means the lax refe rred 10 in sub!;cction ( I) of

sectio n 22 of this Act;

- person- incl udes a public authorit y, a trust and any en tity

ca pable of ca rryi ng o n a n econo mic activity;

- pu blic au tho ri ty" mca n~ th e Gove rnme nt, a local council set

up in accordance with th e Local Councils Act, a n au thority vested

wi th disti nct persona lit y set by an Act of Pa rliame nt or a

corpora tion constituted by an Act of Parliame nt;

Mregistercd pe rson" means a person who has bee n n:gistc rt d in

accorda nce with section 13 an d wh ose registra tion has not been

ca nctlled in acco rdance with sectio n 14 of this Act ;

"retai lc r" means a tlllCable person whose busi ness consists

wholly o r main ly in the sale of goods by retai l;

~Iax ~ means the val ue added lax cha rgeable under th is Act ;

"tax invoice- mean s the invoice req ui red to be provided in

te rms of seclion 39 of Ih is Act ;

"tax period- has the mea ning assigned 10 it by section 15 of this

Act ;

Mlax rel urn " meam the re turn req uired 10 be furn ished in

terms of subsection ( n o r subsectio n (2) of section 16 of this A ct;

"Iaxable importa tio n" has the mea ni ng assigned to it by

subsectio n (2) of section 5 of thi s Act ;

-taxable person" has the mean ing assigned 10 it by sectio n 6 of

this Aet ;

"taxable ~upply- has the mean ing assigned to it by subsection

( I) of sectio n 5 of this Act ;

" Iauble val ue" mea ns the va lue of a ta xa ble su ppl y o r of a

tax able importatio n esta blished in accordance with section 18 of

Ih is Act.

(2) In de termining the country where a pe~n is deemed to

be establ ished for the purposes of this Act the following ro les shall

apply

(a) if a supply is made by or to • person in the course or

funherance or for the purposes of an economic activity carried on

by that pelWn in , from or through. fixed place siluated in a

country that person shall be deemed, in respectofthal supply, 10 be

established in th al country;

(b) if a supply is made 10 or by a person in the course or

furt herance or for the pu rposes of an economic activity which is not

came on by that pe~n in , from or through a fIXed place , that

person shall be deemed, in ~ of that supply. to be

established

(i) in the case of a pe~n other than an individual, in

the country where it is formed . incorporated , registc red .

constituted or managed ;

(ii) in th e case of an individual, in the cou ntry where the

individual has a permanent addrCM Of usually resides.

J. ( I) The administration of this Act is vesled in the,., .. ........

Commissioner of Value Added Tax , herein after in this Act rdem:d 10

as "the Commissioner", who shall be a public office r appointed as such

by the Prime Minister.

(2) The Commissioner may delegate to any public offlCef

any of the rights. dut ies, powers and other functions vested in him ,

conferred to him or imposed upon him by this Act.

PART 11

Sc:ope or the Tax

4. ( 1) Subject to the Ot her provisions of Ihis Act there shall be Qqe"' ......

charged . levied and collected on accoun t of the Government a yalue

added lax-

(I)

on every tuable supply, and

Cb) on every taxable imponation

with takes place on or after first Janua ry 1995.

(2) The provisionsofsubsection ( I)ofthissection shall apply

notwithstanding any exemption from tax granted by or unde r any ot her

law.

5. ( I) Any supply of goods or services. othe r than an exempt Tu I'

supply, made in Malta for a consideration by a taxable pe~n acting IS ~, •• ~

such is a taxable supply .

(2) Any importation of goods in to Malta , ot her than an

exempt importation , is a taxable importation .

6. (I) A taxable person is a person who independently carries

on an eoonomi, activity, whateve r the purpose or the res ults of Ihat

(2) An economic act ivity means 3ny activity carried in the

course ("IT furtherance of any trade or business and includes -

(a)

any aCl;v;ty carried on by any person. other than an

employee acting as such, in the caune or furtherance of any

prof~ion or vocalion o r the

provision of any other personal

services;

(b) the exploitation of!angibleor intangible prope rty for the

purpose: of obtaining income therefrom on a con linuing basis;

(c) the provision by a club. association ororgan;zation (for a

subscription or other consideration) of the facil ities or advanlages

availabk to its members: and

(d) the admission, for a consideration. of persons to any

premises.

(3) NOIwi thstanding the provisions of the othe r subsections

of this section the activit ies of a public authority acting in the exercise of

the: functions assigned to it by law shall not be deemed to be economic

activities e xcept where a nd to the e xtent that the Minister may , for the

purpose of avoidin g Significant disto rtions of competition , otherwise

prescribe.

7. (I)

Subject to the provIsIons of su bsection (2) of this

section _

(3) the transfer of the right to dispose of tangible property as

owne r is a supply of goods;

(b) any supply which is nOl 3 supply of good is a suppl y of

selVlCes.

(2) The Ministe r ma y by regulations prescribe with respect

to any description of transaction -

(a) that it is to be treated asa supply of goods o r asa supplyof

services;

(b) that it is to be treated as neither a suppl y of goods nor a

su pply of services;

(c) tha t it is to be treated

a supply made for a

3li

conside ra tion;

(d) that it is to be treated as a supply made in the course or

furtherance of an economic activity.

8. (1) Subject to the other provisions of this section a supply of l'Ia<eofwpply.

goods shall be deemed to be made in the country in which the goods are

situated at the time when the supply takes place.

(2) Goods imported into Malta shall be deemed to have been

supplied to the importer outside Malta.

(3) Goods exported out of Malta shall be deemed 10 have

been supplied by the exporter in Malta.

(4) The place where services are supplied shall be

determined in accordance with the provisions of the First Schedule to

this Act.

9. (1)

Subject to the other provisions of this section -

(a) a supply of goods shall be deemed to take place at the

time when the goods are delivered or otherwise made available to

the person to whom th e supply is made;

(b) a supply of services shall be deemed to take place on the

date when the services are performed.

(2) Subject 10 the provisions of subsection (3) of this section

when payment for a taxable supply is received by the person making the

supply before the time determined in accordance with subsection (1) of

this section the supply shall , to the extent of the payment so made, be

deemed to take place at such earlier time.

(3) When a tax invoice for a ta1l:ablc supply is issued before

the time determined in accordance with the provisions of subsetion (\)

of this section or before the e1l:piration of thirty-onc days following the

time determined as aforesaid the su pply shall , to the e1l:tent of the value

of that invoice , be deemed to take place at the time when the in voice is

issued.

(4) When services are supplied for a period for a

conside rati on the whole or part of which is determined or payable

periodically or from time to time , they shall be treated as separately and

successively supplied at the earlier of the following times

(a) whenever a payme nt for such supplies is received, to the

e1l:tent covered by that paymnet; or

(b) whenever a tax invoice is issued in respect ..)f such

supplies, tu the extent cove red by that invoice.

(5) The Minister may be regulations make suc h provisions as

he may deem fit for the determination of the time of supply of goods or

services in such cases and in such ci rcu mstances as may be specifi ed in

the said regul ations.

10. When a taxable supply of services is made by a person who is

not establis hed in Malta 10 a taxable person establ:sbed in Malta the said

taxable person cnablished in Malta shall be deemed 10 have himself

supplied those sefVices in the course or fun herance of his economic

activity and the provisions of thi\ Act, including the obligation to apply

for registration an d to account for and 10 pay the talI: , shllll apply

acco rdingly.

11 . (1)

Subject 10 the provisions of subsection (2) of Ihis

section -

(a) the supplies 10 which the Second Schedule 10 Ihis Act

applies shall be exempt supplies;

(b) the imponatioll5 10 which the Th ird Schedule 10 thn Act

appl ies shall be exempt importations.

(2) The exemptions referred 10 in subsection (I) of this

section shall be subject to the provisions con tained in the Schedules

referred to in that subsection and to such conditio ns which the Minister

may by regulations prescribe for the purpose of ensuring the correct and

straighlforwa rd application of the "id exemptions and of prevent ing

any possible evasion. avoidance. abuse o r disto rtion of competi tion.

(3) A ny promion contained in or under any law

empowering the Minister to gran t an exemptio n from imporl du ties o n

the importation of goods chargeable under the Impon Duties AcI shall

be construed as empowering the Minister to grant . in the same

ci rcumstances, in the same manner. and subject to the same conditions

and li mitatio ns provided for in any such provision, an exemptio n from

tax chargea ble un de r th is Act o n thc import at io n of the said goods.

PART III

Rtglstration and Rdums

U . ( I) A ny taxable person who is established in Malta and who

is nOt a registered person shall apply to the Commissioner to be

registe red under this Act wit hin thiny days fro m the date on wh ieh he

mak es any supply referred to in subS«tio n ( I) of section 2S of Ihis Act .

(2) Any taxable person who is no t established in Malta and

who is not a registe red pe rson sha ll apply 10 thc Commissioner to be

registe red unde r this Act within thirty days from the date on which be

makes a taxable supply, ot her than a su pply of services to a taxable

person established in Malta.

(3) Any taxable person who is not a registered person shall ,

if so requested by the Commissioner . apply to be registered under this

Act within thiny days from the date o n which he is served wi th a notice

con taining such a request.

(4) Any tnable person who is not a registered person and

who intends to make any suppl y referred to in subsection (I) of section

2S of this Act and any person who intends to carry on an economic

activity may apply 10 be registered under th is Act .

(5) An application for regist ratio n under this Act shall be

made on such form and in such mllnner 115 may be prescribed.

(6) Tbe Ministcr may be regulations exempt any person or

class of perwns from the provisions of this section and may by such

regultions make such an exemption subject 10 such conditions and

limitations as may be presribed.

13. ( I) The Commissione r shall register every person known to Rep. .. ,,,,,,.

be liable to apply for registration in termsofsubscction (I)orsubscction

(2) of section 12 of this Act , wheth er an applicat ion for registration has

been made or not by such person.

(2) The Commissioner shall register any person who has

made an applicatio n in terms of subsection (4) of sectio n 12 of this Act if

he is satisfied that suppli es refe rred to in subsecti on (I) of section 2S are

likely to be made by that person in the course or furtherance of his

economic activity or of the economic activity he intends to carry on.

(3) The Commissioner shall allocate a registration numbe r

and shall determine the first tax period for every person registered

under this Act and shall deliver to that person a registration certificate.

(4) The Minister may by regu ltions make provisions for the

registration of a number of persons 115 one person or for a person to be

registered separately in respect of different branches or departments of

his economic activity in such circumstances and in respect of such

supplies as may be specified in the said regulations.

14. (I) The Commissioner may at any time <-aneel th e ea-lI.,,,,,,of

registration of a person if he is of the opinion that that person does not ...... ,""'.

carry on or has ceased to carry on an economic activity or that that

person is not likely to make tallable suppli es or be entitled to a credit in

terms of section 2S of this Act.

(2) The Comm iss ioner shall se rve a notice on any person

whose regist ration has been ea nceJled, indicating the date on which that

perr.on has ceased to be a registered person .

(3) The cancellation of the regiSlTation of a person shall not

relieve that person from any liability incu rred before the date of the

cancellation or in virtue of anything done before that date, or from the

obligation to make an application for 11 fresh registration in any of the

circumstances referred to in subsections ( I) , (2) and (3) of section 12 of

this Act .

15. ( I) Except as ot herwise provided in th is section a tax period

means a period of three calendar mo nths. or such longer o r shorter

period as the Minister may by regu lations prescribe in respect of such

class o r classes of persons as may be specified in the said regulations,

commencing on the first day immediatley following the e nd of the

preceding tax period.

(2) The first tax period for a person shall comme nce a nd e nd

on such dates as may be determ ined by the Commissio ne r in aC(:ordance

wi th subsection (3) of section 13 of this Act.

(3) The last tax period for a person whose registration has

been cancelled shall be the tax period during which the date of the said

cancellation falls a nd shall end o n the said date.

(4) The Com mi ssioner may be means of a not ice served on a

registe red person in any particula r case vary any tax period for that

person in such mann e r as may be specified in that notice.

16. (I) Eve ry registe red person shall fum ish the Commissio ne r

with a return fo r every tax period. The said return shall be fumished by

not la te r than the fift ee nth day of the second month fo llowing the month

during which th e re lative tax period ends, and shall be made o n such

form and contain such pa rt icul ars and information as may be prescribed

o r as may be app roved by th e Commissioner.

(2) Eve ry person whose registration has been cancelled

shall. wit hin four weeks fro m the date OD wh ich he is served with a notice

referred to in subsection (2) of section 14 of this Act , or with in such

longer period as may be specified in the said notice, fumish the

Commissioner with a return relating to the last tax period o n s uch form

and con taining such paniculars and informatio n as the Commissio ner

may require or as may be prescribed.

(3) Every registered person and e very person whose

registrat io n has been cancelled shall furnish such additional re turns ,

statements and info rmation and shall produce such documents as may

be reasonably requi red by the Commissioner fo r any purposeof this Act

or as may be prescribed.

(4) A registe red person who has understated the output tax

or overstated the deductio ns in a tax retum fumished to the

Commissio ner for 11 tax period shall. witho ut prejudice to the provisio ns

of section 30 of this Act. di scose the said understatement o r

overstate ment by means oC a ootice to the Commissione r.

(5)

The Ministe r may, by regulat ions

(a) prescribed the manner in which and th e form o n whi ch a

no tice fo r the purpose oCsubsection (4) of thi s section is to begiven ;

(b) subject to such limita tions a nd condi tions as may be

prescribed, II110 w adjustments fo r understa teme nlS and

oventatements of o utput tu: and deductions to be made otherwise

than by me a ns of 11. nOlice given in terms of subsection (4) of th is

section;

(c) make such other provisions for acx:ounting for

overslatemenU a nd understatements of outputlU and deductions

as may be prescribed.

(6) A return mall not be deemed 10 have bec n furnished

unless il is fu ll and com plcte: in all material respects.

(7) Wh en a registcred person has furnished the

Commissioner wit h a tu: return for a tu: period, the ou tput tax and the

deductions of Ihat person for that period for any of the purposes of this

Act shall. excel" as provkted in section 29 of Ihis Act, be deemed 10 be

the output tu and lhc deductions declared in that return laking into

aewunt any disclosure or adjustment made in aocordancc with

subsection (4) o r wilh regu hions made in vin uc: of subsection (S) of Ihis

5CCtion.

17. (I) The Commissioner may, by no tice in writing, elle mpt Eumplionfrorn

any person fro m the provisions of subsection (I) of section 160f this Act =~:-IO

for s uch time and subject to such conditions a nd lim itations as may be

specified in the said notice and may, by notice in writing, vary or revoke

any eJltmption so granted.

(2) Notwit hstanding an exemption granted in te rms of

subsection (I) of this section, a registered person-

(a) shall fumsih the Commissio ne r wi th a tax return in

respect of any tax period duri ng which he makes any ta.u bJe

supply;

(b) may furnish a tax return for any tax period for which he is

en titled 10 a credi t in terms of section 2S of this Act .

PART IV

Dtlt nninatlon and Paymtnt oilhe Tax

18. The taxabl e value of tillable supplies and of tillable Tou·I:_.

impo rtations shall be esta blished in the manne r laid down in the Fou rt h

Schedule to this A ct.

(I) The tu: chargeable under this Act shall beal the rat e or

19. fifteen per cent of the taxable value of every taxable

(a)

~upply other than a suwty referred to in paragraph (b) of this

section;

(b) ten per cent of the taxable value of every taxable su pply

to which the Fifth Schedule to th is A ct applies;

(c) fifteen per cent of the tillable value of every taxable

imponation.

(2) The Minister may by Order in the Gazeltc reduce in

whole or in part the rat e of tax applicable in accordance with su~ct ion

( I) a flhis section on such taxable suppli6 or such taxable im portations

as may be determined in the Order, for such period and under such

conditions as may be dete rmined in the Order.

20. Without prejudice 10 the provisions of section 59 of this Act -

(a) the tax due on a taxable supply shall be a liabili ty of the

person who makes the supply ,

(b) the lax due on a taxable importation of goods shall be a

liability of the importer of those goods.

21. (1) The lax chargeab le on a taxable supplyshaU become due

at the time when th e supply takes place and shall be payable at the lime

and in the manner p rovided fo r in section 22 of Ihis Act.

(2) The tax chargeable on a taxable import ation shall

become due al the time whe n the importation takes place a nd shall be

payable to the Comptro ller o f Custo ms o n be half of the Commissioner

before th e imported goods are delivere d for use or cons umptio n in

Malta o r othe rwise as may be authorised in te rms o f paragraph (c) of

subsection ( I) of section 49 of this Act.

22. (1) The tax d ue by a registere d person o n taxable sup plies

made by him d uring a tax period and the tax due by a person whose

registration has been cancelled on taxable supplies made by him during

the last tax period shall be the ou tput tax of that person for th at lax

period and shall, to the extent that it is nOt set off by deductio ns

allowable in vin ue of section 23 o r o f regultions prescribed in

accorda nce wilh section 28 of th is Act, be pa id 10 the Commissioner by

no t late r than the date by which tha l penon is req uired to furnish a

return for the relat ive tax periOO in accordance wi th subsection (1) o r

subsection (2). as the case may be. o f section l60f this A CI.

(2) Interest shall be due on any tax which is not paid by tbe

date on which it becomes payable in accordance with this section a t the

rate of o ne perce nt for each mon th or part thereof during which the said

tu remains unpa id o r a l s uch other rate as may be prescribed .

(3) The Minister may by regulations prescribe the ,!,anne~ in

which payment of the tu sha ll be made, the forms 10 be su bmI tted WIth

any sm:h payme nt and the receipt to be give n by the Commissioner fo r

any such payme n t.

23. A registere d person who furnishes a re turn for a tax period

shall be e n titled to set off against the output tax fo r tha t period the

amount o f the c.:redit for input tax allowable to him for tha t period in

accordance wi th section 25 of this Act a nd any amoun t allowable to him

as excess credit in acco rdance with sectio n 26 o f this Act .

24. Subject to the provisions of subsection (3) o f sectio n 2S of Ihis

Act, the input tax ofa registe red person fora lax period shall be the total

of

(a) the tu chargeable on wable supplies made to him and

the ta)[ paid on taxable importations made by him during that

period or, where the Commissioner so all.ows, during. an earlier

period, 10 the e:Klenl that the goods andsemcesso su pphed and the

goods so imported have been or will be wholly used by him in the

course of furthe rance of an economic activity; and

(b) the tax chargeable on taxable supplies deemed to be

made by him during that period in terms of section 10 of thi s Act .

1.5. ( I) There shall be allowed for every tax period of a O.di,foo

registered person and for the last t.aJC !>C.riod of a JW:rson whose inpo. , ...

registration has been cancelled a credit for mput .tax eq.ulvale.nt to so

much of the input tall of that person for that pen od as IS attnbutable

(a) taxable supplies made or 10 be made by that pe rson

excluding supplies deemed to have been made by him in terms of

section 10 of this Act;

(b) exempt supplies specified in Pan One of the Second

&:hedule to this Act and made or to be made by that person in th e

course o r furth erance of his economic activity;

(c) supplie s made or to be made by that person ou tside Malta

in the course or furtherance of his econimic acti vity.

(2) Wh ere the input tax of a registered person for a tax

period includes tax on any goods or services which have been or which

are to be used by that person both for the purpose of makin g supplie s

referred to in subsection (I ) of this section a nd also for other purposes.

there shall be dee med 10 be attributable to supplies referred to in

subsection (1) of this section such portion of the tax on the said goodsor

services as may be prescribed .

(3) The Minister may by regulations mak e provisions for the

de termination of the input tax and the a ttribution of input tax to

suppl ies referred to in subsetion (I ) of this section, and may by such

regulations prescribe -

(a) that tax chargeable on such su ppli~ or importations as

may be specified shall not be treated as in put tax i

(b) that input tax of a registe red person shall not be allowed

as a credit unless it is supported by tax invoices or by such other

evidence as may be specified ;

(c) that tax ehargeable on such suppli es o r importations and

in such circumstances as may be specified made to or by a person

shall be treated as input tax of another person ;

(d) that the amount of input tax of a registered person

att ribu table to supplies referred to in subsection ( I) of this section

shall be determi ned by re fere nce 10 a number of tax periods and

that any attribution which may have already been made for the said

tax periods in accordance with the o tber provisions of this section

shall be adjusted in such mann e r as may be Specified in the said

regu lations;

(e) such otber provisions as may be deemed ne!X5Sary for the

purpose of securing a fai r and reasonable attribu tion ofinpullax to

su pplies.

26. (I) Where the credit for input tax for a tax period of 11.

registered pelWn clIteeds the output tax for that period the uces:s shall

be an excess credit and may be set off against the output lax for the

subseq uen t tax period in addition 10 the credit allowable in accordance

with section 2S of this Act.

(2) For the purposes of section 23 of this Act and of

subsection (1) of this section the credi t for input 10. for a tu: period shall

be set off before any excess credit.

27. ( I) Any credit or part thereof allowable to a registered

person for a tax period which is nOI se t off againsl lhe output lax fortlla!

period and for the subsequen t tllX period in accordance with the

provisions of section 26 of this Act shall be refund ed to that person.

(2) Whe n the regiSlr81ion of a person has been cancelled any

credil allowable 10 Iha l person which is nOI sel off aga insl lhe outpullax

for Ihe lastlu period shall be refunded 10 th al person.

(3) A refund which becomes due in accordance with

subsection (I) or subsection (2) of Ihis seclion shall be made not laler

than th iny days from the last day of Ihe time allowed in termsofsectioo

16 of this Act for Ihe furnshing of the tu return for the subseque nt tu

period referred 10 in subsection (I) of this section o r for the last tax

~riod refe rred to in subsection (2) of th is section, as the case may be or

from Ihe day on which the said re turn has bee n furnimed 10 Ihe

Commissioner, whichever is the later

Provided tha lthe Commissioner may, for the purpose of any

such verification as may be reasonably necessary to asce n ain th e

amounl refun dable, extend, by means of a notice in writing to the

person 10 whom Ihe refund is due. Ihe time limil referred 10 in this

subsection by thiny days.

(4) The Commissioner may set off againsl any refund due 10

a person in accordance with this section any amou nt of tax , additio nal

tax or in te resl resulting 10 be payable by that person under Ihis Act.

(5) Inte rest shall be due 10 a person to whom a refund is d ue

in accordance with this section at the rate specified in or prescribed in

terms of Subseclion (2) of sectio n 22 of this Act from the da te when the

refund becomes payable in accordance wilh this section unlil fhe date

when it is paid o r when a cheque o r draft for the payment thereof is given

o r posted 10 Ih at person by the Com missioner.

(6) No twithstanding th e provisions of Ihe othe r subsectio ns

of Ihis section and of section 26 of this ACllhe Co missioner may allow

any excess credit resulting in a lax period 10 be refunded a t a da te earlier

than that established in acco rdan ce with the said provisions unde r such

conditions and against the furnishing of s uch secu rity as he may

detennine.

,

ZI. The Minister may by regulations make proYisiora for the

allowance o f further deductions against the output tu and may make

such further deductions subject to such conditions and limitations as

may be pres .... ibed.

PART V

nuts, Addltion.t Tu: &Dd Appals

It

29. (I) Whe re the Commissioner has reason to believe-

(a) tha t ath return furnished by a registered person fo r a tax

period contains an understa tement of the ou tput tu o r an

oversta tement of the deductions fo r Ihat period, and Ihat such an

understate me nt o r overstalement has nOI been disclosed in

accordance with the provisions of subsection (4) or adjusled in the

manner prescribed by regultiora made in virtue of subsection (S) of

section 160fthis Act. or

(b) th at tU for a tax period is payable by a person who has

nOI fumised Ihe Commissioner with a tax return for that period,

he may at any time after the expira tion o f the time allowed in terms of

Ihis Act for the de livery of the tax return for th at tax period and by not

la ter than six years from the end oflhe said tu period asse.ss the laxable

value of the taxable supplie.s, the ou tput tax , the deductioDll allowable,

and the tu: payable o r excess credit resu lting for that period.

(2) An assessment may be made by reference to such

information, estim ations or criteria as the Commissioner may. in his

judgeme nt. deem appropriate .

(3) If the Commissioner has reason to believe that any

addition o r revision stands 10 be made 10 an assessment made for a tu

period he may. wit hin the time specified in subsection (I) oft~is 5Cction ,

make an additional assessment or revised assessment acoordlDgly.

(4) Where a n 2 U "lSment is made for a laX period any

amount of tax and deductions 2 n esSed in tbat assessment shall, ellcept if

and to the e lltent that the assessment is cancelled or revised. and subject

to the provisio ns of section 30 of th is Act, be deemed to be and to have

always bee n the tu and the deductions properly due and allowab le fo r

that period for any of the purposei of this Act.

(5) A noli« of an assessment made in terms of Ihi' section

s hall be served on the registered person wilhin Ihe time limit specirted in

subsection ( I) oC this section.

(6) An assessme nt made on 11 registered person in the

circumstances referred 10 in paragraph (b) of subsection ( 1) of this

section shall not relieve tha t person from hi s o bligation to furnish a tIlt

re turn for the relative lax period.

30. (1)

Where an assessme nt is made for a tax period in the

circumstances referred 10 in paragraph (a)ofsubsection (I) of section 29

of this Act addi tional talt shall be due for that period in an amount

equivalent to twenty per cen t of the 10lal of

(a) the excess, if any, of the output lax as assesse.j over the

output tu as declared in the re turn; and

(b) the excess, if any, of the deduct ions as declared in the

rdum over the deductions 115 assessed.

(2) Where a tu return furnished to the Commissioner by a

registe red person for a tu period contains an understatement of the

ou tput tu or an overstatemen t of the deductions for that period and

that person makes a di sclosure of such an u nde~tatemenl or

overstatement in accordance with the provisions of subsection (4) of

section 16 of this Act before he is se rved wit h an assessment for th at

period he shall be liable to additional tax equivale nllo ten per cent of

the total of

(a)

the amount , if any. by which the output tax has been

unde~laled in the said tax re turn : and

(b) the amount, if any, by which the deductions have been

overstated in the &aid tax return.

(3) Any person who being required to fumisha lax return for

a tax period, furnishes that re turn afte r the e ~piTlltion of the time laid

down in section 16 of this Act shall be liable to additional tax in an

amount equivale nt to the higher of

(a) two per ce nt of the excess, if any, of the ou tpu t lax ove r

the deductio ns. disregarding any excess credi t brought forward

from a previous tax period. as declared in the return. and

twenty /iri

(b)

for every month or pan thereol that elapses from the date on which the

tax re turn should have been furn ished in accordance with this Act and

that date when it is furn ished to the Commissioner.

(4) Any person who, bei ng required to apply for registrat ion

under Ihis Act , ma kes such an appli cation after the expi ration of the

time laid down in section 12 or section 20 of this Act shall be liable 10

additional tax in an amount equivalent to the higher of -

(a) two per cent of the excess, if any. of the output tax over

the deductions for the first lax period following the registration

>od

twentylm

(b)

for every month or pan thereof that elavses from the dale on which the

application should have been made in terms of the said section and the

earlier of the dale on which the registra tion is furnished to the

Commissioner and the dale when that person is registered by the

Commissioner.

31. Notwithstanding the provisions of section 30 of this Act -

(a) additional tu which becomes due pu rsuan t tosui>seclion

(I), (2) or (3) of the said section by a person who has not been liable

on any previous occasion 10 additional tax imposed in virtue of any

provision of the said section shall be one half the amount otherwise

due in accordance with the said subsection;

(b) addi tional lax due in respect of a la. period by a person

woo has been liable 10 additional lax imposed in virtue of the

provisions of tbe said section in respect of at least two othe r lax

periods falling within a period of two years preceding the first

mentioned tax period shall be twice the amount ()( herwise due in

accordance therewi th ;

(c) no additonal tax shall be due by a person for any default if

that person shows that there is a reasonable excuse for the default

provided that

(i)

an insufficiency of funds 10 pay any tax due, or

(ii) when reliance is placed on any other person to

perform any task, the fact oflhat relia nce or any dilatoriness or

inaCI;Uracies on the part of the person re lied upon ,

shall not constitute a reasonable excuse for the pu rposes of this

paragraph.

32. Any person aggrieved by an assessment sc: ..... ed upon him may , Appcal...,inst

appeal against that assessment to the Value Added Tax ApPeals Board. ." w·...,.nt.

U any question arises, other than on an assessment. relating Ot ........ ttc ..

33. '0-

(a) the registration of a person under this Act or the

cancellation of such a registration,

(b) whether a transaction made or to be made by a person is

a taxable su pply or not or whether an importation of goods made or

to be made by a person is a taxable imponation or not,

(c)

any tax chargeable on the importation of goods,

(d)

the place, the time or the taxabl e value of a taxable

supply,

(e) the amount of additional tax payable in accordance with

section 30 of Ihis Act or whether any such additional tax is payable

or not,

(f)

the amount of ded uclions allowable to a registered

person (o r any lax period.

(g)

any security required by the Commissioner under this

Aa,

(b) whether any refund O(IU claimed byany person isduc 10

that person or nOl ,

(i) any question of law not falli ng within the foregoing

provisions of this section,

ij) any matter which, in te rms of any provision of this Act or

of any regullions made under this Act, may be rdern:d 10 appeal,

that question may be referred to the Value Added Tu Appeals Board

by any person who shows to the satisfaction of the Board that he has a

direct interest in that question or by the Commissioner: provided Ihat

any question on the classification of any goods unde r the Custo ms Tariff

set ou\ in the First Schedule to the Im port Duties Act shall be

determined in accordance with the provisions of the said Act lIS if the

'1uestion related to duty chargeable under that Act.

34. There shall be a Value Added Tax Appeals Board for the

purpose of hearing and determining appeals and refe rences made in

accordance with sections 32 and 33 of this Act .

The Sixth Schedule to this Act shall apply with respect 10 any

35. appeal made or any question referred tQ the Board, the composition and

competence of the Board, and the regulation of the procedures of th e

Board.

36. ( I)

Any person who, having appealed 10 the Board , feels

aggrieved by a decislO!'l of that Board may appeal against that decision

10 the Court of Appeal OD any question of law only by means of an

application to be filed wi thin th irty days from the date on which the

decision appealed (rom is notified to him .

(2) If the Commissioner feels aggrieved by a decision of the

Board he may appeal to the Court o f Appeal o n any question of law only

by mea ns of an application filed within thirty days from the date of that

decision .

(3) The Board established under scaion 29 or the Code of

Organization and Civil Procedure may make regulations governing

appeals under this section and prescribing fees payable in respect of

sucll appeal.

PART VI

RtcOrds and Infonnation

37. (\ ) Every taxable person shall keep proper and sufficient Rtcoido

records of all transactions carried out in the course or furt hera nce o f his

economic activi ty to ena ble the date, the value and the nature ofslIch

transactions, the tax chargeable thereon and the deductions allowable

in respect thereof, and any such o therinfonnation as may be p rescribed ,

10 be readily ascertained.

(2) The records referred 10 in subsection (I) of this section

shall be kept and stored in such manner , contain such details and be

supported by such documents and accounts as the Minister may by

regu lations prescribe and shall be retained for a period of at least six

yeaN from the end of the year to whi ch they relate.

(3) Regulations prescribed for the purjXlSesofsubsection (2)

of this section may re quire taxable persons to slore, process and

produce informat ion and docume nts on or by such means and machines

as may be specified in such regulations.

(4) The Commissione r may at any time with in the period

specified in subsectio n (2) o f thi s section req uest any taxable person to

produce the records, documents a nd accounts required to be ke pt by

him in vi rtue of thi s section .

38. Where any taxable person indi ca tes the price of goods offered Pm ...rtinl.

for sale by re tail, such price shall be indicaled in such a manne r as 10 be

inclusive of the tax .:hargeable unde r Ihis Act on the supply o f the sa id

.oO<b.

39. (1) Every taxable person, other than a retailer. who makes a Tu " ' _.

taxable s upply to anothe r taxable person shall provide that o ther person

wit h a tax invoice within lhirty.one days from the date refe rred to in

subsection ( 1) of section 9 of this Act.

(2) A taxable person who is a retailer and who makes a

taxable supply 10 any olher taxable person sha ll , at the request o f that

other person, provide him ..... ith a tax invoice within lhirty-onedays from

the date referred 10 in subsection ( I ) of section 9 of this Act.

(3) Whe re a registered person provides a docume nt 10

himself which purports to be a tax in voice in respect o f a taxable su pply

made to him by anot he r re giste red person, th at document ma y, with the

approval of the Commissioner, be treated as the tax invoice require d 10

be p rovided by the supplier in teons o f this seClion.

(4) The Minister may by regula lions prescribe the form o f a

lax invoice, the panicul ars to be shown therein and the manner in which

it shall be issued, and may by such regulations make d iffe re nt p rovisions

in respect of di fferen t categories of taxable persons o r of supplies.

The Ministe r may by regulations require In)' taxable person

4(1.

who makes an clI:cmpl supply 10 a taxable person or who maku any

iupply to a person who is oot a tua ble person to provide 10 the pcnon 10

whom the supply is made such invoice, receipt or other doctJmenl as

may be specified in the said regulations, and may by such regulations

pl'csc. ibe the form of such invoice, receipt or document, the panicuian

10 be shown therein and the manne r in which it shall be issued .

41 . A person 10 wh om any lax orother invoice or other document

is provided as required by section 39 or 40 of Ihis Act shall, if 50

requested within such lime aod in such cin:umslances as may be

prescribed, prodooc the said lax or other invoke or other document 10

the Commisstonc.f or 10 any officer authorized by the Commissioner .

42. The Commissioner and any person duly authorized by him

shall , fo r the purpose of ensuring compliance wilh the provisions of this

Act, ha ve the power -

(a) 10 enter and inspect any premises where an economie

activity is carried o n or suspected to be carried on or where any

goods, assets, books, records or docu ments rehlli ng to such act ivity

are ke pt or suspected to be kept ;

(b) to inspect and to require the production of any hoou,

records or documenu . including machine readable information, o r

a copy or extract thereof relating to the economic activity of any

person ;

(c) subjea 10 the provisions of section 44 of this Act , to

require an y person to give such information IS may be requested

for the purpose of determining whether any taxable supplies have

·been made byor to that person orthe value of any such supplies and

to request the attendance of any person al the office of the

Commissioner fo r th e purpose of providing sllch information .

43. If access is requi red in virtue of subsection ( I) of this section

to any premises occu pied in whole or in part for lhe purpose of

habitation , such acttS5 shall require the prior warrant of the competent

court and shall not lake place be tween seven o'clock in the evening and

5Cvc:n o'clock in the mom ing.

44. ( I) Without prejudice 10 the provisions relaling to the duty

of profes.sional secrecy. no information shall be requwed by the

Commissioner by virtue of lhis Act from any persons 10 whom

subsection (2) of this section refers except sol~ly (or the purpose of

detcrmining the tax payable by and the dcduclLo ns allowable I? such

person under this Act or of ensurin g compli ance by such person WI th the

provisions of Ihis Act.

(2) This subsei:tion refers to

(a)

a hank li ce nsed under th e Banking Act , 1994;

(b) an insurance company in respect of life assurance

business which is carried on pursuant 10 a licence granted under the

Insurance Business Act;

(c) any perwn licensed 10 carry on investment business

under the Investment Services Act, 1994;

(d) a collective investment scheme licensed under the

Investment Services Act, 1994;

(e) a stockbroker licensed under the Malta Stock Exchange C¥. l4!I.

Aa .

45. (I) Except as may be necessary for the pUrposeSOflhis Act, otr..... """,.

or where the Prime Minister otherwise directs, every person having any

official duty or being employed in the administration of this Act shall

regard and deal with all documents and information relating 10 this Act

as secret and confidential.

(2) No person appointed under or employed in carrying out

the provisions of this Act shall be required to produce in any coun,

tribunal, Board or committee of inquiry any document or 10 divulge any

malter coming under his notice in the perfonnanoe of his duties under

this Act eJlcept as may be necessary for the purpose of carrying into

effect the provisions of this Act , or for tbe 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 provsions of th is section, the

Commissioner may permit the Director of Audit or any officer

authorized by the Dire<:tor of Audit to have access to any records or

documents as may be necessary for th e perfonnance of his official duties

and for this purpose the Director of Audit and any such au thorized

officer shall bedeemed to be a person employed in theadmi nistralion of

this Act .

(4) Notwithstanding the provisions of the other subsections

of this section or of any other law the Commissione r shall fumsih to the

Commissioner of Inland Revenue such infonnl ion, being information

obtai ned by the Commissioner for any of the purposes of this Act, as

may be directed by the Minister.

PART VU

SpeciaJ Cases

46. (1) The Minister may be regulations prescribe special Speriolcaa.

provisions wi th respect to supplies to which subsection (2) ofthis section

refers, and may. by such regulations, make provision

(a) for a supply to be treated as two or more separate

supplies or for a nu mber of su pplies to be treated as a single supply;

(b) for the time and place at which suppli es shall be treated

to take place;

(c)

for the ruable value of supplies to be de tennined by such

method or one of such methods as may be established by the

Commissioner;

(d) for the de termination of the input tax attributable to

supplies;

(c) for additional records and documents that must be kept

and produced in respect of the said supplies;

and any suc.:h regulations shall apply notwithstanding anything to th e

contrary contained in this Act.

(2) This subsection applies to

(a) supplies made by tour operators and travel agents and by

other persons acti ng as princi pals and making supplies commo nly

provided by tour operatOI'5 and travel agents;

(b) supplies of secondhand goods

(c) supplies by retailers;

(d) such other supplies as may De designated for the

purposes of this section by an order made by the Minister and

published iD the Gazette.

PART V III

Coll«tion, Security aDd Rerunds

47. ( I) tax and add itional tax due under th is Act may be sued

for and recovered , as th e case may require in the competent COU" of

civil jurisdiction.

(2) Subject to the provisions of subsection (3) of this sectio n,

actio n for the payment of tax and additional tax may be taken by th e

Commissione r at any time within six years from the date on which such

tax and additional tax becomes payable.

(3) The running of the period referred to in subsection (2) of

this section shall be interrupted by any judicial act filed before the

expiration of such period by the Commissioner demandi ng the payment

o f the tax and additional tax due.

48. (1) Any notice issued by the Commissioner showing any E<ecuIM

amount of tax and additiona l tax due by a person 5hall, unless the Title .

oon\J:llry is proved , be surficienl evid ence that that amount is due to the

Commissioner by th at person and shall constitute an executive title

wi thin the meaning and for the purposes of Title VU of Part I of Book

Second of the Code of Organiz..tlion and Civil Procedure.

(2) The Commissioner may request the paymen t of any tax

and additional lax payable by any person in terms of this Act by means

of a demand nOle and if the payment request is nOI made within thiny

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 10 in subsection (1) of Ihis section after two days

from the service on that person of an intimation for payment made by

means of a judicial act.

(3) The provisions of section 468 of the Code of

Organization and C ivil Procedure shall apply wi th respect to any

warrant issued on the st rength of an executive title men tioned in this

section and to the paying ou t ofthe proceedsohhe 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 OO\Irt following any

such warrant as aforesaid.

49. (I ) No goods imported into Malta shall be delivered for use Reotricl_

in Malta or taken out, cleared or delive red from any customs bond ~~

except -

(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 authorization of the wmmissioner.

(2) An au thorization for the purpose of paragraph (c) of

subsection (I) of th is section may be give n under such renditions and

agai nst the granting of sueh security as the Commissione r may establish.

SO, (I) The Comptroll e r of Customs shall, for the purpose of ~~"

ascertai ning, colleaing and protecting on behalf of the Commissioner ~lltiftl to

the tax chargeable unde r this Act on taxable importations have the same

powe~ and shall follow the same procedures as are in accordance with

any other law exercisable and followed by him for the purpose of

ascertaining , collecting and protecting import duties.

(2) Any provisions in the Customs Ordi nance o r in the Call. n .

Import Duties Act o r in any regulations made thereunder relating tothe Cap. :»7.

application of the proceeds from a sale of importcd 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 und er this Act on the importation of

those goods,

SI. The Commissioner shall have a special privilege over the

assets forming part of the economic activityo! 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 11 de bt having any other pri vilege , exccpti nga debt having

a general privilege and a debt mentioned in paragraph (a) or in

paragraph (b) of section 2009 o f the Civil Code .

52. (I) If. in any particular case, the Com missioner has reason

to belive that tu due by a registered person might nol be l"e(:()vcrable aI

Ihe lime when th at tax becomes payable in te rms of lhis Act , he may by

a notice served on th at person, demand the paymen t of the tax within

such time as may be specified in that Ilolice alld the tax shall the reupon

become payable within Ih attime notwithstanding a ny othe r pro vision of

this Act.

(2) When a payment has been de manded from a person ill

accordance with subsectio n (1) of this section that person may , instead

of ma king the said payment , furnish such security for\he tu payable as

may be acceptable to the Commissio ne r.

53. Where a crcd it fo r input tax or any o ther dedu ction o r a

refulld is claimed by a person alld the allowance or payme nt of such

credit, deduction or re(und may be subject to a revision in accordance

with any provisio n of this A ct o r any regu la tions made thereunder or

de pellds on circumstances which, in the opinion of the Co mmissiolle r,

have no t been fully verifi ed , the Commissiollcr may allow the said credit

or deducti o n o r pay the said refulld against the provision of a security in

s uch amo unt a nd in such manne r as he may deem fi t to req uire.

54. If, in any pa rti cular case , the Commissioner has reason to

belie ve that the tax due by a rcgistered person could otherwise be

prejudiced , he may, by means of a no ticc in writ ing, require that person

to funish a tax ret urn for a tax period before the time allowed in terms of

sectio n 16 of this Act, and in respect of Ihat lax re tum any reference in

Ihis Act to the time allowed in terms of the said sectio n shall thereupon

be construed as a reference to the period specified ill the said notice.

ss. ( 1) Whe re an~ interest is due hy a persoll in te rms of thi s A ct

any payment made by that person 10 the Com missione r shall ,

notwithstanding any declaratio n made by that person , be appropria ted

to th at inte rest before it is appropria ted 10 any ta x.

(2) Subject to the prov isio ns of su bsection ( \ ) of thi s section

whe n addition al tax is due by a person allY payment made by that person

to the Commissione r shall. notwithstanding any declara tion of that

person to the contrary, be appropriated to sueh additional tax before it

is a ppropriated to any o ther lax .

(1) Tu paid s hall nol be refundable eJlcc pt in the

.5(i;.

circumsta nces provided fo r in section 27 or 57 of this Act or in the o the r

provisions of thi s section.

(2)

Subject (0 the provisions of subsection (3) of Ihis sectio n

where it results that any lax paid by • person was not due or was in excess

of the tu: due under Ihis Act the Commissioncr shall. on the production

of such evidence as he maydec m fillO require, repay the tILl or that pan

thereof which was DOl due 10 that person or 10 Iny other penon woo

may be entitled to Ihat repayment : provided Ihal nothing in this

subsection shall be co nst rued as overriding or replacing the provisions

of section 32 of Ihis Act.

(3) The Minister may by regulations prescribe the manner

and the time within which I claim for a repayment uDder 5ubseclion (2)

of this section may be made and such condit io ns and limitations,

including a minimum amount in respect of whi ch a repayment may be

daimed, as he may deem til .

(4) Where it results from a decision given on an appeal made

in ac:cordance with this Act that any amou nt of tall paid by 11 person was

nOI dut , th e Commissioner shaU refund such amount to that person

within thirty days from the date such decision becomes ru judicatD .

(5) Interest !It the rate specified in or prescribed in terms of

subsectkm (2) of section 22 of th is Act shall be due 00 a refund to which

subsection (<4) of Ihis section refen for Ihe period ending on Ihe dale

when the refund is paid or a cheque or draft is posted by the

Commissioner to the person to whom the refu nd is payable, which

interest shall nm -

(a) if.nd to the extent thal the amoun t refundable had been

claimed as excess credit in a tax ret urn furnished to the

Commissioner by the appe llant, from the date established in

accordance with section T1 of this Act ;

(b) if and to the e:lltent that the amount refu ndable was paid

by the appellant as a conditi on for the validly of his appeal in

accordance with the prOvisions of the Sixth Schedule 10 this Act ,

from the date on which that amount wu paid to the Commissioner;

(c) in any other case, from the date the refu nd is payable in

accordance with subsection (4) of this section.

(6) A refund due in ac.cordancc with any provism o rlbis Act

shall be payable without any further appropriation o ther than thi s Act

by warrant under the hand of the Minister.

57. (I) If the Minister by order published in the Gazelle l,",,~

declares that arrangements have been made with the gove rnment of any Ufalll'lmeau,

territory oUlside Mal ta with D view to affording relief from double

tl.I.Dtion in relation 10 tax payable under this Act and a similar tax

payable under the laws of that territory, and Ihat it is expedient that

those arrangements should have effect, those arrangements shall have

effect notwithstanding anything in this Act .

(2) lflhe Mi nister by order published in the Gazettedeclares

that anan ge ments have been made with the Government of any

territory outsi de Malta with a view to granting a refund , on a reciprocal

basis, of any tax paid unde r tbis Act to persons established ,outside

Malta and that it is clpedicnt that those arrangements should have

effect , those arrangemenlSshllll have effect notwithstanding anything in

this Act.

(3) The Minister may mak e regulations for the carrying out

of the provisio ns of any arra ngement! having effect under this section.

(4) Where it results that any taJI: has been paid on the

importation of goods which is exe mpt from import duties in terms of

diplomatic and c:onsular arrangemen ts having eHe<:! in virtue of any

e nactment or that any I U has been paid o n any su pplies or importations

by 11 person who qualifies for an elle mption from tall in terms of such

inte rnational arrange me nts as the Minister may , by orde r in the

G lU:ette, specify, the Commissione r shall, upon a request made within

such lime and in such ma nn e r as may be prescribed, and o n th e

production of such evidence as he may dee m necessary, refund the 18lI

so paid to the said person,

PART IX

58, (I) Any no tice, warrant or o tber proceeding purponing 10

be made in accordance with the provisions of this A ct shall not be

dee med to be void o r voidable fo r wan t of fo rm o r be affected by the

realiOn of a mistake, defect o r omissio n the rein, if the same is in

substance and effecl in conformity with o r according 10 th e inte nt a nd

meaning of this Act.

(2) In Ih e case of a bodyof persons it shall be suffi cien t if o nly

the name of the body of persons appears on any notice, warrant o r

proceeding , includ ing any proceedin$ in th e court of Appeal , issued or

made unde r or fo r the purposes of thIS Act.

(3) Every notice to be give n by the Commissioner unde r this

Act shall be signed by the Com missione r o r by some person or persons

aut ho rized by the Commissioner and every such notice shall be valid if

the signature is printed, stamped o r written thereon.

(4) Any notice may be served o n a person ei the r perso nally

or by being sent by posl a nd shall in Ihe latte r case be deemed to have

been served, unless the contrary is proved, in Ihe case of an address in

Malta nOllater than the th ird da y fo ll owing the day when il was posted,

and in Ihe case of an address o utside Malta Ihe day succeeding that o n

which the norice would have bee n rece ived in the ordinary course by

post and it shall be suffi cien t 10 prove that the noticc was pro perly

addressed and posted .

For the purpo~ of subsectio n (4) of thi s section a rKItice

(S)

shall be dec med 10 have been propeiy addressed if it has been addressed

to a person's business or private address, and an address furnished by a

person 10 the Comm issio ner shall be deemed to be an address of Ihat

person unless and until a notice of a change of address is given by that

person to the Commissioner.

(6) When the dale on which any return, nOlic;:e or other

document is 10 be furnished , delivered or served or dee med 10 bese rved

oroll which a payment is to be made in term s of any provision of thisAct

falls, were it not for the prOvisio ns of thiss ubscctio n, o n a Saturday or a

Sunday, or on a national day or a public holiday as establ ished in the

Nat io nal D ay and other Public Holidays Act , th at date shall be deemed

to fall on the first working da y. other th an a Saturday, fo llowing the said

Saturda y, Sunday , national day or public holida y.

59. ( I) Any secretary, manage r, director, liqu idator or other Rcp-..tati>a.

principal officer of an entity or of a body of persons, any heir and any

testamentary executor and any curator of the vacant inheritance of a

deceased person , and any pcr.;()n who is a tu tor. curator, administrator

or trustee of an y other person or of any trust , fund or other entity shall,

for the purposes olthis Act, be a reprcsentativeof th at body of persons,

deceased person . other person, trust. fund or other entity, as the case

may be.

(2) Where a taxable suppl y of services is made in Malta by a

tuable person who is not established in Mal ta any person resident in

Malta to whom the said services are supplied or any person resident in

Malta who is an agent of the said supplier shall , if so designated by the

Commissioner by means of a notice in writing. be a representative of the

said supplier in res pect of any obliga ti on of the supplier under this Act

relating to that suppl y.

(3) (a) Subject to the provisions of subsection (5) of this

section a represe ntative of a person shall be liable in the same manner

and to the same extent as th e person of whom he is representat ive for aU

the obligations imposed by or under this Act.

(b) Anything done or omitted to be done by a

re presentative act ing as such shall for the purposes of this Act be

deemed to have been done or ommitted to be done by the person of

whom he is a representative.

(c) Any notice scr.-ed on or any refu nd paid to a

representative in his capacity as such un der any of the provisions of this

Act shall be dee med to have been scr.-ed 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 rclicve the latter person from

any obligation or liability under this Act.

(4) A representative who has under his manage ment or

control any funds or property belonging to or due to the person of whom

he is a representative shall no t dispose of such funds or property unless

he hll5 made adequate provWon for any tu due under this Act.

(5) A represe ntative shall be jointly and severally liable with

the perIOD of whom he is a representative lor the tu due by that person

provided that where the representative has acted in good faith and is not

knowingly in breach of subsection (4) of this section or of any other

o bligatio n under this Act , his liability under this wbsection shall be

limited 10 the funds or 10 the: value of any property under his

manage ment or contro l which belongs or is due to the person of whom

he is a representative.

60. For the purposes of the Income Tax Act and the

Administration of Tax Act, 1994 -

(a) interest paid or payable under this . Act by the

Com missioner to any person dlall nOI be treated as Income of that

person;

(b) interest and additional tax paid o r payable under this Act

by a ny per50n 10 the Commissioner sbaU not be tre ated asexpenses

incurred in the production of the income o f that person.

'I. The Minister may by regu lations-

(a) amend , cancel o r substitute any of the Schedules, except

for tbe Six th Schedule, to this Ace ;

(b) prescribe any maller which may in any particular case be

deemed necessary for the purlX'se o f avoiding signirKa nt

distortions in compe tition which might othe rwise result from the

application o f any o f the provisions of this Act ;

(c) make provision for the rounding up or down of any

amount in a ny computation made for any of the purposes o f this

Ace, or for distegarding any small amOunlS in any such

comput ation;

(d) prescribe anything tha t may be prescribed in vinue of the

proviSions o f this Act ;

(e) prescribe any condi ti ons and detennination that may , in

accordance with this Act, be imposed o r made by the

Commissioner;

(t)

prescribe any o ther matter for securing the payment of

the tn and senerally for &iving effed to the provisions of this Act

(g) amend , revoke o r substitute any regulations made under

this Ace.

PART X

Om.· ncu a nd Pc-nalties

62. Anyperwnwho -

(a) fails to a pply for regist ration at the time and In the ..,p.c •• ,;.",

or 'ok .....

manner required by section 12 o r section 70 of this Act;

(b) fa ils to kee p o r to store records, documents and aCI.:Ounts

for the time and in the manner requi red by this Aet o r any

regulations made under this Act;

(e) fails to furnish a tax ret urn or any additional ret urn ,

statement or informatio n or 10 produce any books, records.

documents and accounts when required to do so in vinueofthis Act

o r of any regulation s made under this Act;

shall be guilty of an offence and shall, on conviction, be liable 10 a fine

(m ult a) of not less than fiflY lin and nOI e xceeding two hundred \in and

the Coun shall order the offe nder to comply wilh the law within a time

sufficient for the purpose, bu t in any ease not exceeding three months,

and in default Ih e offendershal1 be lia ble to Ihe payment ofa fu rther fine

(multa) of not less Ihan two lin and no t exceedi ng len liri for every day

that the default continues after the lapse oflhe time fIXed by the Cou n .

63. Any pc r$(m who -

t .... "oIaritieo

in , ......... .

:::.nd

(a) knowingly fails to account for any taxable supply made

by him in the records. documents a nd accounts required by this Act "-"<to-.

or a ny regu lations made unde r this Act;

(b) gives any return , statemen t or informa tion requ ired for

any of the purposes o f thi s ACI which he knows 10 be incorrect or

misleading in any mate rial respect ;

(e) falsifies any records, docume nts or accou nts required to

be kept unde r this Act or prepares or draws up or helps in the

preparation or drawing up o r mak es use of any false records or

documents;

(d) wi th th e inte nl of concealing any evidence which he

knows o r is reasona bly ex pected to know 10 be re levan t for a ny

purpose of this Act dest roys . erases. damages o r conceals any

stored information or any rtcords , documents or accounts;

(e) knowi ngly fails 10 provide or produce a tax or ot he r

invoice or document as and when required by section 39. 400r41 of

this Act or provides any suc h tax o r other invoice o r docume nt

which is incorrect or misleading in any mate rial respect;

(t) provides an invoice or o ther documen t in respect of a

supply showing tax to be chargeable on that sllpply in a case whe re

he knows that no tax is chargeable or where the tax c hargeable is

less than that shown o r othcrwisc kno wingly adds to o r includes in a

nol due or which is higher than the lax due;

(&)

having added 10 or included in a price for goods or

services supplied by him to another person any amount purporting

to represen t tall chargeable under Ih is Act, koowingly fails 10

account for that amount in his records and accounts or to pay that

amount to the Commissioner;

(b) acquires possession of ordeals with any goods, o r accepts

the su pply of any services having reason to be li eve that the tax On

the su pply of the said goods or services has been or will be evaded;

(i) supplies or offers to supply 10 another person goods or

se rvices the acquisition or dealing with which or the acceptance of

which woukl re nder th at other person guilty of an offe nce in virtue

of paragraph (h) of this section;

shall be guilty of an offence and shall, on conviction be liable to a fine

(mu/la) of not less than fifty liri and not exceedi ng five hundred Iiri and

to a furth er fi ne (mulla) equal to three times the endange red tax , or to

imprisonment of not more th a n six months or to both such fines a nd

impriso nment .

64. Anypc:rson who -

(a) obstructs, hinders , impedes or does anything which is

calculated to obstruct , hinde r or impede , or molests o r assau lts the

Commissioner or any person du ly engaged in the exercise of any

power o r duty confe rred or imposed on him by or unde r this Act ;

(b) being a person in charge of any premises wh ich the

Co mmi ssio ner o r an officer authorized by the Commissio ner is

e mpowered 10 e nte r in terms of paragraph (a) of section 42 of this

Act falls to allow access to the said premises to the Commissione r

o r aUlhorized officer or fails to take such measures as may be

reasonably required of him for the purpose of any such access o r of

any inspection of thal pre mises or o f any goods, assets, books,

records o r documents kept the rein;

shall be guilty of an offe nce and shall, o n conviction be liable to a fine

(mu/la) of no t less than ten liri and no t more than one hu ndred liri o r to

imprisonment of not more th an three months or to both such fine and

impriso nment.

65. (I) The provisio ns of sef;:lio ns 18 and 62 of Ihe Customs

Ordinance shall apply to this Act as if all refe rences to du ties f;:o nlained

in those sections we re references 10 tu. due under this Act. a nd a ny

person who is in con trave nlio n of the provisions of the said sectio ns

conslrued as aforesaid in relalio n 10 any goods whose importation is

subject to lax under this Act s!tall . withou l prejudice 10 any liability

iocu rred under the said Ordina nce, be gu ilty of an offence unde r this

Act and shall for each such offence be liable 10 a fine (mu/tll) equivalent

to the aggregate of the amount of lax payable on the goods and double

the value oflhe goods, or to a fine (mu/ta) oftwcnty-fivc lin , whichever

shall be the greater, or to imprisonment for a term not exceeding two

yean or to both such fine and imprisonment and the offender may be

either detained or proceeded against by summons, in th e same manner

and form , and subject 10 all other provisions laid down in the Criminal

COO,_

n

(2) The provisions of sectio n

of the Customs Ordinance

shaD apply in relation to goods whose importation is subject 10 lax under

this Act as if any reference contained therein to the duty therein

mentioned were also a reference to the tu chargeable under this Act.

(3) The importation of goods subject to tax under Ihis Act

shall, roral1 purposes of any law , be deemed asa p rohibited importation

unless the said tax is duly paid o r. where the payme nt of the tax has been

postponed in accordance with any provisions of this Act, the conditions

Imposed in connection with such a postponemen t a re duly o bserved.

66. Any penon who knowingly contrave nes o r fai ls to co mply Go .... ,oIoff • ....,..

with any of the provisions of this Act o r an y regulations made u nde r this

Act shall be gUilty of an offence and shall o n convictio n, unless the

offe nce is subject to a grea te r punishment under any o ther provision of

th is Act or any othe r law, be liable to a fine ( mufta) of not less than te n

!iri but nOt excee ding fifty liri or to imprisonme nt fo r a le nn not

exceedi ng three mo nths o r 10 both such fine and imprisonment.

67. ( I) Whe re a ny thing is done or om itted to be done by a body Off.nceob~

o f persons, the provisions o f this Part shall apply as if such thing were principal

done o r omitted 10 be done by every manage r o r othe r principal o ffi ce r bodiagf

o f that body of pe:nons: provided that a manage r o r other principal

o ffICer of a body of penons shall no t be guilty o f an o ffe nce in virtue of bJ ....... ,~rS.

this subsection if he proves that he was una ware and could not with

reasonable diligeDce be aware o f s uch act or o mission or th at he did

everything within his powe r to p reve nt tha t act or omission.

(2) Where an y thing is done or omitted to be done by an

employee in the cou rse of his e mployment the provisions o f Ihis Part

shall appy as if such th ing was d one or omitted to be done both by the

said e mployee and by hi s employer: provided that such an e mployer

shall not be guilty o f an o ffence in virtue o f this subsection if he pro ves

that he was u naware a nd could not with reasonable d ilige nce be aware

o f such a n act Of o missio n or that he did e ve rything within his power to

prevent that act or om ission.

68. (1) No proceedings under this Pan shall be take n except a t PI. " • .;0".

the instance o r with the sa nction o f the Commissioner.

(2) Notwithstanding the provisio ns of th e Criminal Code the

Attorne y G eneral shall ha ve a right of appeal to th e Court of C riminal

AppeaJ fro m an y judgeme nt given by the Court of magistrates in respect

of criminal proceedings unde r thi s Part.

(3) The institution of proceedings or the imposition of a

pe nalty for any o ffe nce unde r th is Part shall nol relieve a ny person from

prosecution unde r any o ther Jaw or from liability 10 the payme nt o f any

lax or add itKma1 tax fo r which he iSOT may be liable unde r th is A ct. and

the inst itution of proceed ings or the imposition of a pena lty for any

offence under any othe r law or the payment of any lax or additional tax

under this Act shall not relieve any person from any prosecution or

penalty under Ihis Part.

(4) All proceedings for an offence unde r this part or under

any regulat ions made un de r this Act shall be ta ke n before the Court of

MagiSlratcs (Malta) o r the Court of Magistrat es (Gozo) as a Co urt of

Crim inal Judicature and shall be in accordance wi th the prOvisions of

the C riminal Code regul at ing the procedu re before the sa id Co urt and

the award a nd executi o n of the pu nishm e nts the re by imposed .

(5) Wh e re a pe cun iary pu nishment ma y De imposed fo r a

conviction for an o ffence un de r this Pa rt such pecuniary punishme nt

sha ll always De imposed and the p rov isio ns of Secti o n 21 of the Cri minal

Code a nd o f the Pro bation of Offe nde rs Act sha ll no t a pply.

(6) In any crim inal prosecu tion un de r this Pan or unde r a ny

regulatio ns made unde r this A ct . the Comm issioner pe rson a ll y o r a ny

other o ffice r designat ed by him may. not withsta ndin g th e p rovisions of

an y o the r law , p roduce the evid ence, plead and o th e rwise conduct the

p rosecut ion instead of o r jo int ly wi th the Police.

(7) Sho uld the evide nce of the Com missione r or o f the

Officer designa ted unde r 5ubseetion (6) of th is section be req uired as

part o f the case fo r the prosecu tion . he sha ll be hea rd before assum ing

the duties of prosecul ing O fficer (other tha n that of sta ting the facts

constituting the o ffence), unless the necessity o f his givi ng evidence

appears a t a later stage.

69. ( I) Notwi thstanding an y ot her provision o f this Act, the

Commissione r may. in thecase o f a nyofre nce und e r this Act . en te r inlo

a n agreeme nt in writing wit h the offe nder whe reby the said offende r

pays a sum e q uivalen t 10 the fine (m u/ta) tha t may be im posed by way o f

pena lty in accordance with this Act o n the con viction of that pe rson fo r

the said o ffence, so ho weve r that whe re a minimum and a maxi mum

amo unt is provided for in respect o f the fi ne (mU/la) that may be so

imposed . the sum payable p ursuan t to the said agreeme nt sha ll be a sum

equivalent 10 the said minimum amount inc reased by o nc ha lf o f the

diffe re nce betwee n the said minimum and maxi mum a mo un ts, and

upon th e sign ing o f a ny such ag ree me nt by the Co mm issioner and the

offe nde r all crim ina l liabil ity o f the oUe nde r u nde r this Act wilh rega rd

to the o ffe nces in relatio n to whi ch the agree me nt has bee n ente red shall

be e xt inguished

Provided that an y fo rfei ture con te mpla ted in this Act as a

consequ c nce to an o ffence to wh ich section 6S o r this Act appl ies a nd to

which the agre eme nt re la tes shall , notwithsta nd in g such agree me nt , still

take effe ct unless the o ffe nde r elects to pay al so 10 the Commission er a

sum e quivale nt to the va lue of th e goods liable to suc h fo rfei tu re

together wi th an y amo unt of tax due the reon.

(2) The provisions ohubscction ( I) ofl his section shall apply

also in any case where the offender has been charged before a court in

relation to the offence bu t before final judgement has been given in the

=,

Provided that where proceedings before a court ha ve: not been

commenced. the: sum payable in accordance: with any agreement as

contemplated in subsection ( I) of thisseclion shall be reduced by ten per

ccnt.

(3) A ny sum due in virtue of an agree ment entered into in

te rms of subsection ( I) of this section shall be due 10 the Gove rnmen t as

a civil debt. The Commissioner shall not enter into an agreeme nt as is

referred to in su bsectio n ( 1) of Ihis section unl ess such agreement is

acco mpanied by th e pay ment of ;he sum due or a sufficie nt secu rity for

its payment.

(4) The provisions of this section shall be wi tho ut prejudice

to a ny proceedi ngs o r forfeit ure instituted o r ha vi ng effect in virtue of

any other la w.

PART XI

TJ"lllUtliolUli Provisions

70. (I) Notwit hstandi ng the provisions of subsection ( I) of A~ico';k>a"'"

section 120f this A ct o r o r a ny regulations made in virtue of that section, uptnll<lll,

e very pe~n established in Malta who is a taxable person o n any date

prior to the fi~1 January 1995 and who before the said date makes any

supply which , had it been made o n or afte r the said date, would have

been a su pply referred 10 in subsection ( I) of sectio n 25 of this Act sha ll

apply for registra tion under this Act in temlS of section 1.2 of this Act

wit hin thirt y days from the late r of the fo llOwing two da tes

(a)

the date whe n the said supply is made;

(b)

the date of the coming into force of this section.

(2) The Commissione r mall registe r every person known to

be lia ble to apply for regist ra tion in accordance with subsection ( I) of

this section whe the r an application for registration has bee n made o r not

by that person.

71. Whe n a ny of the dates which a re re levan t for determini ng the TImoof

date of a supply of goods or services, ot he r than services fa which lUppIieo,

subsectio n (4) of section 9 of this Act re fers, in accord ance wi th

su bsections (I ), (2) and (3) of the said sectio n isadate preceding the fi~t

Ja nua ry 1995, the date of th at su pply shall be de te rmined in acco rda nce

with subsection (1) and wit ho ut any refere nce fa subsections (2) a nd (3)

of the said section.

72. Where a payment is rece ived or an invoice is issued for

services to which subsection (4) of section 9 of thi s Act refers , and Ihat

payment o r invoice refers to a period (in Ihis sectio n rde rred 10 as "the

period of the supply-) which comme nces before the first January 1995

and ends on or after that date, the supply that is 10 be tre ated as a

separate su pply by reference 10 that payment or invoice in accordance

with th e said subsection shall be deemed 10 be a supply for a period

commencing on th e said dale and the taxable value of the said supply

shall , save as the Com missione r may otherwise allow, be a proponion of

the taxable value that would otherwise stand to be determined in

accordance with the other provisions of this Act wh ich corresponds to

the proponion which the period comm encing on the said date and

ending on the last day of the period of the supply bears to the period of

the supply.

73. Wh ere any goods are imporled into Malta before Ihe first

January 1995 and the time at which impo rt duty is to be computed in

terms of the Im port Duties Act or. where no such import du ty is

payable, the time al which it would be socomputed had it been payable,

falls on or after the said date, the said importation shall be deemed to

have taken place o n the said date.

74. Where , in the Clecution of a contract made before the dateon

which th is section comes inlO force, any goods or services are su pplied

on or after the first January 1995, and the supply of the said goods or

servk:es is a taxabl e su pply, that con tract shall. for all the purposes of

any law, be interpreted as if the person to whom Ihat supply is made had

bound himse lf to pay, in addit ion 10 the consideration stipulated in or in

accordance with the said cont ract , an omo unt equivalent to the tax

cha rgeoble on that suppl y unde r this Act

Provided that this section shall not apply-

(a) where it results from the contract and from all the

re levant ci rcumstances that the consideration determined in

accord ance wi th that con tract had already made provisio n for the

said tax or th at the parties had excluded any adj ustment to the

consideration on account of the said tax ;

(b) where or to the utent that the said su pply was, in terms

of the said con tract. due to take place before the tirst January 1995

and the delay was due to a fault on the part of the person who makes

that supply ,

7S, (I) The Expenditure levy Act shall, as from the first

January 1995 cease to have e ffect .

(2) Notwithstanding the provisions of subsection ( I) of this

se<:lion the provisions of the Expendit ure levy Act shall con tinue 10

have effect and shall sub;ec.. 10 the provisions of subsection (3) of this

section apply fully with respect to the provisions of any goods and

services which takes place before the first January. 1995.

A

:101

(3) The Minister may by order in writing 10 the Aocountant

General authorise the said Acoountant General to wai~ any interests

due in aocordance with ~ubseaion (7) of section 5 of the Expenditure

Levy Act , or reduce the rate of the said inleresl.

(4) Subsection (3) of this

be deemed 10 have

en tered into force on the first February,

"'A ,

76. Tbe Minisur may by regulations prescribe thalsuch amoun t To

as may be determined in accordance with said regulations repre5entin& '.ooY.,

impon duty or part thereof in terms of the Impon Duties Act on the

importation of goods which fo rm par! of the stock-in-trade of. person

who is a registered person o n the: ISI January, 1995,shalI be refunded to

such person o r set off against l il l due by such person in such manner

within such lime and 10 such U.lent and subject to weh conditions and

limitations as may be prescribed in the said regulations.

FIRST SCHED ULE

Place of'Sapply orS«v~

Sec!ion 8

1. E:l:ccpt as otherwise provided in this Schedule a supply of services shall be

trealed as made in the country where the person who makes the supply is establ ished.

2. A supply of se rvices in connection with immovable property, including the

services of an an::hitect, an estate age nt or expert. 11 value r or an appraiser. construction

works IInd on-site supervision of construction works shall be deemed to be made in the

coun try where the immovable property is sit uated .

3. A supply of transport se rvices shall be deem ed 10 be made in the place where

the journey commences.

4. A supply of services listed in this item shall be dee med to be made in the

country where the activi ties Ire physically carried out

(a) cultural . artistic. sporting, scientific, educational and enterta inment

activities, the act ivities of promoters and organizers of the 5aid activit ies, and

activities ancillary the reto;

(b)

activitiesancillary totra nsport, such as loading. unloading and handling;

(c)

valuation of tangible movable properly;

(d)

work on movable tangible properly.

S.

A supply of services consisting in the letting of movable tangible property,

with the exception of all forms of transport, shall be deemed to be made in the country

where the ploperty is used by the lessee .

6. 'The supply of the services listed in this paragraph shall be deemed 10 be made

in the country where the custome r to whom or for whom the services are supplied is

established

(a) the transfer or assignment of a copyright, patent , trademark , traden.me

o r licence or of any riP! lhereon;

(b)

advenisingservices;

(c) services of consultants, engineers. consultancy bureaus, advocates, legal

procurators, accountants. aooilors, financial advisors, dala procening and the

supply of information;

(d) obliga lKms 10 rdrain from pursuing or exe rcising in whole or in pan any

economic itdivit y;

. (c) banking. rinancial , insurance and rc·insurance transactions, excluding

the: klling of a place: for lhe safe deposit of any goodl or documents;

(f)

thesupply o(staff;

(g) the services of an agent who acts in the name and for the accoun t of

another. when he procures for his principal any of lhe services referred to in Ihis

item.