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act_1998_23 MT

XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud

105 Articles / Provisions · Malta
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Table of Provisions (105)

Art. 1 First Schedule Art. 2 Second Schedule Art. 3 Administration. Third Schedule Art. 4 Fourth Schedule Art. 5 Fifth Schedule Art. 6 Supplies of goods and supplies of services. Sixth Schedule Art. 7 Place of supply. Seventh Schedule Art. 8 TIme of supply. Eighth Schedule Art. 9 Ninth Schedule Art. 10 Tenth Schedule Art. 11 Registration. Eleventh Schedule Art. 12 Twelfth Schedule Art. 13 Classification as exempt person. Thirteenth Schedule Art. 14 Cancellation of exempt person classification. Fourteenth Schedule Art. 15 Tax period. Art. 16 Art. 17 Art. 18 Art. 19 Rate ofw. Art. 20 Persons liable for the payment of the tax. Art. 21 TIme when tax becomes due and payable. Art. 22 Payment of the tax on taxable supplies. Art. 23 Art. 24 Art. 25 Deductions. Art. 26 Art. 27 Art. 28 Adjustments to tax returns. Art. 29 Presumption as to declarations in tax returns. Art. 30 Declarations by exempt persons and other statements, etc. Art. 31 Power to make Art. 32 Art. 33 Power to make assessments on exempt persons. Art. 34 Assessments. Art. 35 Additional and Art. 36 Presumption as to amounts shown in assessments. Art. 37 Administrative Art. 38 Art. 39 Art. 40 Administrative penalty for default by exempt person. Art. 41 Liability to administrative penalties. Art. 42 Reasonable excuse. Art. 43 Art. 44 Art. 45 Value Added Tax Appeals Board. Art. 46 Matters regulated by the Ninth Schedule. Art. 47 Appeal to the Court of Appeal. Art. 48 Reeordsto be kept Art. 49 Art. 50 Art. 51 Art. 52 Production of invoices by persons to whom a supply is made. Art. 53 Inspections. Art. 54 Access to places of habitation. Art. 55 Information held by certain licensed persons. Art. 56 Art. 57 Special cases. Art. 58 Art. 59 Art. 60 Restrictions on the release of imported goods. Art. 61 Powers relating to imported goods. Art. 62 Special privilege. Art. 63 Security for tax due on supplies. Art. 64 Art. 65 Art. 66 Art. 67 Appropriation of payment. Art. 68 Art. 69 Art. 70 International arrangements. Art. 71 Art. 72 Art. 73 Art. 74 Interest. Art. 75 Art. 76 Art. 77 Irregularities in records, etc. and false representations. Art. 78 Recurrent offences. Art. 79 Obstruction of officials. Art. 80 Offences relating to importations. Art. 81 Art. 82 Art. 83 Prosecution. Art. 84 Comproraise penalty. Art. 85 Repeal Dlld saving. Art. 86 Returns and payments of tax in tenus of the Art. 87 Art. 88 Art. 89 Interpretations of certain contracts. Art. 90 Art. 0106

Statutory Text (105 Articles)

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 1 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

This Act may be cited as the Value Added Tax Act, 1998, Short title and

commencement.

and shall be deemed to come into force on 1st January, 1999.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
First Schedule — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Section 5(2)

Activities of Public Authorities

The activities listed in the second column of the public authorities listed in

the first column of this Schedule shall be deemed to be activities performed in the

course or furtherance of an economic activity.

Second column

First column

Activities

Public authority

Private hire of patrol boat, helicopter and

Armed Forces of Malta

equipment

Inspection of ships' hulls by divers

Security duties with banks and similar activities

Central Bank of Malta

Production and sale of numismatic coins and

medals

Provision of meteorological services

Civil Aviation Department

Book binding

Correctional Services

Department

Sale of bread

Sale of impounded motor vehicles

Customs Department

Department of Education

The provision of accommodation for visiting

youths and students

Department of Health

Hospitalisation and treatment of foreign

patients

Pathological and radiological investigations

Sale of drugs and vaccines

Hire of ambulances

Sale and cleaning of grave sites

Department of Industry

Laboratory analysis

Testing for standards and issuing of

certificates for exported goods

Giving technical advice in connection with

technical problems to private industries

Department of Information

Printing services to government departments

and parastatal entities

Sale of Gazette and other publications

Malta Drydocks Corporation

All activities

Mediterranean Conference

All activities

Centre

QU'lrantine services

Ministry of Food, Agriculture

Sale of milk powder, eggs and dairy produce

and Fisheries

Sale of vegetables

Sale of livestock

Sale of decorative trees, fruit trees, vine

rootings, fruit plants, shrubs and flowers

Sale of wheat, straw and manure

Sale of fish and fishing equipment

Bowser water services

Services of grafting, pruning and spraying

Rent and provision of cold storage facilities

and sale of ice

Services of civil abattoir

Ministry of Home Affairs

Provision of residential and nursing care

Provision of telephonic communications

Acting as contractor for cleaning services

Ministry for the Environment

Sale of compost

Sale of tender documents

Repairs to damage

Carpentry works

Hiring of plant and vehicles

Supply of metal trades goods

Repairs to plant and vehicles

Sale of prints

Ministry of Tourism

Sale of prepared food prepared by students as

part of their daily training

The provision of accommodation facilities to

student groups and to individuals

A

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 2 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

In this Act, unless the context otherwise requires - Interpretation.

(1)

"accommodation" means accommodation in any premises

which for the purpose of the provision of such accommodation

is required to be licensed in virtue of the Hotels and Catering Cap. 197.

Establishments Act or of the Guest Houses and Holiday Cap. 240.

Furnished Premises Act, or in virtue of an Act in substitution

therefor, and shall include bed and breakfast, half board or full

board, as the case may be, which is included in the price of

such accommodation;

"administrative penalty" means a penalty imposed in virtue

of the provisions of Part V of this Act;

"assessment" means an assessment that may be made in

virtue of the provisions of Part V of this Act but does not include

a provisional assessment;

"assets belonging to an economic activity" include stocks

and tangible fixed assets acquired or used for the purpose of

that economic activity;

"Board" means the Value Added Tax Appeals Board

established in terms of section 45 of this Act;

"Commissioner" means the Commissioner of Value Added

Tax appointed in terms of the provisions of subsection (I) of

section 3 of this Act or any public officer or other person to

whom a delegation has been made in accordance with subsection

(2) or (3) of that section while he is acting within the terms of

that delegation;

"customs bond" means a bond as defined in section 2 of

the Import Duties Act;

"economic activity" has the meaning assigned to it in

section 5 of this Act and with respect to a person who carries

on more than one economic activity means all the economic

activities so carried on;

"effective date" means the 1st January, 1999;

"employee" means an individual bound to an employer by

a contract of employment or by other legal ties creating the

relationship of employer and employee as regards working

conditions, remuneration and the employee's liability and

includes a director of a company or of a corporation constituted

by an Act of Parliament;

"established in Malta" has the meaning assigned to it in

subsection (2) of this section;

"exempt importation" has the meaning assigned to it in

subsection (2) of section 9 of this Act;

"exempt person" means a person classified as such in terms

of section 13 of this Act;

"exempt supply" has the meaning assigned to it in

subsection (l) of section 9 of this Act;

"exempt with credit supply" is a supply to which Part One

(Exemptions with Credit) of the Fourth Schedule to this Act

applies;

"importer" with respect to any goods in respect of which

tax becomes due or payable means any person having those

goods standing in his name on the books of the customs

department at the time that tax becomes due or payable, as the

case may be;

"input tax" means an amount determined in accordance

with section 23 of this Act;

"Malta" has the meaning assigned to it by the Constitution

and includes the continental shelf;

"Minister" means the minister responsible for finance;

"output tax" means the tax referred to in subsection (l)

of section 22 of this Act;

"person" includes a physical person, a body of persons,

a public authority and any entity capable of carrying on an

economic activity;

"provisional assessment" means a provisional assessment

made in terms of section 32 of this Act;

"public authority" means the Government, a Government

department, a local council set up in accordance with the Local

Councils Act, 1993, an authority vested with distinct personality Act xv of 1993.

set up by an Act of Parliament or a corporation constituted by

an Act of Parliament;

"registered person" means a person who has been

registered in accordance with section 11 of this Act and whose

registration has not been cancelled in accordance with section

12 of this Act;

"small business" means an economic activity that

qualifies as such in terms of the Sixth Schedule to this Act;

"tax" means the value added tax chargeable under this

"tax invoice" means the invoice required to be provided

in terms of section 50 of this Act;

"tax period" has the meaning assigned to it by section 15

of this Act;

"tax return" means the return required to be furnished in

terms of section 27 of this Act;

"taxable importation" means an importation on which tax

is chargeable in terms of section 4 of this Act;

"taxable supply" means a supply on which tax is chargeable

in terms of section 4 of this Act;

"taxable value" means the value of a taxable supply or of

a taxable importation established in accordance with section

18 of this Act.

(2) A person carrying on an economic activity shall be

deemed to be established in Malta if

(a) he carries on that activity wholly or partly in, from

or through a fixed place situated in Malta; or

(b)

being a body of persons it is constituted under Maltese

law;

(c) being a physical person he has a permanent address

or usually resides in Malta

Provided that a company registered in Malta which does

not carryon an economic activity in Malta and which is not a

company whose capital or voting rights are owned, directly or

indirectly, as to fifty per cent or more, by individuals who have a

permanent address or who usually reside in Malta, shall not be

deemed to be established in Malta.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Second Schedule — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Section 6

Supplies of Goods and Services

Exchange

I.

In a contract of exchange each of the parties shall be deemed to make a

supply of any goods and any services he transfers or provides pursuant to that

contract.

Delivery on deferred terms

2. The delivery of the possession of goods pursuant to an agreement for

the sale of those goods on deferred terms shall be treated as a supply of those

goods.

Hire purchase

3. The delivery of the possession of goods pursuant to an agreement for

the hire of those goods for a certain period which expressly contemplates that the

ownership of those goods will be transferred at a time not later than the date on

which an agreed price has been paid in full shall be treated as a supply of those

goods.

Free supplies

4. (I) The transfer or disposal by a person of assets belonging to his

economic activity for no consideration including the transfer or disposal of such

assets by that perso:l to himself shall be treated as a supply of those assets made

for a consideration in the course or furtherance of that economic activity.

(2) The taxable value of a supply to which paragraph (I) of this item

applies shall be the price which would be payable by that person if he were to

purchase at the time of that supply goods identical or similar to the goods in question,

or, where the value cannot be so ascertained, the cost of producing the goods in

question at the said time.

(3)

Paragraph (I) of this item does not apply to-

(a) a gift of goods made in the course or furtherance of that activity,

otherwise than as one forming part of a series of gifts made to the same person,

where the cost to the donor is not more than twenty liri;

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(b) a gift of an industrial sample in a form not ordinarily available

for sale to the public;

(c) a transfer or disposal of an asset that had been acquired as a fixed

asset in the same state saving only wear and tear by a person when it results

from the records of the economic activity of that person that he had not qualified

for and had not claimed any input tax credit under the provisions of this Act

or of the Value Added Tax Act, 1994 or any refund under the provisions of the

Customs and Excise Tax Act, 1997 with respect to the acquisition of that asset.

Private use

5. When assets belonging to an economic activity carried on by a person

are used by (but not transferred to) that person himself or any other person for any

purpose other than for the purpose of that economic activity, whether or not a

consideration is paid or payable, the person carrying on that activity shall be treated

as having made a supply of services for a consideration in the course or furtherance

of that activity. The taxable value of that supply shall be the full cost to that person

of providing those services.

Supply for a consideration of assets belonging to an economic activity

6. The transfer or disposal by a person of assets belonging to his economic

activity for a consideration including

(a)

the transfer or disposal of such assets by a person to himself;

(b) the sale by judicial auCtion pursuant to any proceedings exercised

by a creditor or by creditors of that person;

(c) the transfer of such assets by order made by or in the name of a

public authority or in pursuance of the law against payment of compensation,

shall be treated as a supply of those assets in the course or furtherance of that

economic activity

Provided that where it results from the records of that economic activity

that that person had acquired that asset as a fixed asset in the same state saving

wear and tear and had not qualified for and had not claimed any input tax credit

under the provisions of this Act or of the Value Added Tax Act, 1994 or any refund

under the Customs and Excise Tax Act, 1997 with respect to that acquisition the

taxable value of that supply shall be limited to the excess, if any, of that

consideration over the cost at which that asset had been acquired.

Judicial auction

7. (1) Where any assets belonging to an economic activity of a person

are sold by judicial auction pursuant to any proceedings exercised by a creditor or

by creditors of that person the Registrar of the court under the authority of which

the sale is made shall, after notifying the person or persons appearing to be interested

therein, remit to the Commissioner from the proceeds lodged in court, with

preference over any other person not having a prior claim to that of the

Commissioner as provided for in section 62 of the Act, the tax chargeable, if any,

on the supply deemed to have been made in terms of item 6 of this Schedule.

(2) Any interested person may oppose the remittance referred to in

paragraph (1) of this item by means of writ of summons filed against the

Commissioner within six working days from the date of the notification referred

to in the said paragraph.

(3) No bid animo compensandi shall be approved for the purposes of

section 331 of the Code of Organisation and Civil Procedure unless the tax

chargeable, if any, on that supply has been lodged in court and remitted by the

Registrar in accordance with paragraph (1) of this item.

Cessation of business and classification as exempt person

8. Saving the provisions of subsection (3) of section 12 and of subsection

(3) of section 13 of this Act, when the registration of a person who is not an exempt

person is cancelled or when a registered person is classified as an exempt person

other than on the date of his registration under this Act he shall be deemed to have,

immediately before such cancellation, made a supply of all the assets that belonged

to his economic activity at that time and items 4 and 5 of this Schedule shall apply.

Transfer of going concern

9. (1) The transfer by a person of assets of his economic activity shall

be treated as neither a supply of goods nor a supply of services if -

(a) the assets are supplied to a registered person to whom he transfers

his economic activity, or a part of that activity which is capable of separate

operation, as a going concern, and

(b) the said assets are to be used by the transferee in carrying on the

same kind of activity, whether or not as part of an existing economic activity,

as that carried on by the transferor, and

(c) the said transfer is recorded in the records of the transferor

indicating the registration number of the transferee.

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(2) The provisions of items 4 and 6 of this Schedule shall apply subject

to the provisions of this item.

Supplies by independent agents

10. When goods or services are supplied through an agent who acts in his

own name that supply shall be treated as both a supply to that agent and a supply

by that agent.

Supplies by intermediaries

11. When a supply is made through an intermediary who acts in the name

and for the account of another person and to the extent that the Commissioner is

satisfied that the supply is made as aforesaid, that supply shall be treated as a

supply made by that other person.

Contract of works

12. The delivery of goods pursuant to a contract of works, other than a

construction contract, whether or not the materials have been provided in full or in

part by the customer, shall be treated as a supply of those goods.

Rights over property

13. (1) The transfer of an asset which is immovable property by definition

of the law shall be treated as a supply of goods: provided that an emphyteutical

grant for a period not exceeding fifty years shall be treated as a supply of a service.

(2) Subject to the provisions of paragraph (l) of this item an

assignment of any rights over property or of any intangible property whether or

not it is the subject of a document establishing title is a supply of services.

Obligation to refrain from an act or to tolerate an act

14. An obligation to refrain from an act or to tolerate an act or situation is

a supply of services.

Incidental supplies

15. (l) The provision by a person of goods for the purpose and in the

course of maintenance or repair services supplied by that person shall be treated as

part of the supply of those services.

(2) Save as otherwise provided in the Act or any regulations, including

these regulations, made under the Act, where a supply includes the provision of

both goods and services and the consideration for that supply does not distinguish

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between the consideration for the goods and the consideration for the services, the

supply shall be treated as a supply of goods or as a supply of services according to

the principal nature of that supply.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 3 Administration. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) The administration of the Act is vested in the

Commissioner of Value Added Tax, hereinafter in this Act referred

to as "the Commissioner", who shall be a public officer appointed

as such by the Prime Minister.

(2) The Commissioner may delegate to any public

officer any of the rights, duties, powers and other functions vested

in him, conferred to him or imposed upon him by this Act.

(3) The Commissioner may delegate to any other

person such of the rights, duties, powers and other functions vested

in him, conferred to him or imposed upon him by this Act as the

Minister may direct in writing

Provided that the Commissioner may not delegate those

rights, duties, powers and other functions vested in him if that person

is not considered by the Commissioner as a fit and proper person to

exercise those rights, duties, powers and other functions and that

such person shall be subject to the obligations imposed by section

56 of this Act.

PART II

Scope of the Tax

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Third Schedule — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Section 7

Place of Supply of Services

General rule

I.

Except as otherwise provided in this Schedule a supply of services shall

be treated as made in the country where the person who makes the supply is

established.

Services relating to immovable property

2. A supply of services in connection with immovable property, including

the services of an architect, an estate agent or expert, a valuer or an appraiser,

construction works and on site supervision of construction works shall be deemed

to be made in the country where the immovable property is situated.

Transport

3. A supply of transport services shall be deemed to be made in the place

where the journey commences.

Services supplied where physically carried out

4. A supply of services listed in this item shall be deemed to be made in

the country where the activities are physically carried out

(a) cultural, artistic, sporting, scientific, educational and entertainment

activities, the activities of promoters and organisers of the said activities, and

activities ancillary thereto;

(b)

activities ancillary to transport, such as loading, unloading and

handling;

(c)

valuation of tangible movable property;

(d)

work on movable tangible property.

Letting of movables

5. 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 property is used by the lessee.

Services supplied where customer is established

6. The supply of the services listed in this paragraph shall be deemed to

be made in the country where the customer to whom or for whom the services are

supplied is established

(a) the transfer or assignment of a copyright, patent, trademark,

tradename or licence or of any right thereon;

(b)

advertising services;

(c) services of consultants, engineers, consultancy bureaus, advocates,

legal procurators, accountants, auditors, financial advisers, data processing

and the supply of information;

(d) obligations to refrain from pursuing or exercising in whole or in

part any economic activity;

(e) banking, financial, insurance and re-insurance transactions,

excluding the letting of a place for the safe deposit of any goods or documents;

(f)

the supply of staff;

(g) the services of an agent who acts in the name and for the account

of another, when he procures for his principal any of the services referred to

in this item.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 4 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Subject to the other provisions of this Act there shall be Charge to tax.

charged, levied and collected on account of the Government a value

added tax -

(a) on every supply of goods or services made on or after

the effective date in Malta for a consideration in the course or

furtherance of an economic activity other than -

(i)

an exempt supply,

a supply made by an exempt person;

(ii)

(b) on every importation other than an exempt

importation which takes place on or after the effective date.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Fourth Schedule — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Section 9( 1)

Exempt Supplies

PART ONE

Exemptions with Credit

Exports

1. (1)

The supply of goods which consists of the export of those goods by the

A

(2) The supply of goods to a taxable person established in Malta who carries

on the business of arranging or financing the export of goods, for the purpose of

the export ofthose goods by that person without the actual delivery of those goods

to that person, provided the goods are actually exported without any processing or

alterations and subject to such conditions, evidence or security as may be imposed

or required by the Commissioner.

Services connected with exports and importations

2. (I) The supply of services in procuring for a taxable person the export of

goods from Malta or the supply of goods or services outside Malta.

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

of work on tangible movable property imported for the purpose of undergoing

such work in Malta and exported out of Malta by the person who supplied those

services or by his customer.

(3) The supply of services to a person established outside Malta in procuring

the importation of goods into Malta.

3. Goods in bond. supplies by duty free shops and Freeport activities

A sale of goods which takes place while the goods are in a customs

(I)

bond and which is entered by the Comptroller of Customs pursuant to section 36

of the Customs Ordinance or any provision amending or replacing the said section.

(2) The supply of goods and services by an operator of a duty free shop

pursuant to and in accordance with a licence issued under the Duty Free Shop

Regulations, 1991 (L.N. 177 of 1991) or any other provisions amending or replacing

the said regulations.

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

Freeport zone as defined in the Malta Freeports Act where the said supply constitutes

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

Port services

The supply of services by the Malta Maritime Authority, including

(a) the granting of licences and certificates, in connection with

all matters relating to ports and yachting centres in terms of the Malta Maritime

Authority Act (Act XVII of 1991), and of any regulations made under that

Act, or in terms of any special agreement entered into by the said Authority in

respect of any matter referred to in the said regulations and providing for

charges in place of any rates leviable under the said regulations;

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(b) the granting of licences and certificates, in connection with all

matters relating to port work in terms of the Port Workers Ordinance (Cap.

171), and of any regulations made under that Ordinance or in terms of any

special agreement entered into by the said Authority in respect of any matter

referred to in the said regulations and providing for charges in place of any

rates leviable under the said regulations;

(c) the granting of certificates and registration in connection with

the registration of ships in terms of the Merchant Shipping Act (Cap. 234),

and of any regulations made under that Act.

5. International transport

The supply of services consisting in international transport of goods and

passengers.

6. Provisioning and fuelling of ships and aircraft

(I) The supply of goods for the fuelling and provisioning of vessels

used for navigation on the high seas for the purpose of commercial, industrial or

fishing activities, of vessels used for rescue or assistance at sea, and of aircraft

.used by airlines operating for reward in international traffic.

(2)

The supply of fuel to vessels for the purpose of inshore fishing.

7. Supply, repairs etc. of ships and aircraft

The supply, repair, modification, chartering and hiring of vessels

(I)

or aircraft referred to in item 6 of this Schedule, and the supply, hiring, repair and

maintenance of equipment, including fishing equipment, incorporated or used

therein.

(2)

The supply of services, other than those referred to in paragraph

(1) of this item, to meet the direct needs of the vessels and aircraft referred to in

the said paragraph or of their cargoes.

8. Food

The supply of any food, as defined in Part Three of this Schedule, excluding

food supplied in the course of catering as defined in that Part, but including the

supply of food by a canteen situated in a work or study area exclusively supplied

to workers or students therein.

9. Pharmaceutical goods

The supply of pharmaceutical goods, as defined in Part Three of this Schedule.

10. Health and Welfare

(1) The supply of services by a person in the exercise of any profession

regulated by the Medical and Kindred Professions Ordinance (Cap. 31).

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

Government hospital or institution or in any other hospital or institution approved

by the Minister for the purposes of this paragraph.

(3)

The supply of human organs, blood and milk.

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

homes for the elderly, and services for the protection and care of children and

young people, supplied by any government institution or by any institution or

organisation recognised by the Commissioner as a non-profit making institution

or approved by the Minister for the purpose of this paragraph as an institution

whose activities fall within the social and welfare policy of the government.

(5) The supply of transport services for sick, injured or disabled

persons in vehicles specially designed for that purpose

(6) The supply of goods where the said supply is connected with and

essential for the supply of the services referred to in paragraph (2) and (4) of this

item by the hospital, institution or home, as the case may be, supplying the said

services.

Education

11. (I) The provision of education or educational research, including

distance learning, by a government school or institution, by the U r.; ,,,rsity of Malta,

by a school or institution registered under the Education Act (Cap. 327), or by any

educational establishment recognised as such by the Commissioner.

(2) The provision of education or educational research, including

distance learning, of a kind provided by a school or university, or of religious

instruction, by a non-profit making institution recognised as such by the

Commissioner.

(3) Tuition given privately by teachers acting in an independent

capacity in subjects which are normally taught in the course of education provided

by a school or university but excluding tuition in recreational, physical or sporting

activities or disciplines.

12. Services by band clubs

The supply of services consisting in public performances by a philharmonic

society which the Commissioner is satisfied constitutes a bonafide band club.

13. Transport

The supply of -

(a) transport supplied by the scheduled bus service consisting of

scheduled trips on scheduled routes;

(b) scheduled inter-island sea trips supplied by authorised carriers,

and other scheduled sea transport services recognised as such by the

Commissioner;

(c) school transport supplied by an educational establishment

recognised as such by the Commissioner or supplied to any such establishment

for the purpose of being provided by it as school transport and school transport

organised or supplied by a central office;

(d) transport supplied or organised by an employer or by a central

office to transport the employees to and from their place of work and recognised

as such by the Commissioner.

In paragraphs (c) and (d) of this item "central office" has the meaning assigned

to it in Legal Notice No 144 of 1991 or any other regulations replacing that Legal

14. Investment Services

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

Investment Services Act, 1994.

15. Supply of gold

The supply of gold to or by the Central Bank.

16. Printed Matter and other articles

The supply of books, newspapers, other printed matter and other

(1)

articles falling within the definition of "Printed matter and other articles" contained

in Part Three of this Schedule.

(2) The supply of electronic, magnetic, optic or any other machine

readable media of any information which, in printed form, would have the

characteristics of books, newspapers and any other printed matter falling within

the definition of "Printed matter and other articles" contained in Part Three of this

A

17. Objects mentioned in item 8 of the Fifth Schedule

The supply of objects mentioned in item 8 of the Fifth Schedule.

PART TWO

Exemptions Without Credit

1. Immovable property

The letting of immovable property exc1uding-

(1)

(a) the letting of or the provision of accommodation in any premises

which for the purpose of the said letting or accommodation is required to be

licensed in virtue of the Hotels and Catering Establishments Act (Cap. 197),

or of the Guest Houses and Holiday Furnished Premises Act (Cap. 240). or in

a holiday camp or camping site;

(b) the letting of premises and sites for parking vehicles where such

premises or sites have been designated by the Commissioner as parking areas

or which fall to be treated as such in terms of such regulations as may be

prescribed;

(c)

the letting of permanently installed equipment and machinery;

(d) the letting of property by a limited liability company to a registered

person for the purpose of the economic activity of that other person.

(2)

The transfer of immovable property.

(3) For the purposes of this item "immovable property" and "letting

of immovable property" have the meaning assigned to them in Part Three of this

Schedule.

2. Insurance services

The supply by persons licensed under the Insurance Business Act, 1998 or

the Insurance Brokers Act, 1998 (Act XVIII of 1998), of services in respect of

which they are so licensed.

3. Credit, banking and other services

(1) The granting and the negotiation of credit and the management of

credit by the person granting it.

A

(2) The negotiation of or any dealings in credit guarantees or any

other security for money and the management of credit guarantees by the person

who is granting the credit.

(3) Transactions, including negotiation, concerning deposit and

current accounts, payments, transfers, debts, cheques and other negotiable

instruments, but excluding debt collection and factoring.

(4) Transactions, including negotiation, concerning currency, bank

notes and coins normally used as legal tender.

(5) Transactions, including negotiation, excluding management and

safekeeping, in shares, interest in companies or associations, debentures and other

securities, excluding documents establishing title to goods

Provided that nothing in this item shall be construed as overriding the

provisions of item 14 of Part One of this Schedule.

4. Supply of cable telephony

Supplies of services consisting in cable telephony.

5. Culture

The supply of such cultural services as may be approved by the Minister.

6. Sports

The supply by non-profit making organisations of such services related to

sport or physic::! recreation as may be approved by the Minister.

7. Services related to certain exempt services

The supply of staff by a non-profit making institution which is

(I)

recognised as such by the Commissioner for the purpose of providing services

referred to in paragraph (2) or (4) of item 10 or in paragraph (I) or (2) of item II of

Part One of this Schedule.

(2) The supply of goods and services by a non-profit making

organisation in the course of an activity designed to raise funds to be used for the

provision of goods and services which are exempt in terms of paragraph (2) or (4)

of item 10 or of paragraph (I) or (2) of item II of Part One of this Schedule

provided the activity is recognised by the Commissioner as being exclusively

designed for the said purpose.

A

8. Services by non-profit making organisations to their members

The supply of services for the benefit of their members in return for a

subscription fixed in accordance with their rules by non-profit making organisations

with aims of a political, trade union, religious, patriotic, philosophical, philanthropic

or civic nature or whose main purpose is to represent and promote the common

business or professional interests of their members: provided that in any case

where, in the opinion of the Minister, this exemption is likely to cause distortion of

competition, this exemption shall be subject to such exceptions or limitations as

the Minister may by order in writing determine.

Lotteries

9. Government lotto and lotteries, the supply of agency services related thereto,

and such other supplies related to gambling as may be approved by the Minister.

PART THREE

Definitions of terms used in this Schedule

For the purposes of this Schedule, the following terms shall have the meaning

assigned to them in this Part.

1. "Food" means the goods specified in the Customs Tariff contained in the

First Schedule to the Import Duties Act under

(i)

Chapter 1 but excluding items falling under subheadings

0101. 11.00.00; 0101.19.90.10; 0105.11.11.10; 0105.11.19.10;

0105. 11.91.10; 0105.11.99.10; 0105.12.00.10; 0105.19.20.10; 0105.19.90.10; 0105.92.00.10; 0105.93.00.10; 0105.99.10.10; 0105.99.20.10; 0105.99.30.10; 0105.99.50.10; 0106.00.20.90;

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Art. 5 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) Saving the provisions of subsection (2) of this section Economic activity.

an economic activity means an activity carried on by a person, other

than an employee acting as such, and consisting of anyone or more

of the following -

(a)

any trade or business;

(b) any profession or vocation and the provision of any

personal services;

(c) the exploitation of tangible or intangible property for

the purpose of obtaining income therefrom on a continuing

basis;

(d) the provision by a club, association or organisation

(for a subscription or other consideration) of the facilities or

advantages available to its members;

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

premises.

(2) The activities of a public authority acting in the

exercise of the functions assigned to it by law shall not be deemed

to be an economic activity except as and to the extent provided in

the First Schedule to this Act.

The provisions of the Second Schedule to this Act shall

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Section 9(2)

Exempt Importations

I.

The re-importation of -

(a)

goods which are re-imported unaltered;

(b)

samples which had been temporarily exported.

2. The importation of articles which are shown to the satisfaction of the

Comptroller of Customs to have been awarded abroad to any person for distinction

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

meritorious achievement or conduct, and imported by or on behalf of that person.

3. The importation of articles and materials by Malta Drydocks for the

equipping and the maintenance of the Dockyard, or which are required in connection

with the services rendered by that corporation, other than articles and materials

used in-

(a)

goods produced by that corporation and intended to be disposed

of in Malta, or

(b)

locally registered ships other than ships referred to in item 6 of

Part One of the Fourth Schedule to this Act.

4. (1) The importation of artificial limbs and other surgical appliances

of a similar nature, including spare parts and accessories for the relief of permanent

bodily disablement, provided that, in the case of spare parts and accessories, the

Comptroller of Customs is satisfied that they are imported for the purpose of making

locally artificial limbs or such other appliances, and invalid chairs which the

Comptroller of Customs is satisfied are for the exclusive use of a person suffering

from some permanent physical defect or disability.

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

education, employment or social advancement of a person suffering from some

permanent physical or mental disability, provided that the Comptroller of Customs

is satisfied that the said goods are imported for the exclusive use of such person.

5. The importation of bird rings for use by qualified bird ringers for the

study of the migratory habits of birds.

6. The importation of bonafide gifts of a non-commercial nature received

occasionally by 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

alcohol nor alcoholic beverage nor tobacco or tobacco products and the total CIF

value of the gifts on every single occasion does not exceed fifty liri.

7. The importation of braille and any other article for the use of the blind

imported through a recognised institute, if the Comptroller of Customs is satisfied

that such articles are imported for the exclusive use of a blind person.

8. The importation of chalices, ciboriums, pyxes, monstrances, thuribles,

incense boats, crosses, candlesticks, crucifixes, holy statues (vari), holy oil vessels,

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

lanterns, tabernacles and doors of tabernacles, exposition thrones and organs,

intended for divine worship and imported to be used exclusively in connection

with such divine worship in churches, chapels or other localities intended solely

for such worship, and of church canopies used in procession and church bells.

9. The importation of hearing-aid apparatus designed for the use of the

deaf and identifiable parts thereof.

10. The importation of household and personal effects, furniture and other

domestic articles (excluding firearms and weapons of all kinds) which in the opinion

of the Comptroller of Customs have been in use within that household by the

importing person or his family, and which are imported by such person on removing

his household from another country to Malta provided that such articles are imported

within six months from the date of arrival in Malta of the person importing them to

take up residence in Malta, or within such other period which the Comptroller of

Customs may allow.

11. The importation of one private motor vehicle imported by a Maltese

migrant (husband and wife counting as one person for the purposes hereof) who

returns to reside in Malta, subject to such migrant satisfying the Comptroller of

Customs that

(a)

He had been residing outside Malta for an aggregate of ten years

during the period of fifteen years immediately preceding his arrival to take up

residence in Malta; and

(b)

the motor vehicle has been in his ownership for a continuous

period of at least six months immediately before his arrival to take up residence

in Malta, provided that customs charges and/or fiscal charges to which such

vehicle is normally liable have been paid either in the country of origin or in

the country of departure and subject to the motor vehicle being imported within

six months of such migrant's arrival to take up residence in Malta

Provided that, where any such motor vehicle which is imported free of

Value Added Tax is sold or disposed of by such person for use in Malta, such

motor-vehicle shall be deemed to be taken out of bond at the time of such sale or

disposal and the Value Added Tax shall be payable thereon by the person who

becomes the owner thereof.

12. The importation of one private motor-vehicle imported by a person

(husband and wife counting as one person for the purposes hereof) who transfers

his residence to Malta, subject to such person satisfying the Comptroller of Customs

that

(i) he is in possession of a permit of residence issued to him by the

Government in terms of subsection (I) of section 7 of the Immigration Act

(Cap. 217); and

(ii) the motor-vehicle has been in his ownership for a continuous period

of at least six months immediately before the issue of the said permit, provided

that customs charges and/or fiscal charges to which such vehicle is normally

liable have been paid either in the country of origin or in the country of

departure and subject to the motor-vehicle being imported within six months

of the date of the said permit or of such person's arrival in Malta to take up

residence, whichever date is the later

Provided that, where any motor-vehicle imported as aforesaid free of

Value Added Tax is sold or disposed of by such person for use in Malta, such

motor-vehicle shall be deemed to be taken out of bond at the time of such sale or

disposal and Value Added Tax shall be payable thereon by the person who becomes

the owner thereof.

13. The importation of-

(a) passengers' baggage, including wearing apparel and personal

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

the passengers' personal use, but excluding firearms and weapons of all kinds;

(b) such tobacco products, wines, spirits, toilet waters and perfumes

as may be allowed in accordance with the Convention concerning Customs

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

(c) such goods bought for the passenger's own use or as bonafide

gifts, other than the goods mentioned in subparagraphs (a) and (b) of this item

up to a value of Lm50, sohowever that where the total value of such goods

exceeds Lm50, this provision shall not apply and the tax chargeable on such

goods shall be deducted by Lm7.50.

14. The importation of samples of no commercial value.

15. The importation of scientific instruments or apparatus, intended

exclusively for educational purposes of pure scientific research, provided -

(a)

that such scientific instruments or apparatus are consigned to a

public or private scientific or educational institution approved by the Minister

responsible for education for the purpose of this provision and are used under

the control and responsibility of such institution; and

(b)

that instruments or apparatus of equivalent scientific value are

not being manufactured in Malta.

16. The importation of sound and video recordings -

(a)

of an educational, scientific or cultural character produced by the

United Nations or any of its specialised agencies;

(b)

of an educational nature imported by a government school or

institution, by the University of Malta or by a school or institution registered

under the Education Act provided that the Director of Education certifies that

the materials are solely of an educational character and are to be used solely

and entirely for educational purposes by such school;

(c)

of language courses.

17. Statues and artistic decorations cast abroad from originals made by local

artists, provided permission is obtained from the Comptroller of Customs before

the original is forwarded abroad for casting.

18. The importation of goods the supply of which would, in all cases, be an

exempt supply in terms of the Fourth Schedule to this Act.

19. The importation of food as defined in Part Three of the Fourth Schedule

to this Act.

20. The importation of gold bullion by the Central Bank.

21. The importation of goods where the Commissioner is satisfied that the

said goods were imported for temporary use only, and subject to such conditions

and to the provision of such security as the Commissioner may impose or require.

22. The importation of goods which are reexported without being released

or immediately upon being released from a customs bond.

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

they are released or immediately upon being released from a customs bond under

such supervision and subject to such conditions as the Commissioner may require

or impose.

24. The importation of goods into a Freeport as defined in the Malta

Freeports Act (Cap. 334): provided that this exemption shall apply only to the

extent that the said importation is exempt from customs duty pursuant to the said

Act, and shall be subject to all the conditions and limitations as are applicable

under that Act to the said exemption from customs duty.

25. The importation of goods which is exempt from tax in virtue of an

exemption granted under subsection (3) of section 9 of this Act.

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apply for the purpose of determining any question as to whether a

transaction

(a) is to be treated as a supply of goods or as a supply of

services or as neither a supply of goods nor a supply of services;

(b)

is to be treated as a supply made for a consideration;

(c) is to be treated as a supply made in the course or

furtherance of an economic activity.

(I) Subject to the other provisions of this section, a

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Section 16

Small Businesses

I.

An economic activity of a registered person who is not an exempt person

qualifies as a small business if the turnover of that person for the relevant period

is less than the threshold in the second column of the Table in this Schedule

corresponding to the category in the first column of that Table under which that

economic activity is classified by the Commissioner.

2. Subject to the other provisions of this Schedule "turnover" of a person

means the total taxable value (as defined in the Seventh Schedule to this Act) of all

supplies made by that person in the course or furtherance of his economic activity

during the relevant period, excluding

(a)

exempt without credit supplies

(b)

a transfer of a business as a going concern

(c)

the transfer or disposal of fixed assets

(d)

a supply made to that person and deemed to be made by him in

virtue of section 65 of this Act.

3. When it appears to the Commissioner that the turnover for the relevant

period has been negatively affected by specific extraordinary circumstances,

including the temporary suspension of the economic activity, the turnover will be

the amount obtained after such adjustment as the Commissioner might deem

appropriate in the circumstances.

4. In the case of a company constituted under the laws of Malta that forms

part of a group of companies its turnover shall be deemed to be the total of the

amounts of the turnover of all the companies within that group. In this item "group

ofcompanies" has the meaning assigned to it in section 42 of the Duty on Documents

and Transfers Act, 1993 (Act XVII of 1993).

5. The "relevant period" on any particular date is the period of twelve

months ending on the last day of the calendar quarter preceding that in which that

date falls and for the purpose of this item and item 6 of this Schedule a calendar

quarter is a period of three calendar months ending on the 31 March, the 30 June,

the 30 September and the 31 December, as the case may be.

6. When, however, a registered person commences an economic activity

the following special provisions shall apply

(a)

during the first thirty days his economic activity will be deemed

to qualify as a small business if the Commissioner is satisfied that it is

reasonable to expect that the turnover for the first twelve months will be less

than the applicable threshold under the Third column of the Table in this

Schedule;

(b)

if that person is classified as an exempt person on registration he

will be deemed to remain eligible for that classification up to the expiration

of the first full calendar quarter after his registration; and thereafter the

provisions of items 5 and 10 of this Schedule will apply as if the applicable

threshold under the Third column of the Table were an amount reduced

proportionately to the ratio which the full calendar months that elapsed since

his registration bear to twelve months;

(c)

if that person is not classified as an exempt person on registration

he will not be eligible for classification as an exempt person before the lapse

of twelve full calendar months from registration and the other provisions of

this Schedule shall thereafter apply.

7. For the purpose of computing the turnover for a period that commenced

before the effective date the taxable value and the description of supplies made

before the effective date and all other terms relevant for that purpose shall be

construed according to their meaning under this Act.

8. The Commissioner shall make a categorisation of the economic activity

of every registered person for the purposes of this Schedule and shall notify that

categorisation to that person. The Commissioner may review a categorisation if he

has reason to believe that there are grounds for such a review.

9. A registered person whose economic activity qualifies as a small

business in accordance with this Schedule is eligible for a classification as an exempt

person

Provided that

(a) a person who has been classified as an exempt person and whose

classification has been cancelled is not eligible to be re-classified as an exempt

person before the expiration of thirty-six whole months from the date of that

cancellation;

(b) paragraph (a) ofthis proviso shall not have effect before the first of

January 2000; and

(c) a person who commences a new economic activity is eligible to

apply for a classification as an exempt person upon registration in the

circumstances mentioned in item 6 of this Schedule.

10. A person classified as an exempt person is not entitled to remain so

classified if the turnover from his economic activity for the relevant period is equal

to or exceeds the threshold listed in the Third column of the Table in this Schedule

corresponding to the category in the First column of that Table under which his

economic activity has been classified by the Commissioner.

11. A person who is classified as an exempt person shall give all information

that the Commissioner may reasonably request for the purpose of ascertaining the

correctness of that classification.

12. Any registered person who is classified as an exempt person may apply

for the cancellation of his classification unless otherwise prescribed by regulations.

13. The forms to be used for applications for an exempt person classification

and for the cancellation of a classification, the declarations and information and

documents to be furnished by exempt persons on a periodical basis or otherwise,

the information which an exempt person should show on invoices issued by him

and on business correspondence and such other matters as may be necessary to

ensure the correct application of the provisions of this Schedule shall be those as

the Commissioner may from time to time direct unless the Minister shall by

regulations prescribe otherwise.

A

TABLE

Second Column

First Column

Third Column

Category

Threshold below

Threshold above

which a person may which a person has

opt out

to be in

Lm

Lm

A Economic activities consisting

12000

15000

principally in the supply of

goods

Economic activities consisting

10000

B

principally in the supply of

services with a relatively low

value added

Other economic activities

C

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supply of goods shall be deemed to be made in the country in which.

the goods are situatedilt 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 to

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 Third Schedule

to this Act.

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Section 18

Taxable Value of Supplies and Importations

I. Except as otherwise provided in the other provisions of this Schedule,

the taxable value of a supply shall be the total value of the consideration paid or

payable to the supplier by the purchaser, the customer or any other person for the

supply, but excluding the value added tax chargeable under this Act on that supply.

2. When 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 value.

3. The taxable value of a supply shall include

(a) taxes, duties, levies, fees and other charges (excluding the value

added tax chargeable under this Act) payable by reason of the supply;

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

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

4. The taxable value of a supply shall be the amount after deducting

A

(a)

(b)

for at the time of the supply;

(c)

of the supply where the Commissioner is satisfied that they were so allowed

for bona fide commercial reasons.

5. Where the consideration for a supply is lower than the open market

value and the person making the supply and the person to whom the supply is

made are not independent of each other, or where the value of the consideration

for a supply cannot be readily determined, the taxable value of that supply shall be

the open market value of the goods or services supplied.

6. For the purposes of the foregoing paragraphs

(a)

two persons shaH be deemed not to be independent of each other

if, whether directly or indirectly, either of them has any interest in the business

or property of the other, or both have a common interest in any business or

property, or some third person has an interest in the business or property of

both parties, provided, in each case, that such interest has, in the opinion of

the Commissioner, influenced the terms regulating agreements between those

two persons;

(b)

the open market value of goods or services means the price which

they would fetch if sold or provided in the open market on the date and in the

state they are in when the said goods are delivered or the said services are

performed.

7. Where any value relevant for the determination of the taxable value of

a supply is expressed in a foreign currency the exchange rate applicable shall be

the middle rate determined by the Central Bank for the date when the supply takes

place.

8. Where the amount of tax chargeable under this Act is not identified in

a payment for a taxable supply or in a price charged for a taxable supply that

payment or price shall be deemed to include the said tax.

9. (I) Subject to the other provisions of this item, the taxable value of

any imported goods shall be the value of the said goods at the time when the tax on

the said importation is payable in terms of this Act, which value shall be established

in the same manner as that applicable in terms of the Import Duties Act for the

determination of the value on which duty ad valorem is chargeable under that Act,

and all the relevant provisions of that Act shall apply mutatis mutandis and for the

purposes of this paragraph the references in the said provisions to the Comptroller

A

of Customs shall be construed as references to the Comptroller of Customs acting

on behalf of the Commissioner.

(2) The value established as aforesaid shall be increased by any import

duties chargeable on the importation of the said goods under the Import Duties

Act, by any levies chargeable on the said importation under the Local Manufactures

(Promotion) Act (Cap. 336), by any excise duty chargeable under the Excise Duty

Act by reason of the importation of those goods and, in the case of motor vehicles,

by the tax chargeable under the Motor Vehicles Registration Tax Act (Act X of

1994).

(3) Where the said goods are transferred in Malta before the date on

which the tax on their importation becomes payable in terms this Act the taxable

value shall be the value of the consideration paid or payable for the said transfer or

the value established in accordance with the other provisions of this item, whichever

is the higher.

(4) The provisions of the other items of this Schedule relating to the

determination of the value of the consideration paid or payable for a taxable supply

shall apply for the determination of the value of the consideration referred to in

paragraph (3) of this item.

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Subject to the other provisions of this section -

(I)

(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 the supply is made;

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

the date when the services are performed.

(2) Subject to the provisions of subsection (3) of this

section when payment for a 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.

When a tax invoice for a supply is issued before the

(3)

time determined in accordance with the provisions of subsection (1)

of this section or before the expiration of thirty-one days following

the time determined as aforesaid, the supply shall, to the extent of

the value of that invoice, be deemed to take place at the time when

the tax invoice is issued.

When services are supplied for a period for a

(4)

consideration 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 payment for such supplies is received,

to the extent covered by that payment; or

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

supplies, to the extent covered by that invoice.

(1) The supplies to which the Fourth Schedule to this Exemptions.

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Eighth Schedule — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Section 19(c)

Rate of tax

The tax chargeable under this Act on the taxable value of the supplies described

in the first column of the Table in this Schedule shall be at the rate specified in the

second column of that Table.

TABLE

First Column

Second Column

Description of Supplies

Rate

The supply of accommodation in any premises which for the

purpose of the provision of such accommodation is required

to be licensed in virtue of the Hotels and Catering

Establishments Act or of the Guest Houses and Holiday

Furnished Premises Act or any other Act which may be

5%

substituted therefor.

Provided that where the price charged for the supply of

accommodation includes the supply of goods or services not

falling within the meaning of accommodation the taxable value

of the supply of accommodation shall be deemed to be eighty

percent of the said price and twenty percent of that price shall

be deemed to be the taxable value of supplies not described in

this Column.

A

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Art. 9 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Act applies shall be exempt supplies.

The importations to which the Fifth Schedule to

(2)

this Act applies shall be exempt importations.

(3) Any provision contained in or under any law

empowering the Minister to grant an exemption from import duties

on the importation of goods chargeable under the Import Duties Act Cap 337.

shall be construed as empowering the Minister to grant, in the same

circumstances, in the same manner, and subject to the same

conditions and limitations provided for in any such provision, an

exemption from tax chargeable under this Act on the importation of

the said goods.

PART III

Registered Persons and Exempt Persons

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Section 46

Appeals to the Value Added Tax Appeals Board

1. Composition of the Board

(1)

The Value Added Tax Appeals Board (in this Schedule referred to as

"the Board") shall be composed of a Chairman and two other members who shall

be appointed by the Minister for a period of three years.

(2)

The Minister may appoint a panel of persons to serve as Chairmen and

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

members shall serve in accordance with such distribution of duties, including

provision for inability of members to serve and other circumstances, as the Minister

may establish.

(3)

A member of the Board may not be removed during the period for which

he has been appointed except for proved misbehaviour or inability to perform his

functions.

(4)

The provisions of sections 733 to 739, inclusive, of the Code of

Organization and Civil Procedure shall apply to the Chairman and to the other

members of the Board with respect to appeals before the Board in the same manner

as they apply to judges with respect to a cause brought before a court.

(5)

A person shall be disqualified from being appointed or continuing to

be a member of the Board if he is a member of the House of Representatives.

(6)

In the case of a vacancy in the Board which cannot be filled in

accordance with a distribution of duties established in terms of subsection (2) of

this section the Attorney General shall appoint a person to fill that vacancy in the

hearing and determination of the case in which the vacancy occurs.

(7)

The members of the Board shall receive such remuneration as the

President of Malta may determine.

(8)

The members of the Board shall not be personally liable for any act or

default of the Board done or omitted to be done in good faith in the course of the

operations of the Board.

2. Secretary to the Board

There shall be a secretary to the Board, who shall be a public officer

(1)

designated as secretary by the Minister.

(2)

The Minister may designate other public officers as deputy secretaries.

3. Competence of the Board

The Board shall be competent to hear any appeal against an assessment

(1)

and to confirm, reduce or increase any taxable value or credit or tax assessed by

the Commissioner, or cancel the assessment or make such other declaration or

order as it deems fit.

(2) The Board shall be competent to determine any matter referred to it in

accordance with section 44 of this Act.

(3) The Board may, in any decision, make such order on the costs of the

case as it may deem appropriate.

4. Appeals against assessments

An appeal against an assessment shall not be valid unless

(1)

(a) a return for the tax period to which the assessment refers has been

delivered to the Commissioner before the appeal is entered; and

(b) all tax payable by the appellant which is not in dispute has been

paid; and

(c) an amount of five per cent of the tax which is in dispute in terms of

that appeal or fifty liri, whichever is the higher, and an administrative fee of

twenty-five liri have been paid; and

(d) it is made within thirty days from the date of the service of the

notice against which the appeal is made; and

(e)

it is made in such form and in such manner as may be prescribed.

(2) The onus of proving that any taxable value assessed by the Commissioner

is excessive or that any credit assessed by the Commissioner is insufficient shall

lie on the appellant.

(3) The Board may refuse to consider any evidence as sufficient for the

purpose of paragraph (2) of this item if the appellant has failed to keep the records

and documents required to be kept by this Act or fails to produce such records or

documents.

(4) The Board shall deliver its decision in writing and shall cause a copy of

the decision to be served on the appellant.

5. Payment of the tax

(1) When a valid appeal has been made against an assessment, the payment

of so much of the tax assessed which is in dispute as is not required to be paid

before the appeal is made in accordance with item 4(1)(c) of this Schedule may be

kept in abeyance until the appeal is finally determined: provided that the running

of interest on the said tax shall not be meanwhile suspended.

(2) The running of the period referred to in subsection (2) of section 58 of

this Act shall be suspended in respect of any tax or administrative penalty for any

time during which the payment thereof may be kept in abeyance in terms of this

item.

(3) Where the tax payable as a result of a decision of the Board on an appeal

against an assessment exceeds the tax shown to be payable in the said assessment,

the excess shall be payable by not later than the end of the month during which the

said decision is served on the appellant and interest at the rate specified in subsection

(2) of section 22 of this Act shall be due on such excess from the said date for any

period during which such excess remains unpaid.

6. References to the Board

(1) A reference to the Board of any matter referred to in section 44 of this

Act may not be made unless it has first been raised in correspondence with the

Commissioner and an administrative fee of twenty-five liri has been paid, and

shall be made by means of an application in writing which shall state clearly all

the facts relevant to that matter and the manner in which, in the opinion of the

applicant, that matter should be determined.

(2) The Board shall, after hearing all parties having an interest in the matter,

and obtaining all relevant information, decide the matter and cause its decision to

be served on the parties.

7. Procedures of the Board

(1) The Board shall have the power to summon any person to give evidence

or to produce books or other documents and the Chairman shall have the power to

administer an oath to any person appearing before the Board.

(2) The Minister may by regulations prescribe the manner in which an appeal

or application is to be made to the Board, the place where the Board shall hold its

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

the records to be kept by the Board, the functions of the secretary to the Board, and

generally any matter relating to the procedures of the Board.

Section 22(3)

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 10 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) Any person who carries on an economic activity Application for

registration.

shall, if he is established in Malta and is not a registered person,

apply to the Commissioner to be registered under this Act by not

later than thirty days from the date on which he makes a taxable

supply or an exempt with credit supply.

(2) Any person who carries on an economic activity

and is not established in Malta shall, if he is not a registered person,

apply to the Commissioner to be registered under this Act by not

later than thirty days from the date on which he makes any taxable

supply other than a supply of services made to a registered person

established in Malta who is not an exempt person.

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

so requested by the Commissioner, apply to be registered under this

Act within thirty days from the date on which he is served with a

notice containing such a request.

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

carries on or intends to carryon an economic activity may apply to

be registered under this Act.

(5) An application for registration under this Act shall

be made on such form as may be issued by the Commissioner or as

may be prescribed and in such manner and shall contain such

particulars as may be required by the Commissioner or as may be

prescribed.

(6) The Minister may by regulations exempt any person

or class of persons from the provisions of this section and may by

such regulations make such an exemption subject to such conditions

and limitations as may be prescribed.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Tenth Schedule — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Forms to be presented with payment of the tax

DIPARTIMENT TAT-TAXXA FUQ IL-VALUR MIZJUD

centre Point BUilding, Triq Ta' Paris, Birkirkara BKR 13

Ghall-verijoni bl~inglii

Tel: 499330

ara I-pagna ta' wara.

(Ministeru tal-Finanzi)

.".

,~

VALUR-Lm

VAT FUQ IL-BEJGIf - Lm

PROVVlSTA I BEJGIf

Prodoni taxxabbli hi 15%

Servizzi Taxxabbli bi 15%

Akkomodazzjoni Turistika bil-j%

-

XEJN

Eienti hi kreditu - Espormzzjoni

-

Eienti bi kreditu - ohra

XEJN

Eienti bla kreditu

XEJN

Lm

Lm

II

VALUR- Lm

XIRI

VATFUQ IX-XIRI - Lm

Prodotti taxxabbli ghal-hejgh

-

Prodotti eienti ghal~bejgh

XEJN

-

-

]9

Servizzi u Spejjez

Lm

Lm

AMMONT-Lm

TAXXA LI TRID

AMMONT-Lm

ECCESS TA' KREDITU

TITIfALLAS

Kaxxa 20- 1]

Lm

Kaxxa 11 - 20

-

Kreditu ta' qabel

Nota: It-taxxa dovuta tista' tithallas jew fid-Dipartiment,

"ew b 'cekk, jew fbank fuq is-slip tal~hlas.

Lm

Kaxxa 22 - 23

II...." .~,h b"ITTRllUlARj

niddikjara Ii d-dettalji U I~informazzjoni kollha huma korretti u shah

Tel

I

Kariga

Data"

I

Dan id·dokume'lt jisla' jitqics bhala rii:evuta valida jekk il-hlas sar bi flus (cash) Jewi u b" cekk iccertifikat validu mill-bank

Ammon! fl kliem

Ammont Totali

Lm

lsem

Cekkijiet Totah

Lm

i1~ Bank

KREOITA Iid~Dipartiment tat~ Taxxa Fuq il-Valur Mii:jud

Kredit Totali

Lm

(Centre Point Building, Triq Ta' Paris, B'Kara BKR 13)

J ~ Kopja tad~Dipartiment tal-VAT

Nru

-

vAT FORM 004/99

DEPARTMENT OF VALUE ADDED TAX

centre Point Building, la' Pans Road, Bir1c.irkara BKR 13

TeL 499330

(Ministry of Financ.e)

:~tiOnNa. 3

End~D.m.<;

I

Retun'i' Due'by

OUTPUT TAX - Lm

VALUE-Lm

SUPPLIES

Taxable Goods @ 15%

Taxable Services @ 15%

-

Tourist Accommodation @ 5%

----

-

~

-

_

.

Exempt With Credit - Exports

Nil

Nil

Exempt With Credit - Others

Nil

Exempt Without Credit

Lm

Lm

PURCHASES

VALUE-Lm

INPUT TAX - Lm

Taxable Goods for re-sale

--

,,-- .--

Exempt Goods for fe-sale

Nil

-

Services & Overheads

Lm

Lm

AMOUNT-Lm

TAX PAYABLE

AMOUNT-Lm

EXCESS CREDIT

Lm

Box 11 - Box 20

Box 20 - Box 11

Excess Credits b/f

J'.iote:Tax payable may be paid either at the Department, or by

enclosing cheque, or, through any bank, using the payment slip.

Lm

Box 22 - Box 23

(FUll rIIIme In BLOCK L£TIERS)

declare that all the details and information provided are correct and complete.

Tel No

Signature

Designation

Date

I

I

This document may be COnsidered as a valid receipt if payment has been made in cash orland if paid-in-cheques have

been cleared by the Bank.

Amount in words

Lm

Total Cash

Lm

Local Cheques

Bank

. CREDIT Department of Value Added Tax

Lm

Total Credit

(Centre Point Building, Ta' Paris Road, S·Kara SKR 13)

2 - Taxable Person's Copy

No

V A T FORM 002/99

A

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 11 Registration. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I)

The Commissioner shall register every person who

in his opinion is liable to apply for registration in terms of subsection

(I) or subsection (2) of section 10 of this Act.

(2)

The Commissioner shall register any person who

has made an application in terms of subsection (4) of section 10 of

this Act if he is satisfied that that person carries on or intends to

carryon an economic activity and is likely to make taxable supplies

or exempt with credit supplies in the course or furtherance thereof.

(3) The Commissioner shall allocate a registration

number for every person registered under this Act and shall deliver

to that person a registration certificate containing such particulars

as the Commissioner may deem appropriate.

(4) The Minister may by regulations make provision

for the registration of a number of persons as one person or for a

person to be registered separately in respect of different branches or

departments of his economic activity in such circumstances, in

respect of such supplies and subject to such conditions as may be

specified in the said regulations.

(5) Every registered person shall within fifteen days from

the happening of any of the following events notify that event in

writing to the Commissioner

(a) a change in circumstances that affect the particulars

declared in the application for his registration or otherwise

furnished to the Commissioner in connection with his

registration or appearing in the registration certificate;

(b) the cessation or transfer of his economic activity or

part thereof;

(c)

such other event as may be prescribed.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Eleventh Schedule — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Section 24(6)

Deductions

Eligibility for credit for input tax

1. (1) No amount shall be treated as input tax of a person unless that person

is a registered person at the time when that tax becomes chargeable.

(2) For the purposes of paragraph (1) of this item, when a registration of a

person made on a date is made effective as from an earlier date, that person shall be

treated as a registered person as from the said earlier date.

(3) Except as the Commissioner may otherwise allow no credit for input

tax for a tax period shall be allowed to a person unless a claim is made in the appropri-

ate part on the form of the tax return delivered for that period.

Input tax incurred before the registration of a company

2. (I) Subject to the other provisions of this item, where a company proves

to the satisfaction of the Commissioner that tax was paid or payable on the supply

or importation of goods made to or by a person for that company or on the supply

of services supplied to a person for the benefit of the company or for the purpose

of its formation and registration, the Commissioner may treat such tax as part of

the input tax of that company for its first tax period.

(2) No account shall be taken of any supply or importation which took

place earlier than six months before the registration of that company.

(3)

This item shall not apply to a supply or importation made to or by a

person-

(i)

who was, at the time of supply or importation, a taxable person;

(ii) who did not become a member, director or secretary of the

company;

(iii) unless that person was reimbursed or received an undertaking

to be reimbursed by the company for the whole amount of the price paid

for the goods or services;

(iv) unless that person acquitted the goods or services for the

purpose of an economic activity to be carried on by that company and

has not used them for any purpose other than for that economic activity.

A

(4) Save as the Commissioner may otherwise allow, a claim for the

application of this item shall be made by a company by not later than the date on

which it furnishes the tax return for its first tax period and shall be supported by

such documents and evidence as the Commissioner may deem necessary.

Evidence of input tax

3. (I) No amount shall be treated as input tax of a person unless that person

proves that the tax was chargeable on supplies of goods and services or importations

of goods which have been or which will be used by him in the course or furtherance

of his economic activity.

(2) Except as the Commissioner may otherwise allow, no amount shall be

treated as input tax of a person unless

(a) it is supported by a tax invoice or by a document of importation

indicating the tax paid on that importation, held, in each case, by that person

and produced, if requested, to the Commissioner;

(b) it is properly accounted for in the records held by that person for

the purposes of the Act.

Tax which is not to be treated as input tax

4. (I) Subject to paragraph (2) of this item, no amount shall be treated as

input tax of a person to the extent to which it represents tax chargeable on

(a)

the supply to that person or importation by that person of

(i) tobacco or tobacco products;

(ii) alcoholic beverages;

(iii) works of art and antiques;

(iv) motor vehicles, vessels or aircraft;

(v) goods and services for the purpose of repairing, maintaining and

keeping any item to which item (iv) of this sub-paragraph applies;

(b) the supply of any goods and services used in the provision by that

person of receptions, entertainment or hospitality except where the said

provision is made for a consideration in the normal course of that person's

economic activity;

(c) the supply of any goods and services used in the provision by that

person to his employees or, in the case of a body of persons, to its officers or

employees, of transport or entertainment; provided that this provision shall

not apply to transport provided by that person to his employees on vehicles

with a seating capacity of not less than seven.

(2)

The provisions of items (i) to (v) of paragraph (I) of this item shall not

apply to

(a) goods acquired by a person for the purpose of resale, whether in the

state in which they were acquired or after treatment or processing or inclusion

in other goods supplied by that person, in the normal course of that person's

economic activity;

(b) motor vehicles, vessels or aircraft acquired by a person and used by

him for the purpose of the carriage of goods or passengers for a consideration;

(c) vessels and aircraft acquired by a person for the purpose of being

provided by him under a charter or hire agreement;

(d) motor vehicles acquired by a person for the purpose of being

provided by him for hire with a driver or for self-drive hire, or of being used

for driving instructions, provided they are so used, in each case, in the normal

course of that person's economic activity;

(e) motor vehicles designed mainly for the carriage of goods with seating

accommodation normally adjacent to the driver and which are not normally

suitable for the carriage of passengers, or with seating accommodation for

nine persons or more.

(3)

In this item, "works of art" means -

(a) paintings, drawings and pastels executed by hand, other than hand-

painted or hand-decorated manufactured articles;

(b)

original engravings, prints and lithographs;

(c)

original sculptures and statuary, in any material;

(d)

antiques of an age exceeding one hundred years;

(e) collections and collectors' pieces of zoological, botanical,

mineralogical, anatomical, historical, archaeological, paleontological and

ethnographic interest.

Tax partially treated as input tax

5. Where any goods or services are or will be used but not wholly used in

the course or furtherance of an economic activity there shall be treated as input tax

such proportion of the tax chargeable on the supplies or importations in question

as the Commissioner may consider reasonable taking into account the proportion

of the use of those goods or services in the course or furtherance of the economic

activity to their total use.

Attribution of input tax

6. (1) Any input tax for a tax period which is exclusively attributable to

supplies to which subsection (3) of section 24 of this Act applies shall be allowed

as a credit for that period.

(2) Any input tax which is exclusively attributable to supplies other than

those referred to in paragraph (1) of this item shall not be allowed as a credit.

(3) Any input tax for a tax period which is attributable both to supplies to

which subsection (3) of section 24 of this Act applies and also to other supplies shall be

partially allowed as a credit for that tax period, which portion shall be determined in

accordance with items 7 or 8 of this Schedule.

Partial attribution

7. (I) Subject to the other provisions of this Schedule, the portion of the

input tax allowable as a credit for a tax period in accordance with paragraph (3) of

item 6 of this Schedule, shall be equivalent to such proportion of the said input tax

as corresponds to the proportion which the value of the said supplies to which

subsection (3) of section 24 of this Act applies, made during that tax period bears

to the value of all the supplies made during that period.

(2)

For the purposes of paragraph (1) of this item

(a) the value of exempt supplies shall be determined in the manner

applicable for the determination of the taxable value of taxable supplies;

(b) there shall be excluded from the value of the supplies made by that

person during that period -

(i)

the value of any supply of capital goods;

(ii) the value of any supply which under or by virtue of any

provision of the Act that person makes to himself;

(iii) the value of any supply which is not made by a registered

person acting as such;

(iv) the value of any supply deemed to have been made by that

person in terms of section 65 of the Act.

A

(3) The Commissioner may make such adjustments to the values to be

taken intQ account for the purpose of an apportionment to which this item applies as to

him may seem reasonable for the purpose of excluding distortions on account of sea-

sonal, extraordinary, occasional or incidental supplies.

Alternative methods ofpartial attribution

8. (I) Where the supplies made during a tax period do not include any

supplies to which subsection (3) of s~ction 24 of this Act applies and where a

partial credit for input tax for that period is due to be made, were it not for the

provisions of paragraph (I) of item 7, in virtue of paragraph (3) of item 6 ofthis

Schedule, the Commissioner may allow as a credit such portion of the input tax for

that period as to him may seem reasonable, and may, in allowing such credit, impose

such conditions and require such security as he may deem appropriate.

(2) Where it is shown to the satisfaction of the Commissioner that the

method of attributing input tax laid down in item 7 of this Schedule does not give a fair

and reasonable result, he may allow a registered person to adopt such other method as

the Commissioner may approve.

(3) In giving an approval in terms of paragraph (2) of this item the Com-

llllSSlOner may -

(a) require that the same method shall continue to be used for such

period he may specify;

(b) impose such other conditions and require such security as he deems

appropriate.

Adjustment ofpartial attribution

9. (I) Within six months from the end of any calendar year the

Commissioner may by notice in writing require or allow a registered person to

whom a partial credit for input tax has been allowed for any tax period ending

during the said year to make an adjustment to the total credits for input tax allowed

for the tax periods ending during the said year, which adjustments shall consist of

the difference between the total credits allowed as aforesaid and the credit resulting

from an attribution based on annual results.

(2) The credit resulting from an attribution based on annual results means

a proportion of the total input tax periods ending in the calendar year in question.

(3) The provisions of paragraphs (I) and (2) of item 7 and paragraph (2) of

item 8 of this Schedule shall apply for the purpose of an apportionment to which this

item applies provided that references in the said paragraphs to a tax period shall be

construed as references to the tax periods ending in the said year.

(4) The adjustment requested or allowed by means of a notice served on a

registered person in accordance with paragraph (1) of this item shall be treated for all

purposes of the Act as further credit for input tax, or as a further liability for output

tax, as the case may be, for the tax period immediately following that during which

that notice is served on that person, and shall be reported on the relative return and

accounted for accordingly.

Rounding up

10. (1) A fraction resulting from any computation made in accordance with

this Schedule shall be rounded up to the nearest lira.

(2) Where the amount of input tax which results to be not allowable as a

credit pursuant to an apportionment made in accordance with items 7, 8 or 9 of this

Schedule is less than Lm10 multiplied by the number of months or part thereof in-

cluded in the tax period or periods to which that apportionment relates that amount

shall, notwithstanding the other provisions of this schedule, be treated as allowable as

a credit for input tax.

Bad debts relief

11. (1) Where a registered person shows to the satisfaction of the

Commissioner that an amount due to him as consideration for a supply made to

another person has, during a tax period, become a bad debt and that output tax has

been paid or is payable by the said registered person in respect of that supply, that

registered person may claim the amount of the said output tax to be allowed as a

deduction in addition to any other deduction allowable to him in accordance with

the other provisions of this Schedule for that tax period or for such subsequent tax

period as the Commissioner may allow.

(2) A claim for a deduction in respect of a bad debt shall be subject to such

directives as the Commissioner may give as to the circumstances in which it may be

made and the documents or other evidence that should be produced.

(3) The recovery of a bad debt in respect of which a deduction has been

allowed in terms of this paragraph or of a part of such a debt shall, to the extent of the

amount recovered, be treated as a taxable supply taking place at the time the said debt

or part therof is paid and shall be accounted for accordingly by the person to whom the

deduction has been so allowed.

Limitation of input tax attributable to certain supplies

12. (1) This item shall apply to tax chargeable on taxable supplies made to a

registered person and to tax paid on taxable importations made by that person to the

extent that it is attributable to supplies made or to be made by that person and specified

in subparagraph (a) or subparagraph (d) of paragraph (1) of item 1 of Part Two ofthe

Fourth Schedule to this Act

Provided that this item shall not apply to any tax which is attributable to the

provision of accommodtion in a hotel licensed as such under the provisions of the

Hotels and Catering Establishments Act, or any Act that is substituted therefor, or of

services to persons supplied with accommodation in such a hotel consisting in ameni-

ties provided within that hotel.

(2) Notwithstanding the other provisions of this item, the amount of tax to

which this item applies which may be treated as input tax of a registered person for a

tax period shall not exceed the amount of the output tax of that person for that period

on the supplies to which that amount is attributable.

(3) Any amount of tax which is not treated as input tax of a registered

person for a tax period solely by reason of the limitation provided for in paragraph (2)

of this item shall be deemed to be the input tax of that person for the subsequent tax

period in addition to any other input tax for that period, provided that

(a) the amount of tax to which this item applies may be treated as input

tax for the subsequent tax period shall again be subject to the said limitation;

(b) where an amount of tax is not treated as input tax for a tax period

by reason of the said limitation and the supplies made by that registered person

for a number of subsequent consecutive tax periods covering at least twelve

months do no include any supplies specified in subparagraph (a) of paragraph

(I) of item I of part Two of the Fourth Schedule to this Act, otherthan supplies

referred to in the proviso to paragraph (I) of this item, that amount shall not

be treated as input tax for any subsequent tax period;

(c) nothing in this item shall be construed as deeming any amount which

has not been treated as input tax by reason of the said limitation for a tax

period as an excess credit for any tax period.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 12 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(l) The Commissioner may at any time cancel the Cancellation of

registration of a person if he has reason to believe that that person registration.

does not carryon or has ceased to carry on an economic activity or

that that person is not likely to make taxable supplies or exempt

with credit supplies.

(2) The Commissioner shall serve a notice on any

person whose registration has been cancelled, indicating the date on

which that person has ceased to be a registered person.

(3) When the registration of a person who is not an

exempt person is cancelled he shall be deemed to have, immediately

before such cancellation, made a supply of all the assets that belonged

to his economic activity at that time subject to the relevant provisions

of the Second Schedule to this Act and shall account for such a supply

in the tax return for his last tax period

Provided that the Commissioner may, when he has reason

to believe that the taxable value of the said deemed supply is less

than one hundred liri, or such other amount as may be prescribed,

exempt that person from accounting for that supply as aforesaid.

(4)

The cancellation of the registration of a person

shall not relieve that person from any liability incurred before the

date of the cancellation or in virtue of anything done or omitted to

be done before that date, or from the obligation to make an

application for a fresh registration in any of the circumstances

referred to in section II of this Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Twelfth Schedule — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Section 28

Tax Records

Records to be kept

I. Every registered person shall, for the purpose of accounting for the tax,

keep the following records and documents

(a)

proper accounts and records of his economic activity;

(b)

his value added tax account;

(c)

his annual value added tax account;

(d)

copies of all tax invoices issued by him;

(e)

all tax invoices received by him;

documentation relating to importations and exportations by him;

(f)

(g) copies of all fiscal receipts issued in terms of the Fourteenth Schedule

to this Act;

(h) all credit notes, debit notes and other documents issued by him or

received by him which evidence an increase or a decrease in the consideration

for any supplies or for importations.

Matters to be included in the records

2. The accounts and records of every registered person shall be kept in

such a way as to enable the following matters to be readily ascertained

(a) the total value of the supplies made by him during each tax period,

and separate totals of the value of -

(i)

goods taxable at 15%, exclusive of tax;

(ii)

services taxable at 15%, exclusive of tax;

(iii)

accommodation taxable at 5%, exclusive of tax;

(iv)

exports;

(v) supplies, other than exports, referred to in Part One of the

Fourth Schedule to this Act (exempt with credit);

(vi) supplies referred to in Part Two of the Fourth Schedule to this

Act (exempt without credit);

(b) the total value of his importations, purchases and other inputs for

each tax period, and separate totals of the value of -

(i)

taxable goods purchased for resale, excluding tax;

exempt goods purchased for resale;

(ii)

(iii)

capital goods purchased;

(iv)

taxable services and taxable overheads, excluding tax;

A

(c) where the supplies made by him include supplies referred to in Part

Two of the Fourth Schedule the apportionment or other method applicable in

terms of the Act or any regulations made under the Act for the attribution of

the input tax to the supplies made by him;

(d) the tax paid or payable, the tax refunded or refundable and the excess

credit carried forward, if any, for each tax period.

The Value Added Tax Account

3. (I) The Value Added Tax Account shall be a separate account held for

each tax period of the taxable person and shall be divided into the "Output tax

portion" and the "Input tax portion".

(2) The output tax portion of the Value Added Tax Account shall show the

total output tax chargeable for the relative tax period showing separate totals of output

tax chargeable at different rates, and shall contain a cross reference to the accounts

from which the values of the supplies to which the said output tax refers can be ascer-

tained.

(3) The input tax portion of the Value Added Tax Account shall show the

total input allowable as a deduction for that period, distinguishing between input tax

on importations and on supplies, and shall contain a cross reference to the accounts

from which the values of the importations and supplies to which the said input tax

refers can be ascertained.

Correction of Mistakes

4. (I) Where a registered person, in a return for a tax period furnished to

the Commissioner -

(a) overstates or understates the output tax and the overstatement or

understatement does not exceed five per cent of the output tax declared in the

said return, and/or

(b) overstates or understates the credit for input tax and the

overstatement or understatement does not exceed five per cent of the credit

for input tax declared in the said return,

he may make an adjustment in the Value Added Tax Account for the tax period during

which the overstatement or understatement is discovered by means of a deduction

from or an addition to the total for that tax period of the output tax portion and/or the

input tax portion, as the case may be, and the output tax and input tax for the period

shall be deemed to the respective totals thereof as adjusted.

(2) No adjustment may be made in accordance with paragraph (1) of this

item except where the overstatement of the output tax or the input tax results as a

consequence of a mistake on the part of the taxable person.

Adjustments due to change in the consideration

5. (1) Where the output tax or the input tax declared by a person in a tax

return results to have been understated or overstated on account of an increase or

decrease in the consideration for a supply or a cancellation of a supply made to or

by that person which is charged or allowed or made in any tax period subsequent

to that during which the supply was accounted for, that person may make an

adjustment in the Value Added Tax Account for the said subsequent tax period by

means of a deduction from or an addition to the total for that tax period of the

output tax portion and/or the input tax portion, as the case may be, and the output

tax and input tax for that period shall be deemed to be the respective totals thereof

as adjusted.

(2) Nothing in this item shall be construed as allowing the determination

of the taxable value of a supply in derogation of any provision contained in the Act in

general and in the Seventh Schedule to the Act in particular.

Adjustments based on annual results

6. Where any adjustment falls to be made pursuant to an attribution of input

tax based on annual results in terms of the Eleventh Schedule to this Act, the said

adjustment shall be made to the Value Added Tax Account in accordance with the

said Schedule.

Further provisions relating to adjustments

7. (1) Every adjustment to the Value Added Tax Account shall clearly make

reference to the tax return to which it refers and to all the documents relating to the

understatements and overstatements.

(2) No adjustment may be made in accordance with item 4 or 5 of this

Schedule in the Value Added Tax Account for any tax period which commences later

than six months from the expiration of the tax period for which the relative output tax

or credit for input tax had been overstated or understated.

(3) No adjustments may be made in the Value Added Tax Account for a tax

period in respect of any supply or importation accounted for in a previous period ex-

cept in accordance with this Schedule.

Tax Returns

8. The amount of output tax and credit for input tax to be declared by a

person in a tax return for a tax period shall be the amount of output tax and credit

for input tax shown in the records of that person in accordance with this Schedule.

A

Annual Value Added Tax Account

9. The annual value added tax account shall be an account drawn up for

every calendar year and shall show the total of the totals shown in the output tax

portion and the input tax portion of the Value Added Tax Account for each of the

tax periods ending during that calendar year.

Exceptions

10. (I) The Commissioner may, in any particular case or classes of cases,

require such additional records or documents to be kept, or allow such variations

to the records and documents to be kept in accordance with this Schedule as he

may deem appropriate for any of the purposes of the Act.

(2) This Schedule shall be subject to the general requirements of section

48 of the Act and of any special provision contained in the Act or in any regulations

made under the Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 13 Classification as exempt person. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) When a registered person or a person who applies

for registration carries on an economic activity which qualifies as a

small business he may apply to the Commissioner to be classified as

an exempt person.

(2) Where the Commissioner is satisfied that a person

who has made an application as aforesaid is eligible to be so classified

he shall classify that person as an exempt person and shall serve a

notice on that person indicating the date of that classification.

(3) When a person is classified as an exempt person

on a date other than the date of his registration he shall be deemed

to have, immediately before the date of that classification, made a

supply of all the assets that belonged to his economic activity at that

time subject to the relevant provisions of the Second Schedule to

this Act and shall account for such a supply in the tax return for his

last tax period

Provided that the Commissioner may, when he has reason

to believe that the taxable value of the said deemed supply is less

than one hundred lid, or such other amount as may be prescribed,

exempt that person from accounting for that supply as aforesaid.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Thirteenth Schedule — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Section 50(4)

Tax Invoice

Form of tax invoice

I. Save as the Commissioner may otherwise allow, a document shall not

constitute a tax invoice unless it is legible and unless all the particulars required

by this Schedule are properly and fully stated.

Contents

2. (I) Saving the provisions of item 4 of this Schedule, a tax invoice issued

by a person other than an exempt person shall contain the following particulars

(a)

an identifying number of the invoice;

(b)

the date of supply;

(c) the name, address and Value Added Tax registration number of the

supplier;

(d) the name, address and Value Added Tax registration number of the

person to whom the supply is made;

(e) the type of the supply by reference to the catagories listed in item 3

of this Schedule;

a description sufficient to identify the goods or services supplied;

(f)

(g) for each description, the quantity of the goods or the extent of the

services, the rate of tax chargeable thereon, and the price payable expressed

in Maltese liri, excluding tax;

(h) the total price payable expressed in Maltese liri, before any cash

discounts excluding tax;

(i)

the rate of any cash discount offered;

(j) the amount expressed in Maltese liri of tax chargeable at each rate

so chargeable;

total amount of tax chargeable expressed in Maltese liri.

(k)

(2) Saving the provisions of item 4 of this Schedule, a tax invoice issued

by an exempt person shall contain the following particulars

(a)

an identifying number of the invoice;

(b)

the date of supply;

(c) the name, address and Value Added Tax registration number of the

supplier, and, near or immediately beneath the said registration number, the

words "Exempt Person";

(d) the name, address and Value Added Tax registration number of the

person to whom the supply is made;

(e) the type of the supply by reference to the catagories listed in item 3

of this Schedule;

a description sufficient to identify the goods or services supplied;

(f)

(g) for each description, the quantity of the goods or the extent of the

services, and the price payable expressed in Maltese liri;

(h) the total price payable expressed in Maltese liri, before any cash

discounts;

(i)

the rate of any cash discount offered.

Categories of supplies

3. The categories referred to in subparagraph (e) of paragraphs (1) and (2)

of item 2 of this Schedule are

(a)

a supply by sale;

A

(b) a supply of goods under a hire-purchase agreement or in terms of

which the ownership of the goods is deferred;

(c)

a supply on hire;

(d)

a supply under a contract of exchange;

(e)

a supply of goods made from materials provided by the customer;

a supply by sale on commission;

(f)

(g)

a supply on sale or return or similar terms;

(h)

any other supply.

Tax invoice by retailers

4. A tax invoice which is required to be provided by a retailer need contain

only the following particulars

(a)

a serial number of the transaction;

(b)

the date of the supply;

(c) the name, address and the Value Added Tax registration number of

the supplier;

(d) the Value Added Tax registration number of the person to whom the

supply is made;

(e)

a description sufficient to identify the goods supplied;

(f) ,or each description, the quantity of the goods, the rate of tax

chargeable thereon, and the price payable expressed in Maltese liri, including

the tax;

(g)

the total amount of tax chargeable expressed in Maltese liri

Provided that a fiscal receipt issued by means of a fiscal cash register as

defined in the Fourteenth Schedule to this Act, shall be deemed to satisfy the require-

ments of this item if it contains in addition to the particulars required by the said items

the machine-printed registration number of the person to whom the relative supply is

made.

Invoice for exempt supply

5. Where a registered person provides an invoice containing the particulars

prescribed in item 2 or item 4 of this Schedule and specifies thereon any goods or

services which are subject of an exempt supply, he shall distinguish on the invoice

A

between exempt supplies and taxable supplies and shall distinguish exempt supplies

referred to in the First Part of the Fourth Schedule to this Act from other exempt

supplies.

Reverse charge

6. In the case of a supply of services to which section 65 of this Act refers,

the person who is deemed to make that supply in terms of the said section shall

indicate the words "self-reverse charge" in lieu of the information required by

sub-paragraph (d) of paragraphs (I) or (2) of item 2 of this Schedule.

Special cases

7. This Schedule shall be without prejudice to any provisions which may be

prescribed in special cases.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 14 Cancellation of exempt person classification. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) An exempt person shall within thirty days from the

date on which he does not remain eligible to be classified as an

exempt person apply to the Commissioner for the cancellation of

his classification.

(2) An exempt person may apply to the Commissioner

for the cancellation of his classification at any time in which he may

be so entitled.

(3) When the Commissioner is satisfied that an exempt

person who has made an application for the cancellation of his

classification was required by subsection (1) or entitled under

subsection (2) of this section to make that application or where he

otherwise has reason to believe that an exempt person is not eligible

to remain classified as an exempt person he shall cancel the

classification of that person as an exempt person and shall notify

that person accordingly.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Fourteenth Schedule — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Section 50 (4)

Fiscal Receipts

Interpretation

I.

In this Schedule, unless the context otherwise requires -

"fiscal cash register" means a cash register which conforms with the

requirements specified in item 10 of this Schedule;

"fiscal taxi meter" means a taxi meter which complies with requirements

specified in item II of this Schedule;

"fiscal receipt" means a receipt or invoice issued on a form supplied or

approved in writing by the Commissioner and containing all the information and

details required to be specified thereon in accordance with the said form, or a

receipt issued by means of a fiscal cash register, or by a fiscal taxi meter.

Obligation to issue receipt

2. Subject to the other provisions of this Schedule, every registered person

who makes a taxable supply or a supply referred to in Part One of the Fourth

Schedule to the Act( exempt with credit supply) shall, except where he is required

to issue a tax invoice in respect of that supply, issue a fiscal receipt in accordance

with this Schedule for the consideration paid to him for that supply and such fiscal

receipt shall, unless issued before the payment is made, be issued and delivered to

the person who effects the payment or to the person to whom the supply is made

immediately after payment has been effected, to the extent covered by that payment

A

Provided that in respect of a supply for which no consideration is paid but

which is deemed to have been made for a consideration in accordance with the Second

Schedule to this Act, the fiscal receipt shall be issued on the date of that supply.

Receipt issued by a fiscal cash register

3. (1) Subject to the provisions of items 4, 5 and 6 of this Schedule, a

fiscal receipt issued by a person who is a retailer or whose business includes supplies

of food referred to in item 2 of Part Three of the Fourth Schedule to the Act shall

be issued by means of a fiscal cash reeister: provided that in respect of any supply

made by such person in any period during which he is unable, for a reasonable

cause, to issue a fiscal receipt by means of a fiscal cash register, he shall issue a

fiscal receipt on a form supplied by the Commissioner.

(2) A receipt which is required to be issued for the provision of a taxi

service shall be issued by means of a fiscal taxi meter: provided that in respect of any

supply made by such person in any period during which he is unable, for a reasonable

cause, to issue a fiscal receipt by means of a fiscal taxi meter, he shall issue a fiscal

receipt on a form supplied by the Commissioner.

(3) For the purposes of paragraphs (1) and (2) of this item, the following

shall not be deemed to constitute a reasonable cause

(a) not being in possession of a fiscal cash register or a fiscal taxi meter;

(b) not being in possession of stationery or other material required for

the functions of the fiscal cash register or a fiscal taxi meter;

(c) defects in the functioning of a fiscal cash register or a fiscal taxi

meter except where prompt and reasonable measures have been taken to remedy

such defects.

Door to door sales of gas, milk or bread

4. (1) A person who makes supplies from a vehicle consisting in door-to-

door delivery, or in the delivery to the public on a public road, of gas, milk and

milk products or bread shall not be required to issue a fiscal receipt for every such

supply if he issues one fiscal receipt (hereinafter in this item referred to as "a daily

receipt") which accounts for all the said supplies made on each day in the manner

prescribed in the other provisions of this item.

(2) A daily receipt shall be a fiscal receipt which accounts for the difference

between the goods loaded on the vehicle from which the said supplies are made and

the goods remaining on the vehicle after the said supplies are made for that day as if

such difference goods supplied in one supply.

A

(3) A person who issues a daily receipts shall keep the originals therefore

together with the other records he is required to keep for the purposes of this Act.

(4) A person who issues daily receipts shall be required to issue fiscal

receipts in accordance with the other items of this Schedule in respect of any supplies

not referred to in this item.

Supplies ofgoods by means of vending machines

5. (I) A fiscal receipt in respect of supplies of goods made by means of a

vending machine shall account for the difference in the goods stocked in the machine

every time and immediately after goods are loaded therein and the goods stocked

in the machine immediately before goods are loaded again therein as if that

difference represented goods supplied in one supply: provided that the first receipt

to be made in accordance with this item by a person who is a registered person on

the 1st January, 1999 shall account for the difference in the goods stocked in the

machine on the 1stJanuary 1999 and the goods stocked therein immediately before

the first time in 1999 that goods are loaded therein.

(2) A person who makes supplies of goods by means of a vending ma-

chine shall take readings of stocks every time goods are loaded into machine and shall

keep a record of such readings and the original of all receipts issued in accordance

with this item together with the other records he is required to keep for the purposes of

this Act.

Services supplied by means of machines

6. (I) A fiscal receipt in respect of supplies of services made by means of

a machine operated by coins shall be issued every time coins are withdrawn from

the machine, and shall account for the value of the coins so withdrawn as if that

value represented the value of services supplied in one supply.

(2) A person who makes supplies referred to in paragraph (1) ofthis item

shall keep a record of coins withdrawn from and of coins and goods stocked by him (if

any) in the machine, and shall keep the original of all receipts issued in accordance

with the said paragraph together with the other records he is required to keep for the

purposes of this Act.

(3) A fiscal receipt in respect of supplies of services made by means of a

machine operated by an electronic card or by any other token shall be issued every

time a card or other token is supplied and shall be issued every time a card or other

token is supplied and shall account for the price charged or chargeable for the supply

of that card or token as if the supply of the card or other token represented the supply

of services that can be supplied by the use of that card or other token.

Accounting for fiscal receipt supplied or approved by the Commissioner

7. (1) Every person who is supplied with forms of fiscal receipts by the

Commission shall account for all such forms by keeping in his possession, and

producing at the request of the Commissioner, all unused forms, and by keeping

one copy and producing to the Commissioner another copy of all receipts drawn

out on such forms and of all cancelled forms.

(2) Copies of used and cancelled forms of fiscal receipts supplied by

the Commissioner shall be delivered to the Commissioner as soon as possible after

the booklet or other form of binding in which the fiscal receipts have been supplied

has been fully used or at such other date as the Commissioner may require.

(3) Every person who issues fiscal receipts on forms approved by the Com-

missioner shall account for all such forms in such manner as may be directed by the

Commissioner, and for this purpose the Commissioner may give such directions re-

garding the processing, recording and storing of the forms and of the information to be

given therein as he may deem appropriate.

(4) Any person who fails to account for a form of fiscal receipt in the

manner prescribed in this item shall be presumed, unless the contrary is proved, to

have failed to account for a taxable supply.

Exemption from obligation to issue fiscal receipt

8. (1) The Commissioner may, by means of a notice in writing, exempt

any person, and may by means of a notice published in the Gazette exempt any

class of persons from any obligation imposed by this Schedule, and such exemption

may be given for such time and with such limitations and subject to such conditions

as may be specified in the said notice.

(2) The Commissioner may at any time by means of a notice in writing

or by means of a notice published in the Gazelle, as the case may be, revoke any

exemption given in terms of this item.

Obligation to retain and produce receipt

9. Every person to whom a fiscal receipt is issued shall retain the receipt in

his possession for a period of twenty-four hours and shall, upon a request made

during the said time by the Commissioner or any officer authorized by the

Commissioner, produce the said receipt to the Commissioner or such authorized

officer.

Fiscal cash register

10. A fiscal cash register shall:-

(1)

A

(a)

cater for the functions listed in paragraph (2) of this item; and

(b) be of a type specifically approved by the Commissioner by means

of a notice published in the Gazette or approved for the purposes of and in

accordance with the Customs and Excise Tax Act, 1997 or the Value Added

Tax Act, 1994.

(2) The functions for which a fiscal cash register must cater for the pur-

pose of subparagraph (a) of paragraph (I) of this item are

(a) printing of an itemised receipt for the supplies made in each

transaction indicating:-

(i) the name and address of the supplier and the Value Added

Tax registration number,

(ii)

the goods or services supplied,

(iii)

the quantity of each item supplied,

(iv)

whether each item is taxable or exempt,

(v) the total, inclusive of tax, of the consideration paid for the

supplies included in the transaction,

(vi)

serial number of transaction,

(vii)

the tax logo type as specified by the Commissioner,

(viii)

cash register serial number;

(ix)

date and time of supply,

(x)

and/or such other details as the Commissioner may require;

(b)

registering of all day-to-day transactions on a printed journal;

(c)

storing of predefined data in an inaccessible and unalterable memory.

Fiscal taxi meter

A fiscal taxi meter shall-

(a)

cater for the functions listed in paragraph (2) of this item; and

(b) be of a type specifically approved by the Commissioner by means

of a notice published in the Gazette.

(2) The functions for which a fiscal taxi meter must cater for the purposes

of subparagraph (a) of paragraph (1) of this item are

(a)

the printing of a receipt indicating

(i) the name and taxi registration number of the supplier and the

Value Added Tax registration number;

(ii)

the total, inclusive of tax, of the consideration paid for the

service;

(iii)

the serial number of the transaction;

(iv)

the tax logo type as supplied by the Commissioner;

(v)

fiscal taxi meter serial number;

(vi)

date and time of the supply;

(vii)

and/or such other details as the Commissioner may require;

(b)

registering of all day-to-day transactions on a printed journal;

(c)

storing of predefined data in an inaccessible and unalterable memory.

F~EENTHSCHEDULE

Section 57

SPECIAL CASES

Part A

Professional Services

Interpretation

In this Schedule -

"professional services" means any of the services specified in item 10 of

this Part;

"fiscal receipt" has the meaning assigned to it in the Fourteenth Schedule

to this Act.

A

Time of supply

2. (l) Subject to the other provisions of this Part, a supply of professional

services shall be treated as taking place at the earlier of

(a) the date when a tax invoice or a fiscal receipt, as the case may be, is

issued for the said supply, to the extent covered by that invoice or receipt; and

(b) the date when a payment is made for that supply, to the extent covered

by that payment.

(2) Professional services performed by a taxable person before the 1st

January, 1999, shall be treated as supplied on the date on which they were performed.

(3) When a payment is made before the 1st January, 1999, for professional

services performed by a registered person on or after that date, those services shall

be treated as supplied on the 13t January, 1999.

(4) The date of supply of professional services determined in accordance

with the provisions of this Part shall also be deemed to be the date of supply of

those services for the purposes of the Customs and Excise Tax Act, 1997.

Date when services are performed

3. (1) The services of an advocate or of a legal procurator in assisting

any party to judicial proceedings shall be treated as performed -

(a) where the judicial proceedings have been instituted before the 1st

January 1999 and the final decree or judgement is delivered on or before the

30th June 1999, on a date preceding the 1st January 1999;

(b) in any other case, on the date when a final decree or judgement in

those proceedings is delivered by the court in which the proceedings have

been instituted (services relating to proceedings instituted in different courts

being treated as supplied separately) or, when the advocate or legal procurator

abandons or is abandoned by his client at an earlier date, on such earlier date.

(2) The services of a judicial referee or of an expert appointed by a

court or by a tribunal set up by law shall be treated as performed -

(a) where the appointment of the referee or expert has been made before

the 1st January 1999 and the report is filed or made on or before the 30th

June, 1999, on a date preceeding the 1st January, 1999;

(b) in any other case, on the date on which the report is filed in or made

to the court or tribunal or, when the appointment is terminated on an earlier

date, on such earlier date.

(3)

The services of an arbitrator shall be treated as performed -

(a) where the appointment of the arbitrator has been made before the

1st January, 1999 and the award is made on or before the 30th June 1999, on

a date preceeding the 1st January, 1999;

(b) in any other case, on the date of the award or, when the appointment

is terminated on an earlier date, on such earlier date.

(4) (a) Subject to the provisions of paragraph (b) of this item work

carried out before the 1st January, 1999 by a public auditor for the purpose of

making a report on the accounts for a financial year commencing before the

said date shall be treated as constituting a supply of services performed before

the said date.

(b) When a payment for any services performed by a public auditor for

the purpose of making a report on the accounts for a financial year ending on

or after the 1st January, 1999 is made after the 30th June,1999, the said services

shall be treated as having been wholly performed after the 1st January ,1999.

Free Supply

4. When no consideration is paid or payable for a supply of professional

services and where that supply is to be treated as a taxable supply made for a

consideration pursuant to the provisions of the Second Schedule to this Act, the

date of the said supply shall be determined in accordance with the provisions of

the Act without any reference to this Part.

Invoices and receipts for professional services

5. (I) Where a tax invoice is required to be issued for a supply of

professional services, it shall be issued by not later than thirty one days from the

date on which payment for the said supply of services is made, to the extent covered

by that payment

Provided that in the case of a supply to which item 4 of this Part refers, the

tax invoice shall be issued within thirty one days from the date on which the services

are performed.

(2) Where a fiscal receipt is required to be issued for a supply of profes-

sional services it shall, unless it has been issued before the payment has been made, be

issued and delivered to the person who effects the payment or to whom the services

have been supplied, immediately after payment has been effected, to the extent cov-

ered by that payment

A

Provided that in the case of a supply to which item 4 of this Part refers, the

fiscal receipt shall be issued on the date when the services are performed.

(3) A tax invoice or a fiscal receipt which includes fees for the supply of

professional services shall not include fees for any other supply.

Tax on services where tariffs offees are established by law

6. (1) The tax chargeable on a supply of professional services shall be an

amount over and above the amount resulting to be chargeable for those services in

terms of any tariff of fees established under any law in force in Malta.

(2) Nothing in this item shall be construed as requiring any person re-

quired by law to assess or declare the fees payable in accordance with any such tariffto

declare or assess also the said tax.

(3) In any action for the enforcement of the executive title referred to in

sub-section (c ) of section 253 of the Code of Organization and Civil Procedure, the

amount for which payment may be enforced shall be the amount shown in the taxed

bill of costs in question increased by any tax chargeable on the supply of professional

services to which the taxed bill of costs refers as evidenced by a tax invoice or a fiscal

receipt or a certified copy thereof attached to the said bill.

(4) The provisions of paragraph (3) of this item shall be without prejudice

to the right of the debtor to request the delivery of the original tax invoice or the fiscal

receipt in accordance with item 7 of this Part.

Tax claimed from third parties

7. The provisions of this item shall reply with respect to any action for the payment

of fees for professional services brought against any person other than the person to

whom the services were supplied

(a) the person against whom the action is brought shall not be bound to

pay the amount relating to the tax, if any, chargeable on the supply of the said

services unless the original tax invoice or fiscal receipt for those services

complying with the provisions of paragraph (b) of this item is delivered to

him, or, where the action is brought against a number of persons jointly, to

anyone of them;

(b) a tax invoice or fiscal receipt delivered as aforesaid shall, in addition

to the information required by the Act, contain

the following declaration signed by the person to whom the

(i)

said services were rendered

"I declare that no credit for input tax has or will be claimed by me

in respect of the professional services referred to in this tax invoice!

fiscal receipt.";

(ii) where the person against whom the action or claim is brought is a

registered person, or, where the action is brought against a number of persons

jointly, when anyone of them is a registered person, the name and Value Added

Tax registration number of the said registered person;

(c) when a tax invoice or fiscal receipt for fees for professional services

complying with the provisions of paragraph (b) of this item is delivered to a

registered person who is bound at law to payor reimburse the said fees it shall for

the purposes of this Act be treated as if it were a tax invoice for professional

services supplied to him.

Option to adopt invoice basis

8. (I) Any person who supplies professional services may request the

Commissioner to authorize him to account for the time of supplies made by him in

the manner provided for in the Act without any reference to this Part, and any

person who has been so authorized may request the Commissioner to authorize

him to account for the time of supplies in accordance with this Part.

(2) The Commissioner may refuse to grant an authorization requested in

accordance with paragraph (I) of this item for any reason he deems appropriate or

without assigning any reason and may grant such an authorization subject to such

conditions as he may deem fit to impose, including the payment of any amount deter-

mined by him to represent any tax which, in view of the change in the manner of

accounting for the tax, might otherwise remain unaccounted for.

Applicability ofthe Act

9. Save as otherwise provided in this Part, the provisions of this Act and of

any regulations made under this Act shall apply to supplies of professional services.

Services

10. This part applies to -

(I) Services performed by a person holding a warrant issued under any

law in force in Malta to practise a profession acting in an independent capacity

in the exercise of that profession.

(2) Services of a group of persons holding a warrant issued under any

law in force in Malta to practice a profession whether associated in a

partnership or not but excluding a commercial partnership.

A

(3) Services performed by an arbitrator pursuant to a submission for

arbitration made in comformity with subsection (I) of section 970 of the Code

of Organization and Civil Procedure.

Services performed by a judicial referee or an expert appointed by

(4)

a court or by a tribunal set up by law.

PartB

Second-hand Goods

Eligibility to exercise option

I. The option referred to in item 2 of this Part is available to a registered

person who makes a taxable supply of goods which had been supplied to him in

Malta as second hand goods -

(a) on a supply on which no tax was chargeable under this Act, including

a supply which in terms of this Act or any regulations made under this Act is

treated as being neither a supply of goods nor a supply of services, or

(b) by another registered person who had, in respect of that supply,

availed himself of the option under item 2 of this Part and issued a sales invoice

as required by sUbparagraph (b) of item 3 of this Part,

and who satisfies the conditions of item 3 of this Part.

Option applicable to supply of second hand goods

2. (I) A registered person may opt to account for the tax chargeable on a

taxable supply referred to in item I of this Part as if the taxable value of that

supply were the excess, if any, of the consideration charged by him for that supply

over the consideration charged to him for the supply of those goods to him.

(2) The amounts to be taken into account as the consideration charged by

and to a person for the purpose of paragraph (I) of this item shall be the amounts

indicated as the price of the relative transaction in the sales invoice issued by that

person in accordance with paragraph (b) of item 3 of this Part and in the sales invoice

issued to him in accordance with the said paragraph or, where applicable, the purchase

invoice issued by him in accordance with paragraph (a) of the said item.

Conditions

3. A person who exercises the option referred to in item 2 of this Part -

(a) must hold, in the case where the said goods had been supplied to

him by a person who had not supplied the said goods in the course of an

economic activity, a purchase invoice issued by him at the time when the said

goods had been supplied to him as aforesaid containing the information

described in item 4 of this Part;

(b) shall issue a sales invoice containing the information described in

item 5 of this Part and keep a copy of the said invoice;

(c) shall not, in respect of a supply in respect of which the said option

has been exercised, issue a tax invoice or any other document showing an

amount as being tax or as being attributable to tax;

(d) shall not treat the tax, if any, included in the price paid or payable

by him on the supply to him of the goods in question as input tax;

(e) shall keep such further records, documents and accounts relating to

transactions in second hand goods as the Commissioner may require.

Purchase invoice

4. Save as the Commissioner may otherwise allow, a purchase invoice

required in virtue of paragraph (a) of item 3 of this Part shall show

(a)

the purchase invoice number;

(b)

the date of the purchase;

(c)

the name and address of the seller;

(d)

the name and address of the purchaser;

(e)

a description of the goods;

the total price;

(f)

(g) a cross reference to the entry in the purchaser's account books of

the transaction;

(h)

the signature of the seller.

Sales Invoice

5. Save as the Commissioner may otherwise allow, a sales invoice required in

virtue of paragraph (b) of item 3 of this Part shall show

A

(a)

the sales invoice number;

(b)

the date of the sale;

(c)

the name, address and registration number of the seller;

(d)

the name and address of the purchaser;

(e)

a description of the goods;

the total price inclusive of tax;

(f)

(g) a cross reference to the entry in the seller's account books of the

transaction;

(h) the following declaration signed by the seller: "I declare that no

credit for input tax has or will be claimed by me in respect of goods sold on

this invoice.".

Repossessed goods

6. Where any used goods are repossessed -

(a)

under the terms of a finance agreement, or

(b)

by any insurer in the settlement of a claim under an insurance policy,

(c) by the mortgagee in terms of his rights under a mortgage over a

ship or aircraft,

and supplied by the person who repossessed them in the same condition as they

were in at the time they were repossessed, the said supply by that person shall be

treated as neither a supply of goods nor as a supply of services.

Part C

Section 57 (2)(c)(e)

Supplies by Retailers and by Civil, Mechanical and Electrical Engineering

Contractors

This Part applies to:-

(a)

retailers;

(b)

civil, mechanical and electrical engineering contractors.

A

2. The Commissioner may direct that the time of supplies by a registered

person to whom this Part applies shall be the time whenever a payment is made for

any such supplies, to the extent of every such payment, and that the taxable value

of such supplies shall be determined by reference to every such payment.

3. A direction in terms of item 2 of this Part shall be given by notice in

writing or by a notice published in the Gazette, and may, by such notice, be amended

or withdrawn. Unless otherwise specified, such a direction shall apply to all sup-

plies made by the person to whom it is made with effect from the date of the said

direction until that direction is withdrawn.

4. When a direction given in terms of item 2 of this Part is amended or

withdrawn the Commissioner may require the person to whom it had been given to

pay tax in such amount as the Commissioner may deem fair and reasonable to

compensate for the tax on supplies which, because of the amendment or with-

drawal, might otherwise remain unaccounted for and such tax shall be deemed for

all the purposes of this Act to be tax chargeable on taxable supplies made by that

person on the date that the amendment or withdrawal becomes effective.

5. Notwithstanding the other provisions of this Part a direction given in terms

of item I of this Part shall not apply to any supply referred to in items 4, 5 and 8 of

the Second Schedule to this Act.

Passed by the House of Representatives at Sitting No. 46 of the 21st December,

1998. ANTON TABONE

Speaker

RICHARD J. CAUCHI

Clerk to the House of Representatives

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 15 Tax period. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) The Commissioner shall allocate a tax period to

every registered person who is not classified as an exempt person.

(2) Except as otherwise provided in this section a tax

period means a period of three calendar months commencing on the

first day immediately following the end of the preceding tax period.

(3) The Minister may by regulations prescribe in

respect of such class or classes of persons as may be specified in the

said regulations a tax period of more or less than three months.

(4) The first tax period for a person shall commence

on the date a person is registered and end on such date as may be

determined by the Commissioner.

(5) When, during a tax period of a person, his

registration is cancelled or he is classified as an exempt person, that

period shall end on the date of that cancellation or classification and

shall be the last tax period of that person, saving the allocation of a

new tax period to that person should he be re-registered or should

his classification be cancelled.

(6) The Commissioner may by means of a notice served

on a registered person in any particular case vary any tax period for

that person in such manner as may be specified in that notice.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 16 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

The provisions of this Part shall apply subject to the Applicability of the

Sixth Schedule.

provisions of the Sixth Schedule to this Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 17 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Without prejudice to the other provisions of this Part Further

may c I assl . f y reglstere

.

..

d persons b y re,erence

c

to classification

t h e C ommlsslOner

registered pernons.

the description or sector of their economic activity and such other

matters as he may deem necessary or appropriate and any

classification so made shall, unless the contrary is proved, be deemed

to be a correct classification for the purpose of determining the

applicability or otherwise of any provision of this Act to which the

classification may be relevant.

PART IV

Determination and Payment of the Tax

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 18 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

The value of supplies and of importations shall be Taxable value.

established in the manner laid down in the Seventh Schedule to this

Act and in the provisions relating to the taxable value of supplies

contained in the Second Schedule to this Act subject to any other

provision applicable in terms of this Act in any specific case.

The tax chargeable under this Act shall be

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 19 Rate ofw. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(a) at the rate offifteen per cent of the taxable value of

every taxable supply other than a supply referred to in paragraph

(c) of this section;

(b) at the rate of fifteen per cent of the taxable value of

every taxable importation;

(c) at such rates as may be specified in the Eighth

Schedule to this Act, not being higher than fifteen percent of

the taxable value of the taxable supplies or the taxable

importations specified in the said Schedule.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 20 Persons liable for the payment of the tax. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) The tax due on a taxable supply shall be a liability

of the person who makes the supply.

(2) The tax due on a taxable importation of goods shall

be a liability of the importer of those goods.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 21 TIme when tax becomes due and payable. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) The tax chargeable on a taxable supply shall

become due at the time when the supply takes place and shall be

payable at the time and in the manner provided for in section 22 of

this Act.

(2) The tax chargeable on a taxable importation shall

become due at the time when the importation takes place and shall

be payable to the Comptroller of Customs on behalf of the

Commissioner before the imported goods are delivered for use or

consumption in Malta.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 22 Payment of the tax on taxable supplies. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) The tax due by a person on taxable supplies made

by him during a tax period shall be the output tax of that person for

that tax period and shall, to the extent that it exceeds the deductions

allowable to that person for that period and is not set off against any

excess credit due to him in virtue of this Act, be paid to the

Commissioner by not later than the date and time by which that

person is required to furnish a tax return for the relative tax period.

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

by the date on which it becomes payable in accordance with this

section at the rate of one per cent for each month or part thereof

during which the said tax remains unpaid or at such other rate as

may be prescribed.

(3) The manner in which payment of the tax is made

and the receipt to be issued by the Commissioner, shall be those as

the Commissioner may direct. The forms to be presented with the

payment of the tax shall be those set out in the Tenth Schedule to

this Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

The input tax of a person is the total of the tax chargeable Inpu'tax.

on supplies made to him and the tax paid on taxable importations

made by him to the extent that the supplies so made or the goods so

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

furtherance of his economic activity.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 24 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) Subject to the other provisions of this section, there Creditfurinpul tax.

shall be allowed for every tax period of a person a credit equivalent

to so much of the input tax of that person for that period as is

attributable to supplies made or to be made by that person, being

supplies to which subsection (3) of this section applies.

(2) Subject to the other provisions of this section, there

shall be allowed for the last tax period of a person whose registration

has been cancelled and for the last tax period of a person who has

been classified as an exempt person a credit equivalent to so much

of the input tax of that person for that period as is attributable to

supplies made by him up to the end of that tax period being supplies

to which subsection (3) of this section applies.

(3)

This subsection applies to

(a)

taxable supplies;

(b)

exempt with credit supplies;

(c) supplies made or to be made by that person outside

Malta to the extent that the said supplies outside Malta would,

had they been made in Malta, have been treated under the

provisions of this Act as taxable supplies or as exempt with

credit supplies;

but does not apply to supplies deemed to be made by a person to

himself in terms of the provisions of section 65 of this Act.

(4) Where the input tax of a person for a tax period

includes tax on any supplies of goods or services made to that person

or on goods imported by that person which have been or which are

to be used by that person both for the purpose of making supplies to

which subsection (3) of this section applies and also for other

purposes, there shall be deemed to be attributable to supplies to which

the said subsection applies such portion ofthe tax on the said supplies

of goods or services as may be prescribed.

(5) The Minister may by regulations make provisions

for the determination of the input tax and the attribution of input tax

and may by such regulations prescribe -

(a) that input tax of a registered person shall not be

allowed as a credit unless it is supported by tax invoices or by

such other evidence as may be specified;

(b) that the credit for input tax shall not include tax

chargeable on such supplies or importations as may be specified;

(c) that tax chargeable on such supplies or 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 attribution of input tax of a person to

supplies shall be determined by reference to a number of tax

periods and that any attribution which may have already been

made for the said tax periods in accordance with the other

provisions of this section shall be adjusted in such manner as

may be specified in the said regulations;

(e) such other provisions as may be deemed necessary

for the purpose of securing a fair and reasonable attribution of

input tax to supplies.

(6) Until such time as the Minister prescribes regulations

in terms of subsection (5) of this section, the rules specified in the

Eleventh Schedule to this Act shall apply.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 25 Deductions. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) A person who furnishes a tax return for a tax period

shall be entitled to claim as deductions for that period

(a) the amount of the credit for input tax allowable to

him for that period;

(b)

such further deductions as may be prescribed.

(2) Where the output tax of a person for a tax period

exceeds the deductions that he may claim in terms of subsection (l)

of this section that person may set off against such excess any excess

credit for any previous tax period that has not yet been paid to him

in accordance with section 26 of this Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 26 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) Saving the other provisions of this Act, when the Ref~nd of excess

deductions allowable to a person for a tax period exceed the output CredIt.

tax of that person for that period, the excess shall be an excess credit

of that person for that period.

The amount of excess credit of a person for a tax

(2)

period shall, to the extent that it is not set off against any amount

due by that person to the Commissioner in accordance with the other

provisions of this Act, be a refund payable to that person by not

later than five months from the expiration of the time allowed for

the furnishing of the tax return for that tax period or from the day on

which the said return has been furnished to the Commissioner,

whichever is the later.

(3) Interest shall be due to a person to whom a refund

is due in accordance with this section at the rate specified in or

prescribed in terms of subsection (2) of section 22 of this Act from

the date when the refund becomes payable in accordance with this

section until the date when it is paid or when a cheque or draft for

the payment thereof is given or posted to that person by the

Commissioner.

(4) The Commissioner may, for the purpose of any such

verifications as he may consider necessary to ascertain the amount

refundable, extend the time limit referred to in subsection (2) of this

section by not more than twelve months: provided that the running

of interest on the said refund shall not be meanwhile suspended.

PARTY

Returns, Assessments, Penalties and Appeals

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 27 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) Every registered person who is not an exempt Taxrelurns.

person shall furnish the Commissioner with a tax return for every

tax period by not later than the fifteenth day of the second month

following the month during which that tax period ends.

(2) Every person whose registration has been cancelled

and every registered person who is classified as an exempt person

shall furnish the Commissioner with a tax return relating to the last

tax period within thirty days from the date on which he is served

with a notice referred to in subsection (2) of section 12 or in

subsection (2) of section 13 of this Act, as the case may be, or within

such longer period as may be specified in the said notice.

(3) A tax return shall contain a declaration of the output

tax and the deductions for that period and it shall contain such other

declarations and particulars and be made on the form as prescribed

in the Tenth Schedule to this Act.

(4) A tax return shall not be deemed to have been

furnished unless it is full and complete in all material respects and

unless and until the tax resulting to be payable in accordance with

the declarations made therein has been paid to the Commissioner

provided that when a payment is made by a person to the

Commissioner in circumstances which indicate that that person

intended that payment to relate to a tax return, that payment shall be

deemed to relate to that tax return for the purposes of this subsection

without prejudice to the power of the Commissioner under any other

provision of this Act to appropriate that payment in any other manner.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 28 Adjustments to tax returns. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

A person who has made an incorrect declaration in a tax

return furnished to the Commissioner for a tax period may request

by means of a notice to the Commissioner to make an adjustment to

that tax return in the circumstances set out in the Twelfth Schedule

to this Act and such an adjustment shall be made to the extent allowed

and shall have the effects specified in the said Schedule.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 29 Presumption as to declarations in tax returns. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

When a person has furnished the Commissioner with a

tax return for a tax period, the output tax and the deductions of that

person for that period shall, except as provided in section 36 of this

Act, be deemed to be the output tax and the deductions declared in

that return as adjusted by any adjustment made in accordance with

section 28 of this Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 30 Declarations by exempt persons and other statements, etc. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) Every exempt person shall make such periodical

or other declarations as may be prescribed.

(2) Every person carrying on or intending to carry on

or who has ceased to carry on an economic activity shall furnish

such statements and information and shall produce such documents

as may be reasonably required by the Commissioner for any purpose

of this Act or as may be prescribed.

(I)

When a person liable to furnish a tax return for a

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 31 Power to make — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

assessments where a

return has not been tax period does not furnish that return the Commissioner may make

an assessment of the output tax and the input tax of that person for

that period and of the administrative penalty to which that person

became liable and serve that assessment on that person at any time

after the expiration of the time allowed in terms of this Act for the

furnishing of that return and by not later than six years from the end

of the said tax period.

(2) An assessment made for a tax period of a person in

virtue of this section shall not relieve that person from his obligation

to furnish a tax return for that period and from his liability to any or

to further administrative penalties in accordance with the relevant

provisions of this Act.

(3) When a tax return for a tax period is furnished after

an assessment has been made in accordance with subsection (I) of

this section the Commissioner may cancel that assessment without

prejudice to his power to make further assessments in terms of the

other provisions of this Act.

(4) The cancellation of an assessment as aforesaid shall

not relieve the person who has been in default from his liability to

an administrative penalty in accordance with the other provisions of

this Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 32 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) When the Commissioner has reason to believe that Pnwertnmake

. h e d b y a person ,or

. d d oes not contam

. a assessments

~

a tax return f urms

a tax peno

return has been

full and correct statement of the matters required to be declared in furnished.

that return he may make a provisional assessment of the output tax

and the input tax of that person for that period and of the

administrative penalty to which that person became liable and serve

that provisional assessment on that person by not later than six years

from the end of the said tax period.

(2) A provisional assessment shall indicate clearly that

it is a provisional assessment and that it may be followed by an

assessment within the time limits specified in subsection (3) of this

section. Save as aforesaid a provisional assessment shall contain the

particulars that are required to be given in an assessment and such

further particulars as the Commissioner may deem appropriate.

(3) After the expiration of a period of not less than thirty

days and not more than six months from the service on a person of a

provisional assessment in respect of a tax period the Commissioner

may make an assessment of the output tax and the input tax of that

person for that period and of the administrative penalty to which

that person became liable and serve that assessment on that person.

(4) The assessment made in virtue of subsection (3) of

this section may not contain any variations to the amounts specified

in the relative provisional assessment except for

(a)

variations requested by or agreed to by the said

person;

(b) variations consisting in the substitution for amounts

shown in the provisional assessment of amounts that are equal

or closer to those declared in the relative tax return.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 33 Power to make assessments on exempt persons. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

When the Commissioner has reason to believe that a

person has become liable to an administrative penalty with respect

to anything made by him during any period in which he was classified

as an exempt person he may make an assessment of that penalty and

serve that assessment on that person within six years from the end

of that period.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 34 Assessments. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) An assessment made in virtue of section 31, section

32 or section 33 of this Act shall be made on such form and contain

such further particulars as the Commissioner may deem appropriate

or as may be prescribed.

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

information, estimations or criteria as the Commissioner may, in his

judgement, deem appropriate.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 35 Additional and — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

The power to make an assessment includes the power to

revised assessments.

make an additional or a revised assessment within the same time

limits and subject to the same provisions applicable to an original

assessment: provided that the Commissioner may not reopen any

matter that has been decided on appeal.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 36 Presumption as to amounts shown in assessments. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Where an assessment is made for a tax period any amount

of tax and deductions assessed in that assessment shall, except if

and to the extent that the assessment is cancelled or revised, be

deemed to be and to have always been the tax and the deductions

properly due and allowable for that period for any of the purposes

of this Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 37 Administrative — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) Saving the provisions of subsection (2) of this

penalty for incorrect

section, when a tax return furnished by a person for a tax period

contains an understatement of the output tax or an overstatement of

the deductions for that period, that person becomes liable to an

administrative penalty in an amount equivalent to twenty per cent

of the total of-

(a) the excess, if any, of the correct amount of output

tax over the output tax as declared in the return; and

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

the return over the correct amount of the deductions.

(2) Where a person makes an adjustment of an

understatement or overstatement as is referred to in subsection (I)

of this section in accordance with the provisions of section 28 of

this Act before he is served with a provisional assessment for that

period, that person becomes liable to an administrative penalty in

an amount equivalent to ten per cent of the total of-

(a) the excess, if any, of the correct amount of output

tax over the output tax as declared in the return; and

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

the return over the correct amount of the deductions.

(3) Where a tax return furnished to the Commissioner

by a registered person for a tax period does not contain a full and

correct statement of the matters required to be declared by that person

in that return and that person does not make an adjustment of such

an understatement or overstatement in accordance with the provisions

of section 28 of this Act before he is served with an assessment for

that period he shall, unless that person has in virtue of that default

become liable to a higher administrative penalty under the other

provisions of this section be liable to an administrative penalty of

two hundred liri.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 38 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Any person who, being required to furnish a tax return Administrative

penalty for default

for a tax period, does not furnish that return within the time laid in the furnishing of

down in the relevant provisions of this Act shall be liable to an a tax return.

administrative penalty in an amount equivalent to the higher of-

(a) one per cent of the excess, if any, of the output tax

over the deductions, disregarding any excess credit brought

forward from a previous tax period, as declared in the return,

and

ten liri

(b)

for every month or part thereof that elapses from the date by which

the tax return should have been furnished in accordance with this

Act and the date when it is furnished to the Commissioner.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 39 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Any person who, being required to apply for registration Administrative

penalty for default

under this Act, does not make such an application within the time in application for

laid down in the relevant provisions of this Act shall be liable to an registration.

administrative penalty in an amount equivalent to the higher of-

(a) one per cent of the excess, if any, of the output tax

over the deductions for the first tax period following the

registration, and

ten liri

(b)

for every month or part thereof that elapses from the date on which

the application should have been made in terms of the said provisions

and the earlier of the date on which the registration is furnished to

the Commissioner and the date when that person is registered by the

Commissioner.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 40 Administrative penalty for default by exempt person. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

An exempt person who does not remain eligible to be

classified as an exempt person and who does not apply for the

cancellation of his classification within the time laid down in the

relevant provisions of this Act shall be liable to an administrative

penalty in an amount equivalent to the higher of -

(a) ten per cent of the excess, if any, of the output tax

over the deductions for the first tax period following the

cancellation of his classification, and

one hundred liri

(b)

for every month or part thereof that elapses from the date on which

the application should have been made in terms of the said provisions

and the earlier of the date on which the application is furnished to

the Commissioner and the date when the classification is cancelled

by the Commissioner.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 41 Liability to administrative penalties. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Any administrative penalty to which a person becomes

liable in terms of this Act shall be due and payable by that person

without the need of any assessment to be made with respect thereof,

and any amount of any administrative penalty due by a person shall

not relieve that person from a higher or from a further penalty to

which he may have become or may become liable in terms of the

relevant provisions of this Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 42 Reasonable excuse. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Notwithstanding the provisions of sections 37 to 41,

inclusive, of this Act no administrative penalty shall be due by a

person for any default if that person shows that there is a reasonable

excuse for the default

Provided that

(a)

an insufficiency of funds to pay any tax due, or

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

perform any task, the fact of that reliance or any dilatoriness or

inaccuracies on the part of the person relied upon,

shall not constitute a reasonable excuse for the purposes of this

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 43 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Any person aggrieved by an assessment served upon him Appeal against an

may appeal against that assessment to the Value Added Tax Appeals assessment.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 44 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

If any question arises, other than on an assessment, Other matters that

may be referred to

relating to -

A P peal .

(a) the registration of a person under this Act or the

cancellation of such a registration;

(b) the classification of any registered person as an

exempt person or the cancellation of such classification;

(c) whether a transaction made or to be made by a person

is a taxable supply or not or whether an importation of goods

made or to be made by a person is a taxable importation or not;

(d)

any tax chargeable on the importation of goods;

(e)

the place, the time or the taxable value of a supply;

(f) the amount of deductions allowable to a registered

person for any tax period;

(g)

any security required by the Commissioner under this

Act;

(h) whether any refund of tax claimed by any person is

due or payable to that person or not;

any question of law not falling within the foregoing

(i)

provisions of this section;

(j) any matter which, in terms of any provision of this

Act, or of any regulations made under this Act, may be referred

to appeal;

(k)

the imposition of any admistrative penalty,

that question may be referred to the Value Added Tax Appeals Board

by any person who shows to the satisfaction ofthe Board that he has

a direct interest in that question or by the Commissioner.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 45 Value Added Tax Appeals Board. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

There shall be a Value Added Tax Appeals Board for the

purpose of hearing and determining appeals and references made in

accordance with sections 43 and 44 of this Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 46 Matters regulated by the Ninth Schedule. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

The Ninth Schedule to this Act shall apply with respect

to any appeal made or any question referred to the Board, the

composition and competence of the Board, and the regulation of the

procedures of the Board.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 47 Appeal to the Court of Appeal. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) Any of the parties to an appeal or a reference to the

Board who feels aggrieved by the decision of that Board may appeal

against that decision to the Court of Appeal on any question of law

only by means of an application to be filed within thirty days from

the date on which the decision appealed from is notified to him.

(2) The board established under section 29 of the Code

of Organisation and Civil Procedure may make regulations governing

appeals under this section and prescribing fees payable in respect of

such appeal.

PART VI

Records and Information

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 48 Reeordsto be kept — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(l) Every registered person shall keep proper and

sufficient records of all transactions carried out in the course or

furtherance of his economic activity to enable the date, the value

and the nature of such transactions, the tax chargeable thereon and

the deductions allowable in respect thereof, and any such other

information as is set out in the Twelfth Schedule to this Act.

(2) The records referred to in subsection (1) of this

section shall be kept and stored in the manner, contain the details

and be supported by the documents and accounts as set out in the

said Schedule and shall be retained, whether or not that person

remains a registered person, for a period of at least six years from

the end of the year to which they relate.

(3) The Minister may make regulations requiring

registered persons to store, process and produce information and

documents on or by such means and machines as may be specified

in such regulations.

(4) The Commissioner may at any time within the

period specified in subsection (2) of this section request any

registered person to produce the records, documents and accounts

required to be kept by him in virtue of this section.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 49 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Where any registered person indicates the price of goods Price marking.

offered for sale by retail, such price shall be indicated in such a

manner as to be inclusive of the tax chargeable under this Act, if

any, on the supply of the said goods.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 50 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) Every registered person, other than a retailer, who Tax invoice.

makes a supply other than a supply to which Part Two of the Fourth

Schedule to this Act (exemptions without credit) refers to another

registered person shall provide that other person with a tax invoice

within thirty-one days from the date referred to in subsection (1) of

section 8 of this Act.

(2) A registered person who is a retailer and who makes

a taxable supply to any other registered person shall, at the request

of that other person, provide him with a tax invoice within thirty-

one days from the date referred to in subsection (1) of section 8 of

this Act.

(3) Where a registered person provides a document to

himself which purports to be a tax invoice in respect of a taxable

supply made to him by another registered person, that document

may, with the approval of the Commissioner, be treated as the tax

invoice required to be provided by the supplier in terms of this

section.

(4) The form of a tax invoice, the form of an invoice

to be issued by an exempt person, the particulars to be shown in any

such invoice and the manner in which any such invoice shall be

issued, shall contain the information set out in the Thirteenth

Schedule to this Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 51 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Any registered person who makes any supply, other than Documeots to be

=:ded

a supply to which section 50 of this Act applies, is to provide to the

person to whom the supply is made such invoice, receipt or other

document as is set out in the Fourteenth Schedule to this Act and

shall be in the form and shall show the particulars and shall be issued

in the manner set out in the said Schedule.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 52 Production of invoices by persons to whom a supply is made. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

A person to whom any tax invoice or other invoice,

receipt

or document is provided as required by section 50 or 51 of

this Act shall, if so requested in accordance with the other provisions

of this Act, produce the said invoice, receipt or other document to

the Commissioner or to any officer authorised by the Commissioner.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 53 Inspections. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

The Commissioner shall, for the purpose of ensuring

compliance with the provisions of this Act, have the power -

(a) to enter and inspect any premises where an

economic activity is carried on or suspected to be carried on or

where any goods, assets, books, records or documents relating

to such activity are kept or suspected to be kept;

(b) to inspect and to require the production of any

books, records or documents, including machine readable

information, or a copy or extract thereof relating to the economic

activity of any person;

(c) subject to the provisions of section 55 of this Act,

to require any person to give such information as may be

requested for the purpose of determining whether any taxable

or exempt with credit supplies have been made by or to that

person or the value of any such supplies and to request the

attendance of any person at the office of the Commissioner for

the purpose of providing such information;

(d) to request the particulars including the name,

surname, address and the production of the Identity Card of

any person suspected to be in breach of any of the provisions

of this Act or of any regulations made under this Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 54 Access to places of habitation. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

If access is required for the purposes of paragraph (a) of

section 53 of this Act to any premises occupied in whole or in part

for the purpose of habitation, such access shall require the prior

warrant signed by a Magistrate and shall not take place between

seven o'clock in the evening and seven o'clock in the morning.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 55 Information held by certain licensed persons. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) Without prejudice to the provisions relating to the

duty of professional secrecy, no information shall be requested by

the Commissioner by virtue of this Act from any persons to whom

subsection (2) of this section refers except solely for the purpose of

determining the tax payable by and the deductions allowable to such

person under this Act or of ensuring compliance by such person with

the provisions of this Act.

(2)

This subsection refers to

(a)

a bank licensed under the Banking Act, 1994;

Act XV of 1994.

(b) an insurance company in respect of long term

insurance business which is carried on pursuant to a licence

granted under the Insurance Business Act, 1998;

Act XVII of 1998.

(c) any person licensed to carry on investment business

under the Investment Services Act, 1994;

Act XIV of 1994.

(d) a collective investment scheme licensed under the

Investment Services Act, 1994;

(e) a stockbroker licensed under the Malta Stock Cap. 233.

Exchange Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 56 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) Except as may be necessary for the purposes of this Official secrecy.

Act, 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 to 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

court, tribunal, Board or committee of inquiry any document or to

divulge any matter coming under his notice in the performance of

his duties under this Act except as may be lawfully required for the

purpose of carrying into effect the provisions of this Act, or for the

purpose or in the course of any appeal made iIi accordance with this

Act or a prosecution for any offence against any of the provisions of

this Act.

(3) Notwithstanding the other provisions of this

section, the Commissioner may permit the Director of Audit or any

officer authorised by the Director of Audit to have access to any

records or documents as may be necessary for the performance of

his official duties and for this purpose the Director of Audit and any

such authorised officer shall be deemed to be a person employed in

the administration of this Act.

(4) Notwithstanding the prOVISIOns of the other

subsections of this section or of any other law, the Commissioner

shall furnish to the Commissioner of Inland Revenue such

information, being information obtained by the Commissioner for

any of the purposes of this Act, as may be directed by the Minister.

PART VII

Special Cases

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 57 Special cases. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(l) The Minister may by regulations prescribe special

provisions with respect to supplies to which subsection (2) of this

section applies, and may, by such regulations, make provision

(a) for a supply to be treated as two or more separate

supplies or for a number of supplies to be treated as a single

supply;

(b) for the time and place at which supplies shall be

treated to take place;

(c) for the taxable value of supplies to be determined

by such method or one of such methods as may be established

by the Commissioner;

(d) for the determination of the input tax attributable

to supplies;

(e) for additional records and documents that must be

kept and produced in respect of the said supplies;

and any such regulations shall apply notwithstanding anything to

the contrary contained in this Act.

(2)

This subsection applies to

(a) supplies made by tour operators and travel agents

and by other persons acting as principals and making supplies

commonly provided by tour operators and travel agents;

(b)

supplies of second hand goods;

(c) supplies by retailers;

(d)

supplies of professional services;

(e) supplies under civil, mechanical and electrical

engineering contracts;

such other supplies as may be designated for the

(f)

purposes of this section by an order made by the Minister and

published in the Gazette.

(3) Until such time as regulations are made by the

Minister in accordance with this section the rules set out in the

Fifteenth Schedule to this Act shall apply.

PART VIII

Collection, Security and Refunds

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 58 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Tax and administrative penalties due under this Act Suit by the

(I)

may be sued for and recovered, as the case may require in the Commissioner.

competent court of civil jurisdiction.

(2) Subject to the provisions of subsection (3) of this

section, action for the payment of tax and administrative penalties

may be taken by the Commissioner at any time within six years from

the date on which such tax or administrative penalty becomes

payable.

(3) The running of the period referred to in subsection

(2) of this section shall be interrupted by any judicial act filed before

the expiration of such period by the Commissioner demanding the

payment of the amount claimed.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 59 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) Any notice issued by the Commissioner showing Executive title.

any amount of tax and administrative penalty due by a person shall,

unless the contrary is proved, be sufficient evidence that that amount

is due to the Commissioner by that person and shall constitute an

executive title within the meaning and for the purposes of Title VII

of Part I of Book Second of the Code of Organization and Civil Cap. 12.

Procedure.

(2) The Commissioner may request the payment of any

tax and administrative penalty payable by any person in terms of

this Act by means of a demand note, and if the payment requested is

not made within thirty days from the date when the said demand

note is served on that person, the Commissioner may proceed to

enforce payment in virtue of the executive title referred to in

subsection (I) of this 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

Organisation and Civil Procedure shall apply with respect to any

warrant issued on the strength of an executive title mentioned in

this section and to the paying out of the proceeds of the sale by

auction of the property seized, and no opposition or reservation in

the schedule of deposit shall stay the paying of any sum deposited

in court following any such warrant as aforesaid.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 60 Restrictions on the release of imported goods. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) No goods imported into Malta shall be delivered

for use in Malta or taken out, cleared or delivered from any customs

bond except -

(a) where the importation ofthose goods is an exempt

importation, or

(b) where the tax on the said importation has been paid

in accordance with this Act, or

(c)

with the authorisation of the Commissioner.

(2) An authorisation for the purpose of paragraph (c)

of subsection (I) of this section may be given under such conditions

and against the granting of such security as the Commissioner may

establish.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 61 Powers relating to imported goods. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) The Comptroller of Customs shall, for the purpose

of ascertaining, collecting and protecting on behalf of the

Commissioner the tax chargeable under this Act on taxable

importations have the same powers 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 provision in the Customs Ordinance or in the

Import Duties Act or in any regulations made thereunder relating to

the application of the proceeds from a sale of imported goods towards

the payment of import duties due on those goods shall be construed

as providing for the application of the said proceeds towards the

payment of import duties and of any tax due under this Act on the

importation of those goods.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 62 Special privilege. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

The Commissioner shall have a special privilege over

the assets forming part of the economic activity of a person in respect

of any tax due by that person under this Act and the said tax shall,

notwithstanding anything contained in any other law, be paid in

preference to a debt having any other privilege, excepting a debt

having a general privilege and a debt mentioned in paragraph (a) or

in paragraph (b) of section 2009 of the Civil Code.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 63 Security for tax due on supplies. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) If, in any particular case, the Commissioner has

reason to believe that tax due by a registered person might not be

recoverable at the time when that tax becomes payable in terms of

this Act, he may by a notice served on that person, demand the

payment of the tax within such time as may be specified in that

notice and the tax shall thereupon become payable within that time

notwithstanding any other provision of this Act.

(2) When a payment has been demanded from a person

in accordance with subsection (l) of this section, that person may,

instead of making the said payment, furnish such security for the

tax payable as may be acceptable to the Commissioner.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 64 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

If, in any particular case, the Commissioner has reason Shorter period for

·

t h at t h e tax d

ue b

'

d person cou Id ot h erwlse

. b e the

to b e I leVe

y a reglstere

return.

prejudiced, he may, by means of a notice in writing, require that

person to furnish a tax return for a tax period before the time allowed

in terms of the other provisions of this Act, and in respect of that tax

return any reference in this Act to the time allowed in terms of any

provision of this Act shall thereupon be construed as a reference to

the period specified in the said notice.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 65 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

When a taxable supply of services is made by a person Reverse charge.

who is not established in Malta to a registered person who is

established in Malta and who is not an exempt person the said person

established in Malta shall be deemed to have himself supplied those

services to himself in the course or furtherance of his economic

activity and the provisions of this Act, including the obligation to

account for and to pay the tax, shall, except where otherwise

expressly provided, be read and construed accordingly.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 66 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) Any secretary, manager, director, liquidator or other Representatives.

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 person who is a tutor, curator,

administrator or trustee of any other person or of any trust, fund or

other entity shall, for the purposes of this Act, be a representative of

that body of persons, deceased person, other person, trust, fund or

other entity, as the case may be.

(2) When a person who is not established in Malta is

or is required to be registered under this Act any person resident in

Malta to whom he makes a taxable supply or who is his agent or

who otherwise has a business relationship with him shall, if so

designated by the Commissioner by means of a notice in writing,

and unless another person resident in Malta and acceptable to the

Commissioner has been so designated by that first-mentioned person,

be a representative of the said person.

(3) (a) Subject to the provisions of subsection (5) of

this section a representative of a person shall be liable in the

same manner and to the same extent as the person of whom he

is a representative for all the obligations imposed by or under

this Act.

(b) Anything done or omitted to be done by a

representative acting as such shall for the purposes of this Act

be deemed to have been done or omitted to be done by the person

of whom he is a representative.

(c) Any notice served on or any refund paid to a

representative in his capacity as such under any of the provisions

of this Act shall be deemed to have been served on or to have

been made to the person of whom he is a representative.

(d) The existence of or the designation of a person

as a representative of another person shall not relieve the latter

person from any obligation or liability under this Act.

(4) A representative who has under his management

or control any funds or property belonging to or due to the person of

whom he is a representative shall not dispose of such funds or

property unless he has made adequate provision for any tax due under

this Act.

(5) A representative shall be jointly and severally liable

with the person of whom he is a representative for the tax due by

that person: provided that where the representative has acted in

good faith and is not knowingly in breach of subsection (4) of this

section or of any other obligation under this Act, his liability under

this subsection shall be limited to the funds or to the value of any

property under his management or control which belongs or is due

to the person of whom he is a representative.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 67 Appropriation of payment. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(l) Where any interest is due by a person on any tax,

other than tax that may be kept in abeyance in terms of the provisions

of the Ninth Schedule to this Act, any payment made by that person

to the Commissioner shall, notwithstanding any declaration made

by that person, be appropriated to that interest before it is

appropriated to any tax.

(2) Subject to the provisions of subsection (1) of this

section when an administrative penalty is due by a person, other

than a penalty that may be kept in abeyance in terms of the provisions

of the Ninth Schedule to this Act, any payment made by that person

to the Commissioner shall, notwithstanding any declaration of that

person to the contrary, be appropriated to such administrative penalty

before it is appropriated to any tax.

(3) Subject to the other provisions of this section, when

tax due by a person, other than tax that may be kept in abeyance in

terms of the provisions of the Ninth Schedule to this Act, became

due on more than one occasion any payment made by that person to

the Commissioner shall, notwithstanding any declaration of that

person to the contrary, be appropriated to that amount of tax that

became due at the earliest of those occasions before it is appropriated

to the tax that became due on subsequent occasions.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 68 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) Tax paid shall not be refundable except in the Refund,.

circumstances provided for in section 26, 69, 70 or 71 or paragraph

(h) of section 75 of this Act.

(2) When any amount is refundable by the

Commissioner to a person by whom any interest, administrative

penalty or tax is due, the Commissioner may deduct such tax, interest

or administrative penalty from that amount to the same extent to

which that amount, had it been a payment made by that person, would

fall to be appropriated to such interest, penalty or tax in accordance

with the provisions of section 67 of this Act and in the same order

provided that a deduction under this subsection may also be made

with respect to tax that may be kept in abeyance in terms of the

provisions of the Ninth Schedule to this Act.

(3) A refund due in accordance with any provision of

this Act shall be payable without any further appropriation other

than this Act by warrant under the hand of the Minister.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 69 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(l) Subject to the provisions of subsection (2) of this Repayment of tax

that was paid but

section where it results that any tax paid by a person was not due or not due and of

was in excess of the tax due under this Act, the Commissioner shall, overpaid laX.

on the production of such evidence as he may deem fit to require,

repay the tax or that part thereof which was not due to that person or

to any other person who may be entitled to that repayment: provided

that nothing in this subsection shall be construed as overriding or

replacing the provisions of section 43 of this Act.

(2) The Minister may by regulations prescribe the

manner and the time within which a claim for a repayment under

subsection (I) of this section may be made and such conditions and

limitations, including a minimum amount in respect of which a

repayment may be claimed, as he may deem fit.

(3) Where it results from a decision given on an appeal

made in accordance with this Act, that any amount of tax paid by a

person was not due, the Commissioner shall refund such amount to

that person within thirty days from the date such decision becomes

res judicata.

(4) Interest at the rate specified in or prescribed in terms

of subsection (2) of section 22 of this Act shall be due on a refund to

which subsection (3) of this section refers for the period ending on

the date when the refund is paid or a cheque or draft is posted by the

Commissioner to the person to whom the refund is payable, which

interest shall run -

(a) if and to the extent that the amount refundable had

been claimed as excess credit in a tax return furnished to the

Commissioner by the appellant, from the date established in

accordance with section 26 of this Act;

(b) if and to the extent that the amount refundable was

paid by the appellant as a condition for the validity of his appeal

in accordance with the provisions of the Ninth Schedule to this

Act, from the date on which that amount was paid to the

Commissioner;

(c) in any other case, from the date the refund is payable

in accordance with subsection (3) of this section.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 70 International arrangements. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) If the Minister by order published in the Gazette

declares that arrangements have been made with the government of

any territory outside Malta with a view to affording relief from double

taxation in relation to tax payable under this Act and a similar tax

payable under the laws of that territory, and that it is expedient that

those arrangements should have effect, those arrangements shall have

effect notwithstanding anything in this Act.

(2) If the Minister by order published in the Gazette

declares that arrangements have been made with the government of

any territory outside Malta with a view to granting a refund, on a

reciprocal basis, of any tax paid under this Act to persons established

outside Malta and that it is expedient that those arrangements should

have effect, those arrangements shall have effect notwithstanding

anything in this Act.

(3) Where it results that any tax has been paid on the

importation of goods which is exempt from import duties in terms

of diplomatic and consular arrangements having effect in virtue of

any enactment or that any tax has been paid on any supplies or

importations by a person who qualifies for an exemption from tax in

terms of such international arrangements as the Minister may, by

order in the Gazette, specify, the Commissioner shall, upon a request

made within such time and in such manner as may be prescribed,

and on the production of such evidence as he may deem rtecessary,

refund the tax so paid to the said person.

(4) The Minister may make regulations for the carrying

out of the provisions of any arrangements having effect under this

section.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 71 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

The Minister may by regulations provide for the Repay~enls to

.

non-residents.

repayment b y t h e G overnment to non-residents an amount not

exceeding the tax chargeable on supplies made to such persons of

goods exported by those persons outside Malta, and may by such

regulations prescribe limitations to such repayments and to the

persons who may claim such repayments, the circumstances in which

and the conditions under which repayments may be claimed and the

procedures for repayments.

PART IX

Miscellaneous

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 72 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) Any notice, warrant or other proceeding purporting Validity of notices,

to be made in accordance with the provisions of this Act shall not be etc.

deemed to be void or voidable for want of form or be affected by the

reason of a mistake, defect or omission therein, if the same is in

substance and effect in conformity with or according to the intent

and meaning of this Act.

(2) In the case of a body of persons it shall be sufficient

if only the name of the body of persons appears on any notice, warrant

or proceeding, including any proceeding in the Court of Appeal,

issued or made under or for the purposes of this Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 73 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) Every notice to be given by the Commissioner Delivery and

· A ct s h a lib e slgne

. db y t h e C omrrusslOner

"

or b y some person servlceofnohces.

un d er t h IS

etc.

or persons authorised by the Commissioner and every such notice

shall be valid if the signature is printed, stamped or written thereon.

(2) Any notice required to be given under this Act by

the Commissioner or any other person may be served either

personally or by being sent by post. Unless the contrary is proved

service of a notice sent by post shall be proved by means of evidence

that the notice was properly addressed and posted and shall be

deemed to have been effected in the case of an address in Malta not

later than the third day following the day when it was posted, and in

the case of an address outside Malta the day succeeding that on which

the notice would have been received in the ordinary course by post

Provided that a chcque or draft posted by the Commissioner shall be

deemed to be a payment for the amount thereof made on the date it

is posted.

(3) For the purposes of subsection (2) of this section a

notice shall be deemed to have been properly addressed if it has

been addressed to a person's business or private address, and an

address furnished by a person to the Commissioner shall be deemed

to be an address of that person unless and until a notice of a change

of address is given by that person to the Commissioner.

(4) The Minister may by notice in the Gazette establish

the closing times for the offices of the Commissioner and any period

laid down in or under this Act for the furnishing, delivery or service

of a return, notice or other document to or on the Commissioner or

for any payment to the Commissioner shall be deemed to expire at

the closing time of the last day of that period.

(5) When the date on which any return, notice or other

document is to be furnished, delivered or served or deemed to be

served or on which a payment is to be made in terms of any provision

of this Act falls, were it not for the provisions of this subsection, on

a Saturday or a Sunday, or on a national day or a public holiday as

established in the National Day and Other Public Holidays Act, that

date shall be deemed to fall on the first working day, other than a

Saturday, following the said Saturday, Sunday, national day or public

holiday.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 74 Interest. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

For the purposes of the Income Tax Act and the Income

Tax Management Act, 1994 -

(a) interest paid or payable under this Act by the

Commissioner to any person shall be treated as income of that

person;

(b) interest paid or payable under this Act by any person

to the Commissioner shall be treated as expenses incurred in

the production of the income of that person;

(c) administrative penalties paid or payable under this

Act by any person to the Commissioner shall not be treated as

expenses incurred in the production of the income of that person.

The Minister may by regulations -

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 75 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Power to make

regulations.

(a) amend, cancel or substitute any of the Schedules,

except for the Ninth Schedule, to this Act;

(b) prescribe any matter which may in any particular

case be deemed necessary for the purpose of avoiding significant

distortions in competition which might otherwise result from

the application of any of the provisions of this Act;

(c) make provision for the rounding up or down of any

amount in any computation made for any of the purposes of

this Act, or for disregarding any small amounts in any such

computation;

(d) prescribe anything that may be prescribed in virtue

of the provisions of this Act;

(e) prescribe any conditions and determination that

may, in accordance with this Act, be imposed or made by the

Commissioner;

prescribe any other matter for securing the payment

(f)

of the tax and generally for giving effect to the provisions of

this Act;

(g) amend, revoke or substitute any regulations made

under this Act;

(h) prescribe such refunds of tax paid under the Act to

such persons or classes of persons, subject to such schemes

and to such conditions and to such limitations as may be

prescribed in the said regulations.

PART X

Offences and Punishments

Failure to apply for

Any person who -

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 76 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

registration. or to

keep or deliver

(a) fails to apply for registration at the time and in the reconlsandreturns.

manner required by section 10 of this Act;

(b) fails to keep or to store records, documents and

accounts for the time and in the manner required by this Act or

any regulations made under this Act;

(c) fails to furnish a tax return or any additional return,

statement or information or to produce any books, records,

documents and accounts, or fails to pay any tax or administrative

penalty due when required to do so in virtue of this Act or of

any regulations made under this Act,

shall be guilty of an offence and shall, on conviction, be liable to a

fine (mulfa) of not less than one hundred Ziri and not exceeding three

hundred Ziri and, on a request by the prosecution, the Court shall

order the offender to comply with the law within a time sufficient

for the purpose, but in any case not exceeding three months, and in

default the offender shall be liable to the payment of a further fine

(multa) of not less than two Ziri and not exceeding ten Ziri for every

day that the default continues after the lapse of the time fixed by the

Court.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 77 Irregularities in records, etc. and false representations. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Any person who-

(a) knowingly fails to account for any taxable supply

made by him in the records, documents and accounts required

by this Act or any regulations made under this Act;

(b) gives any return, statement or information required

for any of the purposes of this Act which he knows to be

incorrect or misleading in any material respect;

(c) falsifies any records, documents or accounts required

to be kept under this Act or prepares or draws up or helps in the

preparation or drawing up or makes use of any false records or

documents;

(d) with the intent of concealing any evidence which he

knows or is reasonably expected to know to be relevant for any

purpose of this Act destroys, erases, damages or conceals any

stored information or any records, documents or accounts;

(e) fails to provide or produce a tax or other invoice or

document as and when required by section 50, 51 or 52 of this

Act or provides any such tax or other invoice or document which

is incorrect or misleading in any material respect;

provides an invoice or other document in respect of a

(f)

supply showing tax to be chargeable on that supply in a case

where he knows that no tax is chargeable or where the tax

chargeable is less than that shown or otherwise knowingly adds

to or includes in a price for a supply any amount purporting to

represent tax which is not due or which is higher than the tax

due;

(g) applies to be classified for the purposes of this Act as

an exempt person in circumstances indicating that he knows or

could with due diligence have known that he is not entitled to

be so classified;

(h) being classified as an exempt person for the purposes

of this Act and not being eligible to remain so classified does

not apply for the cancellation of that classification in the manner

required and within the time laid down in this Act;

(i) being classified as an exempt person for the purposes

of this Act purports in connection with any transaction not to

be so classified for the purpose of obtaining any financial gain;

OJ not being classified as an exempt person for the

purposes of this Act purports in connection with any transaction

to be so classified for the purpose of obtaining any financial

gain;

(k) having added to or included in a price for goods or

services supplied by him to another person any amount

purporting to represent tax chargeable under this Act, knowingly

fails to account for that amount in his records and accounts or

to pay that amount to the Commissioner; .

(I) acquires possession of or deals with any goods, or

accepts the supply of any services having reason to believe that

the tax on the supply of the said goods or services has been or

will be evaded;

(m) supplies or offers to supply to another person goods

or services the acquisition or dealing with which or the

acceptance of which would render that other person guilty of

an offence in virtue of paragraph (I) of this section,

shall be guilty of an offence and shall, on conviction be liable to a

fine (mu/ta) of not less than one hundred and fifty Uri and not

exceeding one thousand Uri and, on a request by the prosecution, to

a further fine (multa) equal to ten times the endangered tax or to

imprisonment of not more than six months or to both such fines and

imprisonment.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 78 Recurrent offences. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) Where a person has been convicted under either

section 76 or section 77 of this Act and is again convicted of an

offence under either of the said sections commited within six months

from the date of the previous conviction. the fine (multa) shall in no

case be less than three hundred liri.

(2) Where a person has been convicted of four offences

committed under either of the sections aforesaid in a period of

twenty-four months, the Court shall on the latest of the said

convictions and in addition to the punishment for that conviction

order the suspension for a determinate time of not less than one week

and not more than one month of all licences, permits, warrants or

other authorisation granted by the police or by any other authority

to carry on the economic activity or activities to which the offences

relate.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 79 Obstruction of officials. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Any person who -

(a) obstructs, hinders, impedes or does anything which

is calculated to obstruct, hinder or impede, or molests or assaults

the Commissioner or any person dUly engaged in the exercise

of any power or duty conferred or imposed on him by or under

this Act;

(b) being a person in charge of any premises which

the Commissioner or an person authorised by the Commissioner

is empowered to enter in terms of paragraph (a) of section 53

of this Act fails to allow access to the said premises to the

Commissioner or authorised officer or fails to take such

measures as may be reasonably required of him for the purpose

of any such access or of any inspection of that premises or of

any goods, assets, books, records or documents kept therein,

shaH be guilty of an offence and shaH, on conviction be liable to a

fine (multa) of not less than two hundred Uri and not more than one

thousand Uri, or to imprisonment of not more than six months, or to

both such fine and imprisonment.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 80 Offences relating to importations. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) The provisions of sections 18 and 62 of the Customs

Ordinance shaH apply to this Act as if all references to duties

contained in those sections were references to tax due under this

Act, and any person who is in contravention of the provisions of the

said sections construed as aforesaid in relation to any goods whose

importation is subject to tax under this Act shall, without prejudice

to any liability incurred under the said Ordinance, be guilty of an

offence under this Act and shall on conviction, be liable to a fine

(multa) equivalent to the aggregate ofthe amount of tax payable on

the goods and double the value of the goods, or to a fine (multa) of

twenty-five liri, whichever shall be the greater, or to imprisonment

for a term not exceeding two years or to both such fine and

imprisonment and the offender may be either detained or proceeded

against by summons, in the same manner and form, and subject to

all other provisions laid down in the Criminal Code.

(2) The provisions of section 77 of the Customs

Ordinance shall apply in relation to goods whose importation is

subject to tax under this Act as if any reference contained therein to

the duty therein mentioned were also a reference to the tax chargeable

under this Act.

(3) The importation of goods subject to tax under this

Act shall, for all purposes of any law, be deemed as a prohibited

importation unless the said tax is duly paid or, where the payment of

the tax has been postponed in accordance with any provisions of

this Act, the conditions imposed in connection with such a

postponement are duly observed.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 81 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Any person who knowingly contravenes or fails to General offence.

comply with any of the provisions of this Act or any regulations

made under this Act shall be guilty of an offence and shall on

conviction, unless the offence is subject to a greater punishment under

any other provision of this Act or any other law, be liable to a fine

(multa) of not less than one hundred liri but not exceeding five

hundred liri, or to imprisonment for a term not exceeding three

months, or to both such fine and imprisonment.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 82 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(l) Where any thing is done or omitted to be done by a Offences by

body of persons, the provisions of this Part shall apply as if such principal

bodies of persons

thing were done or omitted to be done by every Director manager or and by employers.

other principal officer of that body of persons: provided that a

Director manager or other principal officer of a body of persons

shall not be guilty of an offence in virtue of this subsection if he

proves that he was unaware and could not with reasonable diligence

be aware of such act or omission and that he did everything within

his power to prevent that act or omission.

(2) Where anything is done or omitted to be done by

an employee in the course of his employment, or by any person acting

on behalf of the registered person, whether such other person is an

employee or not, the provisions of this Part shall apply as if such

thing were done or omitted to be done both by the said employee or

other person and by the employer or registered person: provided

that such an employer or registered person shall not be guilty of an

offence in virtue of this subsection if he proves that he was unaware

and could not with reasonable diligence be aware of such an act or

omission and that he did everything within his power to prevent that

act or omission.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 83 Prosecution. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) No proceedings under this Part shall be taken except

at the instance or with the sanction of the Commissioner, and

proceedings that have been so taken may, at any time before final

judgement, be withdrawn at the request of the Commissioner.

(2) Notwithstanding the provisions of the Criminal

Code the Attorney General shall have a right of appeal to the Court

of Criminal Appeal from any judgement given by the Court of

Magistrates in respect of criminal proceedings under this Part.

(3) The institution of proceedings or the imposition of

a penalty for any offence under this Part shall not relieve any person

from prosecution under any other law or from liability to the payment

of any tax or administrative penalty for which he is or may be liable

under this Act, and the institution of proceedings or the imposition

of a penalty for any offence under any other law or the payment of

any tax or administrative penalty under this Act shall not relieve

any person from any prosecution or penalty under this Part.

(4) Section 21 of the Criminal Code and the Probation

of Offenders Act shall not apply with respect to any conviction under

this Act.

(5) In any criminal proceedings under this Part the

Commissioner personally or any other officer designated by him

may, notwithstanding the provisions of any other law, produce the

evidence, plead and otherwise conduct the prosecution instead of or

jointly with the police.

(6) Should the evidence of the Commissioner or of the

officer designated by him as aforesaid be required as part of the

case for the prosecution, he shall be heard before assuming the duties

of a prosecuting officer unless the necessity of his giving evidence

arises at a later stage: provided that the Commissioner or other officer

as aforesaid may state the facts constituting the offence before giving

evidence.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 84 Comproraise penalty. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) Notwithstanding any other provisions of this Act,

the Commissioner may, in the case of an offence under this Act,

enter into an agreement in writing with the offender whereby the

said offender pays a sum equivalent to the fine (multa) that may be

imposed by way of penalty in accordance with this Act on the

conviction of that person for the said offence, sohowever that where

a minimum and a maximum amount is provided for in respect of the

fine (mu/ta) that may be so imposed, the sum payable pursuant to

the said agreement shall be a sum equivalent to the said minimum

amount increased by one half of the difference between the said

minimum and maximum amounts, and upon the signing of any such

agreement by the Commissioner and the offender all criminal liability

of the offender under this Act with regard to the offences in relation

to which the agreement has been entered shall be extinguished.

(2) The provisions of subsection (I) of this section shall

apply also in any case where the offender has been charged before a

court in relation to the offence but before final judgement has been

given in the case

Provided that where proceedings before a court have not

been commenced, the sum payable in accordance with any agreement

as contemplated in subsection (I) of this section shall be reduced by

ten per cent.

(3) Notwithstanding the provisions of subsection (I)

and subsection (2) of this section the Commissioner may in the case

of an offence by any person against the provisions of paragraph (e)

of section 77 of this Act, enter into an agreement with the offender,

whereby the said offender pays to the Commissioner a fine (mu/ta)

of fifty Uri in the case of a first offence, one hundred Uri in the case

of a second offence and two hundred Uri in the case of a third offence,

within seven days from the receipt of a notice by the Commissioner

to this effect, and upon the payment of such fine (mu/ta), all criminal

liability under this Act with regard to the offences in relation to which

the fine (mu/ta) has been paid, shall be extinguished.

(4) Any sum due in virtue of an agreement entered into

in terms of subsection (I) or subsection (3) of this section shall be

due to the Government as a civil debt. The Commissioner shall not

enter into an agreement as is referred to in subsection (I) or

subsection (3) of this section unless such agreement is accompanied

by the payment of the sum due or a sufficient security for its payment.

(5) The provisions of this section shall be without

prejudice to any proceedings or forfeiture instituted or having effect

in virtue of any other law.

(6) The said agreement and the payment of the fine

(mu/ta) so imposed shall be without prejudice to any tax, interest

and administrative penalty due under this Act.

PART XI

Transitory Provisions

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 85 Repeal Dlld saving. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) Saving the other provisions of this Part the Customs

and Excise Tax Act, 1997 shall cease to have effect on the effective

date.

(2) The provisions of the Customs and Excise Tax Act,

1997 shall continue to apply fully with respect to any importation

and any provision of services and supply of goods made before the

effective date and with respect to anything required to be done or

not to be done under that Act before the effective date subject to the

provisions of the other sections of this Part.

(3) The provisions of the Expenditure Levy Act and of

the Value Added Tax Act, 1994 shall continue to apply to the extent

that they were applicable immediately before the effective date.

(4) Notwithstanding the repeal of the Customs and

Excise Tax Act, 1997, the amendments made to the Import Duties

Act by paragraph (a) of subsection (I) of section 77 of the Customs

and Excise Tax Act, 1997 shall continue to apply notwithstanding

that the goods therein referred to shall no longer be liable to excise

tax under that Act and the minimum rate of 8.1 per cent shall continue

to apply in respect of goods which on the 1st July, 1997 were not

subject to a levy under the Local Manufactures (Promotion) Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 86 Returns and payments of tax in tenus of the — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) For the purposes of the Customs and Excise Tax

Act, 1997 the last tax period of every person to whom section 31 of

Customs and Excise that Act applied immediately before the effective date shall be

deemed to end on the day immediately preceding the effective date.

(2) Unless the Commissioner otherwise directs in any

case or cases a tax return that complies with all the relevant provisions

of the Customs and Excise Tax Act, 1997 shall be furnished by every

person referred to in subsection (I) of this section with respect to

his last tax period and a payment of the tax chargeable under that

Act and calculated in accordance with all the relevant provisions of

that Act with respect to that tax period shall be made by any such

person to the Director of Customs and Excise Tax appointed under

that Act by not later than the date by which that return would have

been due to be furnished in accordance with that Act were it not for

the provisions of subsection (I) of this section.

(3) The tax return and the payment shall be made

notwithstanding any exemption under this Act and in addition to

any obligation to furnish tax returns and to effect payments of tax

under this Act.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 87 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Notwithstanding the other provisions of this Act

Regis"ation,

classification and

(a) Every person who was on the date immediately taxperiod~f

·

.

persons n:glSten:d

h ee ff ectIve

. d ateareglstere

d person f ort h epurposes undertheCustoDlS

prece d mgt

of the Customs and Excise Tax Act, 1997 shall be deemed to and Excise Tax Act,

have applied for registration and to have been registered on the 1997.

effective date for the purposes of and in accordance with this

Act.

(b) Unless the Commissioner otherwise directs in any

particular case or cases, the tax period that applied for the

purposes of the Customs and Excise Tax Act, 1997 immediately

before the effective date with respect to any person to whom

paragraph (a) of this section applies shall be deemed to be the

tax period allocated to him by the Commissioner for the

purposes of and in accordance with this Act: provided that the

first tax period under this Act of every such person shall

commence on the effective date.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 88 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(I) When any of the dates which are relevant for Time and taxable

value of certain

determining the date of a supply of goods or services, other than supplies.

services to which subsection (4) of section 8 of this Act refers, in

accordance with subsections (I), (2) and (3) of the said section is a

date preceding the effective date, the date of that supply shall for

the purposes of this Act and of the Customs and Excise Tax Act,

1997 be determined in accordance with subsection (I) and without

any reference to subsections (2) and (3) of the said section.

(2) Where a payment is received or an invoice is issued

for services to which subsection (4) of section 8 of this Act refers,

and that payment or invoice refers to a period which commences

before the effective date and ends on or after that date the following

provisions shall apply

.

(a) that period shall be divided for the purposes of this

subsection into two periods the first of which ends on the date

immediately preceding the effective date and the second of

which commences on the effective date and the value of that

payment or invoice shall be apportioned accordingly;

(b) if the service in question is a taxable service within

the meaning of the provisions of the Customs and Excise Tax

Act, 1997 the value attributable to the first period shall be

deemed for the purposes of that Act and of this Act to be the

taxable value of a taxable supply of services made before the

effective date;

(c)

if the service in question is a taxable supply within

the meaning of this Act the value attributable to the second

period shall be deemed for the purposes of this Act and of the

Customs and Excise Tax Act, 1997 to be the taxable value of a

taxable supply made on or after the effective date.

Where any goods are imported into Malta before the

(3)

first January 1999 and the time at which import duty is to be

computed in terms of the Import Duties Act or, where no such import

duty is payable, the time at which it would be so computed had it

been payable, falls on or after the said date, the said importation

shall be deemed, both for the purpose of this Act and for the purpose

of the Customs and Excise Tax Act, 1997, to have taken place on the

said date.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 89 Interpretations of certain contracts. — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

Where, il1 the execution of a contract made before the

effective date, any goods or services are supplied on or after that

date and that supply is a taxable supply, that contract shall, for all

the purposes of any law be interpreted as if the parties to that contract

had agreed to a change in the consideration stipulated therein to

reflect the difference, if any, between the system under the Customs

and Excise Tax Act and that applicable under this Act

Provided that this section shall not apply -

(a) where it results from the contract and from all the

relevant circumstances that the consideration determined in

accordance with that contract had already made provisions for

the said adjustment or that the parties had excluded any

adjustment to the consideration on account of the said

difference;

(b) where or to the extent that the supply was, in terms

of the said contract, due to take place before the effective date

and the delay was due to a fault on the part of the person who

makes that supply.

Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 90 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

(1) The Minister may by regulations prescribe that a

Refund of excise laX

payment shall be made to registered persons corresponding to the

value or estimated value or part thereof of excise tax on goods

charged_and paid and not refunded or otherwise refundable under

the provisions of the Customs and Excise Tax Act, 1997.

(2) No such payment shall be due to registered persons

who are classified as exempt persons or who are so classified within

a period of six months from the effective date and to persons that do

not satisfy and comply with the conditions that may be prescribed

in the said regulations.

(3) The payment shall be made over such period and

in such manner as may be prescribed.

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Malta Government Gazette — Act 1998 23 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud
Art. 0106 — XXIII tal-1998 - Att dwar it-Taxxa fuq il-Valur Miżjud Open official source

00.90.00.

(ii) Chapters 2 to 4 inclusive, but excluding items falling under

subheadings

0301.10.10.00 and 0301.10.90.00 in Chapter 3.

(iii)

Items falling under subheadings

0504.00.00.00; 0505.90.00.10; 0506.90.00.10; 0508.00.00.10;

0510.00.10.00; 0511.10.00.00; 0511.91.10.00; 0511.91.90.10;

0511.99.50.00; 0511.99.80.00 in Chapter 5.

(iv)

Items falling under subheadings

0601.20.10.00; 0602.10.10.00; 0602.20.10.00; 0602.20.90.00;

0602.90.10.00; 0602.90.20.00; 0602.90.30.00 in Chapter 6.

(v) Chapters 7 ta 12 inclusive, but excluding items falling under

subheadings

1209.30.00.00; 1209.99.91.00; 1209.99.99.00 in Chapter 12.

(vi) Chapter 13 excluding items falling under subheading

1301.10.00.00.

(vii) Chapters 15 to 20 inclusive, but excluding items falling under

subheadings

1501.00.11.00; 1502.00.10.00; 1503.00.11.00; 1503.00.30.00;

1505.10.00.00; 150:i.90.00.00; 1507.10.10.00; 1507.90.10.00;

1508.10.10.00; 1508.90.10.00; 1511.10.10.00; 1511.90.91.00;

1512.11.10.00; 1512.19.10.00; 1512.21.10.00; 1512.29.10.00;

1513.11.10.00; 1513.19.30.00; 1513.21.11.00; 1513.21.19.00;

1513.29.30.00; 1514.10.10.00; 1514.90.10.00; 1515.11.00.00;

1515.19.10.00; 1515.21.10.00; 1515.29.10.00; 1515.30.10.00;

1515.30.90.00; 1515.40.00.00; 1515.50.11.00; 1515.50.91.00;

1515.60.10.00; 1515.60.90.00; 1515.90.10.00; 1515.90.21.00;

1515.90.31.00; 1515.90.40.00; 1515.90.60.00; 1516.20.10.00;

1518.00.10.00; 1518.00.31.00; 1518.00.39.00; 1518.00.91.00;

1518.00.95.00; 1518.00.99.00; 1521.10.10.00; 1521.10.90.00;

1521.90.10.00; 15nOO.31.00; 1522.00.39.00; 1522.00.91.00;

1522.00.99.00 in Chapter 15.

(viii) Chapter 21 but excluding items falling under subheadings

2106.90.20.42; 2106.90.20.44; 2106.90.20.46; 2106.90.20.48;

2106.90.20.49; 2106.90.20.92; 2106.90.20.95; 2106.90.20.98;

2106.90.98.42; 2106.90.98.46; 2106.90.98.49.

(ix) Subheadings

2202.90.10.11; 2202.90.10.31; 2202.90.10.39; 2202.90.91.11;

2202.90.95.11; 2202.90.99.11; 2202.90.99.40; 2209.00.11.00;

2209.00.19.00; 2209.00.91.00; 2209.00.99.00 in Chapter 22.

(x) Chapter 23.

(xi) Subheadings

2501.00.10.00 and 2501.00.91.00; in Chapter 25.

(xii) Subheadings

3301.90.21.00; 3301.90.29.00; 3301.90.39.00; 3302.10.21.00;

3302.10.29.91; 3302.10.29.93; 3302.10.40.00; 3302.10.90.00

in Chapter 33.

2. Food supplied in the course of catering

(1) "Food supplied in the course of catering" means food which is

suitable for immediate consumption, whether such food is consumed in the place

where it is supplied or not, and consisting of -

A

(a)

meals or snacks;

(b)

milkshake, tea, coffee and chocolate supplied in liquid form;

(c) ice cream or products containing ice cream except in family packs,

and ice lollies.

(2)

For the purposes of paragraph (I) hereof -

(a)

"meals or snacks" means and includes

(i)

hot and cold dishes including antipasto and dessert;

(ii) sandwiches, toast, potato chips, sausage rolls, pizza, pastizzi,

qassatat and similar snacks;

(iii) biscuits, cakes, confectionery and similar items but excluding

those sealed in a package by the manufacturer and supplied in that original

sealed package and those items which individually weigh 500 grams or

more;

(b) "family pack" means ice creams of not less than 500 millilitres in

volume.

3. Pharmaceutical goods

"Pharmaceutical goods" means the goods specified in the Customs Tariff

contained in the First Schedule to the Import Duties Act under

Subheading 2905.45.00.00 in Chapter 29

(i)

(ii)

Chapter 30

(iii)

Subheadings

3301.90.31.00; 3306.10.00.00;

3306.20.00.00; 3306.90.00.00; 3307.90.00.10 in Chapter 33.

(iv)

Subheading 3407.00.00.10 in Chapter 34.

(v)

Subheading 3507.10.00.00 in Chapter 35.

(vi)

Subheadings 3822.00.00.10 and 3824.90.60.00 in

Chapter 38.

(vii)

Subheadings 4818.40.91.00 and 4818.40.99.00

in Chapter 48.

(viii)

Subheadings 5601.10.10.90 and 5601.10.90.90

in Chapter 56.

(ix) Subheading 7015.10.00.00 in Chapter 70.

(x) Subheadings

9001.30.00.00; 9001.40.41.00; 9001.40.49.00; 9001.40.80.00;

9001.50.41.00; 9001.50.49.00; 9001.50.80.00; 9004.90.10.10;

and 9004.90.90.10;

headings

9018,9019,9020,9021,9022 and 9023;

and subheading 9025.11.91.00, in Chapter 90.

(xi) Subheading 9402.10.00.10 in Chapter 94.

4. Printed matter and other articles

"Printed matter and other articles" means the goods specified in the Customs

Tariff contained in the First Schedule to the Import Duties Act under

(i)

Subheading 4820.20.00.00 in Chapter 48.

(ii)

Chapter 49 but excluding items falling under subheadings

4906.00.00.00; 4907.00.91.00; 4907.00.99.00; 4908.10.00.00;

4908.90.00.00; 4909.00.10.00; 4909.00.90.00; 4910.00.00.90;

and 4911.99.00.10.

(iii)

Subheading 7118.90.00.00 in Chapter 71.

(iv) Chapter 98 but excluding items falling under subheading

9803.00.00.00.

5. Immovable property

Saving the provisions of paragraph (2) of this item "immovable

property" includes any asset that is immovable property by definition of the law.

(2)

"Letting of immovable property" includes

(a)

the provision of any accommodation under any title in immovable

property and any other form of supply of the use of immovable property;

(b)

an emphyteutical grant for a period not exceeding 50 years.

6. Non-profit making organisations

A "non-profit making institution" or "non-profit making organisation" means

an institution or organisation

(i)

whose objects are clearly defined in its statute;

(ii)

whose objects expressly exclude profit making;

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

available directly or indirectly to any member, proprietor or shareholder;

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

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

of its stated objects;

(v)

which does not systematically aim to make a profit.

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