ACT No. XIV of 2013 AN ACT to amend the Value Added Tax Act, Cap. 406.

I assent.

G EORGE A BELA

(L.S.)

President

5th November, 2013

ACT No. XIV of 2013

AN ACT to amend the Value Added Tax Act, Cap. 406.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same, as follows:-

(1) The short title of this Act is the Value Added Tax Short title and

(Amendment) Act, 2013, and this Act shall be read and construed as commencement.

one with the Value Added Tax Act, hereinafter referred to as "the

principal Act".

(2) The provisions of article 2 of this Act shall come into force

on such date as the Minister for Finance may establish by notice in

the Gazette.

In sub-article (4) of article 21 of the principal Act, for the Amendment of

words "at the rate of zero point seven five per cent (0.75%) for each article

principal Act.

month or part thereof", there shall be substituted the words "at a rate

which the Minister shall, from time to time, by regulations prescribe

for each month or part thereof".

Article 39 of the principal Act shall be amended as

(a)

in sub-article (1) thereof, for the words "when that

person is registered by the Commissioner.", there shall be

substituted the words "when that person is registered by the

Commissioner:", and immediately thereafter there shall be

added the following new proviso

"Provided that where the excess, if any, of the

output tax over the deductions for the first tax period

following registration is two thousand euro (€2,000) or

less, such administrative penalty shall not exceed two

hundred and fifty euro (€250), and where the excess of the

output tax over the deductions for the first tax period

following registration is more than two thousand euro

(€2,000) such administrative penalty shall not exceed

twenty per cent of such excess."; and

(b) in sub-article (2) thereof, for the words "when that

person is registered by the Commissioner.", there shall be

substituted the words "when that person is registered by the

Commissioner:", and immediately thereafter there shall be

added the following new proviso

"Provided that where the tax chargeable on the

intra-community acquisitions or the services received or

both such intra-community acquisitions and services

received, in respect of which that person is required to

make such application is two thousand euro (€2,000) or

less, such administrative penalty shall not exceed two

hundred and fifty euro (€250), and where the tax

chargeable on the intra-community acquisitions or the

services received or both such intra-community

acquisitions and services received, in respect of which that

person is required to make such application is more than

two thousand euro (€2,000) such administrative penalty

shall not exceed twenty per cent of such tax chargeable.".

Article 76 of the principal Act shall be amended as

(a)

paragraph (c) thereof shall be substituted by the

following new paragraph

"(c) fails to furnish a tax return when required to

do so in virtue of this Act;";

(b) paragraph (d) thereof shall be re-numbered as

paragraph (e);

(c)

immediately after paragraph (c) thereof there shall

be added the following new paragraph

"(d) fails to furnish any additional return,

statement or information or to produce any books, records,

documents and accounts, or fails to pay any tax or

administrative penalty due when required to do so in virtue

of this Act or of any regulations made under this Act;";

(d) for the words "the court shall order the offender",

there shall be substituted the words "the court shall, in respect

of an offence under paragraph (c), order the offender"; and

(e)

for the words "the offender shall be liable to the

payment of a further fine (multa) of not less than five euro (€5)

and not exceeding twenty euro (€20) for every day", there shall

be substituted the words "the offender shall be liable to the

payment of a further fine (multa) of five euro (€5) for every

day".

In the last paragraph of article 77 of the principal Act, for Amendment of

the words "a further fine (multa) of not less than five euro (€5) and article

principal Act.

not exceeding twenty euro (€20) for every day" there shall be

substituted the words "a further fine (multa) of five euro (€5) for

every day".

(1) The provisions of this article shall apply with Transitory

respect to any offence against article 76 of the principal Act in respect provision.

of which offence, on the day preceding the date of the coming into

force of this Act, either no criminal proceedings will have been

commenced or those proceedings are still pending before any Court.

(2) Where, before the date of the coming into force of the

provisions of this Act, a person has been sentenced to the payment of

a fine (multa) for every day that the default continues, every amount

of that fine (multa) per day, whether confirmed by final decision of

any Court or not, shall be calculated afresh according to the rates

provided for in this Act

Provided that where any person has been sentenced to the

payment of a fine (multa) per day as referred to in this sub-article for

an offence against article 76 of the principal Act, which offence is not

an offence provided for in paragraph (c) of the said article, that fine

(multa) per day shall be cancelled

Provided also that nothing in this article shall be construed

as granting any right to any person to claim any refund of any fine

(multa) which has already been paid.

Passed by the House of Representatives at Sitting No. 69 of the

30th October, 2013.

A NĠLU F ARRUGIA

Speaker

R AYMOND S CICLUNA

Clerk to the House of Representatives