CUSTOMS AND EXCISE TAX ACT *

CUSTOMS AND EXCISE TAX

CHAPTER 395

CUSTOMS AND EXCISE TAX ACT *

To make provision for the imposition of an excise tax on imports, products and services in

place of the value added tax system.

17th June, 1997

1st July, 1997

ACT XII of 1997 , as amended by: Act XVI of 1997 ; Legal Notices 90 , 91 , 99 , 124 and

203 of 1997, 1 and 248 of 1998, and 37 of 2000 ; Act XIII of 2005 ; and Legal Notice 425

of 2007 .

The short title of this Act is Customs and Excise Tax Act.

In this Act, unless the context otherwise requires -

"body of persons" means any body or other association of

persons, whether corporate or unincorporate, and whether vested

with legal personality or not, including any fellowship or society;

"business activity" means any activity carried on as part of a

trade, profession, vocation or other business, other than the activity

of an employee acting as such, but including the exploitation of any

asset on a regular basis, and the provision by any entity of facilities

or advantages for payment to members of that entity;

"business sale" means a sale by a person as part of the business

activities of that person;

"certificate of exemption" in relation to ETP means a certificate

issued under article 16;

"Director" means the Director of Customs and Excise Tax

appointed under article 3;

"employee" means any 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 shall also

include the directors of a company;

"ETI" means the excise tax on imports levied under article 10;

"ETP" means the excise tax on products levied under article 12;

"ETS" means the excise tax on services levied under article 17;

"excise goods" means goods subject to excise duty under the

Excise Duty Act;

"goods" means any tangible movable property;

"hotel" has the meaning assigned to it by the Malta Travel and

Tourism Services Act;

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

includes the continental shelf;

"Minister" means the Minister responsible for finance;

"person" includes a body of persons, a public authority, a trust,

and any entity capable of, or carrying on, a business activity;

"prescribed" means prescribed by regulation, order or notice

under this Act;

"price" includes any consideration;

"product" includes goods and intangible movable property;

"public authority" means the Government, a local council set up

in accordance with the Local Government Act, an authority vested

with distinct personality established by an Act of Parliament or a

corporation constituted by an Act of Parliament;

CUSTOMS AND EXCISE TAX

"records" includes machine readable information;

"registered person" means a person who has been registered in

accordance with article 24 and whose registration has not been

cancelled in accordance with article 25;

"registration certificate" means a certificate required to be issued

by the Director in terms of article 24;

"related service", in relation to the sale of a product to which the

service is related, means any of the following services for which no

separate agreement is made

(a) services of whatever nature ancillary or incidental to

the sale of any product to the person to whom the

product is sold;

(b) packaging, delivery, carriage, postage or insurance of

that product incurred or provided before the product is

delivered;

(c) adjustments, assembling, modifications, repairs,

alterations or improvements made to that product or

related to the interaction of that product with another

product as part of, or associated with, the sale;

"resident in Malta", when applied to an individual, means an

individual who resides in Malta except for such temporary absences

as to the Director may seem reasonable and not inconsistent with

the claim of such individual to be resident in Malta; when applied

to a body of persons, means any body of persons incorporated in

Malta, or when the control and management of the business of a

body of persons incorporated outside Malta are exercised in Malta;

"retailer" means a person whose business consists wholly or

mainly in the sale of products by retail;

"sale" includes the transfer of any goods or products under any

title;

"stocks" includes trading stocks and capital assets;

"supply" includes a sale;

"tax" includes additional tax;

"tax invoice" means an invoice required to be provided in terms

of article 39;

"tax period" has the meaning assigned to it by article 30;

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

article 31;

"taxable importation" has the meaning assigned to it by article

10;

"taxable product" has the meaning assigned to it by article 13;

"taxable service" has the meaning assigned to it by article 18;

"taxable value", in respect of a taxable importation, taxable

product or taxable service, means the value thereof established in

accordance with the provisions of this Act;

CUSTOMS AND EXCISE TAX

"Tribunal" means the Excise Tax Tribunal established by article

47;

"trustee" includes an executor or administrator.

PART II

ADMINISTRATION

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

of Customs and Excise Tax, who shall be a public officer appointed

as such by the Prime Minister.

(2) Save as otherwise specifically provided for under any other

provision of this Act, the Director may delegate to any public

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

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

(1) Except as may be necessary for the purposes of this

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 records, returns, assessments

or other 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 necessary for the purpose of

carrying into effect the provisions of this Act, or for the purpose or

in the course of any appeal made in accordance with this Act or a

prosecution for any offence against any of the provisions of this

Act.

(3) Notwithstanding the other provisions of this article, the

Director shall permit the Auditor General or any officer authorised

by the Auditor General to have access to any records or documents

as may be necessary for the performance of his official duties and

for this purpose the Auditor General and any such authorised

officer shall be deemed to be a person employed in the administra-

tion of this Act.

(1) No obligation as to secrecy or other restriction upon

the disclosure of information imposed by article 4 or by any other

enactment or otherwise shall prevent the Director or any officer

authorised by him in that behalf to furnish to the Commissioner of

Inland Revenue and the Comptroller of Customs such information

obtained for revenue gathering purposes and which is required to

be disclosed by the Director or any officer as aforesaid to give

effect to any of the provisions of this Act.

(2) Information obtained pursuant to subarticle (1) shall not be

disclosed except

(a) to the officers mentioned in that subarticle; or

(b) for the purposes of any proceedings connected with a

matter in relation to which those officers so authorised

CUSTOMS AND EXCISE TAX

perform their duties.

(1) Without prejudice to the provisions of this Act, the

Director shall carry out each year a separate professional audit

including as necessary a physical audit, of the returns submitted by

a sample of registered persons chosen during the month of April of

each year by a scientific randomisation programme, ensuring that

the sample is of a reasonable size and is representative of all

classes of registered persons.

(2) If for any purpose under this Act, the Director requires any

information or additional information or the submission of a return

from any person who has not made a return or a complete return, he

may, by registered letter or by personal service of a notice in

writing, demand from such person such information, additional

information or return as may be indicated in the notice.

(3) Such person shall deliver to the Director such information,

additional information or return within the period of time, being not

less than two working days, stipulated by the Director in such

notice.

(4) For the purpose of any proceedings taken under this Act,

the facts necessary to establish compliance on the part of the

Director with the provisions of subarticle (2) as well as default

under subarticle (3) shall in the absence of proof to the contrary be

sufficiently proved in any court of law by the affidavit of the

Director or any other responsible officer of the Customs and Excise

Tax Department. Such affidavit shall have attached thereto as an

exhibit a copy or duplicate of the said letter or notice.

(5) Subject to the provisions of article 9, the Director may

require and demand the production by any person or his agent or

officer of any letter, accounts, invoice, statement, book or other

document or record held by such person, agent, or officer and to

request the attendance of any such person at the office of the

Director for the purpose of confirming on oath the authenticity of

the document and of determining the tax payable by such person

and the same shall be produced within the time, being not less than

two working days from the date of the receipt of the notice as may

be determined in such demand.

(1) The Director or any person authorised by him in

writing in that behalf shall, upon the production of his written

authority and at all reasonable times, have the right to enter upon

any land, building or place for the purposes of inspecting any

stocks, books, records or documents, whether in the custody or

under control of a public officer or any other person whatsoever, if

the Director or the officer considers that such inspection will

enable the ascertainment of the tax payable under this Act by any

person or the collection or recovery of tax and may inspect any

such stocks, books, records or documents and may without fee or

reward make extracts or copies of any such books, records or

documents.

(2) If access is required in virtue of subarticle (1) to any

premises occupied in whole or in part for the purpose of habitation,

CUSTOMS AND EXCISE TAX

such access shall require the prior warrant issued by a magistrate

sitting in the Court of Magistrates in its civil jurisdiction and shall

not take place between seven o’clock in the evening and seven

o’clock in the morning.

(3) The Director or any person authorised by him may, for the

purpose of any inspection under this subarticle, require the

production of any book, records or document by any person in

whose custody or control such book, records or document may be

and may require any such person to give reasonable assistance in

the inspection and to answer all questions relating thereto.

(1) The Director or any person authorised by him in

writing upon the production of his written authority, if it appears

necessary for the protection of the revenue against mistake or

fraud, may at any time take, from the possession of any person who

supplies goods or products, such samples as the Director or the said

person may require so as to establish how the goods or products or

the materials of which the goods or products are made ought to be

or to have been treated for the purposes of tax.

(2) Any sample taken under this article from the goods in a

person’s possession shall be returned to him within a reasonable

time and in good condition.

(1) Without prejudice to the provisions relating to the duty

of professional secrecy, no information shall be requested by the

Director by virtue of this Act from any person to whom subarticle

(2) 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 subarticle refers to

(a) a bank licensed under the Banking Act;

(b) an insurance company in respect of life assurance

business which is carried on pursuant to a licence

granted under the Insurance Business Act * ;

(c) any person licensed to carry on investment business

under the Investment Services Act;

(d) a collective investment scheme licensed under the

Investment Services Act;

(e) a stockbroker licensed under the Financial Markets

Act.

PART III

EXCISE TAX ON IMPORTS

(1) Subject to the provisions of this Act, an excise tax on

goods imported into Malta shall be levied and collected in

accordance with the provisions of this Act at the rate of fifteen

*Repealed by Act XVII of 1998 (Cap. 403).

CUSTOMS AND EXCISE TAX

percent on the taxable value of the goods so imported and shall be

payable to the Comptroller of Customs on behalf of the Director

before the goods are released for use or consumption in Malta.

(2) For the purposes of subarticle (1), 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

subarticle (1). Such value shall be established in the same manner

provided in 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 subarticle the references in the said

provisions to the Comptroller of Customs shall be construed as

references to the Comptroller of Customs acting on behalf of the

Director.

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

which the tax on their importation becomes payable in terms of

subarticle (1) the taxable value thereof shall be the value of the

consideration paid or payable for the said transfer or the value

established in virtue of the other provisions of this Act, whichever

is the higher.

(4) No goods imported into Malta shall be released by the

Comptroller of Customs unless -

(a) the excise tax on imports has been paid in accordance

with this Act; or

(b) the importation thereof is an exempt importation; or

(c) such release is authorised by the Director.

(5) An authorisation for the purpose of subarticle (4)(c) may be

given under such conditions and against the granting of such

security as the Director may establish.

(1) Subject to the provisions of subarticle (2), the

importation of goods to which the First Schedule to this Act applies

shall be exempt importations.

(2) The exemptions referred to in subarticle (1) shall be subject

to the provisions contained in the Schedule referred to in that

subarticle and to such conditions which the Minister may prescribe

for the purpose of ensuring the correct and straight-forward

application of the said exemptions and of preventing any possible

evasion, avoidance, abuse of tax or distortion of competition.

(3) Any exemption from import duties under the Import Duties

Ac t o r u n d e r a n y o t h e r l a w, s h a l l b e d e e m e d t o be a l s o a n

exemption from the payment of excise tax under this Act on

imported goods and the provisions of the Import Duties Act or any

other such law relating to any such exemption shall also apply to

the exemption from tax granted under this subarticle.

CUSTOMS AND EXCISE TAX

PART IV

EXCISE TAX ON PRODUCTS

(1) Subject to the provisions of this Act, an excise tax on

products shall be levied and collected by the Director on any

business sale in Malta of a taxable product made to a retailer or to

any other person unless such other person holds a valid certificate

of exemption applicable to that product or is a person to whom the

sale is made by a retailer.

(2) ETP shall be charged by the seller at the rate of five per

cent of the taxable value of the product.

(3) Where any person, other than a retailer who has paid ETP,

makes a business sale of a taxable product direct to the general

public, ETP shall be charged on eighty-two per cent of the taxable

value.

(4) In case of a business sale of a taxable product on which

ETP has already been paid by the seller, ETP shall be charged on

the taxable value of the product exclusive of the amount of ETP

already paid on the product.

(5) Any amount of tax excluded under subarticle (4) shall be

refundable by the Director if it is shown to his satisfaction that ETP

has been paid and subarticle (4) has been complied with

Provided that the Director may determine the said amount

by such percentage or percentages of the taxable value of the

product as may be prescribed.

(6) ETP shall not be chargeable if the business sale is made by

a person whose total business sales have not, in the twelve months

ending with the last day of the immediately preceding taxable

period, exceeded twenty-seven thousand and nine hundred and

fifty-two euro and forty-eight cents (27,952.48) or such higher

amount as may be prescribed

Provided that in respect of the first twelve months after the

coming into force of this Act, this subarticle shall apply in such

manner and under such conditions as the Director may deem

appropriate.

Any product shall be deemed to be a taxable product for

the purposes of this Act unless such product falls within a category

of non-taxable products listed in the Second Schedule to this Act.

(1) The taxable value of a product, including any related

service, shall be the price of the product, and of any related service,

exclusive of the amount of ETP, and any other deductible amount

as may be prescribed.

(2) Where a product is an excise good, ETP shall be charged on

the total resulting from the addition of the value of the excise good

established in accordance with the provisions of the Excise Duty

Act, the amount of excise duty payable thereon and the value of any

related service.

CUSTOMS AND EXCISE TAX

A business sale takes place in Malta if the product sold is

in Malta at the time when the sale takes place.

(1) A certificate of exemption from ETP may be issued by

the Director to any registered person who shows to the satisfaction

of the Director that for the due and proper functioning of this Act,

or otherwise as may be prescribed, such person is not to be charged

with ETP on products sold to such person.

(2) The person to whom a certificate of exemption is issued is

to inform the Director forthwith of any material change in his

circumstances.

(3) The Director may in any case of change in the circum-

stances of a person to whom a certificate is given, at any time

withdraw such exemption.

(4) A certificate of exemption may be issued subject to such

limitations and conditions as may be prescribed or as may be

established by the Director in the absence of applicable regulations

and the certificate shall be valid only if the limitations and

conditions to which it is subject are observed and complied with.

(5) The Minister shall not later than the second week of each

month publish in the Gazette a list of the persons who were granted

an exemption in accordance with this article in the preceding

month.

PART V

EXCISE TAX ON SERVICES

Subject to the provisions of this Act, an excise tax on

services shall be levied and collected by the Director on all taxable

services provided in Malta by a service provider at the rate of five

per cent of the total taxable value of the taxable services provided

during a tax period

Provided that where the total value of the services of a

service provider has not, in the twelve months ending with the last

day of the immediately preceding tax period, exceeded thirteen

thousand and nine hundred and seventy-six euro and twenty-four

cents (13,976.24) or such other higher amount as may be

prescribed, ETS shall not be chargeable on such person in respect

of that period

Provided further that in respect of the first twelve months

after the coming into force of this Act, the immediately preceding

proviso shall apply in such manner and under such conditions as

the Director may deem appropriate.

(1) A service is a taxable service if it is provided for a

consideration and it is not an exempt service.

(2) Services are provided for a consideration if the person

providing the services receives payment therefor in cash or in kind.

(1) For the purposes of this Act, the provision of a service

means the provision of any service and without prejudice to the

generality of the foregoing includes -

CUSTOMS AND EXCISE TAX

(a) the provision of any kind of advice or assistance;

(b) the provision of any data, knowledge or information of

any kind or the provision of use or access to data,

knowledge or information;

(c) the provision of human resources;

(d) the provision of the use of any taxable product;

(e) the provision of food listed in the Fourth Schedule to

this Act;

(f) the provision of a document entitling a person to a

service;

(g) such other provision as may be prescribed.

(2) For the purpose of this article and of the Fourth Schedule to

this Act, food includes beverages.

A service is an exempt service if it is -

(a) a related service; or

(b) a service listed in the Third Schedule to this Act.

(1) The taxable value of a taxable service shall be the

consideration paid for the provision of that service.

(2) To the extent that the consideration for the provision of a

service is not paid in money, the open market value of that

consideration shall be that as may be prescribed or as may be

established by the Director in the absence of applicable regulations.

(1) The provision of a service takes place in Malta if

(a) the service provider is resident in Malta at the time the

service is provided; or

(b) the service is physically performed in Malta by a

person who is present in Malta at the time the service

is provided; or

(c) the service is provided to a person who is resident in

Malta.

(2) Where the service is provided to a person who is resident in

Malta and the service provider is not resident in Malta and is not

registered for the purpose of this Act, the said person who is

resident in Malta shall be deemed to have himself provided those

services in the course or furtherance of his business activity and the

provisions of this Act, including the obligation to apply for

registration and to account for and to pay the tax, shall apply

accordingly.

Where a fee or other consideration payable in respect of a

service is regulated by law and ETS is payable by the person

providing that service, it shall be lawful to increase such fee or

consideration by five per cent.

CUSTOMS AND EXCISE TAX

PART VI

REGISTRATION

(1) Subject to the provisions of this Act, every person who

carries on any other business activity in Malta and is not registered

becomes liable to be registered.

(2) Every person who on the thirtieth June, 1997, is registered

under the Value Added Tax Act, 1994 * shall be registered by the

Director under this Act on the commencement thereof.

(3) Every person who, by virtue of subarticle (1), becomes

liable to be registered after the coming into force of this Act shall

apply to the Director on the prescribed registration form, or on a

form approved by the Director, within thirty one days of becoming

so liable.

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

to carry on a business activity may apply to be registered under this

Act.

(5)

Where any person -

(a) applies to be registered pursuant to subarticle (3) or

(4), and the Director is satisfied that that person is

liable to be registered under this Act, that person shall

be a registered person for the purposes of this Act with

effect from such date as the Director may determine;

(b) has not made application for registration pursuant to

subarticle (3), and the Director is satisfied that that

person is liable to be registered under this Act, that

person shall be a registered person for the purposes of

this Act with effect from the date on which that person

first became liable to be registered under this Act

Provided that the Director may, having regard to the

circumstances of the case, determine that such person shall be a

registered person from such later date as the Director considers

equitable.

(6) The Director shall allocate a registration number and shall

determine the first tax period for every person registered under this

Act and shall deliver to that person a registration certificate.

(7) An application for registration under this Act purporting to

be made by or on behalf of any person shall for all purposes be

deemed to have been made by that person or by that person’s

authority, as the case may be, unless the contrary is proved.

(1) Subject to the provisions of this Act, every registered

person who carries on any business activity shall cease to be liable

to be registered if that person has ceased to carry on any business

activity.

(2) Every person who, by virtue of subarticle (1), ceases to be

liable to be registered may request the Director in writing to cancel

*Repealed by this Act.

CUSTOMS AND EXCISE TAX

that registration, and if the Director is at any time satisfied,

whether upon such request or otherwise, that that person does not

carry on or has ceased to carry on a business activity, the Director

shall cancel that person’s registration with effect from the last day

of the tax period during which such person ceased to be liable to be

registered, or from such other date as may be determined by the

Director, and shall notify that person of the date on which the

cancellation of registration takes effect.

(3) Every registered person who ceases to carry on all business

activities shall notify the Director of that fact within fifteen days of

the date of cessation and the Director shall cancel the registration

of any such person with effect from the last day of the tax period

during which all such business activities ceased, or such other date

as may be determined by the Director

Provided that the Director shall not cancel the registration

of any such registered person if there are reasonable grounds for

believing that the registered person will carry on any business

activity at any time within twelve months from that date of

cessation.

(4) Any notification by a registered person pursuant to

subarticle (3) shall be made in writing to the Director and shall

state the date upon which that person ceased to carry on all such

business activities and whether or not that person intends to carry

on any such business activity within twelve months from that date.

(5) Any date determined by the Director for the cancellation of

registration under subarticle (3) may be retrospective to a date not

earlier than -

(a) the last day of the tax period during which all such

business activities carried on by that person ceased; or

(b) the date on which the person was registered under this

Act, if the Director is satisfied that the person did not,

from that date, carry on any business activity.

Subject to the provisions of this Act, every registered

person shall within thirty one days of the occurrence notify the

Director in writing of -

(a) any changes in the name, address, constitution or

nature of the principal business activity or activities of

that registered person;

(b) any change of address from which, or of the name in

which, any business activity is carried on by that

registered person.

The obligations and liabilities under this Act of any person

in respect of anything done, or omitted to be done, by that person

while that person is a registered person shall not be affected by the

fact that that person ceases to be a registered person.

CUSTOMS AND EXCISE TAX

PART VII

RETURNS AND PAYMENT OF TAX

The provisions of this Part of this Act shall apply only to

business activities consisting in the sale of products and the

provision of services.

(1) Subject to the other provisions in this article -

(a) the sale of a product shall be deemed to take place at

the time when the product is delivered or otherwise

made available to the person buying the product;

(b) the provision of a service shall be deemed to take place

on the date when the service is performed.

(2) Subject to the provisions of subarticle (3) when payment is

received by the person carrying on a business activity before the

time determined in accordance with subarticle (1), the sale or

provision aforesaid shall, to the extent of the payment so made, be

deemed to take place at such earlier time.

(3) When a tax invoice is issued before the time determined in

accordance with the provisions of subarticle (1) or before the

expiration of thirty-one days following the time determined as

aforesaid, the sale or provision aforesaid shall, in respect of the

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

invoice is issued.

(4) When services are performed over a period for a conside-

ration the whole or part of which is determined or payable

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

and successively performed at the earlier of the following times

(a) to the extent that a payment for such provision of

services is received, the period covered by that

payment;

(b) to the extent that a tax invoice is issued in respect of

such provision of services, the period covered by that

invoice,

or as may be prescribed.

(1) Each registered person shall be placed by the Director

in one of the following categories for the purposes of determining

that person’s tax periods for the purposes of this Act

(a) category A, with tax periods of three months ending on

the last day of any month in any year as may be

determined by the Director;

(b) category B, with tax periods of twelve months ending

on the last day of any month in any year as may be

determined by the Director.

(2) Every registered person who is not placed in category B

pursuant to subarticle (3), shall be placed by the Director in

category A.

(3) The Director may, whether on his own initiative or on

written application by a registered person, place that person in

CUSTOMS AND EXCISE TAX

category B if the total value of that person’s business activities -

(a) has not in the twelve months ending with the last day

of the immediately preceding tax period, exceeded

twenty-seven thousand and nine hundred and fifty-two

euro and forty-eight cents (27,952.48) in respect of the

sale of products or thirteen thousand and nine hundred

and seventy-six euro and twenty-four cents

(13,976.24) in respect of the provision of services or

such other amounts as may, from time to time, be

prescribed; or

(b) is not likely to exceed those amounts in the period of

twelve months beginning on the first day of any tax

period; or

(c) such person is a retailer.

(4) For the purposes of subarticle (3), the total value of a

registered person’s business activities shall be deemed not to have

exceeded any amount specified in or under that subarticle where

the total value exceeds any such amount solely as a consequence of

any cessation of, or any substantial and permanent reduction in the

size or scale of any business activity carried on by the registered

person.

(5) The Director may from time to time direct that a registered

person change from category A to category B or, as the case may

be, from category B to category A -

(a) on written application by the registered person; or

(b) following the notification by the registered person

under article 26 of a change in status; or

(c) where the Director is otherwise satisfied, that the

registered person has ceased to satisfy the conditions

of subarticle (3)

Provided that a registered person may only make a written

application to the Director to change the category that determines

the registered person’s tax periods after the expiry of twelve

months from the date on which the last written application was

made.

(6) Where the Director directs that a registered person changes

from one category to the other, such person shall be deemed to have

been placed in the new category with effect from the day following

the end of the tax period during which the direction was made by

the Director.

(7) The first tax period for any registered person shall

commence on such dates as may be determined by the Director in

accordance with article 24(5).

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

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

cancellation falls and shall end on the said date.

(9) The Director may by means of a notice served on a

registered person in any particular case vary any tax period for that

CUSTOMS AND EXCISE TAX

period in such manner as may be specified in that notice.

(1) Every registered person shall, on or before the

fifteenth day of the second month following the last day of every

tax period of that person, without notice or demand, furnish to the

Director a tax return, in such form as may be prescribed or as may

be approved by the Director.

(2) Any registered person who ceases to be registered shall, not

later than one month after so ceasing, furnish to the Director a final

tax return, in such form as may be approved by the Director, in

respect of that part of the last tax period during which that

registered person was registered.

(3) The Director may require any person, whether a registered

person or not, to furnish, whether on that person’s own behalf or as

an agent or trustee, such further or other returns to the Director in

the prescribed form as and when the Director requires for the

purposes of this Act.

(1) The Director may, by notice in writing, exempt any

person from the provisions of article 31(1) for such time and

subject to such conditions and limitations as may be specified in

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

exemption so granted.

(2) Notwithstanding an exemption granted in terms of

subarticle (1), a registered person shall furnish the Director with a

tax return in respect of any tax period during which he carries on

any business activity.

(1) Subject to the provisions of this Act, every registered

person shall account for tax payable on an invoice basis.

(2) The Director may, on application in writing by a registered

person or on the Director’s own initiative, direct that the registered

person account for the tax payable on a payment basis.

(3) Where the Director has, pursuant to subarticle (2), directed

that a registered person shall account for tax payable on a payment

basis -

(a) if that registered person has ceased to satisfy the

conditions under which any such direction has been

given, and -

(i) that registered person has notified the Director

under article 26 of a change in status; or

(ii) the Director is otherwise satisfied that the

registered person has ceased to satisfy the

conditions aforesaid; or

(b) if that registered person has made an application in

writing to the Director to account for tax payable on an

invoice basis,

the Director may direct that that registered person shall account for

the tax payable on an invoice basis.

CUSTOMS AND EXCISE TAX

(4) Where the Director gives a direction in respect of a

registered person’s accounting basis under subarticle (2) or

subarticle (3), the registered person shall account for the tax

payable on the accounting basis directed by the Director with effect

from -

(a) the commencement of the tax period immediately

following the tax period during which the direction is

given by the Director, in any case to which paragraph

(b) of this subarticle does not apply; or

(b) the person’s registration under this Act, where the

direction is given by the Director before the end of the

first tax period of the person that follows that

registration.

(1) Where the Director directs a change in a registered

person’s accounting basis in accordance with article 33, the

registered person shall furnish to the Director in the prescribed

form, particulars to enable the calculation of tax payable in

consequence of the change in the basis of accounting.

(2) The particulars required to be furnished under subarticle (1)

shall be furnished to the Director not later than the last day for

furnishing a return pursuant to article 31(1) of the Act for the tax

period preceding that in which the direction of the Director takes

effect.

(3) Where the Director directs a change in a registered person’s

accounting basis under article 33, the registered person shall

prepare -

(a) a list of his creditors in relation to that person’s

business activity, showing the amounts due by him as

at the last day of the tax period preceding that in which

the direction takes effect; and

(b) a list of his debtors in relation to that person’s business

activity, showing the amount due to him as at the last

day of the business activity in which the direction

takes effect.

Every registered person whose accounting basis is changed

pursuant to article 33 shall, not later than the last day allowed under

article 34(2) for furnishing particulars in respect of the change, pay

to the Director the tax payable, if any, as determined pursuant to

article 36.

(1) In respect of each tax period every registered person

shall calculate the amount of tax payable by him in accordance with

the provisions of this Act.

(2) Subject to the following provisions, in calculating the

amount of tax payable in respect of each tax period, there shall be

deducted from the amount of tax so payable and attributable to the

tax period -

(a) any amount calculated in accordance with article 41;

and

CUSTOMS AND EXCISE TAX

(b) where a credit note has been issued in that tax period

pursuant to article 40(2) and that registered person is

the supplier in relation to that credit note, the amount

of the tax credit.

(3) For the purposes of subarticle (2), the amount of tax

payable in relation to a business activity carried on by a registered

person attributable to a tax period is, -

(a) the total tax calculated on the tax value of all business

activities carried on or deemed to be carried on during

that period; and

(b) where a debit note has been issued in that period

pursuant to article 40(2) and that registered person is

the supplier in relation to that debit note, the amount

of the tax debit.

(4) If, in relation to any tax period, the total amount that may

be deducted by a registered person under subarticle (2) exceeds the

amount of tax due by him to the Director and attributable to that tax

period, the amount of excess shall, subject to the provisions of this

Act, be refunded to that registered person by the Director.

(1) Subject to the provisions of this Act, every registered

person shall for each tax period, and not later than the last day

allowed under this Act for furnishing a return for that tax period,

pay to the Director the tax payable for that period

Provided that, where a later due date has been fixed

pursuant to article 32, the tax payable shall be paid to the Director

on or before that later date.

(2) Subject to the provisions of Part VIII and Part IX of this

Act, the amount shown as tax payable on any tax return furnished

by a registered person shall conclusively be deemed and taken to be

correct for the purposes of this Act.

(3) A return purporting to be made by or on behalf of any

person shall for all purposes be deemed to have been made by that

person or by that person’s authority, as the case may be, unless the

contrary is proved.

(1) Where a registered person who furnishes a tax return

in respect of a tax period, is entitled to a refund in terms of the

provisions of this Act, such refund may be set off against the tax

due for that period.

(2) Any refund, or part thereof, due to a registered person for a

tax period which is not set off against the tax due for that same

period in accordance with the provisions of subarticle (1) hereof,

shall be paid within the time-limit specified in article 57.

(1) Every registered person, other than a retailer, who sells

any product or provides any service to another person shall provide

to that other person a tax invoice, or a receipt, containing such

particulars as may be prescribed within thirty-one days from the

date referred to in article 29(1).

CUSTOMS AND EXCISE TAX

(2) A registered person who is a retailer and who sells any

product to the general public shall provide the purchaser, at the

time of the sale, with a receipt containing such particulars and

issued in such form and manner as may be prescribed

Provided that where a sale is made on credit, the receipt

shall be issued when the price is paid.

(3) A registered person who is a retailer and who sells a

product 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 on which the activity is deemed to have taken place in

accordance with the provisions of article 29.

(4) Where a registered person provides a document to himself

which purports to be a tax invoice in respect of a business activity

carried on in his regard by another person, that document may, with

the approval of the Director, be treated as the tax invoice required

to be provided by the other person in terms of this article.

(1) This article shall apply where a registered person has

issued a tax invoice in respect of a business activity and -

(a) that activity has been cancelled; or

(b) the previously agreed consideration for the activity has

been altered whether due to an offer of discount, not

being a discount for prompt payment which is clearly

stated on the face of the tax invoice, or otherwise; or

(c) the products and services or part of the products and

services supplied have been returned to the person

carrying out the business activity.

(2) Where this article applies, the registered person carrying on

the business activity shall issue to the other person paying for that

business activity a credit note or, as the case may be, a debit note

containing such particulars as may be prescribed, to adjust the

amount shown on the tax invoice to the amount that would have

been so shown if -

(a) the cancellation or alteration referred to in subarticle

(1)(a) and (b) had taken place before the tax invoice

was issued;

(b) the goods and services returned had not been supplied

or provided, as the case may be.

(1) Where -

(a) a registered person has carried on a business activity

for consideration in money; and

(b) that registered person has furnished a return in relation

to the tax period during which the business activity

was carried on and has properly accounted for tax on

that business activity under this Act; and

(c) the registered person has written off as a bad debt the

whole or part of the consideration not paid to him; and

(d) the registered person has taken all reasonable steps to

CUSTOMS AND EXCISE TAX

recover the bad debt; and

(e) the registered person satisfies the Director that there is

no reasonable or probable expectation that the bad

debt will ever be recovered,

then the Director may allow the registered person to make a

deduction under article 36(2) of that portion of the amount of tax

chargeable in relation to that business activity as the amount

written off as a bad debt bears to the total consideration for the

activity. The deduction shall be made from the tax due at the time it

is allowed and may be carried forward.

(2) Where any amount in respect of which a deduction has been

made in accordance with subarticle (1) is at any time wholly or

partly recovered by the registered person, that portion of the

amount of the deduction allowable under subarticle (1) as the

amount of the bad debt recovered bears to the bad debt written off

shall be deemed to be the tax charged in relation to a business

activity carried on during the tax period in which the bad debt is

wholly or partly recovered.

PART VIII

ASSESSMENT OF TAX

(1) Where -

(a) any person, whether registered or not, who is liable to

pay tax fails to furnish a tax return as required by this

Act; or

(b) the Director is not satisfied with the return made by

any registered person,

the Director shall make an assessment of the amount which, in his

opinion, is the tax payable pursuant to this Act and that person

shall, subject to the provisions of this Act, be liable to pay the tax

so assessed.

(2) The Director may, at any time, make all such adjustments in

or additions to an assessment or an amended assessment made

under this article as he thinks necessary to ensure the correctness

thereof, notwithstanding that tax or further tax may have been paid.

(3) The Director shall cause notice of the assessment or

amended assessment to be sent to the person liable to pay the tax or

further tax and the amount so due shall be payable within thirty one

days from the service thereof.

Except in proceedings on appeal from an assessment under

article 46, no assessment made by the Director shall be disputed in

any proceedings on any ground; and except as aforesaid and subject

to the provisions of article 45, every such assessment and all the

particulars thereof shall conclusively be deemed and taken to be

correct and the liability of the person so assessed shall be

determined accordingly.

The production of any document by or on behalf of the

Director purporting to be a copy or an extract of an original

CUSTOMS AND EXCISE TAX

document shall in the Tribunal and in all other proceedings be

sufficient evidence of the original and the production of the

original shall not be required.

(1) Where any registered person has made, or is to make, a

return in respect of any tax period, it shall not be lawful for the

Director to issue an assessment after the expiration of six years

from the end of the tax period or six years from the date when the

return is furnished for that tax period, whichever date is the later.

(2) Where an assessment is made by the Director under article

42(1)(a), it shall not be lawful for him to reopen that assessment

after the lapse of six years from the date it was made.

PART IX

APPEALS

(1) Any person dissatisfied with a decision of the Director

consisting in an assessment of tax or relating to the registration of a

person under this Act or to the liability to ETI, may, either

personally or by his agent, lodge an appeal from such decision to

the Tribunal within thirty days of the date upon which the notice of

assessment has been served upon him or the date upon which he has

been served by the Director with a notice of the said decision or

from the determination by the Comptroller of Customs, acting on

behalf of the Director, of the ETI due.

(2) The appeal under this article may be made on the ground of

any relevant point of fact or of law other than on the classification

of any goods under the Customs Tariff set out in the First Schedule

to the Import Duties Act which shall be determined in accordance

with the provisions of the said Act as if the question related to duty

chargeable under that Act

Provided that any appeal under this article shall be made in

such form and manner as may prescribed.

(3) Any of the parties to an appeal to the Tribunal who feels

aggrieved by a decision of that Tribunal on a point of law may

appeal against that decision to the Court of Appeal by means of an

application to be filed within thirty days from the date on which the

decision appealed from is notified to him.

(4) 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 Director shall refund such amount to that person

within thirty days from the date such decision becomes res

judicata.

(1) There is hereby established a Tribunal to be called the

Excise Tax Tribunal for the purpose of hearing and determining

appeals made under article 46.

(2) The Tribunal shall be composed of a chairman and two

members who shall be appointed by the Minister for a period of

three years and may not be removed from office except in the

circumstances and manner in which a judge may be removed

CUSTOMS AND EXCISE TAX

Provided that the Minister may appoint several chairmen

and members to sit on the Tribunal, but only one chairman and two

members shall sit on any one case.

(3) The chairman shall be a person qualified to be appointed as

a magistrate and at least one of the other members shall be a

certified public accountant and auditor.

(4) There shall be a Registrar of the Tribunal who shall be

responsible to ensure the efficient functioning of the Tribunal.

(5)

The Registrar shall be appointed by the Minister.

(6) The Minister shall have the power to make rules of the

Tribunal generally for regulating the Tribunal’s power and

authority as well as to regulate any matter relating to the practice

and procedure of the said Tribunal and the fees to be charged and

the costs of proceedings to be paid. On any matter in respect of

which no rule has been made under this subarticle this Tribunal

may establish its own practice or procedure.

PART X

ADDITIONAL TAX AND ENFORCEMENT

(1) Any person who, being required to apply for

registration under this Act, makes such an application after the

expiration of the time laid down in article 24, shall be liable to

additional tax in an amount equivalent to the higher of -

(a) two per cent of the tax due, if any, for the first tax

period following registration; and

(b) forty-six euro and fifty-nine cents (46.59)

for every month or part thereof that elapses from the date on which

the application should have been made in terms of the said article

and the earlier of the date on which the registration is furnished to

the Director and the date when that person is registered by the

Director.

(2) Any person who, being required to furnish a tax return for a

tax period, furnishes that return after the expiration of the time laid

down in article 31, shall be liable to additional tax in an amount

equivalent to the higher of -

(a) two per cent of the tax due, if any;

(b) forty-six euro and fifty-nine cents (46.59)

for every month or part thereof that elapses from the date on which

the tax return should have been furnished in accordance with this

Act and the date when it is furnished to the Director.

(3) Where an assessment is made for a tax period in the

circumstances referred to in article 42, additional tax shall be due

for that period in an amount equivalent to twenty per cent of the

under-declared tax.

(4) Where a tax return furnished to the Director by a registered

person for a tax period contains an understatement of the tax due

and that person makes a disclosure of such an understatement

CUSTOMS AND EXCISE TAX

before he is served with an assessment for that period, he shall be

liable to additional tax in an amount equivalent to ten per cent of

the underdeclared tax.

(5) Interest shall be due on any tax (but excluding additional

tax) which is not paid by the date on which it becomes payable in

accordance with this Act, 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.

(1) Tax and additional tax due under this Act may be

recovered by the Director as a civil debt due to the Government.

(2) Subject to the provisions of subarticle (3), action for the

payment of tax, additional tax and interest may be taken by the

Director at any time within six years from the date on which such

tax, additional tax and interest becomes payable.

(3) The running of the period referred to in subarticle (2) shall

be interrupted by any judicial act filed before the expiration of such

period by the Director demanding the payment of the tax and

additional tax due.

(1) Any notice issued by the Director showing any amount

of tax and additional tax due by a person shall, unless the contrary

is proved, be sufficient evidence that that amount is due to the

Director 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 Procedure.

(2) The Director may request the payment of any tax,

additional tax and interest payable by any person under this Act by

means of a demand note and if the payment is not made within

thirty days from the date when the said demand note is served on

that person, the Director may proceed to enforce payment in virtue

of the executive title referred to in subarticle (1) after two days

from the service on that person of an intimation for payment made

by means of a judicial act. Upon the lapse of the period of two days

mentioned in this subarticle the Director shall be entitled to register

in the public registry or land registry, as the case may be, a note of

privilege for the amount demanded in the judicial act which note of

privilege shall be registered by any advocate or notary.

(3) No opposition shall stay the issue or execution of any

executive act issued on the strength of an executive title mentioned

in this article or the sale by auction in pursuance thereof or the

paying out of the proceeds of such sale and no opposition or

reservation in the schedule of deposit shall stay the paying of any

sum deposited in court following any such executive act as

aforesaid.

(1) For the purposes of ascertaining, collecting and

protecting on behalf of the Director the tax chargeable under this

Act on taxable importations, the Comptroller of Customs shall 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.

CUSTOMS AND EXCISE TAX

(2) Any provisions 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.

The Director shall have a special privilege over the assets

forming part of the taxable activity of a person in respect of any tax

due by that person under this Act and the said tax shall,

notwithstanding anything contained in any other law, be paid in

preference to a debt having any other privilege, excepting a debt

having a general privilege and a debt mentioned in article 2009(a)

or (b) of the Civil Code.

(1) If, in any particular case, the Director has reason to

believe that tax collected by a registered person might not be

recoverable by the Director at the time when that tax becomes

payable to him 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 subarticle (1) that person may, instead of making

the said payment, furnish such security for the tax payable as may

be acceptable to the Director.

If, in any particular case, the Director has reason to believe

that the tax due by a registered person could otherwise be

prejudiced, he may, by means of a notice in writing, require that

person to furnish a tax return for a taxable period before the time

allowed in terms of article 31, and in respect of that tax return any

reference in this Act to the time allowed in terms of the said article

shall thereupon be construed as a reference to the period specified

in the said notice.

(1) Where any interest is due by a person in terms of this

Act any payment made by that person to the Director 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 subarticle (1), where any

additional tax is due by a person in terms of this Act, any payment

made by that person to the Director shall, notwithstanding any

declaration of that person to the contrary, be appropriated to such

additional tax before it is appropriated to any other tax.

PART XI

REFUNDS AND RELIEF FROM TAX

(1) Subject to the provisions of this Act, in any case where

the Director is satisfied that the tax paid by a registered person is in

excess of the amount payable for any taxable period, he shall

CUSTOMS AND EXCISE TAX

refund the amount paid in excess

Provided that no refund shall be made under this subarticle

after the expiration of the period of six years immediately after the

end of the taxable period, unless written application for the refund

is made by or on behalf of the registered person before the

expiration of the said period.

(2) When a registered person buys a product on which ETI and

ETP has been paid, and such a product would have been exempt

from ETI had it been imported by the said registered person for the

purposes set out in the First Schedule to this Act, other than an

exemption listed under item 26 of the First Schedule, such person

shall be entitled to a refund at the rate of sixteen per cent of the

prescribed

Provided that in respect of hotels, the refund aforesaid shall

be at the rate of twelve per cent or such other percentage as may be

prescribed.

(1) Subject to the provisions of this Act, where the

Director is required to refund any amount to any registered person

pursuant to any of the provisions of this Act, the Director shall

refund to that registered person the amount required to be refunded

not later than the end of the fourth month following the date on

which the return of that registered person was due to be made or

was received by the Director, whichever is later.

(2) Where any registered person has in respect of a tax period,

failed to pay to the Director, in whole or in part, any tax payable on

the due date, the Director may set off, against the said tax, any

amount or any part of any amount otherwise refundable to that

registered person under the provisions of this Act and where any

tax as aforesaid is in dispute, the Director may delay any refund

due up to the amount of the disputed tax.

(3) Where, in respect of a taxable period, any registered person

has failed to submit a return for any taxable period as required by

this Act, the Director may withhold payment of any amount

refundable in accordance with subarticle (1), until the registered

person has complied with that requirement and paid the amount of

tax payable.

(4) Where, in relation to the return furnished or to be furnished

by any registered person, subarticle (2) or subarticle (3) applies, the

Director shall give notice in writing to the registered person

accordingly within the period specified in subarticle (1).

(5) 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.

Where the Director is required by this Act to refund any

amount to a registered person and the Director does not refund that

amount within the specified period, there shall, subject to the

provisions of article 55, be paid by the Director to the registered

person interest at the rate of one percent for each month or part

CUSTOMS AND EXCISE TAX

thereof for the period running from the last day when the refund is

due and ending on the date when the refund is paid by the Director,

on so much of the amount as is required to be refunded by the

Director.

The Director may in his discretion mitigate or remit any

additional tax, other than additional tax imposed under article

48(1), which may be assessed or imposed under this Act.

(1) 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) The Minister may make regulations for the carrying out of

the provisions of any arrangements having effect under this article.

(4) Where it results that any tax has been paid on the

importation of goods which are exempt from the tax so paid by

virtue of any enactment, the Director 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 necessary, refund

the tax so paid.

PART XII

OFFENCES AND PENALTIES

Any person who -

(a) fails to apply for registration at the time and in the

manner required by this Act; or

(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; or

(c) fails to furnish a tax return or any additional return,

statement or information or to produce any books,

records, documents and accounts when required to do

so in virtue of this Act or of any regulation made

thereunder;

shall be guilty of an offence, and shall, on conviction, be liable to a

fine (multa) of not less than two hundred and thirty-two euro and

ninety-four cents (232.94) and not exceeding six hundred and

ninety-eight euro and eighty-one cents (698.81), and the court shall

order the offender to comply with the law within a time sufficient

CUSTOMS AND EXCISE TAX

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 four euro and sixty-six cents (4.66) and not

exceeding twenty-three euro and twenty-nine cents (23.29) for

every day that the default continues after the lapse of the time fixed

by the court.

Any person who -

(a) knowingly fails to account for any taxable activity

carried on by him in the records, documents and

accounts required by this Act and any regulations

made thereunder; or

(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; or

(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, documents or accounts; or

(d) with the intent of concealing any evidence which he

knows or is reasonably expected to know to be

relevant for any purpose of this Act, destroys, erases,

damages or conceals any stored information or any

records, documents or accounts; or

(e) fails to provide or produce a tax or other invoice or

document or fiscal receipt as and when required by

this Act, or provides any such tax or other invoice or

document or fiscal receipt which he knows to be or is

reasonably expected to know to be incorrect or

misleading in any material respect; or

(f) provides an invoice or other document or fiscal receipt

in respect of a taxable activity showing tax to be

chargeable on that taxable activity in a case where no

tax is chargeable or where the tax is less than that

shown, or otherwise adds to or includes in a price for a

taxable activity any amount purporting to represent tax

which is not due or which is higher than the tax due; or

(g) having added to or included in a price for products

sold or services provided by him to another person any

amount purporting to represent tax chargeable under

this Act, fails to account for that amount in his records

or to pay that amount to the Director; or

(h) acquires possession of or deals in products, or accepts

the provision of any services having reason to believe

that the tax on the sale of the said goods or provision

of services has been or will be evaded; or

(i) enters into a taxable activity or offers to enter into a

taxable activity with another person in respect of

products 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

(h),

CUSTOMS AND EXCISE TAX

shall be guilty of an offence and shall, on conviction, be liable to a

fine (multa) of not less than three hundred and forty-nine euro and

forty-one cents (349.41) and not exceeding two thousand and three

hundred and twenty-nine euro and thirty-seven cents (2,329.37)

and 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.

(1) Where a person has been convicted of an offence under

either article 61 or article 62 and is again convicted of an offence

under either of the said articles committed within six months from

the commission of the previous offence, the fine (multa) shall in no

case be less than six hundred and ninety-eight euro and eighty-one

cents (698.81).

(2) Where a person is convicted of four offences committed

under either of the articles aforesaid in a period of twenty-four

months, the Court shall order the suspension for a determinate time

of not less than one week and not more than one month of any

licence, permit, warrant or other authorisation granted by the Police

or any other authority to trade or carry on the business to which the

offence is related.

Any person who -

(a) obstructs, hinders, impedes or does anything which is

calculated to obstruct, hinder or impede, or molests or

assaults the Director or any person duly engaged in the

exercise of any power or duty conferred or imposed on

him by or under this Act; or

(b) being a person in charge of any premises which the

Director or an officer authorised by the Director is

empowered to enter in terms of this Act, fails to allow

access to the said premises to the Director 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 those premises

or of any goods, assets, books, records or documents

kept therein,

shall be guilty of an offence and shall, on conviction, be liable to a

fine (multa) of not less than four hundred and sixty-five euro and

eighty-seven cents (465.87) and not more than two thousand and

three hundred and twenty-nine euro and thirty-seven cents

(2,329.37) or to imprisonment of not more than six months or to

both such fine and imprisonment.

Any person who contravenes or fails to comply with any of

the provisions of this Act or of any regulations made thereunder,

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

CUSTOMS AND EXCISE TAX

not less than two hundred and thirty-two euro and ninety-four cents

(232.94) but not exceeding one thousand and one hundred and

sixty-four euro and sixty-nine cents (1,164.69) or to imprisonment

for a term not exceeding three months or to both such fine and

imprisonment.

(1) Where anything is done or omitted to be done by a

body of persons, the provisions of this Part shall apply as if such

thing were done or omitted to be done by every director, manager

or other officer of that body of persons: provided that a director,

manager or other officer of a body of persons shall not be guilty of

an offence in virtue of this subarticle if he proves that he was

unaware and could not with reasonable diligence be aware of such

an act or omission or 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 other 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 was done or omitted to be done both by the said

employee or other person and by the employer or registered person;

provided that such an employer or registered person shall not be

guilty of an offence in virtue of this subarticle if he proves that he

was unaware and could not with reasonable diligence be aware of

such an act or omission or that he did everything within his powers

to prevent that act or omission.

(1) No proceedings under this Part shall be taken except at

the instance or with the sanction of the Director.

(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 judgment 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 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 under this Act shall not relieve any person from any prosecution

or penalty under this Part.

(4) Where a pecuniary punishment may be imposed in respect

of an offence under this Part such pecuniary punishment shall

always be imposed and the provisions of article 21 of the Criminal

Code and of the Probation Act shall not apply.

(5) In any criminal proceedings under this Part or under any

regulations made under this Act, the Director personally or any

o t h e r o ff i c e r d e s i g n a t e d b y h i m m a y, n o t w i t h s t a n d i n g t h e

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 Director or of the officer

designated under subarticle (5) be required as part of the case for

CUSTOMS AND EXCISE TAX

the prosecution, he shall be heard before assuming the duties of

prosecuting officer, unless the necessity of his giving evidence

arises at a later stage

Provided that the Director or other officer as aforesaid may

state the facts constituting the offence before giving evidence.

(1) Notwithstanding any other provisions of this Act, the

Director may, in the case of any 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, so however that

where a minimum and a maximum amount is provided for in

respect of the fine (multa) that may be so imposed, the sum payable

pursuant to the said agreement shall be a sum equivalent to the said

minimum amount increased by one half of the difference between

the said minimum and maximum amounts and upon the signing of

any such agreement by the Director and the offender, all criminal

liability of the offender under this Act with regard to the offences

in relation to which the agreement has been entered shall be

extinguished.

(2) The provisions of subarticle (1) shall apply also in any case

where the offender has been charged before a court in relation to

the offence but before final judgment has been given in the case

Provided that where proceedings before a court have not

been commenced, the sum payable in accordance with any

agreement as contemplated in subarticle (1) shall be reduced by ten

per cent.

(3) Any sum due in virtue of an agreement entered into in terms

of subarticle (1) shall be due to the Government as a civil debt. The

Director shall not enter into an agreement as is referred to in

subarticle (1) unless such agreement is accompanied by the

payment of the sum due or a sufficient security for its payment.

(4) The provisions of this article shall be without prejudice to

any proceedings or forfeiture instituted or having effect in virtue of

any other law.

(1) The provisions of articles 18 and 62 of the Customs

Ordinance shall apply to this Act as if all references to duties

contained in those articles were references to tax due under this

Act, and any person who is in contravention of the provisions of the

said articles construed as aforesaid in relation to any goods whose

importation is subject to tax under this Act shall, without prejudice

to any liability incurred under the said Ordinance, be guilty of an

offence under this Act and shall for each such offence be liable to a

fine (multa) equivalent to the aggregate of tax payable on the goods

and double the value of the goods, or to a fine (multa) of fifty-eight

euro and twenty-three cents (58.23), 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

CUSTOMS AND EXCISE TAX

Code.

(2) The provisions of article 77 of the Customs Ordinance shall

apply in relation to goods whose importation is subject to tax under

this Act as if any reference contained therein to the duty therein

mentioned were also a reference to the tax chargeable under this

Act.

(3) The importation of goods subject to tax under this Act

shall, for all 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.

PART XIII

MISCELLANEOUS

(1) Every registered person shall keep proper and

sufficient records of all transactions of his business activities to

enable the date, the value and the nature of such transactions, the

tax, if any, chargeable thereon and the deductions allowable in

respect thereof, and any such other information as may be

prescribed, to be readily ascertained.

(2) The records referred to in subarticle (1) shall be kept and

stored in such manner, contain such details and be supported by

such documents and accounts as may be prescribed and shall be

retained for a period of at least three years from the end of the

calendar year to which they relate.

For the purposes of article 12(6) and the proviso to article

17, the Director may treat as one person two or more persons

carrying on a business activity if he is satisfied that the separation

of such business activities has for its main purpose the avoidance of

tax.

(1) Any notice, warrant or other proceeding purporting to

be made in accordance with the provisions of this Act shall not be

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 purposes of this Act.

(3) Every notice to be given by the Director under this Act

shall be signed by the Director or by some person or persons

authorised by the Director and every such notice shall be valid if

the signature is printed, stamped or written thereon.

(4) Any notice may be served on a person either personally or

by being sent by post and shall in the latter case be deemed to have

been served, unless the contrary is proved, in the case of an address

in Malta not later than the third day following the day when it was

CUSTOMS AND EXCISE TAX

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 and it shall be sufficient to prove that

the notice was properly addressed and posted.

(5) For the purposes of subarticle (4) 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 Director 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 Director.

(6) 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

subarticle, on a Saturday or a Sunday, or on a national day or a

public holiday as established in the National Day and Other Public

Holidays Act, that date shall be deemed to fall on the first working

day, other than a Saturday, following the said Saturday, Sunday,

national day or public holiday.

(1) Any secretary, manager, director, liquidator or other

principal officer of an entity or of a body of persons, any heir and

any testamentary executor and any curator of a 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) Where a taxable activity is carried on in Malta by a person

who is not established in Malta, any person resident in Malta to

whom the said activity is directed or any person resident in Malta

who is an agent of the said person shall, if so designated by the

Director by means of a notice in writing, be a representative of the

said person in respect of any obligation of the person under this Act

relating to that taxable activity.

(3)

(a) Subject to the provisions of subarticle (5) a

representative of a person shall be liable in the same

manner and to the same extent as the person of whom

he is 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 upon 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

CUSTOMS AND EXCISE TAX

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

(5) A representative shall be jointly and severally liable with

the person of whom he is a representative for the tax due by that

Provided that where the representative has acted in good faith

and is not knowingly in breach of subarticle (4) or of any other

obligation under this Act, his liability under this subarticle shall be

limited to the funds or to the value of any property under his

management or control which belongs or is due to the person of

whom he is a representative.

For the purposes of the Income Tax Act and the Income Tax

Management Act -

(a) interest paid or payable under this Act by the Director

to any person shall not be treated as income of that

person;

(b) interest and additional tax paid or payable under this

Act by any person to the Director shall not be treated

as expenses incurred in the production of the income

of that person.

(1) The Minister may by regulations -

(a) amend, cancel or substitute any of the Schedules 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 any conditions and determination that may,

in accordance with this Act, be imposed or made by

the Director;

(e) prescribe any other matter for securing the payment of

the tax and generally for giving effect to the provisions

of this Act;

(f) make provisions 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 business activity in such circum-

stances and in respect of such provisions as may be

CUSTOMS AND EXCISE TAX

specified in the said regulations;

(g) prescribe any matter that may or is to be prescribed

under any of the provisions of this Act

Provided that any such matter as aforesaid may, in

the discretion of the Minister, be prescribed by Order

or Notice in the Gazette.

(2) Without prejudice to the provisions of subarticle (1) the

Minister may by regulations also make special provisions with

respect to activities to which subarticle (3) refers, and may, by such

regulations, make provision

(a) for a taxable activity to be treated as two or more

separate taxable activities or for a number of taxable

activities to be treated as a single taxable activity;

(b) for determining the time and place at which taxable

activities shall be treated to take place;

(c) for the calculation of tax payable to be determined by

such method or one of such methods as may be

established by the Director;

(d) for the determination of the deductions and refunds

applicable;

(e) for additional records and documents that must be kept

and produced in respect of the said business activities;

(f) requiring the means and the machines whereby

registered persons are to store, process and produce

documents and other information.

(3) The Minister may by Notice in the Gazette exempt any

person or class of persons with or without retrospective effect from

all or any of the provisions of this Act or make different provisions

on any ground which to him may seem sufficient. Any such

exemption or different provision may be made subject to such

conditions or the payment of such other rate or rates of tax, not

being a rate or rates higher than those stipulated by this Act, or to

both such conditions and payment, as the Minister may deem

appropriate.

SCHEDULES

First Schedule

(Article 11)

EXEMPT IMPORTATIONS

1. 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

CUSTOMS AND EXCISE TAX

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 used in

international transport.

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 bona fide 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 one

hundred and sixteen euro and forty-seven cents (116.47).

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

CUSTOMS AND EXCISE TAX

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 return to reside in Malta, subject to such

migrant satisfying the Comptroller of Customs that -

(i)

he has 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

(ii) 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 tax free and it 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 excise tax on imports

and products 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

article 7(1) of the Immigration Act; 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

CUSTOMS AND EXCISE TAX

arrival in Malta to take up residence, whichever

date is the later

Provided that, where any such motor vehicle is imported as

tax free and it 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 excise tax on imports and

products 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

bona fide gifts, other than the goods mentioned in sub-

paragraphs (i) and (ii) hereof up to a value of one

hundred and sixteen euro and forty-seven cents

(116.47), so however that where the total value of such

goods exceeds one hundred and sixteen euro and forty-

seven cents (116.47), this provision shall not apply and

the tax chargeable on such goods shall be deducted by

seventeen euro and forty-seven cents (17.47).

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 recording -

(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

CUSTOMS AND EXCISE TAX

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 by any

person would, in all cases, be exempt in terms of the Second

Schedule to this Act.

19. The importation of food as defined in the Second Schedule

to this Act.

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

21. The importation of goods where the Director 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 Director may impose or require.

22. The importation of goods which are re-exported 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 Director may impose or require.

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

Malta Freeports Act: 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 article 1(3)1 of this Act.

26. The importation of goods which are subject to a levy under

the Local Manufactures (Promotion) Act.

27. The importation of industrial capital equipment and

material as defined in Part Two of the Second Schedule to this Act.

28. The importation of goods solely for agricultural or fishing

use as defined in Part Two of the Second Schedule to this Act or

when certified and approved as such by the Minister responsible for

agriculture or the Minister responsible for fisheries, as the case

may be.

29. The importation of goods by a non-profit making

institution or a non-profit making organisation as defined in Part

Two of the Second Schedule to this Act.

CUSTOMS AND EXCISE TAX

Second Schedule

(Article 13)

NON-TAXABLE PRODUCTS

PART ONE

1. Exports

(1) Products which are exported.

(2) Products supplied to a taxable person established in

Malta who carries on the business of arranging or

financing the export of products, for the purpose of the

export of those products by that person without the

actual delivery of those products to that person,

provided the products are actually exported without

any processing or alterations, and subject to such

conditions, evidence or security as may be imposed or

required by the Director.

2. Products in bond, supplies by duty free shops and Freeport

(1) Products sold whilst they are in a customs bond and

which sale is entered by the Comptroller of Customs

pursuant to article 36 of the Customs Ordinance or any

provision amending or replacing the said article.

(2) Products supplied to an operator of a duty free shop

pursuant to and in accordance with a licence issued

under the Duty Free Shop Regulations, 1991 or any

other provisions amending or replacing the said

regulations.

(3) Products supplied by or to a company 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 carry on in terms of the said

Act.

3. Provisioning and fuelling of ships and aircraft

(1) Products supplied 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) Fuel supplied to vessels for the purpose of inshore

fishing.

4. Food

Any food as defined in Part Two of this Schedule, but

without prejudice to ETS chargeable in respect of the

provision of food listed in the Second Schedule to the

Import Duties Act.

CUSTOMS AND EXCISE TAX

5. Pharmaceutical products

Pharmaceutical products as defined in Part Two of this

Schedule.

6. Health and Welfare

(1) Human organs, human blood and human milk.

(2) Products supplied in connection with and essential for

the provision of services referred to in paragraphs (2)

and (3) of item 7 (Health and Welfare) of the Third

Schedule by the hospital, institution or home, as the

case may be, providing the said services.

7. Gold

Gold supplied to or by the Central Bank of Malta.

8. Printed matter and other articles

(1) Books, newspapers, other printed matter and other

articles falling within the definition of "Printed matter

and other articles" contained in Part Two of this

Schedule.

(2) Electronic, magnetic, optic or any other machine

readable media and 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 Two of this Schedule.

9. Essential products

Water, fuel and electricity supplied by a public authority.

10. Products mentioned in items 4, 8, 25, 27, 28 and 29 of the

First Schedule.

11. Repossessed products

(i) under the term of a finance agreement, or

(ii) by an insurer in the settlement of a claim under

an insurance policy, or

(iii) by the mortgagee in terms of his right under a

mortgage over a ship or aircraft,

when sold by the person who repossessed them in the same

condition as they were in at the time they were repossessed.

PART TWO

DEFINITIONS

For the purposes of this Act, the terms described in this

Part of the Schedule shall have the meaning assigned to them in this

(a) "Food" means the goods specified in the Customs

Tariff contained in the First Schedule of the Import

Duties Act under paragraphs (i) to (xii) of this item

but shall not include milkshake, tea, coffee and

CUSTOMS AND EXCISE TAX

chocolate supplied in liquid form.

(i) Chapter 1, but excluding items falling under

subheadings

0101. 11.00.00; 0101.19.90.10;

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; 0106.00.90.00.

(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 to 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, but 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; 1505.90.00.00; 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;

1522.00.31.00; 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.

CUSTOMS AND EXCISE TAX

(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.

(b) "Pharmaceutical products" means the goods specified

in the Tariff referred to in item (a) of this Part of this

Schedule under -

(i) Subheading 2905.45.00.00 in Chapter 29.

(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.

(c) "Printed matter and other articles" means the goods

specified in the Tariff referred to in item (a) of this

Part of this Schedule 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.

CUSTOMS AND EXCISE TAX

(d) "Industrial capital equipment and materials" means the

goods specified in the Customs Tariff contained in the

First Schedule of the Import Duties Act falling under

the following headings

1401.20.00.00 in Chapter 14;

1501.00.11.00;

1502.00.10.00;

1503.00.11.00;

1503.00.30.00;

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;

1515.19.10.00;

1515.21.10.00;

1515.29.10.00;

1515.50.11.00;

1515.50.91.00;

1515.90.21.00;

1515.90.31.00;

1515.90.40.00;

1515.90.60.00;

1518.00.31.00;

1518.00.39.00 in Chapter 15;

2106.90.20.42 in Chapter 21;

2207.20.00.20 in Chapter 22;

2501.00.31.00;

2515.11.00.00;

2515.12.20.00;

2515.12.50.00;

2515.12.90.00;

2516.12.10.00;

2516.12.90.00;

2517.41.00.00; in Chapter 25;

2708.10.00.00 in Chapter 27;

2801.10.00.00;

2807.00.10.00;

2809.20.10.00;

2811.21.00.00;

2811.22.00.00;

2815.11.00.00;

2817.00.00.00;

2819.90.00.00;

2827.20.00.00;

2823.00.00.00;

2827.33.00.00;

2828.90.00.10;

2828.90.00.90;

2832.10.00.00;

2833.11.00.00;

2833.19.00.00;

2835.22.00.00;

2835.31.00.00;

2836.20.00.00;

2836.40.00.00;

2836.50.00.00;

2839.11.00.00;

2839.19.00.00 in Chapter 28;

2903.12.00.00;

2904.10.00.00;

2905.12.00.00;

2909.11.00.00;

2912.11.00.00;

2914.11.00.00;

2914.12.00.00;

2915.21.00.00;

2915.31.00.00;

2915.33.00.00;

2915.34.00.00;

2915.39.90.00;

2915.50.00.00;

2915.60.10.00;

2915.70.25.00;

2916.19.90.00;

2917.11.00.00;

2918.12.00.00;

2918.13.00.00;

2918.14.00.00;

2918.15.00.00;

2923.90.00.00;

2934.90.40.00 in Chapter 29;

3207.40.90.00;

3212.90.39.00;

3215.11.00.00;

3215.19.00.00 in Chapter 32;

3302.10.10.10; 3302.90.10.00 in Chapter 33;

3401.20.10.10 in Chapter 34;

3701.30.00.00; 3702.43.00.00; 3702.44.00.00; in

Chapter 37;

38.23 in Chapter 38;

39.01 to 39.15 in Chapter 39;

4005.20.00.00 in Chapter 40;

Chapter 41;

CUSTOMS AND EXCISE TAX

44.01 to 44.06; 4407.10.71.00; 4407.10.79.00;

4407.10.91.00;

4407.10.93.00;

4407.10.99.00;

4407.24.90.00;

4407.25.60.00;

4407.25.80.00;

4407.26.70.00;

4407.26.80.00;

4407.29.61.00;

4407.29.69.00;

4407.29.99.00;

4407.91.90.00;

4407.92.90.00;

4407.99.91.00;

4407.99.93.00;

4407.99.98.00 in Chapter 44;

Chapter 47;

48.01 to 48.05 and 4809.20.10.00;

Heading 48.01 but excluding items falling under

subheading 4810.99.90.10;

4811.21.00.00;

4811.29.00.00;

4811.31.00.00;

4811.39.00.00;

4811.90.90.00 in Chapter 48;

50.01 to 50.05 in Chapter 50;

51.01 to 51.08 in Chapter 51;

52.01; 52.02; 52.03; 5204.11.00.00; 5204.19.00.00;

52.05 and 52.06 in Chapter 52;

5401.10.11.00; 5401.10.19.00; 5401.20.10.00; 54.02

and 54.04 in Chapter 54;

55.01 to 55.07; 5508.10.11.00; 5508.10.19.00;

5508.20.10.00; 55.09; 55.10 in Chapter 55;

5605.00.00.00 in Chapter 56;

6406.20.10.00; 6406.20.90.00; 6406.99.60.00 in

Chapter 64;

7019.31.00.00 in Chapter 70;

7205.10.00.00; 7210; 72.13 to 7216 in Chapter 72 but

excluding

items

falling

under

subheadings

7216.32.11.00;

7296.32.19.00;

7216.32.91.00;

7216.32.99.00;

7216.33.10.00;

7216.33.90.00;

7408.19.10.00; 7408.19.90.00; 7413.00.91.00 in

Chapter 74;

76.01; 7604.10.90.00; 7604.21.00.00; 7604.29.90.00

in Chapter 76;

8401; 8402; 8405; 8406; 8410; 8411; 8416; 8417;

8419.20.00.00; 8420; 8421.11.00.00; 8422.20.00.00;

8423.20.00.00;

8423.30.00.00;

8423.82.10.00;

8423.82.90.00;

8423.89.10.00;

8423.89.90.00;

8425.20.00.00;

8425.31.10.00;

8425.31.90.00;

8425.39.10.00; 8425.39.91.00; 8425.39.99.00; 8426;

8427; 8428.20.10.00; 8428.20.30.00; 8428.20.91.00;

8428.20.99.00; 8429; 8430; 8432; 8433; 8434; 8435;

8436; 8437; 8438; 8439; 8440; 8441; 8442;

8443.11.00.00;

8443.12.00.00;

8443.19.10.00;

8443.19.31.00;

8443.19.35.00;

8443.19.39.00;

8443.19.90.00;

8443.21.00.00;

8443.29.00.00;

8443.30.00.00;

8443.40.00.00;

8443.59.20.00;

8443.59.80.00;

8443.60.00.00;

8443.90.10.00;

8443.90.90.00; 8444; 8445; 8446; 8447; 8449;

CUSTOMS AND EXCISE TAX

8452.21.00.00; 8452.29.00.00; 8453; 8454; 8455;

8456; 8457; 8462; 8463; 8464; 8474; 8475; 8477;

8478; 8479.10.00.00; 8479.20.00.00; 8479.30.10.00;

8479.30.90.00;

8479.40.00.00;

8479.50.00.00;

8479.89.30.00;

8479.89.65.00;

8479.89.70.00;

8479.89.75,00; 8480 in Chapter 84;

90.03 in Chapter 90.

(e) "Goods solely for agricultural or fishing use" means

the goods specified in the Customs Tariff contained in

the First Schedule of the Import Duties Act falling

under the following headings

2703 in Chapter 27; Chapter 31; 3808.20.10.00;

3808.20.15.00;

3808.20.30.00;

3808.20.40.00;

3808.20.50.00;

3808.20.60.00;

3808.20.80.00;

3808.30.11.00;

3808.30.13.00;

3808.30.15.00;

3808.30.17.00;

3808.30.21.00;

3808.30.23.00;

3808.30.27.00;

3808.30.30.00;

3808.30.90.00

in

Chapter 38;

3917.10.10.00;

3917.10.90.00;

3917.32.91.00 in Chapter 39; 5608.11.11.00;

5608.11.19.00; 5608.11.91.00; 5608.11.99.00 in

Chapter 56; 8208.40.00.00 in Chapter 82;

8424.81.10.00;

8424.81.31.00;

8424.81.39.00;

8424.81.91.00; 8424.81.99.00; 8432; 8433; 8434;

8436; 8437.10.00.00 in Chapter 84; 8701.90.11.00;

8701.90.15.00;

8701.90.21.00;

8701.90.25.00;

8701.90.31.00;

8701.90.35.00;

8701.90.39.00;

8701.90.50.00 in Chapter 87; 8902 in Chapter 89.

(f) "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 Director, 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.

CUSTOMS AND EXCISE TAX

Third Schedule

(Article 20)

EXEMPT SERVICES

1. Services connected with exports and importations

(1) The provision of services which in the opinion of the

Director form an integral part of the process of the production of

food or pharmaceuticals or of a product or service intended for

export or the sale of products or provisions of services outside

Malta.

(2) The provision 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 provided those services or

by his customer.

(3) The provision of services to a person established

outside Malta in procuring the importation of goods into Malta.

2. Services to customers abroad

The provision of any of the services listed in this paragraph

when the person to whom they are provided is not resident in

Malta

(a) advertising services;

(b) services of consultants, engineers, consultancy

bureaux, advocates, legal procurators, notaries public,

accountants, auditors, financial advisors, data

processing and the provision of information;

(c) obligations to refrain from pursuing or exercising in

whole or in part any business activity;

(d) banking, financial, insurance and re-insurance

transactions, excluding the letting of a place for the

safe deposit of any goods or documents;

(e) the provision of human resources;

(f) 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.

3. Port and Freeport services

(1) The provision of any services by the Authority for

Transport in Malta, including the granting of licences and

certificates, in connection with all matters relating to ports and

yachting centres in terms of the Ports and Shipping Act, 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.

CUSTOMS AND EXCISE TAX

(2) The provision of any services by the Authority for

Transport in Malta, including the granting of licences and

certificates, in connection with all matters relating to port work in

terms of the Port Workers Ordinance 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.

(3) The supply of any service by the Authority for

Transport in Malta, including the granting of certificates and

registration, in connection with the registration of ship in terms of

the Merchant Shipping Act and of any regulations made under that

Act.

(4) Services provided by or to a company within a freeport

zone as defined in the Malta Freeports Act where the said provision

constitutes an activity which the said company is licensed to carry

on in terms of the said Act.

(5) Services provided by any contractor within a Freeport

zone as established by the Malta Freeports Act, to the Corporation

e s t a b l i s h e d u n d e r t h a t Ac t , o r t o a n y o f i t s su b s i d i a r i e s i n

connection with the construction of Terminal II.

4. International transport

The provision of services consisting in international

transport of goods and passengers.

5. Supplies, repairs, etc., of ships and aircraft

(1) The provisioning, repair, modification, chartering and

hiring of vessels or aircraft referred to in paragraph (1) of item 3 of

the Second Schedule to this Act, and the provisioning, hiring,

repair and maintenance of equipment, including fishing equipment,

incorporated or used therein.

(2) The provision 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.

6. Food

The provision of any food, as defined in Part Two of the

Second Schedule to this Act excluding any provision of food which

is subject to tax in terms of article 18.

7. Health and Welfare

(1) The provisions of services by a person in the exercise

of any profession regulated by the Medical and Kindred Profes-

sions Ordinance.

(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.

CUSTOMS AND EXCISE TAX

(3) The provision of welfare services, including services

provided by homes for the elderly and homes for persons suffering

from some permanent physical or mental disability, and services for

the protection and care of children, young people and persons

suffering from some permanent physical or mental disability,

provided by any government institution or by any institution or

organisation recognised by the Director 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.

(4) The provision of transport services for sick, injured or

disabled persons in vehicles specially equipped for that purpose.

8. Education

(1) The provision of education or educational research,

including distance learning, by a government school or institution,

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

under the Education Act or by any educational establishment

recognised as such by the Director.

(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 Director.

(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.

9. Transport

The provision of -

(a) transport provided 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 Director;

(c) school transport provided by an educational

establishment recognised as such by the Director or

supplied to any such establishment for the purpose of

being provided by it as school transport;

(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

Director;

(e) transport provided for the carriage of goods between

factory and port or airport in such cases or in respect

of such goods or classes of goods as the Director may

deem appropriate and to certify for the purpose of

encouraging exports or the substitution of imports;

CUSTOMS AND EXCISE TAX

(f)

for the purpose of these provisions, "central office"

shall have the meaning assigned to it by Legal Notice

No. 144 of 1991.

10. Investments Services

(1) The provision of any of the services specified in the

First Schedule to the Investment Services Act.

(2) The provision of any services by the persons referred to

in article 47(3) and (4) of the Duty on Documents and Transfers

Act as evidenced by appropriate documentation as the Director may

require and companies and trusts registered in virtue of the Malta

Financial Services Authority Act, and the Trusts and Trustees Act,

respectively.

11. Immovable property

(1)

The letting of immovable property excluding -

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

any premises which for the purpose of the said letting

or accommodation is required to be licensed in virtue

of the Malta Travel and Tourism Services Act or in a

holiday camp or camping site, but excluding the

provision of accommodation to foreigners enjoying

diplomatic privileges in Malta;

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

where such premises or sites have been designated by

the Director 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.

(2) The transfer of immovable property, including any

right referred to in article 310(a), (b) and (c) of the Civil Code and

any emphyteutical grant, but excluding an emphyteutical grant for

less than fifty years in respect of any property referred to in sub-

paragraphs (a), (b) and (c) of paragraph (1) of this item.

(3) Financial leasing by a commercial bank of equipment,

plant and machinery used in the production of goods or in the

provision of services.

12. Insurance services

The provision of insurance and reinsurance services,

including related services performed by insurance brokers and

insurance agents.

13. Credit, banking and other services

The provision of credit, banking and other services

specifically in relation to

(1) interest charged on the making of any advance or the

granting of credit;

CUSTOMS AND EXCISE TAX

(2) interest charged on the granting of, or any dealing in,

credit guarantees or other security for money;

(3) transactions,

including

negotiation,

concerning

currency, bank notes and coins normally used as legal tender

Provided that nothing in this item shall be construed as

affecting the provisions of item 10 of this Schedule.

14. Postal services

The provision of services by the public postal services and

of goods incidental thereto.

15. Cultural and religious services

(i) Religious services

(ii) The provision of such cultural services as may be

approved by the Minister.

16. Services by band clubs

The supply of services consisting in public performances

by a philharmonic society which the Director is satisfied

constitutes a bona fide band club.

17. Sports

Supplies of services by non-profit making organisations as

may be approved by the Minister.

18. Provisions related to certain exempt services

(1) The provision of human resources by a non-profit

making institution which is recognised as such by the Director for

the purpose of providing services referred to in paragraph (2) or (3)

of item 7 or in paragraph (1) or (2) of item 8 of this Schedule.

(2) The provision of services by a non-profit making

organisation in the course of an activity designed to raise funds to

be used for the provision of services which are exempt in terms of

paragraph (2) or (3) of item 7 or of paragraph (1) or (2) of item 8

provided the activity is recognised by the Director as being

exclusively designed for the said purpose.

19. Services by non-profit making organisations to their

members

The provision 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, patriotic, philosophical, philanthropic or civic nature or

whose main purpose is to represent and promote the common

business or professionals 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.

20. Services by government departments and any other public

CUSTOMS AND EXCISE TAX

authority

(1) The provision of any service by any government

department and any other public authority but excluding the

provision of any service where the exemption is likely to cause

significant distortions of competition.

(2) The provision of agency services related to lotto and

lotteries, and such other provisions related to gambling as may be

approved by the Minister.

21. Inter Group Services

The provision of any service by one company to another

when both companies are members of the same group of companies

unless the Director is satisfied that the creation of a company or

companies within the group has for its main purpose the avoidance

of tax; and for this purpose "a group of companies" shall have the

same meaning assigned to the phrase by article 42 of the Duty on

Documents and Transfers Act.

22. Foreign related services

Any services referred to in article 22(2) of the Act which is

a service -

(a) physically performed outside Malta; or

(b) which consists in the provision of the use of a taxable

product.

23. Services by Government controlled organisations

The provision of services by Government controlled

organisations which carry out telecommunication activities, but

excluding the provision of any services where the exemption is

likely to cause significant distortions in competition.

CUSTOMS AND EXCISE TAX

Fourth Schedule

(Article 19 (e))

Provision of Food Subject to Excise Tax on Services

1. (1) The provision of food which is suitable for immediate

consumption, whether such food is consumed at the place where it

is provided or not, consisting of

(a) meals or snacks;

(b) ice-cream or products containing ice-cream except in

family packs, and ice lollies;

but excluding

(i) the provision of food in a club exclusively

provided to members and their guests;

(ii) the provision of food by a canteen situated in a

work or study area exclusively provided to

workers or students therein.

(2)

For the purposes of paragraph (1) of this item -

(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 grammes or more;

(b) "family packs" means ice-creams of not less than 500

millilitres in volume;

(c) "members" means persons who are members of a club

and who have paid their subscription in advance for a

period of not less than one year and whose names

appear on the club’s books or registers;

(d) "guests" means persons who are accompanied by a

member while inside the club.

2. The provision of catering services including outside

catering but excluding the provision of catering services at a

wedding reception.