Value Added Tu (Suppl!.tsofGoods and Suvm) Mt:llulation., 199-4

L.N. 96 of 1994

VALUE ADDED TAX ACT, 199-4

(ACT NO . Xli OF 199-4)

Value Added Tu (Suppl!.tsofGoods and Suvm) Mt:llulation., 199-4

IN EXERCISE of the po_rs conferred by liubsection (2) 01

section 7, subsection (5) of section 9 and paTIIgnoph (d) of section 61 of

the Value AddedTax Act . 1994 hereinaftureferred tOIS wthe Act ~ .the

Minister of Finance has made the following regulations:-

I. ( I ) These regulations may be cited IS the Value Added Tax

(Supplies of Goods and Services) Regulations. 1994.

(2) 'These regulatKlns shall be deemed to have come into

fola' on the 1st September, 1994.

Terms used in these regulations shall , un less the context t.,.rpmooo..

otherwise requires. have the meaning assigned to them in the Act.

When goods or servioes are supplied through an agen t who acts

in his own name that supply shall be treated IS hoth a supply to that

agent and a supply by that agen t.

When a supply is made through an intermediarywhoactsin the

name and for the account of another person and to the extent thalthe

Commissioner is suisfied thlt Ihe supply is made as aforesaid. that

supply shall be treated as a IlUpply made by that other person.

S. In a contract of exchange each of the parties shall bedeemed to

make a supply of any goods and any services he gives pu~uanlto that

contract.

F'k"ntratl ta' permuta I<uU pan, ghandha tilqies li taghmel

prowista ta' kull oM:ett u servizz li taght, wara U sko nd dak il-kumralt.

The delivery of the possc5Sion of goods pursulnt to an on .. ..,,,,,

agreement for the sale ofthO$C goods on deferred tennsshall be treated dtf ..... d ........

as a su pply of those goods.

The dtlivcry of the possession of goods pu~uanl la an

agreement for the hire of those goods for a certain period which

expressly contemplates that the owocnhip of those goods will be

transferred at a time not later tban the date on which an agreed price has

been paid in full shall be treated as a supply of thO$C goods.

The supply of eleariecu rrent , gil$, heat.nd rdrigeTlltion shall

be treated as a supply of good$.

,. ll1c delivery of gOO<ispunuantto a contract of works, whether

or nOI the materials have been provided in full or in part by the

customer, shall be trealed a. a supply of those gOl.ld$.

!I,kuns;nna ta' oMelli " 'ara u skond kuntralt ,-' xogltlijiet . !>c:w

jek k ,I,materjal ikun gie provdut kollu kemm hujew rparti minrm mill-

ko mpratur sew je kk le. ghand!!a tilqies bhala provvi st a ta' dlwk 1-

oggelli.

(I) Where any goods forming part of the business assets of a

busiOC$S carried on by. penon are sold by judicial .uction pursuant to

Iny proceedings exercised by a creditor or by creditors of Ihat person.

those ~tJ ~han be deemed \0 have been supplied by the debtor in the

course or fun hcTlHlCC! of Ihal bU5in~S$.

11H: Registrar of the COllrt unde r t he authority of which a

(2)

sale to which paragraph (1) of Ihis regulation applies shall, after

oolifying lite person or persons appearing \0 t-e interested therein. remit

10 the CommIssioner from the proceeds lodged in court . with preference

oYCT any ollte r person not having a prior cl aim 10 that of the

Commissione r as provided for in section 51 of the Act, the tu

chargeable , if any , on the supplydeerned to have bee n made in terms of

the said paragraph.

(3) Any interested penon may oppose the rem illance

referred 10 in paragraph (2) of Ihis regulation by mcaJU of writ of

MlmlllOllS filed againstlhc Comm;M;oner within MlI working days from

the dale of lhe notification referred \0 in liH: said paragraph.

(4) No bid Imimo compmSllndi shall be approved for the

purposes of seclion 331 of the 0xIc of O rganization and Civil Proced ure

unle5S the lalI chargeable, if any, on lhe supply deemw 10 have been

made in lenns of paragraph ( I ) of this n:guIation has been lodged in

court and n:mittw by the Registrar in attOrdana: wi th paragraph (2).

The transfer by order made by or in the name of a public

aUlhority or in pursuana: oflhe law. of Ihe ownership of goods aaainsl

pa~nt of compensation shall be u eatw as 11 supply of those goods.

(I) Subject to regulation 14 of these: naulations , the

lra lUrer Or disposal of assel$ forming part of Ihe llSSel$of an economic

activity by or underthe directions of the person carryina on that activity,

whether or not a consideration is paid or payable. and including the

transfer or disposal of slIdl uselli by lhat penon to himself. shall be

treated as a supply of those: a»elli made for a consideration in the 00I.Irse

or furtherance of that activity.

(2)

Paragraph (I) of this ngulation shall 1101 apply -

(a) to a gifl of goods made in the course: or furtherance of

Ihat aClivity. otherwise than as one fonning part of a series of gifls

made 10 the same person. where the cost to the donor is 1101 more

th an twenty !iri ;

(b) 10 a gift of an industrial sample in a form nOI o rdinarily

available for sale W Ihe public.

Subject w regulation 14 of these regulaliollli. when goods

fonning part of the aSKIS of an economic acti vilY carried on by a person

are used by that person himse lf or by any ot her person ror any purpose

other than fo r Ihe purpose of that economic activity. whe ther or not a

consideration 1$ paid or payable. the person earry mg on tllat activity

shall be treated as havi ng made a supply of services ror a consideration

in the course o r furtherance of tllat activity.

Where no conside ration is paid or payable for a tmnsfer .

disposal or use of goods refem:d to in regulation 12 Or 13 of these Ill' ' T,,'"

regulations, that tmnsfer, dispos.lI or use shall not be treated as a "'P'

ta:l:able supply made by a person unless that person .... as enti tled to a

credil in terms of sectkm 25 of the Act in respect of the .... bole Or part of

the IU paid by him 01'1 the acquisilion or importation of the said goodsor

anything CXIfIlprised in them .

IS. (I) When a person ceases 10 carry on an economie activity

any aMCl5 then forming pari of Ihat acti~i t y shall be treated as having

been supplied for a consideration to himself before the cessation of Ihat

activi ty and in the coune or furtherance of that activity and the

provisions of pamgraph (I) of regulation 12. as subject to the provisions

of regulation 14 of these: regulations shall apply accordingly.

(2) PlI"IIgraph ( I) ofthis regulation shall nol apply where the

W1id activity is transfe rred lIS a going concern and the &aid transfer is. in

teIl11$ of regulation 16 of these regulations, treated as neither a supply of

gooc:l$ nor a supply of services.

( I ) Mela persun a nemm l .... en Bq allivilli ekonomika hll

Blliv Ii jkun jaghmel parti minn dik I·allivi lil ghandu jilqie5li jhn ~e

provvisl b'kumpenslilha nnifisha qabel ;I-Iemma la' dik I·allivilil u fil-

kon jew Ivvanl. la' dik I' allivilil, u d-dUpoti:r.ljonijiet lal-paragrafu (I)

tar-regolamen l ]2, kif iiUggelli gbad-dispotiajonijiellar·reSOlamenl 14

la' dlwn ir-rcgolamenti ghandbomjapplikaw skond bekk.

(2) l1-paragrafu (I) 11' dan ir-regolament ma ghandUll

jlpplika metl di k I-allivilil ligi lrasferila bbala ncgozju vijabbli U dak il-

IrilSfcrimc nl jilqies, skond ir-regolaDH:nl 16 la' dawn ir-regolamenli. la

bl\aJa provvisla la' oggelli u lanqas bhala provvisla la' serviz:zi.

The transfer by a tuablc person of assets of his economi<: T_'"

activity shall be treated as neither a supply of gooc:l$ nor a supply of .... -

services if _

(a) the aMCts are supplied to I registered person to .... horn he

tmnsfers his economic activity, or a pan of that activity .... hich is

eapable of separate ~Tltion,:II$ a going concern. and

(b) the $IIid aMCtsare lobe used by the transferee in carrying

on the $lime kind of activity, .... hether or not as part of an existing

economic activity. as th at carried on by the transferor, and

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

tmosferor indicating the registration number of the tr,msferee .

(1) Subject to the pro~isiom of paragraph (2) of this Soft>ije> "' .....

regulation, .... hen goods are supplied tOOT imported by a tuable person ....... w ..

and the tax on that supply or importation is . pursuant to the provisions _ "'" 1 .. "..,

of regulations made for the purposes of paragraph (I) of subsection (3) ....... "OlI.

of section 25 of the Act. not treated as inPUI tax of that pcrwn, the

lupply by that person of the said goods shall be :reated as neither a

supply of gooc:l$ nor a su ppl y of services.

(2) This regulation shall appl~ only to goods .... hich are

supplied by a taJIable peT$On in the same state they .... ere in. sa~ingonJy

wea r and tear, when they had been supplied to or imported by Ihal

peT$On.

( I ) The transfer of the perpetual uli/e dominium or of the bot""';bic

temporary ulile dominium .... here. the period remai ning for the P"'P'''Y·

expimlion of the emp/lyteusis al Ihe time of the transfer exceeds fifty

years, and a grant of perpetual cmphyteusis or of emphyteusis for a

period uceeing fifty yC1l11 is 1 supply of goods.

(2) The 111In!.fer a r llle lemporllrydirwum dominium when

the period remaining for the upiration of the emphyteusis does not

exceed fifly rean is • supply of goods.

(3) Subject to the other provisions of Ihis paragraph, an

lI.'iIiignmcnl of any rights over propeny 01 of any intangible propeny

whether ()I'" no! it is the 5\lbjo:<:\ of a document establishing title is a suppl y

of s..rviQe$.

" .

An obligation 10 refrain from an act o r 10 tolerate M Bel o r

... situation is a s upply of servius.

Obbligaztjoni li jieqaf att jew li jiii !Olleral att jew liilwuzjoni

huma provvi"a la' oMeui.

:w, (I) Il-provvilila minn penuna la' sc:rvizzi gb.all'J'Ian u (iJ-

kon ta' prowiSla minn dik il,penuna la' ike1 sc:rvu! fi lilabbihmenl la' 1-

ikcl jew f xi fond ic hor li jservi ikcl prcparal, inkluti servizzi li g1'lalihom

jilhalla~ jew gl'Iandu jilhal1a~ url'ice chllrge jew rover charge, ghandu

jilqies bhala parti mill'provvisla la' ikel.

(2) lI' provvisla minn penun. la' OUc!li ghall,gl'Ian u 61-ko15

la ' ~r.izzi la' manutcnzjoni)cw liswija provvisli minn dik il-pe15una

g1'landhom jilqicsu b1'lala parti miU-provvim la' dawk is-5Crvizzi.

(3) Salv ki f hemm provdul mod icllor fl-Att jew f xi

regolamemi. inkluti dawn ir-rcgolamenli. maghmula bis-sahha \8' 1-

All , mela prowiSla Ikun linkludi I·provvilila sew la' oUetti sew la'

so:rvizzi u l-kumpenli ghat di k il-prowisla ma jkunx jiddislingwi hejn il-

kumpens ghall-oticlli u I-kumpens ghas-servizzi, iJ-provvisla ghandha

lilqics bhala provv;". la' oggctt; jew provvista la' so:rvizzi skond ill-

llorta princ'ipa li ta' dik il-provvista.

(I) The provision by a person of services for the purpose

and in the course of a supply by that person of food purveyed al •

catering establishment or at any otheT premises purveying pr\'p&n:d

food, incl.Jding any service for .... hich a service charge or • ~r cha rge

is paid o r payable , shall be trealed as part of the supply of food.

(2) The provision by a Il<'rson of goods for the p urpose and in

the course of mainlenanoe or repair services suppli«l by Ihal pcl'SOQ sh.all

be treated 15 pan of the supply of those services.

(3) Save asotherwise provided in the Act o r anyn:gulations,

including lhese reg ... latioll$, made ... nder the Act, where a s upply

indudes the provision of both goods and services and the conside ration

for tha t supply does not distinguish between the consideration for the

goods ~nd Ihe conside ration for the services, the supply shall be treBted

as a supply of goods or as a su pply o f services aocording 10 the prineipal

namre ofthat supply.

-