Vall>t Added Ta. (Second Hand Goods) Rtgubtlon$, 1994 (secondhandgoods)

L.N. 98 of 1994

VALUE ADDED TAX ACt', 1994

(ACT NO. XU OF 1994)

Vall>t Added Ta. (Second Hand Goods) Rtgubtlon$, 1994

IN EXERCISE of the powers conferred by sections 46 and 61 of the

Value Added Tu Act. 1994, hereinafter referred to as ~t he ACI~. the

Ministerof Finanoe has made the following regulatiom: -

I . (I) These regulations maybe cited as the: Value Added Tax

(Second Hand Goock) Rt'gulations , 1994,

(2) These regulations shall be dee med to have come into

force on the 1st September , 1994,

Any terms used in these regulations shall, unless the context

otllerwise requires. Ilave the meaning assigned to them in the Act .

J. The option referred to in regulation 4 of that regulations ill

available to a taxable person wllo makes a taJ[able supply of goods which

had been su pplied to him in Malta as second hand goods -

(a) on. supply on which no tax was ch.rge.ble under the

Act . including a su pply which in tenm ofthe Act or any regulations

made under the Act is treated as being neither a supply of goods nor

a supply of services, or

(b) by another taxable person wllo had , in respect of tllal

supply , availed himself of the option under regulation 4 of these

regulations and i5sued a sales invoice as required by subparagraph

(b) ofpangnoph S of these regulations.

and who u.tisflCS the conditions of regu lation S of tllese regulations.

... (I) A taxable pel"5Oll may opt to IIQCOIJnt for the tu

chargeable on a taJ[able supply referred to in regulation J of these

regulations as if the taxable value of that supply were the n eas, if any,

of the consideration charged by hi m for that supply av<:r the

consideration charged to rum for the supply of those goods to him ,

(2) The amounts to be taken into ac:rount as the

considc ration charged by and to a tax.ble person for the purpose of

paragraph (I) of this regulation shall be the amounts indicated as the

prk:e of the relativc transaction in the sales invoice issued by that pel"5Oll

in ac:rordance with paragraph (b) of regulation 5 of these regulations

and in the sales invoice issued to him in acc:ordanoe with the said

paragraph or, wllcre applicable, the purchase invoice iuucd by him in

ac:rordanoe with paragraph (a) of the said regulation.

(1) Penuna laIltabUi tist.' laghie l li taghli konl ghal·tun li

lilflalas fuq provvi$tallXllabbli msemmija fir-regolament J ta' dawn ir- ~

reJO/amen li bballikieku l-valur taxubbli ta' dik il-provviSla kien 1-

ettess, jekk tien i"lemm, III-kumpens minnhl mitlub gtlal dik i1-

provvisla fuq il-kumpens minnha mitlub ghalJ -provvista Ji Ikun ".rel ","i f,.

liUha bo' daw" l-ouelli.

(2) L-ammonti Ji gh andhom jltqiesu brlala l-kumpens millub

minn u lil persuna IlXllIblli gtlaU-gI'Ian tal-paragrafu (1) la' dan ir-

"t-

relolament gtlandhom iku8U l-amrnonli indikali bbala I-preu

transuzjoni rclattiva fil·fauura ta' bcjgh mahNp minn dik il-pcmma

skond iJ-paragrafu (b) tar-n:golamcnt S ta' dawn ir-n:aolameoti u fiI-

fallura ta' bcjgft lilha matlNga skand dak il-pangrafu Jew, me!.l

japplih, il-(auura ta' xiri minnha mahNp skond il-pangrafu (a)!.I'

dak ir-n:golameot.

A tauble person who e. e rcise the option referred to in

replation 4 of these regulations -

(a) must bold , in the case where the $aid goods had been

MJpplied 10 him by a person who had not supplied the said goodsin

the course of an economic activity , a purchase invoice issued by him

al the lime when the said goods had been supplied to him as

aforesaid containing the information described in regulation 6 of

Ibc:se resulations

(b) -.hall issue a sales invoice containing lhe infonnation

described in regulation 7 of thesereg\llations and kccp a copy of tbe

said invoiee

(t) shall not , in respect of a s\lpply in respect of whieh the

$aid option has been exercised, issue a tM invoice or any otller

document showing an amount as being taJt or as being aUrilxltable

to tax;

(d) shall not treat the tM, if any, included in the price paid or

payablc by him on the supply to him of the goods in question as

inputtM;

(e) 5hall keep such f\lrther records, documents and aecounts

relating to transactions in second hand goods as the OJmmissioner

may I'C'quire.

Save as the OJmmiWoner may otherwise allow, a purchll5C

inVQice required in virtue of paragraph (a) of I'C'gulation .5 of these

regulations shall show

(a)

the purchase invoice number;

(b) the dale of the purchase;

(e)

the name and address of the seller ;

the name and address of the purehilKr ;

(d)

(c) a de$eription or the goods;

(Q

the lotal price;

(g) a crou rdercnce to the cntry in the purchase r's loxount

books of the trasaetion;

(h)

the signature of the seller.

Save as the OJmmissioner may otherwise aUow, a sales invoice

required in vinuc of pangraph (b) of regulation.5 of these regulations

shall show

(a)

the $ales invoice number ;

(b) the date orthe sale

(c)

the name, addreM and registration number of the seller;

the nl me I!ld Iddress of the purdlucr;

(d)

dcsaiptionof the sooda.

(e)

I

the total price inclll5ive of tu ;

(f)

(I) a cross reference to the entry in tbe seller's acrount boob

of the: trans.action;

(h) the following decllration l igned by Ihe seller: ~I decllre

tluilllOcndil forinpullall hasOf"will bedllimed bymein ~ of

goods told 011 this invoiee~.

Whe~ any used goods a~ KpOSSCSSCd -

(I) under the lent1$ ofa finance agreemeDt , or

(b) by any insurer in the settlement of a cllim under an

insurance policy, or

(c) by the mongagee in lenns of his righ ts under a monple

DYer I ship o r aircraft ,

and supplied by the: penon .... ho ~p""sew:d them in the same condition

8lI 1hey were in I t the time they were repossessed , the said wpply by tllat

penon shall be treated as neither a supply of goods DOT U alUpply of

IICnrioe$.

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