ReguJatlons, 1m

LJ.;r. 39 of 1997

VALUE ADDED TAX ACT,l994

(ACT NO. XII OF 1994)

Value Added Tax (Accommoda tion and Beverages In

LitrDsOO Premises for Tourist Accommodation)

ReguJatlons, 1m

IN exercise of the powen conferred by sections 19.46 and 61 of

the Value Added Tax Act. 1994, herei nafter referred to as "the Ac!" ,

the :\1illi~ler for Economic Affairs and Finance has made the follow ing

rtgul~tiOlli : -

J . ( I) These regulations may be cited as the Value A d~cd Tax C\WliDftand

(Acommoclation and Beverages in Licensed Premises for Tourist cam ........ roent.

Acommodalion) Regulations, 1997.

These regu lations shall come into force on the 1st April.

(2)

1997.

In these regulations. unless the context otherwise requires-

b ....... _ _

"accommodation" means the Jetting of or the provision of

accommodation 10 be used by tourists, in any premises which , for

the purpose of the said Jelling or accommodation or forthe purpose

of the use fo r which the said le tting or the provisio n of

accommodation is made, is required to be licensed in terms of the

Hotels and Catering Establishments Act, or in te rms of the Guest

Houses and Furnished Premises Act, but excluding the catering Qp.I97.

element forming part of suc h accommodat ion;

"beverages" means beverages sold from an)' premises which

provides accommodation to tourists. and which for the purpose of

the said accommodation is required to be licensed in terms of the

Hotels and Catering Establishments Act or in terms of the Guest

Houses and Furnished Premises Act;

" pre-booked accommodation and catering" means the letting

of or the provis ion of accommodation to be used b)' touriSts, whic h

includes food, beverages, if an)" and airport transfers, which is

included in the price of such accommodation, which has been pre-

booked in the normal course of business for an irrevocable and

fixed price, in an)' premises which, for the purpose of the said

letting or accommodal ion or for the purpose o f the use for which

the said Ictting or the provision of accommodation is made, is

req ui red 10 be licensed in te rms of the Hotels and Catering

Establishments Act or in terms oftheGuest Houses and Furnished

Premises Act.

The su pply of acco mmodalion or of pre-booked

accommodation and catering shall be treated as taking place in the

country where the person who makes the supply is established

Provided that where a supply of accommodation or of pre-

booked accommodation and catering is su pplied to or for the benefit of

a person 10 be used by th at person outside Malta. it shall be treated as a

su pply made outside Malta.

The time of su pply o f accommodation or of pre-booked

accommodation and catering shall be determined in accordance with

the provisions of subsection (4) of section 9 of the Act.

The tax payable on a su pply of accommodation and on a supply

of pre-booked accommodation and catering shall be at the rate of fi ve

per cent of the taxable value of that supply , and the tax payable on a

supply of beverages shall be al the rale of ten per cent of the taxable

value of that supply.

A supplier of accommodation . pre-booked accommodation and

catering, an d beverages shall keep. in addi tion to the records requ ired

in tenns of the Act. records which clearly identify the said se rvices.

Save as otherwise provided in these regulations. the provisions

of the Act and of any regulations made under the Act shall apply to

su pplies of accommodation. pre-booked accommodation and catering.

and beve rages.

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