Regulations, 2010

L.N. 535 of 2010

VALUE ADDED TAX ACT

(CAP. 406)

Value Added Tax Act (Amendment of Tenth Schedule)

Regulations, 2010

IN exercise of the powers conferred by articles 22, 23 and 75 of

the Value Added Tax Act, the Minister of Finance, the Economy and

Investment has made the following regulations:-

(1) The title of these regulations is the Value Added Tax Citation and

Act (Amendment of Tenth Schedule) Regulations, 2010, and these commencement.

regulations shall be read and construed as one with the Tenth

Schedule to the Value Added Tax Act, which Tenth Schedule is Cap. 406.

hereinafter in these regulations referred to as "the Schedule".

(2) These regulations shall come into force on the 1st January

2011. (3) These regulations transpose the relevant provisions of

Council Directive 2009/162/EU of 22nd December 2009 amending

Council Directive 2006/112/EC of 28th November 2006 on the

common system of value added tax.

Item 4 of the Schedule shall be substituted by the Substitutes item

4 of the

following

Schedule.

"Tax partially treated as input tax

(1) Where any goods or

services are or will be used but not wholly

used in the course or furtherance of an

economic activity, there shall be treated as

input tax such proportion of the tax

chargeable on the supplies, intra-community

acquisitions or importations in question,

taking into account the proportion of the use

of those goods or services in the course or

furtherance of the economic activity to their

total use.

(2) In the case of immovable property

forming part of the business assets of a

taxable person and used both for purposes of

the taxable person’s business and for his

private use or that of his staff, or, more

generally, for purposes other than those of his

business, VAT on expenditure related to this

property shall be deductible in accordance

with the principles set out in this Schedule

only up to the proportion of the property’s use

for purposes of the taxable person’s business

which give him the right to deduct.

By way of derogation from item 15 of

the Second Schedule, changes in the

proportion of use of immovable property

referred to in paragraph (1) shall be taken

into account in accordance with the principles

provided for in item 7 of this Schedule.

(3) The provisions of paragraph (2)

shall also apply in relation to VAT on

expenditure related to capital goods other

than immovable property forming part of the

business assets of a taxable person.

For the purpose of this paragraph

"capital goods" shall have the meaning

assigned to it in the Value Added Tax

(Adjustments relating to Input Tax on Capital

Goods) Regulations.".

€0.19