Arrangements (Amendment) Regulations, 2014

L.N. 206 of 2014

VALUE ADDED TAX ACT

(CAP. 406)

Refund of Value Added Tax in terms of Diplomatic and Consular

Arrangements (Amendment) Regulations, 2014

IN exercise of the powers conferred by articles 70 and 75 of the

Value Added Tax Act, the Minister for Finance has made the

following regulations:-

(1)

The title of these regulations is the Refund of Value Citation, scope

Added Tax in terms of Diplomatic and Consular Arrangements and

commencement.

Regulations, 2014.

(2) These regulations provide for the refund of value added tax

under certain conditions to diplomatic missions and international

organisations as well as their resident officials.

(3) These regulations shall come into force on 1 July 2014.

[Regulation 3(b)]

Terms and Conditions

1. (1) Refund of the tax shall only be made where the Applicable

amount on a single fiscal receipt for the supply of a good or service thresholds.

listed in this Schedule is not less than one hundred and fifty euro

(€150) inclusive of the tax.

(2) The aggregate refund of tax payable in a calendar year

shall not exceed the following amounts

(a)

1,000 euro for a Head of Mission;

(b)

850 euro for a member of diplomatic staff;

(c)

700 euro for administration and technical staff.

2. (1) A refund of the tax shall be made in respect of the Qualifying

categories of goods listed in paragraph 3 of this Schedule where such criteria.

goods are wholly used or intended to be used by a resident official.

(2) A refund of the tax shall be made in respect of the

categories of services in paragraph 4 of this Schedule where such

services are solely rendered to the resident official.

3. Goods in the following categories qualify for a refund of Categories of

goods.

the tax in terms of these regulations

(a)

furniture, fittings and finishes;

(b)

textile material and textile items;

(c)

household appliances and similar equipment;

(d)

electronic, audio and visual equipment;

(e)

photographic and optical equipment;

(f)

printed matter;

(g)

accessories and equipment for use on motor

vehicles;

(h)

fuel;

(i)

alcohol and tobacco products.

4. Services in the following categories qualify for a refund of

Categories of

services.

the tax in terms of these regulations

(a) hotel accommodation costs incurred after arrival in

Malta whilst awaiting locating accommodation;

(b) utilities (telecommunications, electricity and supply

of water by a person other than a public authority).

€0.54

In these regulations unless the context otherwise requires

Interpretation.

"Act" means the Value Added Tax Act;

"consular post" has the meaning assigned to it in the Diplomatic

Immunities and Privileges Act;

"diplomatic

mission"

means

an

Embassy

or

a

High

Commission;

"fiscal receipt" means a fiscal receipt issued in terms of the

Thirteenth Schedule to the Act;

"international organisation" means an organisation, institute,

agency, a regional office or branch of an international organisation or

any other entity, whose status in Malta is governed by a host country

agreement;

"official residence" means the residence of an Ambassador, a

High Commissioner or a Head of an international organisation;

"resident official" means an official residing in Malta who is

accredited either to a diplomatic mission, a consular post or an

international organisation and who is in possession of a current

identity card issued by the Ministry for Foreign Affairs and who falls

within the categories listed in the relative provisions of the

Diplomatic Immunities and Privileges Act, but excludes an official

who is a Maltese national or a person recruited locally who is

ordinarily resident in Malta;

"supplies of goods and services" means goods and services

purchased locally from taxable persons registered under article 10 of

the Act and in respect of which a fiscal receipt has been issued;

"tax" means the value added tax chargeable on supplies of goods

and services in terms of the provisions of the Act.

Subject to the other provisions of these regulations, an

application for a refund of the tax may be made by

(a) diplomatic

missions,

consular

posts

and

international organisations under the terms and conditions of

Schedule I;

(b) resident officials under the terms and conditions of

Schedule II.

An application for refund of the tax in terms of regulation

3 shall be furnished to the Ministry for Foreign Affairs and shall not

be valid unless it is complete, correct and accompanied by the relative

fiscal receipts.

The provisions of regulation 3 shall also apply to

international organisations approved by the Ministry for Foreign

Affairs

Provided that where a host country agreement which

regulates the status of an international organisation in Malta already

contains a provision for the refund of the tax, then that provision shall

prevail.

The Refund of Value Added Tax in terms of Diplomatic

and Consular Arrangements Regulations, 1999, are hereby revoked,

without prejudice to anything lawfully done or omitted to be done

thereunder.

1999.

1999. SCHEDULE I

[Regulation 3(a)]

Terms and Conditions

1. Refund of the tax shall only be made where the amount on Minimum

a single fiscal receipt for the supply of a good or service listed in this threshold.

Schedule is not less than one hundred and fifty euro (€150) inclusive

of the tax.

2. (1) A refund of the tax shall be made in respect of the Qualifying

categories of goods listed in paragraph 3 of this Schedule where such criteria.

goods are wholly used or intended to be used for furnishing and

equipping the diplomatic mission or the international organisation

premises as well as the official residence.

(2) A refund of the tax shall be made in respect of services

listed in paragraph 4 of this Schedule where such services are solely

rendered for the benefit of the diplomatic mission, the international

organisation, or the official residence.

3. Goods in the following categories qualify for a refund of Categories of

goods.

the tax in terms of these regulations

(a)

furniture, fittings and finishes;

(b)

works of art and decorative items;

(c)

textile material and textile items including flags;

(d)

household appliances and similar equipment;

(e)

equipment for physical exercises;

(f)

gardening tools, equipment and garden accessories;

(g) equipment and materials used for cleaning and/or

maintenance;

(h)

office equipment, stationery and printed matter;

(i)

electronic, audio and visual equipment;

(j)

photographic and optical equipment;

(k) equipment and fittings for security surveillance and

monitoring;

(l)

accessories and equipment for use on official motor

(m)

fuel;

(n)

alcohol and tobacco products.

4. Services in the following categories qualify for a refund of

the tax in terms of these regulations

(a)

hotel accommodation

and

restaurant

services

incurred on official business;

(b) services contracted for the repair and maintenance

of goods acquired under paragraph 3;

(c)

leasing or hiring of office equipment and machinery;

(d) services contracted

for

the

organisation

of

conferences and conventions;

(e)

leasing or hiring of motor vehicles;

(f)

hire of catering equipment, tableware, and like

items, necessary for official functions on the premises;

(g)

cleaning, waste disposal and pest control services;

(h) services contracted for the alteration, modification

or improvements including structural additions to qualifying

(i)

legal, auditing, accounting and IT services;

(j)

utilities (telecommunications, electricity and supply

of water by a person other than a public authority);

(k)

security guard services;

(l)

rent incurred on immovable property which is used

as qualifying premises where such rent was subject to the tax.