297 tal-2018

L.N. 297 of 2018

VALUE ADDED TAX ACT

(CAP. 406)

Value Added Tax Act (Amendment of Third Schedule)

Regulations, 2018

BY VIRTUE of the powers conferred by articles 7 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 Value Added Tax Citation, scope

Act (Amendment of Third Schedule) Regulations, 2018, and these and

commencement.

regulations shall be read and construed as one with the Third

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

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

(2) These regulations implement the provisions of article 1 of

Council Directive (EU) 2017/2455 of the 5th December 2017

amending Directive 2006/112/EC and Directive 2009/132/EC as

regards certain value added tax obligations for supplies of services

and distance sales of goods.

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

2019.

Item 10 in Part Two of the Schedule shall be substituted by Substitutes item

10 in Part Two

the following

of the Schedule.

"10. (1) The place of supply of the following services to

a non-taxable person shall be the place where that person is

established, has his permanent address or usually resides

(a)

telecommunications services;

(b)

radio and television broadcasting services;

(c) electronically supplied services, in particular

services relating to website supply, web-hosting, distance

maintenance of programmes and equipment, supply of

software and updating thereof, supply of images, text and

information and making available of databases, supply of

music, films and games, including games of chance and

gambling games, and of political, cultural, artistic,

sporting, scientific and entertainment broadcasts and

events, and supply of distance teaching.

Where the supplier of a service and the customer

communicate via electronic mail, that shall not of itself mean

that the service supplied is an electronically supplied service.

(2) Paragraph (1) shall not apply where the following

conditions are met

(a) the supplier is established or, in the absence

of an establishment, has his permanent address or usually

resides in Malta only; and

(b) services are supplied to non-taxable persons

who are established, have their permanent address or

usually reside in any Member State other than Malta; and

(c) the total value, exclusive of VAT, of the

supplies referred to in sub-paragraph (b) does not in the

current calendar year exceed EUR 10,000 and did not do

so in the course of the preceding calendar year.

(3) Where, during a calendar year, the threshold referred

to in paragraph (2)(c) is exceeded, paragraph (1) shall apply as

of that time.

(4) The Commissioner shall grant to those suppliers

referred to in paragraph (2) the right to opt for the place of

supply to be determined in accordance with paragraph (1),

which shall in any event cover two calendar years

Provided that, a valid election for this purpose shall

be made by means of a notice in writing to the Commissioner on

a form acceptable to the Commissioner specifying the date from

which it applies, not being earlier than thirty days from the date

on which it is furnished.".

€0.18