Regulations, 2019

L.N. 251 of 2019

VALUE ADDED TAX ACT

(CAP. 406)

Value Added Tax Act (Amendment of Second Schedule)

Regulations, 2019

IN EXERCISE of the powers conferred by articles 6 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 Second Schedule) Regulations, 2019 and these and

commencement.

regulations shall be read and construed as one with the Second

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

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

(2) These regulations shall bring into force the provisions of

Article 1 of Council Directive (EU) 2018/1910 of the 4 th December

2018 amending Directive 2006/112/EC as regards the harmonization

and simplification of certain rules in the value added tax system for the

taxation of trade between Member States.

These regulations shall come into force, on the 1 st January

(3)

2020.

Immediately after item 17 of the Second Schedule there Adds new item

17A to the

shall be added new item 17A as follows:-

Second

Schedule.

" Call-off stock

(1) The transfer by a taxable person of

arrangements

goods forming part of his business assets to another

Member State under call-off stock arrangements shall

not be treated as a supply of goods for consideration.

(2) For the purposes of this item, call-off stock

arrangements shall be deemed to exist where the

following conditions are met

(a) goods are dispatched or transported by

a taxable person, or by a third party on his behalf,

to another Member State with a view to those

goods being supplied there, at a later stage and

after arrival, to another taxable person who is

entitled to take ownership of those goods in

accordance with an existing agreement between

both taxable persons;

(b) the taxable person dispatching or

transporting the goods has not established his

business nor has a fixed establishment in the

Member State to which the goods are dispatched

or transported;

(c) the taxable person to whom the goods

are intended to be supplied is identified for VAT

purposes in the Member State to which the goods

are dispatched or transported and both his identity

and the VAT identification number assigned to

him by that Member State are known to the

taxable person referred to in paragraph (b) at the

time when the dispatch or transport of goods

begins;

(d) the taxable person dispatching or

transporting the goods records the transfer of the

goods in the register provided for in paragraph

(1)(k) of item 1 of the Eleventh Schedule and

includes the identity of the taxable person

acquiring the goods and the VAT identification

number assigned to him by the Member State to

which the goods are dispatched or transported in

the recapitulative statement provided for in article

30(3).

(3) Where the conditions laid down in sub-item

(2) are met, the following rules shall apply at the time

of the transfer of the right to dispose of the goods as

owner to the taxable person referred to in paragraph (c)

of sub-item (2), provided that the transfer occurs within

the deadline referred to in sub-item (4)

(a) a supply of goods in accordance with

item 3(1) of Part One of the Fifth Schedule shall

be deemed to be made by the taxable person that

dispatched or transported the goods either by

himself or by a third party on his behalf in the

Member State from which the goods were

dispatched or transported;

(b) an intra-Community acquisition of

goods shall be deemed to be made by the taxable

person to whom those goods are supplied in the

Member State to which the goods were dispatched

or transported.

(4) If, within twelve (12) months after the

arrival of the goods in the Member State to which they

where dispatched or transported, the goods have not

been supplied to the taxable person for whom they were

intended, referred to in paragraph (c) of sub-item (2)

and sub-item (6), and none of the circumstances laid

down in sub-item (7) have occurred, a transfer within

the meaning of item 17 shall be deemed to take place on

the day following the expiry of the twelve (12) month

period.

(5) No transfer within the meaning of item 17

shall be deemed to take place where the following

conditions are met

(a) the right to dispose of the goods has

not been transferred, and those goods are returned

to the Member State from which they were

dispatched or transported within the time limit

referred to in sub-item (4); and

(b) the taxable person who dispatched or

transported the goods records their return in the

register provided for in paragraph (1)(k) of item 1

of the Eleventh Schedule.

(6) Where, within the period referred to in sub-

item (4), the taxable person referred to in paragraph (c)

of sub-item (2) is substituted by another taxable person,

no transfer within the meaning of item 17 shall be

deemed to take place at the time of the substitution,

provided that

(a) all other applicable conditions in sub-

item (2) are met; and

(b) the substitution is recorded by the

taxable person referred to in paragraph (b) of sub-

item (2) in the register provided for in paragraph

(1)(k) of item 1 of the Eleventh Schedule.

(7) Where, within the time limit referred to in

sub-item (4), any of the conditions set out in sub-items

(2) and (6) ceases to be fulfilled, a transfer of goods

according to item 17 shall be deemed to take place at

the time that the relevant condition is no longer

fulfilled.

If the goods are supplied to a person other than the

taxable person referred to in paragraph (c) of sub-item

(2) or in sub-item (6), it shall be deemed that the

conditions set out in sub-items (2) and (6) cease to be

fulfilled immediately before such supply.

If the goods are dispatched or transported to a

country other than the Member State from which they

were initially moved, it shall be deemed that the

conditions set out in sub-items (2) and (6) cease to be

fulfilled immediately before such dispatch or transport

of goods starts.

In the event of the destruction, loss or theft of the

goods, it shall be deemed that the conditions set out in

sub-items (2) and (6) cease to be fulfilled on the date

that the goods were actually removed or destroyed, or,

if it is impossible to determine that date, the date on

which the goods were found to be destroyed or

missing.".

€0.36