Regulations, 2024

L.N. 344 of 2024

VALUE ADDED TAX ACT

(CAP. 406)

Value Added Tax Act (Amendment of Third Schedule)

Regulations, 2024

IN EXERCISE of the powers conferred by article 75 of the Value

Added Tax Act, the Minister responsible for finance has made the

following regulations:-

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

Act (Amendment of Third Schedule) Regulations, 2024 and these

regulations shall be read and construed as one with the Third Schedule

to the Value Added Tax Act, hereinafter referred to as the "Third

Schedule".

(2)

The scope of these regulations is to

(a) transpose the provisions of Council Directive (EU)

2020/285 of 18 February 2020 amending Directive 2006/112/EC

on the common system of value added tax as regards the special

scheme for small enterprises and Regulation (EU) No 904/2010

as regards the administrative cooperation and exchange of

information for the purpose of monitoring the correct application

of the special scheme for small enterprises;

(b) transpose the provisions of Council Directive (EU)

2022/542 of 5 April 2022 amending Directives 2006/112/EC and

(EU) 2020/285 as regards rates of value added tax; and

(c) introduce technical improvements to the existing

provisions contained in the Third Schedule.

These regulations shall come into force on 1 st January

(3)

2025.

The Third Schedule shall be amended as follows

(a)

Part Two thereof shall be amended as follows

(i)

item 6 thereof shall be substituted by the

following new item

"Supply of cultural, artistic, sporting, scientific, educational,

entertainment and similar services, ancillary transport services and

valuations of and work on movable property

(1) The place of supply of services in

respect of admission to cultural, artistic, sporting,

scientific, educational, entertainment or similar events,

such as fairs and exhibitions, and of ancillary services

related to the admission, supplied to a taxable person,

shall be the place where those events actually take place

Provided that the provisions of this sub-item

shall not apply to admission to the events referred to in

this sub-item where the attendance is virtual.

(2)(a) The place of supply of services and ancillary

services, relating to cultural, artistic, sporting, scientific,

educational, entertainment or similar activities, such as

fairs and exhibitions, including the supply of services of

the organisers of such activities, supplied to a non-taxable

person shall be the place where those activities actually

take place

Provided that where the services and ancillary

services relate to activities which are streamed or

otherwise made virtually available, the place of supply

shall, however, be the place where the non-taxable person

is established, has his permanent address or usually

resides.

(b) The place of supply of the following services

to a non-taxable person shall be the place where the

services are physically carried out

(i) ancillary transport activities such as

loading, unloading, handling and similar activities;

and

(ii) valuations of and work on movable

tangible property."; and

(ii) in item 12 thereof, the words "In order to

prevent double taxation, non-taxation or distortion of

competition, the Commissioner may, with regard to

services the place of supply of which is governed by Items

2, 8, 10 and 11 of this Part:" shall be substituted by the

words "In order to prevent double taxation, non-taxation or

distortion of competition, the Commissioner may, with

regard to services the place of supply of which is governed

by item 2, the proviso to item 6(2)(a), item 8, item 10 and

item 11 of this Part:"; and

(b)

Part Three thereof shall be amended as follows

(i) paragraph (d) of sub-item (2) in item 2 thereof

shall be substituted by the following new paragraph

"(d) the taxable person registered under article

10 reports the subsequent supply in the recapitulative

statement required in accordance with article 30(2).";

and

(ii) immediately after item 2 thereof there shall be

added the following new items

"The Acquisitions Threshold

3. The Acquisitions Threshold is the equivalent

of ten thousand euro (€10,000) using the latest conversion

rate before 1st January of the year in respect of which that

threshold is relevant, as published by the Central Bank of

Malta if such year is the year 2008 or prior, and by the

European Central Bank if such year is the year 2009 or

subsequent.

The value of intra-community acquisitions

4. For the purpose of determining whether the

value of intra-community acquisitions in any particular

case exceeds the Acquisitions Threshold or otherwise, the

value of the intra-community acquisitions in question

shall be taken to be the taxable value that would be

determined in accordance with the relevant provisions of

the Seventh Schedule if they were taxable intra-

community acquisitions, provided that no account shall be

taken of the value of

(a) intra-community acquisitions of new

means of transport and of excise goods; and

(b) value added tax paid or due in a Member

State other than Malta on the intra-community

supply of the goods in question.".

€0.36