DEDUCTIONS (EURO RELATED EXPENDITURE) RULES

DEDUCTIONS (EURO RELATED EXPENDITURE)

SUBSIDIARY LEGISLATION 123.98

DEDUCTIONS (EURO RELATED EXPENDITURE)

RULES

5th April, 2007

LEGAL NOTICE 93 of 2007, as amended by Legal Notice 409 of 2007.

The title of these rules is the Deductions (Euro Related

Expenditure) Rules.

In these rules, unless the context otherwise requires

"equipment" means cash registers, point of sale systems and

weighing scales and any other electronic equipment displaying or

storing monetary amounts;

"qualifying person" means a person to whom rule 3 applies.

These rules shall apply to any person who

(a) carries on a trade, business, profession or vocation and

is registered under the Value Added Tax Act where the

economic activity in which he is engaged is an activity

in respect of which he is required to be so registered;

and

(b) incurs expenditure in purchasing, installing, modifying

or enhancing any equipment between the 1 st January,

2006 and the 31 st December, 2007 to enable the proper

discharge of the business in euro currency as from the

date when the euro becomes legal tender.

(1) Where a qualifying person incurs expenditure in

accordance with the provisions of rule 3, a deduction equivalent to

two hundred per cent (200%) of the cost, excluding VAT, shall be

allowed against the said person’s income chargeable to tax for the

year of assessment 2008

Provided that, in the case of a company, where the cost

referred to in this rule is incurred during the year preceding the

year of assessment 2009, the said deduction shall be allowed

against the income chargeable to tax for the year of assessment

2009. (2) Where a deduction is claimed under these rules, no

deduction in respect of wear and tear may be claimed in respect of

the same equipment and the deduction referred to in sub-rule (1)

shall be reduced by any deductions for wear and tear claimed prior

to the year of assessment 2008 on the said equipment

Provided that, in the case of companies to which the

proviso to sub-rule (1) applies, the deduction allowed under these

rules shall be reduced by any deductions for wear and tear claimed

prior to the year of assessment 2009.

(3)

The deduction claimed under these rules as aforesaid in

DEDUCTIONS (EURO RELATED EXPENDITURE)

respect of each qualifying person shall not exceed two thousand

and three hundred and thirty euros (2,330).

(1) Where expenditure referred to in rule 3(b) is made in

respect of the purchase of a new cash register, notification of such

pu rchase shall b e made to t he Comm issio ner of VAT on an

application form as the said Commissioner of VAT may require.

(2) The deduction provided for in rule 4 shall only be allowed

where the notification referred to in sub-rule (1) has been made in

the manner stipulated in the said sub-rule.