EXEMPTION FROM MOTOR VEHICLES REGISTRATION TAX RULES

SUBSIDIARY LEGISLATION 368.01

EXEMPTION FROM MOTOR VEHICLES

REGISTRATION TAX RULES

1st January, 2009

LEGAL NOTICE 196 of 2009, as amended by Act XV of 2009; and Legal

Notices 6 and 426 of 2012,440 of 2013, 138 of 2018 and 254 of 2019.

The title of these rules is the Exemption from Motor

Vehicles Registration Tax Rules.

(1)

In these rules, unless the context otherwise requires

"the Act" means the Motor Vehicles Registration and Licensing

Act;

"auth orised in sp ecti ng offi cer" means a Police officer, a

community officer or an officer, employee or contractor of the

Authority;

"the Authority" means the Authority for Transport in Malta as

established by the Authority for Transport in Malta Act;

"the Board" means the Board appointed by the Minister

responsible for finance to assess applications related to exemptions

under article 19(3)(f) of the Act;

"brought into Malta" means the entry into Malta of a motor

vehicle coming from a Member State and which was put into free

circulation in such Member State prior to entry into Malta;

"cycle" shall have the same meaning assigned to it in the Act;

"circulation licence fee" means the circulation licence fee paid in

terms of the Act;

"driver" means any person who drives a motor vehicle even for a

short period;

"European Union" has the same meaning as is given to it in the

E u r o p e a n U n i o n A c t a n d i n c l u d e s N o r w a y, I c e l a n d a n d

Liechtenstein;

"exemption" means exemption from the payment of motor

vehicle registration tax and, where applicable, from the payment of

the circulation licence fee;

"imported into Malta" means the entry into Malta of a motor

vehicle from a third country;

"Member State" means a Member State of the European Union;

"M1 motor vehicle" shall have the same meaning assigned to it

in the Act;

"motor cycle" means any two-wheeled vehicle, with or without a

sidecar;

"motor tricycle" means a vehicle with three symmetrically

arranged wheels fitted with an engine having a cylinder capacity of

more than 50 cm 3 if of the internal combustion type or a maximum

design speed of more than 45 km/h;

"motor vehicle" means any mechanically self-propelled vehicle

intended for use on the road, other than a vehicle running on rails,

having a maximum design speed of more than 45 km/h, and it

includes a cycle;

"normal residence" has the same meaning as is assigned to it in

article 18(5) of the Act;

"person established outside Malta" means an individual having

his normal residence outside Malta or a person, other than an

individual, having his only or principal place of business outside

Malta;

"person residing in Malta" means

(a) an individual having his normal residence in Malta,

and is legally obliged to have a legally valid

identification document issued under the Identity Card

and other Identity Documents Act,

(b) a person, other than an individual, having his only or

principal place of business in Malta;

"private vehicle" means an M1 motor vehicle, including its

trailer, if any, a motor caravan, a motor home or a cycle;

"quadricycle" means a vehicle with four wheels whose unladen

mass is not more than 400 kg (550 kg for vehicles intended for

carrying goods), not including the mass of batteries in the case of

electric vehicles, and whose maximum net engine power does not

exceed 15 kW;

"registration certificate" means the document which certifies that

the vehicle is registered;

"registration plate" means a plate or other device displaying the

registration mark of a motor vehicle;

"relief" means relief from motor vehicle registration tax;

"road" has the same meaning as is assigned to it in the Authority

for Transport in Malta Act;

"third country" means a country other than a Member State;

"transfer of residence" means the actual transfer of the ordinary

residence of a person from a place outside Malta to a place in Malta

with the date of transfer being the date of issue of the Residence

Document or the date as declared with the Commissioner for Revenue

in the case of Maltese applicants;

" Tr i b u n a l " m e a n s t h e A d m i n i s t r a t i v e R e v i e w Tr i b u n a l

established by the Administration Justice Act.

(1) A motor which is imported or brought into Malta by a

licensed motor vehicle trader as a representative sample of a

particular vehicle, to be displayed or used for demonstration with a

view to obtaining orders for similar vehicles, shall be exempted

from the provisions of articles 2A and 3 of the Act

Provided that vehicle -

(a) is owned by or registered in the name of a person

established outside Malta,

(b) while in Malta is not put to normal use, except for the

purpose of demonstration,

(c) is not used for hire or reward,

(d) whilst in Malta remains the property of a person

established outside Malta,

(e) is intended to be taken out of Malta on fulfillment of

such purpose.

(2) The exemption under sub-rule (1) shall be granted by the

Authority, upon application, for a period not exceeding six months

from the date of the vehicle’s arrival in Malta or for such longer

period as the Authority in its discretion may allow.

(3) A vehicle exempted under this rule may only be used on the

road if that vehicle carries a "Trial Run" plate in accordance with

the Registration and Licensing of Motor Vehicles Regulations.

(1) For the purpose of this rule "date" shall mean the date

on which the decision of the Board is published on the website of

the Ministry responsible for finance.

(2) The exemption under article 19(3)(f) of the Act shall be

granted in respect of an M1 motor vehicle or a cycle which is the

personal property of an individual and which is being brought or

imported into Malta by that individual when he is transferring his

normal residence from a place outside Malta to a place in Malta.

(3)

For a vehicle to qualify for an exemption under sub-rule

(a) it shall have been registered in the name of the

individual transferring his normal residence for a

period of at least twenty-four months immediately

before the date of his transfer of residence to Malta

and is still so registered when the vehicle is imported

or brought into Malta;

(b) it shall have been acquired under the general

conditions of taxation in force in the domestic market

of the State from which it is being imported or brought

into Malta, and is not the subject, on the grounds of

exportation, of any exemption from or any refund of

excise duty, value added tax or any other consumption

tax;

(c) the person applying for the exemption shall have been

residing outside Malta for a continuous period of at

least twenty-four months immediately before the date

on which he ceases to have his normal residence

outside Malta;

(d) the vehicle is declared for exemption not earlier than

two months before the date on which applicant

becomes normally resident in Malta and not later then

twelve months following that date;

EXEMPTION FROM MOTOR VEHICLES REGISTRATION TAX

(e) where the person has transferred his residence to Malta

and the vehicle has already arrived in Malta, the

application for exemption is to be made within thirty

days from the date on which that person had transferred

his residence to Malta; and;

(f)

where the person has transferred his residence to Malta

and the vehicle has not yet arrived in Malta, the

application for exemption is to be made within thirty

days from the arrival of the vehicle in Malta.

(4) The exemption under sub-rule (2) shall not be granted

where -

(a) the vehicle and, or the applicant do not satisfy the

requirements established under sub-rule (3); or

(b) the applicant has already availed himself of an

exemption under this rule; or

(c) a vehicle is imported or brought into Malta by a person

who had gone to live outside Malta primarily for the

purpose of pursuing a course of studies of a duration

of less than five years, or

(d) the applicant provides a false declaration or false or

incorrect information willfully.

(5) An exemption under this rule shall apply to no more than

one vehicle owned by the person transferring his residence,

whether the vehicle is an M1 motor vehicle or a cycle.

(6) The application for the exemption shall be submitted to the

Authority on the appropriate form and the applicant shall produce

sufficient proof, in the Maltese or English language, showing -

(a) that he has been residing outside Malta for a

continuous period of at least twenty-four months

immediately before his transfer of residence to Malta

and that he is taking up residence in Malta. Such proof

may include -

(i)

documents relating to transactions carried out in

the course of day-to-day living,

(ii) utility bills,

(iii) tax returns,

(iv) social insurance records,

(v) documents relating to employment,

(vi) documents relating to the acquisition and

disposal of property

(vii)

documents relating to the acquisition of property

in Malta, if any, and

(viii) any other documentation which the Board may

request;

(b) that he has had the vehicle registered in his name for at

least twenty-four months immediately before the date

of his transfer of residence to Malta. Such proof may

include -

(i) the vehicle registration certificate,

(ii) the vehicle insurance certificate,

(iii) documents which clearly establish that any

relevant taxes in terms of sub-rule (3)(b) have

been paid and have not been refunded;

(c) the date of the vehicle’s arrival in Malta; and

(d) any other documentation which the Board may

request.

(7) An application for exemption under this rule shall be

processed and decided by the Board and the decision of the Board

shall be published on the website of the Ministry responsible for

finance. The Board shall also send a copy of that decision by

registered mail to the applicant at the address specified in the

application and, where provided, also by electronic means.

(8) Where an application is approved by the Board, the

applicant shall apply to the Authority to have the vehicle registered

by the Authority in accordance with the provisions of the

Registration and Licensing of Motor Vehicles Regulations, and,

a p a r t f r o m t h e c i r c u l a t i o n li c e n c e a n d a d m i n i s t r a t i v e f e e s

established under those regulations, he shall also pay an exemption

application processing fee of one hundred euro (€100).

(9) Where an application for an exemption under this rule is

rejected by the Board, the applicant -

(a) may, if the vehicle has already been brought or

imported into Malta, re-export or scrap the vehicle

without paying any registration tax on it, or

(b) shall, if the vehicle is already in Malta and he intends

to keep it in Malta, apply to the Authority to have the

vehicle registered, and also licensed if he intends to

use the vehicle on the road, in accordance with the

provisions of the Registration and Licensing of Motor

Vehicles Regulations whether or not he intends to

appeal the decision of the Board under sub-rule (10). If

he intends to appeal the said decision, he shall pay to

the Authority an exemption application processing fee

of one hundred euro (€100).

(10) On the registration of the vehicle under sub-rule (9)(b), the

applicant shall pay thereon the circulation licence fee, unless he

intends to garage the vehicle, and any other administration fees

established under the Registration and Licensing of Motor Vehicles

Regulations. He shall also be charged thereon the appropriate

registration tax which, if he intends to appeal, shall be deferred and

debited on account of the applicant until the Tribunal decides the

appeal.

(11) An applicant who feels aggrieved by the decision of the

Board may appeal to the Tribunal in accordance with the provisions

of the Administration Justice Act within twenty-one days from the

date that decision is published as provided for in sub-rule (7).

(12) Where an appeal entered by an applicant is rejected by the

Tribunal and the applicant had already registered the vehicle in

terms of sub-rule (9), the applicant may apply to the Authority to

have the vehicle deregistered to be re-exported or scrapped, and he

shall forthwith be refunded by the Authority the total amount of

administrative and application processing fees paid on the

registration of the vehicle and no amount of registration tax shall

be paid by applicant.

(13) Where an appeal entered by an applicant is upheld by the

Tribunal and the applicant had already registered the vehicle in

terms of sub-rule (9), the amount of registration tax charged on the

registration of the vehicle shall not be paid by applicant.

(14) The exemption application processing fee of one hundred

euro (€100) paid under sub-rules (8) and (9) shall be on account of

the Government.

(15) A motor vehicle in respect of which an exemption has been

granted under this rule, shall not be sold, assigned, transferred,

hired out, lent or disposed of in any manner in Malta, unless it is

scrapped in accordance with the provisions of the Registration and

Licensing of Motor Vehicles Regulations, following its importation

or its bringing into Malta unless the vehicle registration tax to

which the exemption aforesaid relates is paid thereon in accordance

with the provisions of the Second Schedule to the Act.

(1) This rule and rules 6 and 7 shall apply only to a private

vehicle which has been acquired under the general conditions of

taxation in force on the domestic market of the country of normal

residence of the user of the motor vehicle and which is not subject

by reason of its exportation to any exemption from or refund of

turnover tax, excise duty or any other consumption tax.

(2) Where a private vehicle is exempted under article 18(1)(a)

of the Act, the person importing or bringing into Malta the said

vehicle shall be obliged to ensure that the vehicle -

(a) is not sold, given away or hired out in Malta or lent to

a person residing in Malta;

(b) is not used for the transport of goods for industrial or

commercial purposes, whether for reward or not;

(c) is not used for the carriage of persons for hire or

reward;

(d) is not driven by a person who has his normal residence

in Malta;

(e) is covered by an insurance policy; and

(f)

displays a valid registration mark of the country of

registration and any mark which may be issued by the

Authority

Provided that where in a country the issue of standard

registration plates is not conditional upon compliance with the

general conditions of taxation in force on the domestic market, the

user of the vehicle shall produce appropriate evidence as proof of

payment of consumption taxes.

(3) Notwithstanding the provisions of sub-rule (2)(a), a private

vehicle belonging to a car-hire firm established in another country

other than Malta may -

(a) be re-hired to a person whose normal residence is

outside Malta with a view to being re-exported, if the

vehicle is in Malta as a result of a hire contract which

ended in Malta;

(b) be returned by an employee of the car-hire firm to the

country where it was originally hired, even if the

employee resides in Malta.

(4) The documents relating to the registration, insurance and

bringing into Malta of a vehicle temporarily brought in under this

rule shall be kept with the vehicle when it is in use and shall be

produced at the request of an authorised inspecting officer.

(5) Nothing in this rule shall be construed as exempting a

person temporarily importing or bringing a motor vehicle into

Malta from compliance with any legal requirement, obligation,

restriction or prohibition.

(1) An exemption under article 18(1)(b) of the Act, for a

period not exceeding twelve consecutive months, shall be given to

an M1 motor vehicle or cycle brought in or imported for private use

by a person whose normal residence is outside Malta and who

comes to Malta under a work contract of a duration of at least

twelve months.

(2) The said exemption shall be granted on application made to

the Authority on the prescribed form which shall be presented

within thirty days from the vehicle’s arrival in Malta together

with -

(a) a copy of the contract of employment,

(b) evidence of the vehicle’s arrival in Malta,

(c) a copy of the vehicle’s registration certificate,

(d) a valid vehicle insurance certificate, and

(e) an administrative fee of thirty-five euro (€35).

(2A) A vehicle in respect of which an application is made under

the provisions of this rule shall be registered in the name of the

applicant and for the purposes of the provisions of this rule, the

applicant shall provide evidence of ownership in terms of the

provisions of rule 4(5)(b).

(3) Where an exemption is granted under this rule, the

Authority shall provisionally license that motor vehicle for use on

the road for a period which expires upon the expiration of the

exemption and a circulation licence fee shall be payable to the

Authority in respect of twelve months where the vehicle is not

covered by a valid road licence issued in the country of registration

and, where it is covered by such licence in respect of the remaining

months or part thereof immediately following the expiry of that

licence, at the rates applicable in the Fourth Schedule to the Act to

motor vehicles registered before the 1st January, 2009.

(4) Upon the payment of the licence fee by the applicant, the

Authority shall issue to that person a licence disc to be fixed on the

windscre en o f the vehicle in t erms of the R egist ra tion and

Licensing of Motor Vehicles Regulations.

(5) The documents relating to the registration and insurance of

the vehicle and to the exemption granted shall be kept with the

vehicle when it is in use and shall be produced at the request of an

authorised inspecting officer.

(6) An exemption granted under this rule shall cease to have

effect upon the expiration of the period fixed by this rule or before

the expiration of that period if the vehicle is found to being used in

breach of the conditions under which the exemption was granted.

(7) The motor vehicle shall not be sold, given away, disposed

of, hired out or lent unless the vehicle registration tax is paid

thereon in accordance with the provisions of the First or Second

Schedule to the Act.

(1) An exemption under article 18(1)(c) of the Act shall

also be granted to an M1 motor vehicle or cycle which is

temporarily imported or brought into Malta by a student for his

own private use where such student, although having his normal

residence outside Malta, is residing in Malta for the sole purpose of

pursuing his studies in an educational institution authorized as such

by the education authorities

Provided the vehicle is registered in the name of the

student

Provided further the student does not engage in full-time

employment during the period of temporary exemption

Provided further that the vehicle shall continue to satisfy the

provisions of rule 5(2) while it is so exempt.

(2) The request for the exemption under sub-rule (1) shall only

be made if the vehicle is to remain in Malta for more than seven

months from the date of its arrival. It shall be made to the Authority

on the prescribed form which shall be presented together with

evidence of the vehicle’s arrival in Malta, a copy of the vehicle’s

registration certificate, a copy of a valid insurance certificate, a

confirmation from the institution concerned and an administrative

fee of fifteen euro (€15) before the expiry of the seven-month

period from the date of its arrival in Malta.

(3) The exemption shall be issued for a period of twelve

months, and shall be renewed on application by the student every

year thereafter, provided that a copy of a valid insurance policy and

con firmati on fro m t he educati onal instit utio n concerned i s

submitted to the Authority, together with the relevant circulation

licence fee for that year.

(4) Where an exemption is granted, the Authority shall

provisionally license that motor vehicle for use on the road and a

circulation licence fee shall be payable to the Authority at the rates

applicable in the Fourth Schedule to the Act to motor vehicles

registered before the 1st January, 2009.

(1) An exemption under article 19(3)(c), (d) and (e) of the

Act shall be granted upon application to the Ministry responsible

for foreign affairs.

(2) When an exemption is given under this rule, the vehicle

shall be registered and licensed by the Authority in accordance

with the Registration and Licensing of Motor Vehicles Regulations,

pr o vi d e d t ha t t he o r ig i na l ap pr o v a l i s s u e d b y t he M i ni s t ry

responsible for foreign affairs is submitted to the Authority.

(1)

An application for relief under -

(a) the Exemptions/Subsidies Related to Motor Vehicles

for Persons with Disability Scheme, or

(b) the Exemptions/Subsidies Related to Motor Vehicles

for Philanthropic Organisations/Charitable Institutions

Scheme,

each established by an Order of the Minister responsible for

finance, shall be made, on the prescribed form, to the National

Commissions Persons with Disability in respect of an application

for relief under paragraph (a), and to the Ministry responsible for

finance in respect of an application for relief under paragraph (b).

(2) The application for relief under sub-rule (1)(a) shall be

accompanied by a certificate of disability issued by a doctor or

therapist of the National Commission Persons with Disability.

(3) Where an exemption or a relief is granted under this rule,

the vehicle shall be registered and licensed with the Authority in

accordance with the Registration and Licensing of Motor Vehicles

Regulations.

Exemptions or reliefs granted under rules 4 and 9 shall be

considered by a Board appointed by the Minister responsible for

finance.

A vehicle which has been exempted from the payment of

registration tax or which has been granted a relief under these rules

may only be sold in Malta if the motor vehicle registration tax to

which the exemption or relief relates is paid thereon in accordance

with the provisions of the First or Second Schedules to the Act.