REFUND OF VALUE ADDED TAX IN TERMS OF DIPLOMATIC AND CONSULAR ARRANGEMENTS REGULATIONS

REFUND OF VALUE ADDED TAX IN TERMS

OF DIPLOMATIC AND CONSULAR ARRANGEMENTS

SUBSIDIARY LEGISLATION 406.06

REFUND OF VALUE ADDED TAX IN TERMS OF

DIPLOMATIC AND CONSULAR ARRANGEMENTS

REGULATIONS

1st July, 2014 *

LEGAL NOTICE 206 of 2014, as amended by Legal Notices 121 and 186

of 2015.

(1) The title of these regulations is the Refund of Value

Added Tax in terms of Diplomatic and Consular Arrangements

Regulations.

(2) These regulations provide for the refund of value added tax

under certain conditions to diplomatic missions and international

organisations as well as their resident officials.

[Regulation 3(a)]

Terms and Conditions

1. Refund of the tax shall only be made where the amount on

a single fiscal receipt for the supply of a good or service listed in

this Schedule is not less than one hundred and fifty euro (€150)

inclusive of the tax.

2. (1) A refund of the tax shall be made in respect of the

categories of goods listed in paragraph 3 of this Schedule where

such goods are wholly used or intended to be used for furnishing

and equipping the diplomatic mission or the international

REFUND OF VALUE ADDED TAX IN TERMS

OF DIPLOMATIC AND CONSULAR ARRANGEMENTS

organisation premises as well as the official residence.

(2) A refund of the tax shall be made in respect of services

listed in paragraph 4 of this Schedule where such services are

solely rendered for the benefit of the diplomatic mission, the

international organisation, or the official residence.

3. Goods in the following categories qualify for a refund of

the tax in terms of these regulations

(a)

furniture, fittings and finishes;

(b)

works of art and decorative items;

(c)

textile material and textile items including flags;

(d)

household appliances and similar equipment;

(e)

equipment for physical exercises;

(f)

gardening tools, equipment and garden accessories;

(g)

equipment and materials used for cleaning and/or

maintenance;

(h) office equipment, stationery and printed matter;

(i) electronic, audio and visual equipment;

(j) photographic and optical equipment;

(k) equipment and fittings for security surveillance and

monitoring;

(l) accessories and equipment for use on official motor

vehicles;

(m) fuel;

(n) alcohol and tobacco products.

4. Services in the following categories qualify for a refund of

the tax in terms of these regulations

(a) hotel accommodation and restaurant services incurred

on official business;

(b) services contracted for the repair and maintenance of

goods acquired under paragraph 3;

(c) leasing or hiring of office equipment and machinery;

(d) services contracted for the organisation of conferences

and conventions;

(e) leasing or hiring of motor vehicles;

(f) hire of catering equipment, tableware, and like items,

necessary for official functions on the premises;

(g) cleaning, waste disposal and pest control services;

(h) services contracted for the alteration, modification or

improvements including structural additions to

qualifying premises;

(i) legal, auditing, accounting and IT services;

(j) utilities (telecommunications, electricity and supply of

water by a person other than a public authority);

(k) security guard services;

REFUND OF VALUE ADDED TAX IN TERMS

OF DIPLOMATIC AND CONSULAR ARRANGEMENTS

(l)

rent incurred on immovable property which is used as

qualifying premises where such rent was subject to the

tax.

In these regulations unless the context otherwise requires

"Act" means the Value Added Tax Act;

"consular post" has the meaning assigned to it in the Diplomatic

Immunities and Privileges Act;

"diplomatic mission" means an embassy or a high commission or

any other entity as may be approved as a diplomatic entity by the

Minister for Foreign Affairs;

"fiscal receipt" means a fiscal receipt issued in terms of the

Thirteenth Schedule to the Act;

"international organisation" means an organisation, institute,

agency, a regional office or branch of an international organisation

or any other entity, whose status in Malta is governed by a host

country agreement;

"official residence" means the residence of an Ambassador, a

High Commissioner or a Head of an international organisation;

"resident official" means an official residing in Malta who is

accredited either to a diplomatic mission, a consular post or an

international organisation and who is in possession of a current

identity card issued by the Ministry for Foreign Affairs and who

falls within the categories listed in the relative provisions of the

Diplomatic Immunities and Privileges Act, but excludes an official

who is a Maltese national or a person recruited locally who is

ordinarily resident in Malta;

"supplies of goods and services" means goods and services

purchased locally from taxable persons registered under article 10

of the Act and in respect of which a fiscal receipt has been issued;

"tax" means the value added tax chargeable on supplies of goods

and services in terms of the provisions of the Act.

*see regulation 1(3) of these Regulations, as originally promulgated.

REFUND OF VALUE ADDED TAX IN TERMS

OF DIPLOMATIC AND CONSULAR ARRANGEMENTS

[Regulation 3(b)]

Terms and Conditions

1. (1) Refund of the tax shall only be made where the amount

on a single fiscal receipt for the supply of a good or service listed

in this Schedule is not less than one hundred and fifty euro (€150)

inclusive of the tax.

(2) The aggregate refund of tax payable in a calendar year

shall not exceed the following amounts

(a) 1,000 euro for a Head of Mission;

(b) 850 euro for a member of diplomatic staff;

(c) 700 euro for administration and technical staff

Provided that tax payable on accommodation shall be

unlimited and shall not form part of the aggregate refund.

2. (1) A refund of the tax shall be made in respect of the

categories of goods listed in paragraph 3 of this Schedule where

such goods are wholly used or intended to be used by a resident

official.

(2) A refund of the tax shall be made in respect of the

categories of services in paragraph 4 of this Schedule where such

services are solely rendered to the resident official.

3. Goods in the following categories qualify for a refund of

the tax in terms of these regulations

(a) furniture, fittings and finishes;

(b) textile material and textile items;

(c) household appliances and similar equipment;

(d) electronic, audio and visual equipment;

(e) photographic and optical equipment;

(f) printed matter;

(g) accessories and equipment for use on motor vehicles;

(h) fuel;

(i) alcohol and tobacco products.

4. Services in the following categories qualify for a refund of

the tax in terms of these regulations

(a) accommodation costs;

(b) utilities (telecommunications, electricity and supply of

water by a person other than a public authority).

Subject to the other provisions of these regulations, an

application for a refund of the tax may be made by

(a) diplomatic missions, consular posts and international

organizations under the terms and conditions of

Schedule I; and

(b) resident officials under the terms and conditions of

Schedule II

Provided that

(i)

the supply of motor vehicles to diplomatic

missions, consular posts and international

organizations and to resident officials shall be

considered as exempt with credit supplies listed

in Part One of the Fifth Schedule to the Act; and

(ii) the intra-Community acquisition of motor

vehicles by diplomatic missions, consular posts

and international organizations and by resident

officials shall be considered as exempt

acquisitions listed in Part Three of the Fifth

Schedule to the Act

Provided further that, where there is a bilateral agreement

of reciprocity between Malta and any other country which regulates

the refund or exemption of the tax, then the provisions of that

agreement shall prevail over these regulations.

An application for refund of the tax in terms of regulation 3

shall be furnished to the Ministry for Foreign Affairs and shall not

be valid unless it is complete, correct and accompanied by the

relative fiscal receipts.

The provisions of regulation 3 shall also apply to

international organisations approved by the Ministry for Foreign

Affairs

Provided that where a host country agreement which

regulates the status of an international organisation in Malta

already contains a provision for the refund or exemption of the tax,

then that provision shall prevail.