VALUE ADDED TAX (COLLECTION OF SUPPLEMENTARY INFORMATION) REGULATIONS

VALUE ADDED TAX

(COLLECTION OF SUPPLEMENTARY INFORMATION)

SUBSIDIARY LEGISLATION 406.08

VALUE ADDED TAX (COLLECTION OF

SUPPLEMENTARY INFORMATION)

REGULATIONS

1st May, 2004

LEGAL NOTICE 131 of 2004, as amended by Legal Notices 426 of 2007

and 105 of 2008.

The title of these regulations is the Value Added Tax

(Collection of Supplementary Information) Regulations.

In these regulations, unless the context otherwise requires

"agent" means a cargo clearance and forwarding agent as defined

in article 2 of the Cargo Clearance and Transport Act;

"arrivals" refer to the entry of goods into Malta from another

Member State of the European Community;

"community goods" means goods

(i)

entirely obtained in the customs territory of the

Community, without the addition of goods from

non-member countries or from territories which

are not part of the customs territory of the

Community;

(ii) deriving from countries or territories not

forming part of the customs territory of the

Community which have been released for free

circulation in a Member State;

(iii) obtained in the customs territory of the

Community either from the goods referred to

exclusively in paragraph (ii) hereof or from the

goods referred to in paragraphs (i) and (ii);

"dispatch" refers to the shipment of goods from Malta to a

destination in a Member State of the European Community;

"goods" means both Community and non-Community goods;

"non-Community goods" means goods other than those defined

as "Community goods". Without prejudice to agreements concluded

by the European Community with non-member countries for the

implementation of the Community transit arrangements, goods

which, while fulfilling the conditions for being considered as

"Community goods" are reintroduced into the customs territory of

the Community after export therefrom are also considered as non-

Community goods;

"trading of goods between Member States" means any movement

of goods from one Member State to another.

VALUE ADDED TAX

(COLLECTION OF SUPPLEMENTARY INFORMATION)

(1) A system for the collection of supplementary

information is hereby being established and shall compile all

statistics relating to the trading of goods between Malta and other

Member States.

(2) All persons who trade in Community goods between Malta

and the other Member States shall be required to submit

supplementary information relating to the goods being traded as

may, from time to time, be required.

(3) All Community goods traded between Malta and the other

Member States shall be subject to the submission of supplementary

information as required by these regulations

Provided that goods shall be considered as moving between

Malta and the other Member States even if in so doing they cross

the external frontier of the Community and whether or not they

subsequently enter the territory of a non-Member State.

(4) The supplementary information required for the purposes of

the system of collection of supplementary information shall be

stipulated by the Commissioner in an apposite format and shall be

submitted by the persons responsible, or their authorised agent, in

periodic declarations.

(1) Any person responsible for providing the information

required by these regulations may transfer the task of providing the

information to an agent, but such transfer shall in no way reduce

the responsibility of the said person.

(2) Any person who transfers the task of providing the

information to an agent in accordance with subregulation (1) shall

provide such agent with all the information necessary to fulfil his

obligations as the person responsible.

(3) The Commissioner may require any person responsible for

providing information to notify him that he has transferred such

task to an agent who shall be identified by him to the

Commissioner.

Any person who is not required to account for VAT in

connection with a given movement of goods in terms of article 13

of the Value Added Tax Act and in terms of the Sixth Schedule to

the said Act, and all persons who qualify for one of the special

schemes provided for by the said Act, legal persons not liable to

account for VAT and persons liable to account who carry out only

transactions not entitling them to any deduction of VAT and who

are not required to submit any tax declaration, shall be exempt from

the provisions of these regulations

Provided that any person not required to provide

information from the start of the year but whose cumulative value

of trade for either arrivals or dispatches reaches the threshold in a

calendar month shall submit the information in respect of that and

subsequent months

Provided further that if in the opinion of the Commissioner

the quality of the information is being affected adversely through

the use of the application of the provisions of this article, the

VALUE ADDED TAX

(COLLECTION OF SUPPLEMENTARY INFORMATION)

Commissioner may, after consultation with the Director General of

the National Statistics Office, vary or waive its application in

respect of all or certain persons.

The reference period for the submission of the periodic

declaration shall be such period as may, from time to time, be

established by the Commissioner by notice in the Gazette.

Any person who is not exempt from the provisions of

regulation 5 but whose trading activities fall below an annual

threshold of ninety-three thousand and one hundred and seventy

euro (€93,170) for arrivals and, or ninety-three thousand and one

hundred and seventy euro (€93,170) for dispatches shall only be

requested to supply that information as may be required by notice

in the Gazette using a simplified format

Provided that any person whose trading activities exceed

the above-mentioned threshold at any time during the calendar year

shall be required to provide information as from the month of the

year in which the threshold was exceeded

Provided further that if in the opinion of the Commissioner

the quality of the information is being affected adversely through

the use of the simplified format, the Commissioner may after

consultation with the Director General of the National Statistics

Office vary or waive its application in respect of all or certain

persons.

Any person who fails to submit a periodic declaration as

provided for by these regulations and as required by regulation 6

shall be liable to the penalties provided for in article 76 of the

Value Added Tax Act.

The Minister responsible for finance may, as required,

d e s i g n a t e c o l l e c t i o n o ff i c e s f or t h e p u r p o s e s o f c o l l e c t i n g

supplementary information required by these regulations.