CHAPTER 406 VALUE ADDED TAX ACT - CFR

1 VALUE ADDED TAX [CAP. 406. 1 CHAPTER 406 VALUE ADDED TAX ACTTo make provision for the imposition of a VALUE ADDED tax in place of an excise tax systemon imports, products and services. 1st January, 1999 ACT XXIII of 1998, as amended by Legal Notices 17, 21, 22, 28, 29, 30, 60, 89, 116,142, 198, 199, 200, 201, 217, 223 of 1999, 11, 271, 272, 273, 274 of 2000, 23, 24, 25,93, 94 of 2001; Act VI of 2001; Legal Notices 149, 171, 233, 234, 235 of 2001, 180, 205,387, 388, 389 of 2002, 39, 375, 384 of 2003, 149 of 2004; Acts X of 2003, II, III of 2004;Legal Notices 250, 376, 436, 489, 520 of 2004; Act XIII of 2005; Legal Notices 171, 181,186, 334 of 2006; Acts IV, XIX, XXXII of 2007; Legal Notices 121, 122, 123, 124, 426,443, 444, 445, 446, 447 and 448 of 2007, 105, 335 of 2008, 34, 86, 132, 133, 137, 234,235 of 2009; Acts II of 2009, I of 2010; Legal Notices 71, 72, 73, 286, 425, 444, 499,523, 532, 533, 534, 535, 536 of 2010, 61, 234, 379, 380, 381, 382, 499, 500 of 2011; ActsIV, V, XXII of 2011; Legal Notices 38, 39, 89, 185, 418, 419, 420, 421, 422, 423, 424,425, 426 of 2012.]

2 Act V of 2012; Legal Notices 64, 140, 141, 142 of 2013; Acts III, XIV of2013; Legal Notices 236, 345, 422 of 2013, Acts XII, XLIII of 2014; Legal Notices 480 of2014, 64, 65, 227, 231 of 2015; Act XIII of 2015; Legal Notices 43, 247, 383 of 2016; ActXV of 2016, Legal Notice 347, 348 of 2017 and 9 of OF ACTA rticlesPart IPreliminary1 - 3 Part IIScope of the Tax4 - 9 Part IIIR egistration and tax period10 - 17 Part IVDetermination and Payment of the Tax18 - 26 Part VReturns, Assessments, Penalties and Appeals27 - 47 Part VIRecords and Information48 - 56 Part VIIS pecial Cases57 Part VIIIC ollection, Security and Refunds58 - 71 Part IXMiscellaneous72 - 75 Part XOffences and Punishments76 - 84 Part XITransitional Provisions85 - 86 SCHEDULESFIRST SCHEDULEA ctivities of Public AuthoritiesSECOND SCHEDULES upplies, Intra-Community Acquisitions andImportationsTHIRD SCHEDULEP lace of Supplies, Intra-Community Acquisitions andImportationsFOURTH SCHEDULETime of Supplies, Intra-Community Acquisitions andImportationsFIFTH SCHEDULEE xemptions 2 CAP.

3 406.] VALUE ADDED TAX Part One - Exempt with credit suppliesPart Two - Exempt without credit suppliesPart Three - Exempt intra-community acquisitionsPart Four - Exempt importationsPart Five - DefinitionsSIXTH SCHEDULET hresholdsPart One - Small undertakingsPart Two - Acquisitions thresholdPart Three - Distance sales thresholdSEVENTH SCHEDULET axable ValueEIGHTH SCHEDULERate of TaxNINTH SCHEDULEA ppeals to the Administrative Review TribunalTENTH SCHEDULED eductionsELEVENTH SCHEDULER ecordsTWELFTH SCHEDULETax InvoiceTHIRTEENTH SCHEDULEF iscal Receipt FOURTEENTH SCHEDULES pecial CasesPart One - Professional servicesPart Two - Second-hand goods, works of art,collectors items and antiquesPart Three - Supplies by retailers and by civil,mechanical and electrical engineering contractorsPart Four - Travel agentsPart Five - Tax in dangerPart Six - Investment goldPart Seven - Special scheme for electronicallysupplied servicesFIFTEENTH SCHEDULET erritories of the CommunitySIXTEENTH SCHEDULEE xcise goods VALUE ADDED TAX [CAP.

4 406. 3 PART IPreliminaryShort title. short title of this Act is the VALUE ADDED Tax by:X. by:XXII ; 89 of 2012;XII. (1) In this Act, unless the context otherwise requires -"accession date" means the 1st May 2004;"accommodation", when provided on a bed and breakfast, halfboard or full board basis, includes the provision of any servicesnormally falling within the meaning of accommodation on such abasis and included in the price therefor;"acquisitions threshold" means the threshold determined inaccordance with Part Two of the Sixth Schedule;"administrative penalty" means a penalty imposed in virtue ofthe provisions of Part V;"assessment" means an assessment that may be made in virtue ofthe provisions of Part V but does not include a provisionalassessment;"Commissioner" means the Commissioner for Revenueappointed in terms of the provisions of article 3(1) or any publicofficer or other person to whom a delegation has been made inaccordance with subarticle (2) or (3) of that article while he isacting within the terms of that delegation.

5 "Community" means the territories of the Member States asdefined in the Fifteenth Schedule;"customs duty suspension regime" has the meaning assigned to itin the Fourth Schedule;"distance sale" has the meaning assigned to it in the ThirdSchedule;"economic activity" has the meaning assigned to it in article 5;"established" shall be construed in accordance with theprovisions of subarticles (2) and (3) of this article;"excise goods" means the goods defined in the SixteenthSchedule;"exempt supply", "exempt acquisition" or "exempt importation"means a supply, an intra-community acquisition or an importationwhich is exempt in terms of article 9;"exempt with credit supply" is a supply to which Part One of theFifth Schedule applies;"exempt without credit supply" is a supply to which Part Two ofthe Fifth Schedule applies;"goods" means any asset the supply of which is treated as asupply of goods in terms of the Second Schedule;"goods forming part of an economic activity" means goods,including fixed assets, used by a taxable person for the purpose ofhis economic activity; 4 CAP.

6 406.] VALUE ADDED TAX "importation" has the meaning assigned to it in the SecondSchedule, and "imported" shall be construed accordingly;"importer" with respect to imported goods means the person inwhose name the goods are at the time when tax on the importationbecomes chargeable in accordance with the Fourth Schedule;"input tax" has the meaning assigned to it in article 22(2) and"input tax credit" has the meaning assigned to it in article 22(3);"intra-community acquisition" has the meaning assigned to it inthe Second Schedule;"intra-community supply" means a supply of goods that aretransported by or on behalf of the supplier or the person to whomthe supply is made from a Member State to another Member State;"Malta" has the meaning assigned to it by the Constitution andincludes the continental shelf thereof;"Member State" has the meaning assigned to it in the FifteenthSchedule;"Minister" means the Minister responsible for finance;"new means of transport" means a means of transport to whichparagraph (a) hereof applies and which meets the conditions ofparagraph (b) hereof -(a) this paragraph applies to a vessel exceeding metresin length, an aircraft the takeoff weight of whichexceeds 1,550 kilograms or a motorised land vehiclethe capacity of which exceeds 48 cubic centimetres orthe power of which exceeds kilowatts, intended forthe transport of passengers or goods except for:(i) a sea-going vessel which is used for navigationon the high seas and carrying passengers forreward, or for the purpose of commercial,industrial or fishing activities, or for rescue orassistance at sea, or for inshore fishing but doesnot include ships provisions; and(ii) aircraft used by airlines operating for rewardchiefly on international routes.

7 (b) the conditions that must be met for the purpose of thisdefinition are:(i) in the case of a land vehicle, that it was suppliednot more than six months after the date of firstentry into service or has not travelled more than6,000 kilometres;(ii) in the case of sea vessels, that it was suppliednot more than three months after the date of firstentry into service or has not sailed for more than100 hours;(iii) in the case of an aircraft, that it was supplied notmore than three months after the date of firstentry into service or has not flown for more than40 hours; VALUE ADDED TAX [CAP. 406. 5"non-taxable legal person" means a person, other than a physicalperson, who is not a taxable person;"non-taxable person" means a person who is not a taxableperson;''notice of payment'' means the notice required to be furnished interms of article 30(2);"output tax" has the meaning assigned to it in article 22(1);"person" includes a physical person, a body of persons, a publicauthority and any entity capable of carrying on an economicactivity;"provisional assessment" means a provisional assessment madein terms of article 32;Cap.]

8 363."public authority" means the Government of Malta, a departmentor division of the Government of Malta, a local council set up inaccordance with the Local Councils Act, an authority vested withdistinct personality set up by an Act of Parliament or a corporationconstituted by an Act of Parliament;"self-supply" means the use or application of goods forming partof the economic activity of a person that does not consist of thedelivery of goods to or the performance of services for anotherperson but which is treated as a supply of goods or a supply ofservices in terms of the Second Schedule;"supply" means an operation which is treated as a supply ofgoods or a supply of services in terms of the Second Schedule;"tax" means the VALUE ADDED tax chargeable under this Act butdoes not include an administrative penalty or interest;"tax invoice" means an invoice or a document serving as invoicethat contains the information required by the Twelfth Schedule;"tax period" means a period determined in accordance witharticle 17;"tax return" means the return required to be furnished in terms ofarticle 27;"taxable acquisition" means an intra-community acquisition onwhich tax is chargeable in terms of article 4 and which is notexempt from tax in terms of article 9;"taxable importation" means an importation on which tax ischargeable in terms of article 4 and which is not exempt from tax interms of article 9;"taxable person" has the meaning assigned to it in article 5;"taxable supply" means a supply on which tax is chargeable interms of article 4 and which is not exempt from tax in terms ofarticle 9;"taxable VALUE " means the VALUE of a supply, of an intra-community acquisition or of an importation determined inaccordance with the Seventh Schedule.

9 "third territory" means any territory which is not a Member 6 CAP. 406.] VALUE ADDED TAX State;"transport" and "transported" include dispatch and dispatched;Cap. 490."Tribunal" means the Administrative Review Tribunalestablished by article 5 of the Administrative Justice Act;" VALUE ADDED tax identification number" means an individualnumber assigned by the competent authority of a Member State thathas a prefix in accordance with ISO International Standard 3166 -alpha 2, and "a person identified for VALUE ADDED tax purposes in aMember State" means a person to whom such an individual numberhas been assigned and who, for the purpose of a supply,communicates that number to the supplier.(2) The provisions of this subarticle and of subarticle (3) shallapply for the purpose of determining the place where a person isestablished:(a) a taxable person is established in a country if he hasestablished his economic activity or has a fixed placeof establishment from which he carries on thateconomic activity in that country or, being a physicalperson who has not fixed his economic activity or whodoes not have a fixed place of establishment in anycountry, has a permanent address or usually resides inthat country;(b) a non-taxable legal person is established in a country ifit is constituted under the law of that country or if ithas a fixed place in that country from which it carrieson its activities;(c) a non-taxable physical person is established in thecountry where he has a permanent address or usuallyresides.

10 (3) Where, in terms of subarticle (2), a taxable person falls tobe treated as established in Malta and in another country withrespect to the same transaction, and where it is necessary for theproper application of any provision of this Act that he should betreated as established only in one of those two countries, he shall,to the extent that it is so necessary, be treated as established only inthe country with which that transaction is more closely by:XXII (1) The administration of the Act is vested in theCommissioner for Revenue, hereinafter in this Act referred to as"the Commissioner", who shall be a public officer appointed assuch by the Prime Minister.(2) The Commissioner may delegate to any public officer anyof the rights, duties, powers and other functions vested in him,conferred to him or imposed upon him by this Act.(3) The Commissioner may delegate to any other person suchof the rights, duties, powers and other functions vested in him,conferred to him or imposed upon him by this Act as the Ministermay direct in writing:Provided that the Commissioner may not delegate those VALUE ADDED TAX [CAP.]