B 1430
L.N. 220 of 2020
V ALUE ADDED TAX ACT
(CAP. 406)
Value Added Tax Act (Amendm ent of Third Schedule) 
Regulations, 2020
IN EXERCISE of the powers conf erred by article 75 of the Value
Added Tax Act, the Minister for Finance and Financial Services,  has
made the following regulations:-
Citation, scope 
and commencement.
Cap. 406.1. (1) The title of these regulations is Value Added Tax Act
(Amendment of Third Schedule) Regulations, 2020 and these
regulations shall be read and con strued as one with the Third S chedule
to the Value Added Tax Act, which  Third Schedule is hereinafter  in
these regulations referred to as "the Third Schedule".
(2) These regulations shall bri ng into force the provisions of
Article 2 of Council Directive (EU) 2017/2455 of the 5th December
2017 amending Directive 2006/112/ EC and Directive 2009/132/EC a s
regards certain value added tax obligations for supplies of services anddistance sales of goods and the provisions of Council Directive  (EU)
2019/1995 of 21
st November 2019 amending Directive 2006/112/EC
as regards provisions relating to distance sales of goods and c ertain
domestic supplies of goods.
(3) These regulations shall come into force on s uch date or date s
as the Minister for Finance and Financial Services, may by noti ce in the
Gazette, establish.
Amends item 1 
of Part One of 
the Third 
Schedule.2. Item 1 of Part One of the Third Schedule, shall be amended
as follows:
(a) paragraph (b) thereof, shall be substituted by the
following:
"(b) a supply of goods that are transported takes
place where the goods are at the time when the transport of
those goods begins:
Provided that:
(i) where the same goods are supplied
successively and those goods are dispatched ortransported from one (1)  Member State to another
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Member State directly from the first supplier to the
last customer in the chain, the dispatch or transport
shall be ascribed only to the supply made to theintermediary operator;
(ii) by way of derogation from sub-paragraph
(i), the dispatch or transport shall be ascribed only tothe supply of goods by the intermediary operator
when the intermediary operator has communicated to
his supplier the V AT identification number issued to
him by the Member State from which the goods are
dispatched or transported; and
(iii) for the purpose of this proviso,
"intermediary operator" means a supplier within thechain other than the first supplier in the chain whodispatches or transports the goods either himself or
through a third party acting on his behalf:
Provided further that where a taxable person is
deemed to have received and supplied goods in accordancewith item 12A of the Second Schedule, the dispatch or
transport of the goods shall be  ascribed to the supply made
by that taxable person;";
(b) in paragraph (c)  t h e r e o f ,  t h e  w o r d s  " t h e y  a r e
imported;" shall be substituted by the words "they are
imported."; and
(c) paragraph (d) thereof, shall be deleted.
Substitutes item 
4 of Part One of 
the Third 
Schedule.3. I t e m  4  o f  P a r t  O n e  o f  t h e  T h i r d  S c h e d u l e ,  s h a l l  b e
substituted by the following:
"Distance sales
4. (1) "Intra-Community distance sales of goods"
means supplies of goods dispatched or transported by or on
behalf of the supplier, including where the supplier intervenesindirectly in the transport or dispatch of the goods, from a
Member State other than that in which dispatch or transport of
the goods to the customer ends, where the following conditions
are met:
(a) the supply of goods is ca rried out for a taxable
person, or a non-taxable legal person, whose intra-Community acquisitions of goods are not subject to V AT
pursuant to Article 3(1) of C ouncil Directive 2006/112/EC,
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or for any other non-taxable person;
(b) the goods supplied are neither new means of
transport nor goods supplied afte r assembly or installation,
with or without a trial run, by or on behalf of the supplier.
(2) "Distance sales of goods imported from third
territories or third countries" means supplies of goods dispatched
or transported by or on behalf of the supplier, including where
the supplier intervenes  indirectly in the transport or dispatch  of
the goods, from a third territory or third country, to a custom er in
a Member State, where the f ollowing conditions are met:
(a) the supply of goods is carried out for a taxable
person, or a non-taxable legal person, whose intra-Community acquisitions of goods are not subject to V AT
pursuant to Article 3(1) of Council Directive 2006/112/EC,or for any other non-taxable person;
(b) the goods supplied are neither new means of
transport nor goods supplied afte r assembly or installation,
with or without a trial run, by or on behalf of the supplier.
(3) (a) The place of supply of intra-Community
distance sales of goods shall be deemed to be the place where t he
goods are located at the time whe n dispatch or transport of the
goods to the customer ends.
(b) The place of supply of distance sales of goods
imported from third territori es or third countries into a
Member State other than that i n which dispatch  or transport
of the goods to the customer e nds, shall be deemed to be
the place where the goods are located at the time when
dispatch or transport of the  goods to the customer ends.
(c) The place of supply of distance sales of goods
imported from third territories  or third countries into the
Member State in which dispatch  or transport of the goods to
the customer ends shall be deemed to be in that Member
State, provided that V AT on those goods shall be declared
under the special scheme in item 4 of Part Seven of theFourteenth Schedule or the  corresponding legislation of
any another Member State.
(4) Sub-item (3) shall not apply to supplies of second-
hand goods, works of art, collectors’ items or antiques, as
defined in item 1 of Part Two of  the Fourteenth Schedule, nor to
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supplies of second-hand means of  transport which do not qualify
as new means of transport, subject to V AT in accordance with th e
relevant special arrangements.
(5) Paragraph (a) of sub-item (3) shall not apply where
the following conditions are met:
(a) (i) the supplier is established or, in the
absence of an establishment, has his permanent address or
usually resides only in one (1) Member State; and
(ii) the goods are dispatched or transported to
any Member State other than the Member State
referred to in sub-paragraph (i); and
(iii) the total value, exclusive of V AT, of the
supplies referred to in sub- paragraph (ii), together
with the total value of the supplies of servicesreferred to in paragraph (b)  of sub-item (2) of item 10
of Part Two of this Schedule does not in the currentcalendar year exceed ten-thousand euro (€10,000) nordid it do so in the course of the preceding calendar
year.
(b) Where, during a calendar year, the threshold
referred to in sub-paragraph (iii) of paragraph (a) isexceeded, paragraph (a) of sub-item (3) shall apply as of
that time.
(c) The Commissioner shal l grant to those taxable
persons providing supplies eligible under paragraph (a) theright to opt for the place of  supply to be determined in
accordance with paragraph (a) of sub-item (3) and sub-item
(1) of item 10 of Part Two of t his Schedule, which shall in
any event cover two (2) calendar years:
Provided that, a valid ele ction for this purpose
shall be made by means of a notice in writing to theCommissioner on a form accep table to the Commissioner
specifying the date from which it shall apply, not being
earlier than thirty (30) days from the date on which it is
furnished.".
Substitutes item 
2 of Part Two of 
the Third Schedule.4. Item 2 of Part Two of the Third Schedule, shall be
substituted by the following:
"General rules
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2. Except as otherwise  provided in this Schedule:
(a) The place of supply of services to a taxable
person acting as such shall be the place where that person
has established his business. However, if those services are
provided to a fixed establishment of the taxable person
located in a place other than the place where he hasestablished his business, the place of supply of those
services shall be the place where that fixed establishment is
located. In the absence of such place of establishment or
fixed establishment, the place of supply of services shall be
the place where the taxable person who receives such
services has his permanent address or usually resides.
(b) The place of supply of services to a non-taxable
person shall be the place where the supplier has established
his business. However, if those services are provided from
a fixed establishment of the supplier located in a place
other than the place where he has established his business,the place of supply of those  services shall be the place
where that fixed establishment is located. In the absence ofsuch place of establishment or fixed establishment, theplace of supply of services sh all be the place where the
supplier has his permanent a ddress or usually resides.".
Substitutes item 
10 of Part Two 
of the Third 
Schedule.5. Item 10 of Part Two of the Third Schedule, shall be
substituted by the following:
"Supply of telecommunications, broadcasting and
electronic services to non-taxable persons
10. (1) The place of supply of  the following services to
a non-taxable person shall be the place where that person is
established, has his permanent address or usually resides:
(a) telecommunications services;
(b) radio and television broadcasting services;
(c) electronically supplied services, in particular
services relating to website s supply, web-hosting, distance
maintenance of programmes and equipment, supply of
software and updating thereof, supply of images, text and
information, and making availa ble of databases, supply of
music, films and games, including games of chance and
gambling games, and of political, cultural, artistic,
sporting, scientific and entertainment broadcasts and
events, and supply of distance teaching.
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Where the supplier of a service and the customer
communicate via electronic mail, that shall not of itself mean
that the service supplied is a n electronically supplied service .
(2) Sub-item (1) shall not apply where the following
conditions are met:
(a) the supplier is established or, in the absence of
an establishment, has his pe rmanent address or usually
resides only in one (1) Member State; and
(b) services are supplied to non-taxable persons
who are established, or have their permanent address orusually reside in any Member State other than the MemberState referred to in paragraph (a); and
(c) the total value, exclusive of V AT, of the
supplies referred to in paragraph (b), together with the total
value of the supplies referred to sub-paragraph (ii) of
paragraph (a) of sub-item (5) of item 4 of Part One of this
Schedule does not in the current calendar year exceed ten-thousand euro (€10,000) nor did it do so in the course of the
preceding calendar year.
(3) Where, during a calendar year, the threshold referred
to in paragraph (c) of sub-item (2) is exceeded, sub-item (1) s hall
apply as of that time.
(4) The Commissioner shall grant to those taxable
persons providing supplies eligible under sub-item (2) the righ t
to opt for the place of supply to be determined in accordance
with sub-item (1) and paragraph (a) of sub-item (3) of item 4 o f
Part One of this Schedule, which shall in any event cover two ( 2)
calendar years:
Provided that, a valid elect ion for this purpose shall
be made by means of a  notice in writing to the Commissioner on
a form acceptable to the Commissioner specifying the date fromwhich it shall apply, not being earlier than thirty (30) days f rom
the date on which it is furnished.".
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Ippubblikat mid-Dipartiment tal-Informazzjoni (doi.gov.mt) — Valletta — Published by the Department of Information (doi.gov.mt) — Valletta
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