VALUE ADDED TAX                [CAP. 406.  1
CHAPTER 406
V ALUE ADDED TAX ACT
To make provision for the imposition of a value added tax in place of an excise tax system
on 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; Acts
IV, V, XXII  of 2011; Legal Notices 38, 39, 89, 185, 418, 419, 420, 421, 422, 423, 424,
425, 426 of 2012; Act V of 2012 ; Legal Notices  64, 140, 141, 142 of 2013; Acts III, XIV of
2013; Legal Notices  236, 345, 422 of 2013, Acts XII, XLIII  of 2014; Legal Notices 480 of
2014 , 64, 65, 227,  231 of 2015; Act XIII of 2015 ; Legal Notices 43, 247, 383 of 2016; Act
XV of 2016 , Legal Notice 347, 348 of 2017, 9 of 2018 ,163 of 2018 , 297 of 2018 , 298 of 2018
299 of 2018 ,434 of 2018  and VII of 2019. and Legal Notices 155 of 2019 and 302 of 2019 .
.
ARRANGEMENT OF ACT
Articles
Part I Preliminary 1 - 3Part II Scope of the Tax 4 - 9Part III Registration and tax period 10 - 17Part IV Determination and Payment of the Tax 18 - 26Part V Returns, Assessments, Penalties and Appeals 27 - 47Part VI Records and Information 48 - 56Part VII Special Cases 57Part VIII Collection, Security and Refunds 58 - 71Part IX Miscellaneous 72 - 75Part X Offences and Punishments 76 - 84Part XI Transitional Provisions 85 - 86
SCHEDULES
FIRST SCHEDULE Activities of Public Authorities
SECOND SCHEDULE Supplies, Intra-Community Acquisitions and
Importations
THIRD SCHEDULE Place of Supplies, Intra-Community Acquisitions andImportations
FOURTH SCHEDULE Time of Supplies, Intra-Community Acquisitions and
Importations
FIFTH SCHEDULE Exemptions
 2     CAP. 406. ]               VALUE ADDED TAX 
Part One - Exempt with credit supplies
Part Two - Exempt without credit suppliesPart Three - Exempt intra-community acquisitionsPart Four - Exempt importationsPart Five - Definitions
SIXTH SCHEDULE Thresholds
Part One - Small undertakingsPart Two - Acquisitions thresholdPart Three - Distance sales threshold
SEVENTH SCHEDULE Taxable Value
EIGHTH SCHEDULE Rate of Tax
NINTH SCHEDULE Appeals to the Administrative Review Tribunal
TENTH SCHEDULE Deductions
ELEVENTH SCHEDULE Records
TWELFTH SCHEDULE Tax Invoice
THIRTEENTH SCHEDULE Fiscal Receipt 
FOURTEENTH SCHEDULE Special CasesPart One - Professional servicesPart Two - Second-hand goods, works of art,
collectors’ items and antiques
Part Three - Supplies by retailers and by civil,
mechanical and electrical engineering contractors
Part Four - Travel agentsPart Five - Tax in dangerPart Six - Investment goldPart Seven - Special scheme for electronically
supplied services
FIFTEENTH SCHEDULE Territories of the Community
SIXTEENTH SCHEDULE Excise goods
              VALUE ADDED TAX                [CAP. 406.  3
PART I
Preliminary
Short title. 1. The short title of this Act is the Value Added Tax Act.
Interpretation.
Substituted by:X. 2003.3.
Amended by:
XXII 2011.5;L.N. 89 of 2012;XII. 2014.77.2.(1) In this Act, unless the context otherwise requires -
"accession date" means the 1st May 2004;"accommodation", when provided on a bed and breakfast, half
board or full board basis, includes the provision of any servic es
normally falling within the meaning of accommodation on such abasis and included in the price therefor;
"acquisitions threshold" means the threshold determined in
accordance with Part Two of the Sixth Schedule;
"administrative penalty" means a penalty imposed in virtue of
the provisions of Part V;
"assessment" means an assessment that may be made in virtue of
the provisions of Part V but does not include a provisionalassessment;
"Commissioner" means the Commissioner for Revenue
appointed in terms of the provisions of article 3(1) or any pub lic
officer or other person to whom a delegation has been made inaccordance with subarticle (2) or (3) of that article while he is
acting within the terms of that delegation;
"Community" means the territories of the Member States as
defined in the Fifteenth Schedule;
"customs duty suspension regime" has the meaning assigned to it
in the Fourth Schedule;
"distance sale" has the meaning assigned to it in the Third
Schedule;
"economic activity" has the meaning assigned to it in article 5 ;
"established" shall be construed in accordance with the
provisions of subarticles (2) and (3) of this article;
"excise goods" means the goods defined in the Sixteenth
Schedule;
"exempt supply", "exempt acquisition" or "exempt importation"
means a supply, an intra-community acquisition or an importatio n
which is exempt in terms of article 9;
"exempt with credit supply" is a supply to which Part One of th e
Fifth Schedule applies;
"exempt without credit supply" is a supply to which Part Two of
the Fifth Schedule applies;
"goods" means any asset the supply of which is treated as a
supply 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 purpos e of
his economic activity;
 4     CAP. 406. ]               VALUE ADDED TAX 
"importation" has the meaning assigned to it in the Second
Schedule, and "imported" shall be construed accordingly;
"importer" with respect to imported goods means the person in
whose name the goods are at the time when tax on the importatio n
becomes 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" h as the meaning assigned to it in
the Second Schedule;
"intra-community supply" means a supply of goods that are
transported by or on behalf of the supplier or the person to wh om
the supply is made from a Member State to another Member State;
"Malta" has the meaning assigned to it by the Constitution and
includes the continental shelf thereof;
"Member State" has the meaning assigned to it in the Fifteenth
Schedule;
"Minister" means the Minister responsible for finance;"new means of transport" means a means of transport to which
paragraph ( a) hereof applies and which meets the conditions of
paragraph ( b) hereof -
(a) this paragraph applies to a vessel exceeding 7.5 metres
in 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 7.2 kilowatts, intended forthe transport of passengers or goods except for:
(i) a sea-going vessel which is used for navigation
on 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 reward
chiefly on international routes;
(b) the conditions that must be met for the purpose of this
definition are:
(i) in the case of a land vehicle, that it was supplied
not 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 supplied
not 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 not
more than three months after the date of firstentry into service or has not flown for more than
40 hours;
              VALUE ADDED TAX                [CAP. 406.  5
"non-taxable legal person" means a person, other than a physica l
person, who is not a taxable person;
"non-taxable person" means a person who is not a taxable
person;
''notice of payment'' means the notice required to be furnished  in
terms 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 publi c
authority and any entity capable of carrying on an economicactivity;
"provisional assessment" means a provisional assessment made
in terms of article 32;
Cap. 363."public authority" means the Government of Malta, a department
or division of the Government of Malta, a local council set up in
accordance with the Local Government Act, an authority vested
with distinct personality set up by an Act of Parliament or acorporation constituted by an Act of Parliament;
"self-supply" means the use or application of goods forming par t
of the economic activity of a person that does not consist of t he
delivery 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 of
goods or a supply of services in terms of the Second Schedule;
"tax" means the value added tax chargeable under this Act but
does not include an administrative penalty or interest;
"tax invoice" means an invoice or a document serving as invoice
that contains the information required by the Twelfth Schedule;
"tax period" means a period determined in accordance with
article 17;
"tax return" means the return required to be furnished in terms  of
article 27;
"taxable acquisition" means an intra-community acquisition on
which 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 is
chargeable in terms of article 4 and which is not exempt from t ax in
terms of article 9;
"taxable person" has the meaning assigned to it in article 5;"taxable supply" means a supply on which tax is chargeable in
terms 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;
"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 Tribunal
established by article 5 of the Administrative Justice Act;
"value added tax identification number" means an individual
number assigned by the competent authority of a Member State th at
has a prefix in accordance with ISO International Standard 3166  -
alpha 2, and "a person identified for value added tax purposes in a
Member 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) shal l
apply for the purpose of determining the place where a person i s
established:
(a) a taxable person is established in a country if he has
established 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 if
it 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 the
country where he has a permanent address or usuallyresides.
(3) Where, in terms of subarticle (2), a taxable person falls to
be treated as established in Malta and in another country withrespect to the same transaction, and where it is necessary for the
proper application of any provision of this Act that he should be
treated as established only in one of those two countries, he s hall,
to the extent that it is so necessary, be treated as establishe d only in
the country with which that transaction is more closely connect ed.
Administration.
Amended by:
XXII 2011.5.3.(1) The administration of the Act is vested in the
Commissioner for Revenue, hereinafter in this Act referred to a s
"the Commissioner", who shall be a public officer appointed assuch by the Prime Minister.
(2) The Commissioner may delegate to any public officer any
of 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 such
of the rights, duties, powers and other functions vested in him ,
conferred to him or imposed upon him by this Act as the Ministe r
may direct in writing:
Provided that the Commissioner may not delegate those
              VALUE ADDED TAX                [CAP. 406.  7
rights, duties, powers and other functions vested in him if tha t
person is not considered by the Commissioner as a fit and prope r
person to exercise those rights, duties, powers and other funct ions
and that such person shall be subject to the obligations impose d by
article 56.
PART II
Scope of the Tax
Charge to tax.
Substituted by:X. 2003.4.
Amended by:
IV . 2011.73.4. Subject to the other provisions of this Act there shall be
charged, levied and collected on account of the Government a va lue
added tax -
(a) on every supply of goods or of services that takes
place in Malta made on or after 1 January 1999 forconsideration by a taxable person acting as such otherthan a supply made by a person registered under article
11 or by a person who is exempted from registrationunder article 11, as the Minister may by regulationsprescribe;
(b) on every intra-community acquisition made for
consideration on or after the accession date in Maltawhere -
(i) it is an acquisition of goods, other than new
means of transport and excise goods, made by ataxable person acting as such who is registeredunder article 10 or 12 or a non-taxable legalperson who is registered under article 12pursuant to an intra-community supply that -
(A) takes place outside Malta; and(B) is made by a taxable person acting as such
who is not eligible, with respect to thatsupply, for an exemption under a specialscheme for small undertakings in force in aMember State; or
(ii) it is an acquisition of new means of transport
made by any person; or
(iii) it is an acquisition of excise goods made by a
taxable person or a non-taxable legal person;
(c) on every importation that takes place in Malta on or
after 1 January 1999.
Taxable person and 
economic activity.
Amended by:
X. 2003.5;III. 2013.72.5.(1) "Taxable person" means a person who carries on an
economic activity, whatever the purpose or result of that activ ity.
(2) Saving the provisions of subarticle (3) an economic activity
means an activity carried on by a person, other than an employe e
acting as such, and consisting of any one or more of the follow ing -
(a) any trade or business;
(b) any profession or vocation and the provision of any
personal services;
 8     CAP. 406. ]               VALUE ADDED TAX 
(c) the exploitation of tangible or intangible property for
the purpose of obtaining income therefrom on acontinuing basis;
(d) the provision by a club, association or organisation
(for a subscription or other consideration) of thefacilities or advantages available to its members;
(e) the admission, for a consideration, of persons to any
premises.
(3) The activities of a public authority acting in the exercise of
the functions assigned to it by law shall not be deemed to be a n
economic activity except as and to the extent provided in the F irst
Schedule and except where such treatment as non-taxable personswould lead to significant distortions in competition.
(4) A person who does not carry on an economic activity within
the meaning of the foregoing provisions but who, from time totime, makes an intra-community supply of new means of transportshall, for the purpose of any such supply, be treated as a taxa ble
person.
(5) For the purpose of this article "employee" means an
individual bound to an employer by a contract of employment or by
other legal ties creating the relationship of employer and empl oyee
as regards working conditions, remuneration and the employee’sliability and includes the holder of an office.
(6) After consultation with the V AT Committee set up in
accordance with Article 398 of 
Council Directive 2006/1 12/EC , the
Minister may make regulations to regard as a single taxable per son
any persons established in Malta who, while legally independent ,
are closely bound to one another by financial, economic andorganisational links.
Operations 
constituting supplies, intra-community acquisitions and importations.
Substituted by:
X. 2003.6.6. The provisions of the Second Schedule shall apply for the
purpose of determining any quest ion as to whether an operation is
to be treated as:
(a) a supply of goods, a supply of services, an intra-
community acquisition or an importation;
(b) made for consideration;
(c) made by a taxable person acting as such.
Place of supplies, 
intra-community acquisitions and importations.Substituted by:X. 2003.7.7. The provisions of the Third Schedule shall apply for the
purpose of determining the place where a supply or an intra-community acquisition or an importation takes place.
Date of the 
chargeable event and date when tax becomes chargeable.Substituted by:X. 2003.8.8.The date when a chargeable event takes place and the date
when tax thereon becomes chargeable shall be determined inaccordance with the provisions of the Fourth Schedule.
              VALUE ADDED TAX                [CAP. 406.  9
Exemptions.
Substituted by:X. 2003.9.9.(1) There shall be exempt from tax -
(a) the supplies to which Part One or Part Two of the Fifth
Schedule applies;
(b) the intra-community acquisitions to which Part Three
of the Fifth Schedule applies;
(c) the importations to which Part Four of the Fifth
Schedule applies.
Cap. 337.(2) Any provision contained in or under any law empowering
the Minister to grant an exemption from import duties on theimportation of goods chargeable under the 
Import Duties Act shall
be construed as empowering the Minister to grant, in the samecircumstances, in the same manner, and subject to the sameconditions and limitations provided for in any such provision, an
exemption from tax chargeable under this Act on the importation  of
the said goods.
PART III
Registration and Tax Period
Registration of 
taxable persons.Substituted by:X. 2003.10.
Amended by:
II. 2009.37;V . 21012.59.10.(1)(a) A taxable person established in Malta who is not
registered under this article or under article 11 shallapply to be registered under this article by not laterthan thirty days from the date on which he makes asupply for consideration in Malta other than an exemptwithout credit supply.
(b) A taxable person established in Malta who is not
registered under this article or under article 11 and whosupplies services within the territory of another MemberState for which the tax is payable solely by the recipientshall apply to be registered under this article by not laterthan thirty days from the date on which he makes asupply for consideration.
(2) Paragraph (a) of subarticle (1) does not apply to a person who
is treated as a taxable person only by reason of the fact that he
makes, from time to time, an intra-community supply of new mean s
of transport.
(3) A taxable person established in Malta who is not registered
under this article shall, if so requested by the Commissioner, apply
to be registered under this article within thirty days from the  date
on which he is served with a notice containing such a request.
(4) A taxable person who is not established in Malta, who is
not registered under this article and who is liable for the pay ment of
the tax on a supply in terms of article 20 shall apply to be re gistered
under this article by not later than thirty days from the date of that
supply.
(5) Any person who is not a person registered under this article
and who carries on or intends to carry on an economic activity may
apply to be registered under this article.
(6) The Commissioner shall register under this article:
 10    CAP. 406. ]               VALUE ADDED TAX 
(a) every person who in his opinion is liable to apply for
registration in terms of subarticles (1), (3) or (4);
(b) any person who has made an application in terms of
subarticle (5) if the Commissioner is satisfied that thatperson carries on or intends to carry on an economicactivity and -
(i) is likely to be entitled, if he becomes so
registered, to claim input tax credits under theprovisions of article 22; or
(ii) has made or is likely to make an intra-
community acquisition in Malta for the purposeof operations carried out outside Malta;
(c) any person whose registration under article 11 is
cancelled in accordance with subarticle (5) thereof.
(7) ( Deleted by 
Act V . 2012.59 ).
(8) Without prejudice to article 11(3), the Commissioner may
at any time cancel the registration of a person under this arti cle if
he has reason to believe that that person would not, if he were  not
so registered, be required to apply for registration or entitle d to be
registered under this article.
(9) Nothing in this article shall prevent or shall be deemed to
prevent the Commissioner from enforcing any of the provisions o f
Council Regulation (EU) No. 904/2010  of the 7th October 2010, or
of any other Council Regulation (EU) which substitutes or amend s
the said Council Regulation (EU).
Registration of 
taxable persons carrying on a small undertaking.Substituted by:X. 2003.10.11. (1) When a taxable person established in Malta who is not
registered under this article car ries on an economic activity w hich
qualifies as a small undertaking in terms of the provisions of the
Part One of the Sixth Schedule he may apply to the Commissionerto be registered under this article.
(2) The Commissioner shall register under this article any
person who has made an application under subarticle (1) if he i s
satisfied that that person is eligible for such registration.
(3) When a person is, immediately before his registration under
this article, registered under article 10 the Commissioner shal l,
upon the registration of that person under this article, cancel  the
registration under article 10.
(4) A person registered under this article -
(a) may, at any time, apply to the Commissioner for the
cancellation of his registration under this article;
(b) shall, within thirty days from the date on which his
economic activity does no longer qualify as a smallundertaking in terms of the relevant provisions of PartOne of the Sixth Schedule, apply to the Commissionerfor the cancellation of that registration.
(5) When a taxable person makes an application for the
cancellation of his registration under this article or where th e
Commissioner has reason to believe that the economic activity o f a
              VALUE ADDED TAX                [CAP. 406.  1 1
person does no longer qualify as a small undertaking in terms o f the
relevant provisions of Part One of the Sixth Schedule, theCommissioner shall cancel the registration of that person under  this
article and register that person under article 10.
(6) Without prejudice to subarticle (5), the Commissioner may
at any time cancel the registration of a person under this arti cle if
he has reason to believe that that person does not carry on or has
ceased to carry on an economic ac tivity or that it is not likel y that
his economic activity will include any activities other than ex empt
without credit supplies.
Registration of 
persons who make intra-community acquisitions.Substituted by:X. 2003.10.
Amended by:
II. 2009.38.12. (1) When a taxable person who is not registered under
article 10 or a non-taxable legal person intends to make an int ra-
community acquisition in Malta and, on account of that acquisit ion,
the value of his intra-community acquisitions in Malta during t he
calendar year in which he makes that acquisition exceeds theacquisitions threshold he shall apply to be registered under th is
article, unless he is already so registered, by not later than the date
of that acquisition.
(2) For the purpose of subarticle (1), a taxable person who is n ot
registered or liable to be registered under article 10 or a non-taxable
legal person may, unless he is registered under this article, a t any
time apply to be registered under this article.
(3) A taxable person established in Malta, other than a taxable
person registered under article 10, who receives services for w hich he
is liable to pay the tax pursuant to article 20(2), shall apply  to be
registered under this article by not later than the date on whi ch he
receives a service.
(4) The Commissioner shall register under this article any
person who in his opinion is liable to apply for such registrat ion in
terms of subarticles (1) or (3) or who makes an application forregistration when he is so entitled in terms of subarticle (2).
(5) When a person is liable to apply for registration in terms o f
subarticle (1) on account of an intra-community acquisition, th e
registration of that person under this article shall be deemed to be
effective as from the date of that acquisition.
(6) A person registered under this article in the circumstances
mentioned in subarticle (1) may apply for the cancellation of h is
registration at any time after the expiration of the calendar y ear
following that in which he was so registered if the value of hi s
intra-community acquisitions has not exceeded the acquisitionsthreshold in the year in which he makes such an application or in
the preceding calendar year.
(7) A person registered under this article upon an application i n
accordance with subarticle (2) may apply for the cancellation o f his
registration at any time after the expiration of two consecutiv e
calendar years following the year in which he was so registered  if
the value of his intra-community acquisitions has not exceeded the
acquisitions threshold in the year in which he makes such anapplication or in the preceding calendar year.
 12    CAP. 406. ]               VALUE ADDED TAX 
(8) A person registered under this article in the circumstances
mentioned in subarticle (3) may apply for the cancellation of h is
registration at any time if he no longer receives supplies of s ervices for
which he is liable to pay the tax pursuant to article 20(2).
(9) The value of intra-community acquisitions for the purpose
of this article shall be determined in accordance with Part Two  of
the Sixth Schedule.
(10) The Commissioner shall cancel the registration of a person
under this article -
(a) if that person is registered under article 10, in which
case the cancellation shall take effect from theeffective date of the said registration:
   Provided that if that person ceases to be registered
under article 10 on a date when he would not havebeen entitled to apply for the cancellation of hisregistration under this article had he remainedregistered under this article, the Commissioner shall,on that date, register that person again under thisarticle; or
(b) if that person is entitled to have his registration under
this article cancelled and applies for such a cancellation
in accordance with subarticle (6) or (7) or (8), in which
case the cancellation shall take effect on 1 January ofthe year in which the application is made.
General provisions 
with respect to registrations.Substituted by:X. 2003.10.
Amended by:
V . 2012.60;III. 2013.73.13. (1) An application for registration or for the cancellation
of a registration under this Par t shall be made on such form as  the
Minister may by regulations prescribe and shall contain theparticulars specified in that form.
(2) The Commissioner shall allocate a registration number to
every person registered under article 10, 11 or 12 and shall de liver
a registration certificate to every such person containing theregistration number, the article under which the registration w as
made, the effective date of the registration and such otherparticulars as the Commissioner may deem appropriate. TheCommissioner may change the registration number of any person a s
he may consider necessary and shall notify that person of any s uch
change.
(3) A registration number allocated under article 10 or 12 shall
have the prefix "MT" in accordance with ISO InternationalStandard 3166 - alpha 2. A registration number allocated underarticle 11 shall not have such a prefix and shall not be treate d for
any purposes of this Act as a value added tax identification nu mber.
(4) When the registration of a person under article 10, 11 or 12
is cancelled the Commissioner shall serve a notice on that pers on
indicating the effective date of the cancellation.
(5) The cancellation of the registration of a person shall not
relieve that person from any liability incurred under this Act in
virtue of anything done before the date of the cancellation or from
the obligation to make an application for a fresh registration in any
              VALUE ADDED TAX                [CAP. 406.  1 3
of the circumstances under which he is required to apply for
registration in terms of any provision of this Part.
(6) A number of persons regarded as a single taxable person in
terms of article 5(6) in accordance with regulations as may beprescribed shall be registered as one person.
(7) The Minister may by regulations exempt any person or
class of persons from any of the provisions of this Part and ma y by
such regulations make such an exemption subject to suchconditions and limitations as may be prescribed.
(8) Every person registered under articles 10, 11 or 12 shall,
within fifteen days from the happening of any of the followingevents, notify that event in writing to the Commissioner:
(a) a change in circumstances that affects the particulars
declared in the application for his registration underarticles 10, 11 or 12 or otherwise furnished to theCommissioner in connection with his registration orappearing in the registration certificate;
(b) the cessation or transfer of his economic activity or
part thereof;
(c) such other event as may be prescribed.
Further 
classification of registered persons.Substituted by:X. 2003.10.14. Without prejudice to the other provisions of this Part the
Commissioner may classify persons registered under this Part byreference to the description or sector of their activities and such
other matters as he may deem necessary or appropriate and anyclassification so made shall unless the contrary is proved bedeemed to be a correct classification for the purpose of determ ining
the applicability or otherwise of any provision of this Act to which
the classification may be relevant.
Notice relating to 
certain operations.Substituted by:X. 2003.10.
Amended by:
III. 2004. 114;XIII. 2005.41.15. (1) Any person who is not registered under article 10 or 12
and who intends to make an intra-community acquisition of a newmeans of transport shall give notice thereof to the Commissione r by
not later than the date of that acquisition.
(2) Any person who is not registered under article 10 and who
intends to make an intra-community supply of a new means oftransport shall give notice thereof to the Commissioner by not later
than the date of that supply.
(3) Any taxable person or non-taxable legal person who is not
registered under article 10 or 12 and who intends to make an in tra-
community acquisition of excise goods shall give notice thereof  to
the Commissioner by not later than the date of that acquisition .
(4) A notice to the Commissioner under this article shall be
given with respect to each transaction to which this article ap plies
on such form as the Minister may by regulations prescribe.
Information by 
persons who are not registered under this Part.Substituted by:X. 2003.10.16. Every taxable person or non-taxable legal person who is
not registered under this Part shall supply any such informatio n
relating to the date of the commencement or cessation of hisactivity, the nature of that activity and the transactions made  in the
course or furtherance thereof as may be prescribed.
 14    CAP. 406. ]               VALUE ADDED TAX 
Tax period.
Substituted by:X. 2003.10.17. (1) The Commissioner shall allocate a tax period to every
person registered under article 10.
(2) Except as otherwise provided in this article a tax period
means a period of three calendar months commencing on the firstday immediately following the end of the preceding tax period.
(3) The Minister may by regulations prescribe in respect of
such class or classes of persons as may be specified in the sai d
regulations a tax period of more or less than three months.
(4) The first tax period for a person shall commence on the date
that person is registered under article 10 and end on such date  as
may be determined by the Commissioner.
(5) When, during a tax period of a person, his registration
under article 10 is cancelled, that period shall end on the las t day of
the month in which that cancellation is made and shall be the l ast
tax period of that person, saving the allocation of a new tax p eriod
to that person should he be subsequently registered again underarticle 10.
(6) The Commissioner may by means of a notice served on a
person registered under article 10 in any particular case vary any
tax period for that person in such manner as may be specified i n
that notice.
PART IV
Determination and Payment of the Tax
Taxable value.
Substituted by:X. 2003.10.18. The taxable value of supplies, intra-community
acquisitions and importations shall be established in the manne r
laid down in the Seventh Schedule.
Rate of tax.
Substituted by:X. 2003.10.
Amended by:
II. 2004.66;III. 2004.114.19. (1) The tax chargeable on every taxable supply, other than
a supply referred to in subarticle (2), shall be at the rate of  eighteen
per cent of the taxable value of the supply.
(2) The tax chargeable on every taxable supply specified in the
Eighth Schedule shall be at such rate or rates, not being highe r than
eighteen per cent or lower than five per cent of the taxable va lue of
the supply, as specified in that Schedule.
(3) The tax chargeable on every taxable intra-community
acquisition of goods shall be that applicable to the supply of like
goods in terms of the foregoing provisions of this article.
(4) The tax chargeable on every taxable importation, other than
an importation referred to in subarticle (5), shall be at the r ate of
eighteen per cent of the taxable value of the importation.
(5) The tax chargeable on every taxable importation as may be
specified in the Eighth Schedule shall be at such rate or rates , not
being higher than eighteen per cent or lower than five per cent  of
the taxable value of the importation, as may specified in thatSchedule.
              VALUE ADDED TAX                [CAP. 406.  1 5
Persons liable for 
the payment of the tax.Substituted by:X. 2003.10.
Amended by:
II. 2009.39.20. (1) Saving the other provisions of this article -
(a) the payment of the tax on a taxable supply shall be a
liability of the person who makes the supply;
(b) the payment of the tax on a taxable acquisition shall be
a liability of the person who makes the acquisition;
(c) the payment of the tax on a taxable importation shall
be a liability of the importer.
(2) The payment of the tax on a taxable supply made by a
person who is not established in Malta and who is not registere d
under article 10 to a person established in Malta shall be a li ability
of the person to whom the supply is made if the supply is -
(a) a supply of goods made to a taxable person registered
under article 10 or 12 or to a non-taxable legal personregistered under article 12 who is identified as such ona tax invoice for that supply, where:
(i) the person who supplies the goods is identified
for value added tax purposes in another MemberState and has made an exempt intra-communityacquisition of those goods in Malta for thepurpose of that supply; and
(ii) the goods acquired under the said intra-
community acquisition were transported from aMember State, other than the State where thetaxable person who made the supply is soidentified, to the person to whom the supply ismade; and
(iii) the supplier designates the person to whom the
supply is made as the person liable to pay the taxon that supply; or
(b) a supply of services made to a taxable person or a non-
taxable legal person identified for purposes of Value
Added Tax in terms of item 2(1) in Part Two of the Third
Schedule; or
(c) a supply of goods or of services, other than a supply to
which paragraph (a) or (b) refers, made to a taxableperson registered under article 10 or article 12, or to anon-taxable legal person identified for purposes of Value
Added Tax:
Provided that, for the purposes of this subarticle, a taxable
person who has a fixed establishment within Malta shall beregarded as a taxable person who is not established within Malt a
when the following conditions are met:
(i) he makes a taxable supply of goods or of
services within Malta;
(ii) an establishment which the supplier has within
Malta does not intervene in that supply.
(3) When a person mentions the tax on an invoice or a
document serving as an invoice for a supply he shall, unless he  is
the person liable for the tax in terms of the foregoing provisi ons of
 16    CAP. 406. ]               VALUE ADDED TAX 
this article, be jointly and severally liable for the tax on th at supply
together with that person.
(4) A person who is a representative of another person in terms
of article 66 shall, within the limits set out in that article,  be jointly
and severally liable for the tax together with the person of wh om he
is a representative.
Payment of the tax.
Substituted by:X. 2003.10.
Amended by:
XIII. 2005.42;II. 2009.40;V . 2011.28;L.N. 89 of 2012;V . 2012.61;XIV . 2013.2.21. (1) Every person registered under article 10 shall pay to
the Commissioner by not later than the date on which he is requ ired
to furnish a tax return for a tax period an amount equivalent t o the
excess, if any, of the output tax for that period over the dedu ctions
that he has a right to make in accordance with article 23: Prov ided
that that person may set off any excess tax credit for a previo us tax
period, that has not been refunded or become refundable in term s of
article 24, against any tax payable in accordance with this sub -
article.
(2) Every person liable for the payment of the tax in
accordance with article 20(1) or (3), other than tax payable inaccordance with subarticle (1) of this article, shall pay that tax to
the Commissioner by not later than the fifteenth day of the mon th
following that during which it becomes chargeable.
(3) Every person liable for the payment of the tax in
accordance with article 20(2), other than tax payable in accord ance
with subarticle (1) of this article, shall pay that tax to theCommissioner by not later than the fifteenth day of the secondmonth next following either the date of invoice or of the monthduring which the consignment or the supply of services is recei ved,
as the case may be, whichever is the earlier.
(4) Interest shall be due on any tax which is not paid by the
date on which it becomes payable at a rate which the Minister s hall,
from time to time, by regulations prescribe for each month or p art
thereof during which that tax remains unpaid or at such other rate as
may be prescribed:
Provided that the running of interest on any amount of tax
due which is the merit of an appeal before the Tribunal, shall be
suspended for the period that exceeds two months from the date of
the last sitting of the Tribunal relating to such appeal and th e date
when a decision is given by the Tribunal or a final judgement i s
delivered by the Court of Appeal (Inferior Jurisdiction), as th e case
may be:
Cap. 395.Provided further that the Minister may by regulations
prescribe conditions under which part or all the interest incur red
under this subarticle may be remitted. Such regulations may als o
make provision for the remission of any interest due under the
Value Added Tax Act, 1994, and under the Customs and Excise Tax
Act.
(4A) Notwithstanding the other provisions of this article, no
interest shall be due where a return required to be furnished u nder
article 27 is furnished in an electronic format through theestablished web portal designated for the purpose by theCommissioner, together with payment of the tax due on the retur n,
              VALUE ADDED TAX                [CAP. 406.  1 7
not later than seven days following the date on which the tax
becomes payable under the provisions of this Act.
(4B)  Notwithstanding the other provisions of this article,
interest in a particular tax period shall cease to accrue where  the
total amount of payments appropriated to that tax period in ter ms of
article 67 is equivalent to or exceeds the amount of tax payabl e for
that tax period.
(5) The payment of the tax shall be accompanied by the
delivery to the Commissioner of the respective form as the Mini ster
may by regulations prescribe: Provided that tax on importationsshall be payable to the Comptroller of Customs on behalf of theCommissioner and shall be made at such place and be accompaniedby such forms as the Comptroller may direct.
Output tax, input 
tax and credit for input tax.Substituted by:X. 2003.10.
Amended by:
XLIII. 2014.2.22. (1) The output tax of a person registered under article 10
is the tax on supplies and on intra-community acquisitions thatbecomes chargeable during that period and for which that person  is
liable in terms of article 20(1) and (2).
(2) The input tax of a taxable person is the tax that becomes
chargeable on -
(a) supplies made to him,
(b) intra-community acquisitions made by him, and
(c) importations made by him,
to the extent that the supplies so made and the goods so acquir ed or
imported have been or are intended to be wholly used by him in the
course or furtherance of his economic activity.
(3) Subject to subarticle (5) -
(a) the input tax credit for a tax period of a person
registered under article 10 is an amount equivalent toso much of the input tax of that person that becomeschargeable during that period as is attributable tosupplies made or intended to be made by him, beingsupplies to which subarticle (4) applies;
(b) the input tax credit for the last tax period of a person
whose registration under article 10 has been cancelledis an amount equivalent to so much of the input tax ofthat person that becomes chargeable during that periodas is attributable to supplies made by him up to the endof that period, being supplies to which subarticle (4)applies.
(4) This subarticle applies to:
(a) taxable supplies;
(b) exempt with credit supplies;
(c) supplies which take place outside Malta which would,
if made in Malta, be treated under the provisions ofthis Act as taxable supplies or as exempt with creditsupplies or supplies taxed outside Malta which if madein Malta would have been treated as exempt without
 18    CAP. 406. ]               VALUE ADDED TAX 
credit supplies;
(d) operations exempt from V AT, relating to:
Cap. 403.
Cap. 487.(i) supplies by persons licensed under the Insurance
Business Act or the Insurance Distribution Act,
of insurance and reinsurance services, includingrelated transactions, in respect of which they areso licensed;
(ii) the granting and negotiation of credit and the
management of credit by the person granting it;
(iii) the negotiation of or any dealings in credit
guarantees or any other security for money andthe management of credit guarantees by theperson who is granting the credit;
(iv) transactions, including negotiation, concerning
deposit and current accounts, payments,transfers, debts, cheques and other negotiableinstruments, but excluding debt collecting andfactoring;
(v) transactions, including negotiation, concerning
currency, bank notes and coins normally used aslegal tender;
(vi) transactions, including negotiation, excluding
management and safekeeping, in shares, interestin companies or associations, debentures andother securities, excluding documentsestablishing title to goods, 
when the customer is established outside the Community or when
those operations are directly linked with goods to be exported to a
country outside the Community.
(5) The right to an input tax credit, the amount of the credit a nd
the manner in which input tax is attributable to supplies are s ubject
to the conditions, limitations, revisions and adjustments set o ut in
the Tenth Schedule.
Deductions.
Substituted by:X. 2003.10.23. Every person registered under article 10 who furnishes a
tax return for a tax period shall have the right to deduct from  the
output tax for that period -
(a) the input tax credit for that period;
(b) any other deductions to which he may be entitled for
that period in accordance with the Tenth Schedule.
Refund of excess 
credit to persons registered under article 10.Substituted by:X. 2003.10.
Amended by:
XIII. 2005.43;I. 2010.67.24. (1) Saving the other provisions of this Act, when the
deductions allowable to a person registered under article 10 fo r a
tax period exceed the output tax of that person for that period  the
excess shall be an excess credit of that person for that period .
(2) The amount of excess credit of a person registered under
article 10 for a tax period shall, to the extent that it is not  set off
against any amount due by that person to the Commissioner inaccordance with article 21(1), be a refund payable to that pers on by
not later than five months from the expiration of the time allo wed
              VALUE ADDED TAX                [CAP. 406.  1 9
for the furnishing of the tax return for that tax period or fro m the
day on which the said return has been furnished to theCommissioner, whichever is the later:
Cap. 372.Provided that where a person to whom a refund is payable
in terms of this subarticle has, by the date the refund claim i s made,
failed to submit a return of income in respect of the year ofassessment 1999 or any subsequent years of assessment by the da te
required to be submitted in terms of the provisions of the Inco me
Tax Management Act and such failure persists until the date suc h
refund becomes payable, any such refund shall not be paid to su ch
person and shall be withheld by the Commissioner until such tim e
as the said return of income is submitted; and provided further  that
notwithstanding any other provisions of this Act, no interest s hall
be due by the Commissioner in respect of the period during whic h
the said refund was withheld on account of failure to submit areturn of income for the purposes of the Income Tax Management
Act.
(3) Interest shall be due to a person to whom a refund is due in
accordance with this article at the rate specified in or prescr ibed in
terms of article 21(4) from the date by which the refund is pay able
in accordance with this article until the date when it is paid or when
a cheque or draft for the payment thereof is given or posted to  that
person by the Commissioner:
Provided that no interest shall be due for any period during
which such person fails to produce information and, ordocumentation as may be requested by the Commissioner, for theverification of the amount claimed.
(4) For the purpose of any such verifications as he may
consider necessary to ascertain the amount refundable, theCommissioner may, by notice in writing to the person to whom arefund is due, extend the time limit referred to in subarticle (2) by
not more than twelve months: Provided that the running of inter est
on the said refund shall not be meanwhile suspended.
Refunds to persons 
not registered under article 10.Substituted by:X. 2003.10.25. (1) A person who is not registered or liable to be
registered under article 10 but who is treated as a taxable per son by
reason of the fact that he makes an exempt supply of new means of
transport may claim a refund of the tax charged on the supply t o
him or the intra-community acquisition or importation by him ofthat new means of transport: Provided that the refund shall notexceed the tax that would be chargeable if the supply by him of  the
new means of transport in question were a taxable supply.
(2) A taxable person who is not registered or liable to be
registered under article 10 and who is not established in Malta  but
is established in another Member State may claim a refund of hi s
input tax.
(3) A taxable person who is not registered or liable to be
registered under article 10 and who is not established in theCommunity may claim a refund of his input tax if, in terms of t he
laws of the country in which he is established, a taxable perso n
established in Malta would be entitled to a comparable benefit with
 20    CAP. 406. ]               VALUE ADDED TAX 
respect to value added tax or similar taxes levied in that coun try.
(4) When goods transported from a third territory are imported
into Malta by a non-taxable legal person, and when the place ofarrival of the goods transported is a Member State other than M alta,
the importer may claim a refund of the tax on the importation o f
those goods if he establishes that his acquisition of those goo ds was
subject to value added tax in that other Member State.
Claim for refund 
under article 25.Substituted by:X. 2003.10.26. A claim for a refund referred to in article 25 shall be made
on such form as the Minister may by regulations prescribe and s hall
be made within such time, be accompanied by such documents andinformation and be subject to such limitations and conditions a s
may be prescribed.
PART V
Returns, Assessments, Penalties and Appeals
Tax returns.
Amended by:
X. 2003.11;V . 2012.62;XII. 2014.78.27. (1) Every person registered under article 10 shall furnish
the Commissioner with a tax return for every tax period by not later
than the fifteenth day of the second month following the monthduring which that tax period ends.
(2) Every person whose registration under article 10 is
cancelled shall furnish the Commissioner with a tax return rela ting
to the last tax period within thirty days from the date on whic h he is
served with a notice referred to in article 13(4) or within suc h
longer period as may be specified in the said notice: Provided that
this subarticle does not apply when the registration under arti cle 10
is cancelled in the circumstances mentioned in article 11(3).
(3) A tax return furnished by a person registered under article
10 shall contain a declaration of the output tax, the input tax  and
any other declarations and particulars for that tax period that  are
required under this Act and shall be furnished either on such f orm
as the Minister may by regulations prescribe or in an electroni c
format through the established web portal designated for thepurpose by the Commissioner:
Provided that the Minister may by regulations prescribe
conditions whereby a tax return shall only be furnished in anelectronic format.
(4) A tax return shall not be deemed to have been furnished
unless it is full and complete in all material aspects.
Adjustments to tax 
returns.Substituted by:X. 2003.12.28. (1) Subject to subarticle (2), a person registered under
article 10 who has made an incorrect declaration in a tax retur n
furnished to the Commissioner for a tax period may correct thedeclaration by the delivery of such form as the Minister may byregulations prescribe. The provisions of article 27(4) with res pect
to tax returns shall apply mutatis mutandis to the delivery of the
said form.
(2) An incorrect declaration in a tax return may be corrected by
means of an adjustment in a subsequent tax return without the n eed
for the delivery of a form as required by subarticle (1) to the  extent
              VALUE ADDED TAX                [CAP. 406.  2 1
allowed by and in the manner provided in the Eleventh Schedule,
and when a correction has been so made the tax return shall not  be
deemed, with respect to the matters so corrected, to have conta ined
any understatement or overstatement for the purpose of article37(2).
Presumption as to 
declarations in tax returns.
Amended by:
X. 2003.13.29. When a person registered under article 10 has furnished the
Commissioner with a tax return for a tax period, the output tax  and
the deductions of that person for that period shall, except asprovided in article 36, be deemed to be the output tax and thedeductions declared in that return as adjusted by any adjustmen t
made in accordance with article 28: Provided that any suchadjustment shall not give rise to any reduction in the tax liab ility or
a tax credit or refund with respect to that tax period if it is  made
after the expiration of six years from the end of the year in w hich
that tax period ends.
Further 
declarations and statements.Substituted by:X. 2003.14.
Amended by:
II. 2009.41;I. 2010.68;V . 2012.63.30. (1) Every person registered under article 11 shall furnish
the Commissioner with periodical declarations relating to hiseconomic activity on such form and at such intervals as theMinister may by regulations prescribe.
(2) A person registered under article 12 shall furnish the
Commissioner with a notice of payment in terms of article 21(5)and declarations of his intra-community acquisitions and purcha ses
made for which the customer is liable for the payment of the ta x
pursuant to articles 20(2)( b) and 20(2)( c) on such form as the
Minister may be regulations prescribe. The provisions of articl e
27(4) with respect to tax returns shall apply mutatis mutandis to the
delivery of the said form.
(3) Every taxable person shall make a recapitulative statement
on such form and at such intervals as the Minister may byregulations prescribe for the following supplies:
(a) exempt intra-Community supplies of goods;
(b) services, other than services that are exempted from
the tax in the Member State where the transaction istaxable, and for which the recipient is liable to pay thetax;
made to taxable persons and non-taxable legal persons identifie d for
purposes of Value Added Tax.
(4) Every taxable person and non-taxable legal person shall
make such statements and shall produce such information anddocuments as may be reasonably required by the Commissioner forany purpose of this Act or as may be prescribed.
Power to make 
assessments where a return has not been furnished.
Amended by:
X. 2003.15.31. (1) When a person liable to furnish a tax return under
article 27 for a tax period does not furnish that return theCommissioner may make an assessment of the output tax and thedeductions of that person for that period and of the administra tive
penalty to which that person became liable and serve thatassessment on that person at any time after the expiration of t he
time allowed in terms of this Act for the furnishing of that re turn
and by not later than six years from the end of the said tax pe riod.
 22    CAP. 406. ]               VALUE ADDED TAX 
(2) An assessment made for a tax period of a person in virtue of
this article shall not relieve that person from his obligation to
furnish a tax return for that period and from his liability to any or to
further administrative penalties in accordance with the relevan t
provisions of this Act.
(3) When a tax return for a tax period is furnished after an
assessment has been made in accordance with subarticle (1) theCommissioner may cancel that assessment without prejudice to hi s
power to make further assessments in terms of the other provisi ons
of this Act.
(4) The cancellation of an assessment as aforesaid shall not
relieve the person who has been in default from his liability t o an
administrative penalty in accordance with the other provisions of
this Act.
Power to make 
assessments when a return has been furnished.
Amended by:
X. 2003.16;XIII. 2005.44;IV . 2011.74;XV . 2016.73.32. (1) When the Commissioner has reason to believe that a
tax return furnished by a person registered under article 10 fo r a tax
period does not contain a full and correct statement of the mat ters
required to be declared in that return he may make a provisiona l
assessment and serve that provisional assessment on that person  by
not later than six years from the end of the said tax period or  from
the date in which the tax return for that tax period is submitt ed,
whichever date is the later:
Provided that where the provisional assessment refers to the
adjustment relating to input tax on capital goods mentioned in the
Tenth Schedule, it shall be served by not later than six years from
the end of the adjustment period mentioned in the said schedule :
Provided further that, where a person makes a correction in
terms of article 28(1), the six year  period in which the Commis sioner
may make a provisional assessment as provided for in this sub-a rticle
shall start to run from the date on which the Commissioner rece ives
the request for the correction.
(2) A provisional assessment shall indicate clearly that it is a
provisional assessment and that it may be followed by anassessment within the time limits specified in subarticle (3). Save
as aforesaid a provisional assessment shall contain all theparticulars that are required to be given in an assessment and such
further particulars as the Commissioner may deem appropriate.
(3) After the expiration of a period of not less than thirty day s
and not more than six months from the service on a person of aprovisional assessment in respect of a tax period the Commissio ner
may make an assessment of the output tax and the deductions ofthat person for that period and of the administrative penalty t o
which that person became liable and serve that assessment on th at
person.
(4) The assessment made in virtue of subarticle (3) may not
contain any variations to the amounts specified in the relativeprovisional assessment except for -
(a) variations requested by or agreed to by the said person;
(b) variations consisting in the substitution for amounts
              VALUE ADDED TAX                [CAP. 406.  2 3
shown in the provisional assessment of amounts that
are equal or closer to those declared in the relative taxreturn.
(5) The Commissioner may, for the purposes of this Act, cancel
any provisional assessment raised by him, and issue a freshprovisional assessment, and such cancellation shall be withoutprejudice to the raising of a fresh provisional assessment requ ired
to be raised under this Act in replacement of the provisionalassessment so cancelled which shall be deemed not to have beenraised.
Such fresh provisional assessment has to be raised within
the time limit specified in subarticle (1).
Power to make 
assessments on other persons.
Amended by:
X. 2003.17.33. (1) When the Commissioner has reason to believe that a
person has become liable to an administrative penalty with resp ect
to anything made by him during any period in which he wasregistered under article 11 he may make an assessment of thatpenalty and serve that assessment on that person within six yea rs
from the end of that period.
(2) When a person who is not registered under article 10 and
who is liable to pay tax under this Act does not pay the tax wi thin
the time allowed in terms of this Act for the said payment, theCommissioner may make an assessment of the tax payable by thatperson.
(3) When a person who is not registered under article 10 or 11
becomes liable to an administrative penalty under this Act theCommissioner may make an assessment of the administrativepenalty to which that person became liable and serve thatassessment on that person at any time within six years from the  date
on which that administrative penalty was payable.
Assessments. 
Amended by:
X. 2003.18.34. (1) An assessment made in virtue of article 31, article 32
or article 33 shall be made on such form and contain such furth er
particulars as the Commissioner may deem appropriate or as maybe prescribed.
(2) An assessment may be made by reference to such
information, estimations or criteria as the Commissioner may, i n
his judgement, deem appropriate, and the Commissioner may alsoattribute the taxable value of taxable supplies, the output tax , the
deductions allowable and the tax payable or excess credit resul ting
in respect of a number of tax periods to a particular tax perio d,
provided that the person subject to the said aggregated assessm ent
shall not be made liable to more tax, administrative penalty orinterest than he would have been liable to had the amounts beenattributed to particular tax periods.
Additional and 
revised assessments.35. The power to make an assessment includes the power to
make an additional or a revised assessment within the same timelimits and subject to the same provisions applicable to an orig inal
assessment: provided that the Commissioner may not reopen anymatter that has been decided on appeal.
 24    CAP. 406. ]               VALUE ADDED TAX 
Presumption as to 
amounts shown in assessments.Substituted by:X. 2003.19.36. Where an assessment is made on any person any amount of
tax, deductions or administrative penalty assessed in thatassessment shall, except if and to the extent that the assessme nt is
cancelled or revised, be deemed for any of the purposes of this  Act
to be and to have always been the tax, the deductions and theadministrative penalty properly due and allowable with respect to
the tax period or the transactions to which that assessment ref ers.
Administrative 
penalty for incorrect tax return.
Amended by:
X. 2003.20;XIII. 2005.45;L.N. 426 of 2007;L.N. 105 of 2008;II. 2009.42.37. (1) Saving the provisions of subarticle (2), when a tax
return furnished by a person registered under article 10 for a tax
period contains an understatement of the output tax or anoverstatement of the deductions for that period, that personbecomes liable to an administrative penalty in an amountequivalent to twenty per cent of the total of -
(a) the excess, if any, of the correct amount of output tax
over the output tax as declared in the return; and
(b) the excess, if any, of the deductions as declared in the
return over the correct amount of the deductions.
(2) Where a person corrects an understatement or
overstatement as is referred to in subarticle (1) in accordance  with
the provisions of article 28(1) before he is served with a prov isional
assessment for that period, that person becomes liable to anadministrative penalty in an amount equivalent to ten per cent of
the total of -
(a) the excess, if any, of the correct amount of output tax
over the output tax as declared in the return; and
(b) the excess, if any, of the deductions as declared in the
return over the correct amount of the deductions.
(3) Where a tax return for a tax period furnished to the
Commissioner by a person registered under article 10 who onlysupplies goods or services listed under Part One of the Fifth S chedule
to this Act, does not contain a full and correct statement of t he matters
required to be declared by that person in that return and to th e extent
that that person does not correct such an understatement oroverstatement in accordance with the provisions of article 28 b efore he
is served with an assessment for that period he shall, unless t hat person
has in virtue of that default become liable to a higher adminis trative
penalty under the other provisions of this article, be liable t o an
administrative penalty of one hundred and fifty euro (€150).
(4) Where, during the course of an investigation, a person co-
operates with the Commissioner, accepts an agreement and withinone month from the signing of the agreement pays the amount oftax due, the agreed administrative penalty and the interest due , that
person shall be liable to an administrative penalty in an amoun t
equivalent to 10 per cent of the amount of tax due.
Administrative 
penalty for understated or assessed tax under article 12.
Added by:
V . 2012.64.37A.  Where a notice of payment furnished by a person
registered under article 12 contains an understatement of the t ax
payable in accordance with articles 21(2) and 21(3) or where th e
Commissioner makes an assessment of the tax payable by thatperson in terms of article 33(2), that person shall become liab le to
an administrative penalty in an amount equivalent to twenty per
              VALUE ADDED TAX                [CAP. 406.  2 5
cent of the understated tax payable or the assessed tax.
Administrative 
penalty for default in the furnishing of a tax return or other declarations and statements.
Amended by:
X. 2003.21;XIII. 2005.46;L.N. 426 of 2007;L.N. 105 of 2008;II. 2009.43.38. (1) Any person registered under article 10 who, being
required to furnish a tax return for a tax period, does not fur nish
that return within the time laid down in the relevant provision s of
this Act shall be liable to an administrative penalty in an amo unt
equivalent to the higher of -
(a) one per cent of the excess, if any, of the output tax
over the deductions, disregarding any excess creditbrought forward from a previous tax period, asdeclared in the return; and
(b) twenty euro (€20),
for every month or part thereof that elapses from the date by w hich
the tax return should have been furnished in accordance with th is
Act and the date when it is furnished to the Commissioner:
Provided that where the tax payable is less than two hundred
and fifty euro (€250), such administrative penalty shall not ex ceed the
equivalent of the tax payable to the nearest euro or fifty euro  (€50),
whichever is the greater, and it shall not exceed two hundred a nd fifty
euro (€250) in all other cases.
(2) Any person who, being required to furnish a declaration or
statement in terms of article 30, does not furnish that declara tion or
statement within the time laid down in the relevant provisions of
this Act shall be liable to an administrative penalty of ten eu ro
(€10)  for every month or part thereof that elapses from the date by
which the declaration or statement should have been furnished i n
accordance with this Act and the date when it is furnished to t he
Commissioner:
Provided that such administrative penalty shall in no case
exceed one hundred and twenty euro (€120) for each such declara tion
or statement.
Administrative 
penalty for default in applying for registration or giving a notice.
Amended by:
X. 2003.22;XIII. 2005.47;L.N. 426 of 2007;L.N. 105 of 2008;II. 2009.44;XIV . 2013.3.39. (1) Any person who, being required to apply for
registration under article 10, does not make such an applicatio n
within the time laid down in the relevant provisions of this Ac t
shall be liable to an administrative penalty in an amount equiv alent
to the higher of - 
(a) one per cent of the excess, if any, of the output tax
over the deductions for the first tax period followingthe registration; and
(b) twenty euro (€20),
for every month or part thereof that elapses from the date on w hich
the application should have been made and the earlier of the da te on
which the application registration is furnished to the Commissi oner
and the date when that person is registered by the Commissioner :
Provided that where the excess, if any, of the output tax over
the deductions for the first tax period following registration is two
thousand euro (€2,000) or less, such administrative penalty sha ll not
exceed two hundred and fifty euro (€250), and where the excess of the
output tax over the deductions for the first tax period followi ng
 26    CAP. 406. ]               VALUE ADDED TAX 
registration is more than two thousand euro (€2,000) such
administrative penalty shall not exceed twenty per cent of such  excess.
(2) Any person who, being required to apply for registration
under article 12, does not make such an application within the time
laid down in the relevant provisions of this Act shall be liabl e to an
administrative penalty of the higher of -
(a) one per cent of the tax chargeable on the intra-
community acquisitions or the services received or bothsuch intra-community acquisitions and services received,in respect of which he is required to make suchapplication; and
(b) twenty euro (€20),
for every month or part thereof that elapses from the date on w hich
the application should have been made and the earlier of the da te on
which the application is furnished to the Commissioner and thedate when that person is registered by the Commissioner:
Provided that where the tax chargeable on the intra-
community acquisitions or the services received or both such in tra-
community acquisitions and services received, in respect of whi ch that
person is required to make such application is two thousand eur o
(€2,000) or less, such administrative penalty shall not exceed two
hundred and fifty euro (€250), and where the tax chargeable on the
intra-community acquisitions or the services received or both s uch
intra-community acquisitions and services received, in respect of
which that person is required to make such application is more than
two thousand euro (€2,000) such administrative penalty shall no t
exceed twenty per cent of such tax chargeable.
(3) Any person who, being required to give a notice under
article 15, does not give that notice within the time laid down  in the
relevant provisions of this Act shall be liable to an administr ative
penalty of twenty euro (€20)  for every month or part thereof that
elapses from the date on which the notice should have been give n
and the date when that notice is given to the Commissioner:
Provided that such administrative penalty shall in no case
exceed two hundred and fifty euro (€250) for each such notice.
Administrative 
penalty for default by person registered under article 11.
Amended by:
X. 2003.23;XIII. 2005.48;L.N. 426 of 2007;L.N. 105 of 2008;II. 2009.45.40. Any person registered under article 11 who does not
remain eligible to be so registered and who does not apply for the
cancellation of his registration under article 11 within the ti me laid
down in the relevant provisions of this Act shall be liable to an
administrative penalty in an amount equivalent to the higher of  -
(a) ten per cent of the excess, if any, of the output tax over
the deductions for the first tax period following thecancellation of his registration under article 11; and
(b) one hundred euro (€100),
for every month or part thereof that elapses from the date on w hich
the application should have been made in terms of the saidprovisions and the earlier of the date on which the application  is
furnished to the Commissioner and the date when the registratio n
              VALUE ADDED TAX                [CAP. 406.  2 7
under article 11 is cancelled by the Commissioner:
Provided that such administrative penalty shall in no case
exceed five hundred euro (€500).
Liability to 
administrative penalties.41. Any administrative penalty to which a person becomes
liable in terms of this Act shall be due and payable by that pe rson
without the need of any assessment to be made with respect ther eof,
and any amount of any administrative penalty due by a person sh all
not relieve that person from a higher or from a further penalty  to
which he may have become or may become liable in terms of therelevant provisions of this Act.
Reasonable 
excuse.
Amended by:
XIII. 2005.49.Substituted by:II. 2009.46.
Amended by:
V . 2011.29;L.N. 89 of 2012.42. (1) Notwithstanding the provisions of articles 37 to 41,
both inclusive -
(a) no administrative penalty shall be due by a person for
any default if that person proves that there is areasonable excuse for the default;
(b) if a person does not prove that there is a reasonable
excuse for a default, but the Commissioner is of theview that the default resulted from particularcircumstances that merit a mitigation of theadministrative penalty, he may, in his discretion, remitpart of the administrative penalty for that default;
(c) if the Commissioner is of the view that the default
resulted from a genuine mistake he may remit in wholeor in part the administrative penalty for that default;
(d) no administrative penalty under article 38 shall be due
where a return required to be made in terms of article27 or a declaration required to be made in terms ofarticle 30(1) is furnished in an electronic formatthrough the established web portal designated for thepurpose by the Commissioner, together with paymentof the tax due on the return, not later than seven daysfrom the date on which the said return or declarationshould have been submitted under the provisions ofthis Act.
(2) For the purposes of subarticle (1)(a) and (b) -
(a) an insufficiency of funds to pay any tax due; or
(b) when reliance is placed on any other person to perform
any task, the fact of that reliance or any dilatoriness or
inaccuracies on the part of the person relied upon,
shall not constitute a reasonable excuse.
(3) Notwithstanding the provisions of articles 43 and 44, the
use of the Commissioner’s discret ion for the purpose of subarti cle
(1)(b) and ( c) shall not be questioned in any appeal or in any
reference made to the Tribunal.
 28    CAP. 406. ]               VALUE ADDED TAX 
Cap. 395.(4) The Minister may by regulations prescribe other conditions
under which part of, or all, the administrative penalty incurre d
under articles 37 to 41 may be remitted. Such regulations may a lso
make provision for the remission of any administrative penaltie s
due under the Value Added Tax Act, 1994, and under the Customsand Excise Tax Act.
Appeal against an 
assessment.
Amended by:
L.N. 89 of 2012.43. Any person aggrieved by an assessment served upon him
may appeal against that assessment to the Tribunal.
Other matters that 
may be referred to 
Appeal.
Amended by:
X. 2003.24;II. 2009.47;L.N. 89 of 2012.44. If any question arises, other than on an assessment, relating
to - 
(a) the registration of a person under this Act or the
cancellation of such a registration;
(b) any tax chargeable on a supply or an acquisition other
than tax assessed in an assessment and any deductionsthat may be claimed against such tax;
(c) whether a transaction made or to be made by a person
is a taxable supply or a taxable acquisition or not orwhether an importation of goods made or to be madeby a person is a taxable importation or not;
(d) any tax chargeable on the importation of goods;
(e) the place, the time or the taxable value of a supply or
of an acquisition;
(f) the amount of deductions allowable to a person
registered under article 10 for any tax period;
(g) any security required by the Commissioner under this
Act;
(h) whether any refund of tax claimed by any person is
due or payable to that person or not;
(i) any question of law not falling within the foregoing
provisions of this article;
(j) any matter which, in terms of any provision of this
Act, or of any regulations made under this Act, may be
referred to appeal;
(k) the imposition of any administrative penalty except
where it is imposed as a result of an assessment,
that question may be referred to the Tribunal by any person who
shows to the satisfaction of the Tribunal that he has a direct interest
in that question or by the Commissioner.
The Administrative 
Review Tribunal.
Amended by:
L.N. 89 of 2012.45. There shall be an Administrative Review Tribunal for the
purpose of hearing and determining appeals and references made in
accordance with articles 43 and 44.
Matters regulated 
by the Ninth Schedule.
Amended by:
L.N. 89 of 2012.46. The Ninth Schedule to this Act shall apply with respect to
any appeal made or any question referred to the Tribunal, thecomposition and competence of the Tribunal, and the regulation of
the procedures of the Tribunal.
              VALUE ADDED TAX                [CAP. 406.  2 9
Appeal to the 
Court of Appeal.
Amended by:
VI. 2001.30;IV . 2007.36;L.N. 426 of 2007;L.N. 105 of 2008;L.N. 89 of 2012.47. (1) Any of the parties to an appeal or a reference to the
Tribunal who feels aggrieved by the decision of that Tribunal m ay,
by means of an application to be filed within thirty days from the
date on which the decision appealed from is notified to him, ap peal
against that decision on a question of law only -
(i) where the total amount of tax, administrative penalty,
and interest for the tax period or periods under appealup to the date of receipt of the appeal by the Tribunalis less than one million and one hundred and fiftythousand euro (€1,150,000), to the Court of Appeal(Inferior Jurisdiction); and
(ii) where the total amount of tax, administrative penalty,
and interest for the tax period or periods under appealup to the date of receipt of the appeal by the Tribunalis of one million and one hundred and fifty thousandeuro (€1,150,000) or more, to the Court of Appeal.
Cap. 12. (2) The board established under article 29 of the Code of
Organization and Civil Procedure  may make regulations governing
appeals under this article.
(3) The Minister responsible for justice may by regulations
under this subarticle establish the fees payable in the registr y of the
court in relation to the filing of judicial acts in connection with
appeals to the Court of Appeal or to the Court of Appeal (Infer ior
Jurisdiction), as the case may be, under this Act:
Cap. 12.Provided that until fees are so established by the Minister,
the fees contained in Schedule A to the Code of Organization and
Civil Procedure  shall apply.
The Administrative 
Review Tribunal.
Added by:
L.N. 89 of 2012.Re-numbered by:L.N. 236 of 2013.
Cap. 490.47A. (1) The Tribunal shall be competent to hear and
determine appeals in accordance with the provisions of article 46.
(2) The provisions of the Administrative  Justice Act, in so far
as they  apply to the  Tribunal, shall apply to any proceedingsbefore the said Tribunal and the  words "public administration"  in
the  said enactment shall be construed  as a reference to theCommissioner of Value Added Tax.
Cap. 490. (3) The provisions of article 25 of the Administrative Justice
Act shall apply to any proceedings pending before the Value Added
Tax Appeals Board, arising out of appeals made under the Value
Added Tax Act, 1994, the Customs and Excise Tax Act, 1997 and
this Act, and  any such proceedings shall be assigned to the
Tribunal in terms of the aforesaid article 25 with effect  from  1st
April, 2012.
(4) Any pending appeal before the Value Added Tax Appeals
Board constituted under this Act prior to its abolition shallcontinue to be heard before the Tribunal  and any appeal whichunder this Act could be made before the  Value Added Tax Appeal s
Board  shall be made before the Tribunal.
(5) Any appeal pending on 1st April, 2012 before the Court of
Appeal from a decision of the Value Added Tax Appeals Board
shall continue to be heard by that Court:
 30    CAP. 406. ]               VALUE ADDED TAX 
Provided that if the said Court were to annul a decision of
the said Board  and remit it back to the said Board, the remitt ance
shall instead be made to the  Tribunal which shall hear and dec ide
that case accordingly.
(6) The Commissioner shall publish all decisions given by the
Tribunal on points of law.
PART VI
Records and Information
Records to be kept.
Substituted by:X. 2003.25.
Amended by:
IV . 2007.37;L.N. 89 of 2012;XV . 2016.74.48. (1) Every registered taxable person established in Malta
shall keep full and proper records of all transactions carried out in
the course or furtherance of his economic activity.
(2) Every person who is liable to tax on any transaction or who
identifies himself as a person registered under this Act for th e
purpose of any transaction shall keep full and proper records o f any
such transaction.
(3) Every taxable person and every non-taxable legal person
shall keep full and proper records of all intra-communityacquisitions made by him.
(4) The records referred to in subarticles (1), (2) and (3) shal l
be kept and stored in such manner, contain such details and besupported by such information, docu ments and accounts as set ou t
in the Eleventh Schedule and such records, information, documen ts
and accounts shall be retained for a period of at least six yea rs from
the end of the year to which they relate, or such other period or
periods as the Minister may, in special cases, by regulationsprescribe:
Provided that, where a tax return is furnished after its due
date or, in the case where a person makes a correction in terms  of
article 28(1), the six year period provided for in this sub-art icle
shall start to run from the date on which a tax return is furni shed or
the date on which the Commissioner receives a request for thecorrection.
(5) The Commissioner may, at any time within the period
specified in subarticle (4), request any person to produce, or may
remove from any person, including a third party, the records,documents, accounts and electronic data required to be kept by him
in virtue of this article and to make copies thereof:
Provided that, if there is evidence that after being requested
by the Commissioner by means of a notice in writing, that suchperson failed to produce without any reasonable excuse anyrecords, documents, accounts and electronic data within thirty days
from the date of service of such notice, such person shall not be
allowed to produce such records, documents, accounts andelectronic data at a later stage after the issue of the provisi onal
assessment or assessments or before the Tribunal or in any Cour t of
law:
Provided further that when reliance is placed on any other
person to perform any task, the fact of that reliance or any de lay or
              VALUE ADDED TAX                [CAP. 406.  3 1
inaccuracy on the part of the person relied upon shall not cons titute
a reasonable excuse for the purposes of this subarticle.
Inclusion of tax in 
the price for supplies.
Amended by:
X. 2003.26.49. (1) Where any registered person indicates the price of
goods offered for sale by retail, such price shall be indicated  in
such a manner as to be inclusive of the tax chargeable under th is
Act, if any, on the supply of the said goods.
(2) Where the amount of tax chargeable under this Act is not
identified in a payment for a taxable supply or in a price char ged,
otherwise than in an invoice or a document serving as invoiceissued by a taxable person to another taxable person, for a tax able
supply that payment or price shall be deemed to be inclusive of  tax.
(3) Where the amount of tax chargeable under this Act is not
identified in the price charged for a supply on an invoice or adocument serving as invoice issued by a taxable person to anoth er
taxable person that price shall be deemed to be exclusive of ta x.
Tax invoice.
Substituted by:X. 2003.27.
Amended by:
IV . 2011.75;V . 2012.65.50. (1) Every person registered under article 10 who makes a
supply, other than an exempt without credit supply, to anotherperson who identifies himself for the purpose of that supply bymeans of a value added tax identification number shall provide that
other person a tax invoice within the time determined in accord ance
with the provisions of the Twelfth Schedule.
(2) When there is an application, disposal, transport or use of
goods for which no consideration is charged or paid but which i s
deemed in terms of the Second Schedule to be a supply made by aperson for consideration, that person shall, if he is a personregistered under article 10, issue a tax invoice in which he in dicates
himself both as the person who made the supply and as the perso n
to whom the supply is made.
(3) Every taxable person shall issue a tax invoice within the
time stated in subarticle (1) in respect of every distance sale  made
by him.
(4) Where a person provides a document to himself which
purports to be a tax invoice in respect of a taxable supply mad e to
him by a person registered under article 10, that document may,subject to the provisions of the Twelfth Schedule, be treated a s the
tax invoice required to be issued and delivered by the supplier  in
terms of this article.
(5) A tax invoice shall be issued in the form and in the manner
and shall contain the particulars set out in the Twelfth Schedu le.
Documents to be 
provided in other cases.Substituted by:X. 2003.27.51. Any person who makes any supply, other than an exempt
without credit supply or other than a supply in respect of whic h a
tax invoice is required to be issued in terms of article 50, sh all
provide to the person to whom the supply is made an invoice,receipt or other document which shall be issued in the form and  in
the manner and shall contain the particulars set out in the
Thirteenth Schedule.
 32    CAP. 406. ]               VALUE ADDED TAX 
Production of 
invoices by persons to whom a supply is made.
Amended by:
XIX. 2007.2.52. (1) A person to whom any tax invoice or other invoice,
receipt or document is provided as required by article 50 or 51shall, if so requested in accordance with the other provisions of this
Act, produce the said invoice, receipt or other document to the
Commissioner or to any officer authorised by the Commissioner.
(2) Any person who transports goods in the course of an
economic activity, on his own behalf or on behalf of or to thir d
parties, shall be in possession at any time of an identificatio n
document and a tax invoice or a delivery note or a transportdocument showing a description of all the goods being transport ed,
the value of the goods, the unit quantity, the date of the deli very,
the destination address, the nam e and address and value added t ax
registration number of the supplier and the name and address an d
value added tax registration number of the person to whom thesupply is made. In the course of an inspection of the means whi ch
is transporting the goods, a copy of the aforementioned documen ts
shall upon demand be produced to the Commissioner or to anyother officer authorised by the Commissioner. A person who fail s
to produce the documents as required in accordance with theprovisions of this sub-article or whose goods are not found to be in
agreement with the said document, shall be guilty of an offenceagainst this Act.
Inspections. 
Amended by:
X. 2003.28;III. 2004.115;XIX. 2007.3;L.N. 426 of 2012.53. The Commissioner shall, for the purpose of ensuring
compliance with the provisions of this Act, have the power -
(a) to enter and inspect any premises where an economic
activity is carried on or suspected to be carried on orwhere any goods, assets, books, records or documentsrelating to such activity are kept or suspected to bekept, and to stop, enter and inspect any means which istransporting goods or any means for the transport ofgoods, to direct the delivery of the said means toanother location and to open the said goods to verifythe quantity and value of goods with invoices, books,records or documents relating to such goods todetermine whether or not value added tax has beenaccounted for under the provisions of this Act;
(b) to inspect and to require the production of any books,
records or documents, including machine readableinformation, or a copy or extract thereof relating to theeconomic activity of any person;
(c) subject to the provisions of article 55, to require any
person to give such information as may be requestedfor the purpose of determining whether any taxable orexempt with credit supplies have been made by or tothat person or whether any intra-communityacquisitions or importations have been made by thatperson or the value of any such supplies, acquisitionsor importations and to request the attendance of anyperson at the office of the Commissioner for thepurpose of providing such information;
(d) to request the particulars including the name, surname,
              VALUE ADDED TAX                [CAP. 406.  3 3
address and the production of a legally valid
identification document of any person suspected to bein breach of any of the provisions of this Act or of anyregulations made under this Act; and
(e) when a taxable person established in Malta stores
invoices which he issues or receives by an electronicmeans guaranteeing on-line access to the data andwhen the place of storage is in a Member State otherthan that in which he is established, the Commissionershall have the right to access by electronic means,download, and use such invoices for the purpose ofensuring compliance with the provisions of this Act.
Access to places of 
habitation.54. If access is required for the purposes of article 53( a) to any
premises occupied in whole or in part for the purpose of habita tion,
such access shall require the prior warrant signed by a Magistr ate
and shall not take place between seven o’clock in the evening a nd
seven o’clock in the morning.
Information held 
by certain licensed persons.55. (1) Without prejudice to the provisions relating to the duty
of professional secrecy, no information shall be requested by t he
Commissioner by virtue of this Act from any persons to whomsubarticle (2) refers except solely for the purpose of determin ing
the tax payable by and the deductions allowable to such personunder this Act or of ensuring compliance by such person with th e
provisions of this Act.
(2) This subarticle refers to -
Cap. 371. (a) a bank licensed under the Banking Act;
Cap. 403.(b) an insurance company in respect of long term
insurance business which is carried on pursuant to alicence granted under the 
Insurance Business Act;
Cap. 370.(c) any person licensed to carry on investment business
under the Investment Services Act; 
Cap. 370.(d) a collective investment scheme licensed under the
Investment Services Act;
Cap. 345.(e) a stockbroker licensed under the Malta Stock
Exchange Act.
Official secrecy.
Amended by:
X. 2003.29;IV . 2007.38.56. (1) Except as may be necessary for the purposes of this
Act, or where the Prime Minister otherwise directs, every perso n
having any official duty or being employed in the administratio n of
this Act shall regard and deal with all documents and informati on
relating to this Act as secret and confidential.
(2) No person appointed under or employed in carrying out the
provisions of this Act shall be required to produce in any cour t,
tribunal, board or committee of inquiry any document or to divu lge
an matter coming under his notice in the performance of his dut ies
under this Act except as may be lawfully required for the purpo se
of carrying into effect the provisions of this Act, or for the purpose
or in the course of any appeal made in accordance with this Act  or a
prosecution for any offence against any of the provisions of th is
Act.
 34    CAP. 406. ]               VALUE ADDED TAX 
(3) Notwithstanding the other provisions of this article, the
Commissioner may permit the Auditor General or any officerauthorised by the Auditor General to have access to any records  or
documents as may be necessary for the performance of his offici al
duties and for this purpose the Auditor General and any suchauthorised officer shall be deemed to be a person employed in t he
administration of this Act.
(4) Notwithstanding the provisions of the other subarticles of
this article or of any other law, the Commissioner shall furnis h to
the Commissioner of Inland Revenue, to the competent authoritydesignated under the Eco-Contribution Act and to the Comptrolle r
of Customs such information, being information obtained by theCommissioner for any of the purposes of this Act, as may bedirected by the Minister.
(5) Nothing contained in this article shall, after the accession
date, prevent the disclosure by the Commissioner, of anyinformation that is required to be disclosed in terms of Counci l
Regulation (EEC) No 218/92  of 27 January 1992 on administrative
cooperation in the field of indirect taxation (V AT) or of any s uch
other Council Regulation as may be prescribed.
(6) For the purposes of this article, any information disclosed
to the Commissioner by the fiscal authorities of another MemberState in terms of any Council Regulation referred to in subarti cle
(5) shall be treated as information relating to and obtained fo r the
purposes of this Act.
PART VII
Special Cases
Special cases.
Substituted by:X. 2003.30.
Amended by:
II. 2009.48.57. (1) The provisions of the Fourteenth Schedule shall apply
with respect to the following operations, as defined in the sai d
Schedule:
(a) operations of tour operators and travel agents and of
other persons acting as principals or intermediariesand carrying out operations commonly carried out bytour operators and travel agents;
(b) operations relating to second hand goods, works of art,
collectors’ items, and antiques;
(c) operations carried out by retailers;
(d) professional services;
(e) operations relating to civil, mechanical and electrical
engineering contracts;
(f) operations relating to investment gold;
(g) the supply of telecommunications, broadcasting or
electronic services supplied by taxable persons notestablished within the Community;
(h) the supply of telecommunications, broadcasting or
electronic services supplied by taxable personsestablished within the Community but not in the
              VALUE ADDED TAX                [CAP. 406.  3 5
Member State of consumption;
(i) such other operations as may be designated by an
order as may be made, amended, substituted orreplaced by the Minister and published in the Gazette.
(2) With respect to operations to which the Fourteenth
Schedule applies and the obligations of persons involved in suc h
operations that Schedule shall have effect notwithstanding anyt hing
to the contrary contained in the other provisions of this Act:provided that the other provisions of this Act shall apply to t he said
operations and obligations insofar as they are not inconsistent  with
anything contained in the said Schedule.
PART VIII
Collection, Security and Refunds
Suit by the 
Commissioner.
Amended by:
IV . 2007.39;XII. 2014.80;XIII. 2015.152.58. (1) Tax and administrative penalties due under this Act
may be sued for and recovered, as the case may require in thecompetent court of civil jurisdiction.
(2) Subject to the provisions of subarticle (3), action for the
payment of tax and administrative penalties may be taken by theCommissioner at any time within six years from the date on whic h
such tax or administrative penalty becomes payable.
(3) The running of the period referred to in sub-article (2) sha ll be
interrupted by a demand note served through registered post or by
publication of a notice in the Gazette and in one or more dailynewspapers by the Commissioner stating that a demand note has b een
made or by any judicial act filed by the Commissioner before th e
expiration of such period demanding the payment of the amountclaimed.
Executive title.
Amended by:
XIII. 2005.50.
Cap. 12.59. (1) Any notice issued by the Commissioner showing any
amount of tax and administrative penalty due by a person shall,unless the contrary is proved, be sufficient evidence that thatamount is due to the Commissioner by that person and shallconstitute an executive title within the meaning and for thepurposes of Title VII of Part I of Book Second of the 
Code of
Organization and Civil Procedure .
(2) The Commissioner may request the payment of any tax and
administrative penalty payable by any person in terms of this A ct
by means of a demand note, and if the payment requested is notmade within thirty days from the date when the said demand note  is
served on that person, the Commissioner may proceed to enforcepayment in virtue of the executive title referred to in subarti cle (1)
after two days from the service on that person of an intimation  for
payment made by means of a judicial act. Upon the lapse of theperiod of two days mentioned in this sub-article the Commission er
shall be entitled to register in the public registry or land re gistry, as
the case may be, a note of privilege for the amount demanded in  the
judicial act which note of privilege shall be registered by anyadvocate or notary.
Cap. 12. (3) The provisions of article 468 of the Code of Organization
 36    CAP. 406. ]               VALUE ADDED TAX 
and Civil Procedure shall apply with respect to any warrant issued
on the strength of an executive title mentioned in this article  and to
the paying out of the proceeds of the sale by auction of the pr operty
seized, and no opposition or reservation in the schedule of dep osit
shall stay the paying of any sum deposited in court following a ny
such warrant as aforesaid.
Restrictions on the 
release of imported goods.60. (1) No goods imported into Malta shall be delivered for
use in Malta or taken out, cleared or delivered from any custom s
bond except -
(a) where the importation of those goods is an exempt
importation; or
(b) where the tax on the said importation has been paid in
accordance with this Act; or
(c) with the authorisation of the Commissioner.
(2) An authorisation for the purpose of paragraph ( c) of
subarticle (1) may be given under such conditions and against t he
granting of such security as the Commissioner may establish.
Powers relating to 
imported goods.61. (1) The Comptroller of Customs shall, for the purpose of
ascertaining, collecting and protecting on behalf of theCommissioner the tax chargeable under this Act on taxableimportations have the same powers and shall follow the sameprocedures as are in accordance with any other law exercisable and
followed by him for the purpose of ascertaining, collecting andprotecting import duties.
Cap. 37.
Cap. 337.(2) Any provision in the Customs Ordinance  or in the Import
Duties Act or in any regulations made thereunder relating to the
application of the proceeds from a sale of imported goods towar ds
the payment of import duties due on those goods shall be constr ued
as providing for the application of the said proceeds towards t he
payment of import duties and of a ny tax due under this Act on t he
importation of those goods.
Special privilege.
Cap. 16.62. The Commissioner shall have a special privilege over the
assets forming part of the economic activity of a person in res pect
of any tax due by that person under this Act and the said tax s hall,
notwithstanding anything contained in any other law, be paid inpreference to a debt having any other privilege, excepting a de bt
having a general privilege and a debt mentioned in article 2009 (a)
or (b) of the 
Civil Code .
Security for tax 
due on supplies.
Amended by:
X. 2003.31;IV . 2007.40.63. (1) If, in any particular case, the Commissioner has reason
to believe that tax due by a person might not be recoverable at  the
time when that tax becomes payable in terms of this Act, he may  by
a notice served on that person, demand the payment of the taxwithin such time as may be specified in that notice and the tax  shall
thereupon become payable within that time notwithstanding anyother provision of this Act.
(2) When a payment has been demanded from a person in
accordance with subarticle (1), that person may, instead of mak ing
the said payment, furnish such s ecurity for the tax payable as may
be acceptable to the Commissioner.
              VALUE ADDED TAX                [CAP. 406.  3 7
(3) The co-contracting party of the person liable to pay the tax
shall be held jointly and severally liable for the payment of t he tax.
(4) The provisions of subarticle (3) shall not apply to an
operation referred to in article 20(1) when and to the extent t hat the
co-contracting party proves that he has paid the price and therelated tax due to the supplier.
(5) Where it appears to the Commissioner that it is necessary
for the protection of Government revenue, he may, at any time,under conditions approved by the Minister, require a taxableperson, as a condition for that person to supply goods or servi ces,
to give such security, or further security, for that amount and  in
such manner as the Commissioner may determine, for the paymentof any tax that is or may become due by him under this Act.
Shorter period for 
the delivery of a return.
Amended by:
X. 2003.32.64. If, in any particular case, the Commissioner has reason to
believe that the tax due by a person registered under article 1 0
could otherwise be  prejudiced, he may, by means of a notice in
writing, require that person to furnish a tax return for a tax period
before the time allowed in terms of the other provisions of thi s Act,
and in respect of that tax return any reference in this Act to the time
allowed in terms of any provision of this Act shall thereupon b e
construed as a reference to the period specified in the said no tice.
Judicial auction.
Substituted by:X. 2003.33.
Amended by:
L.N. 181 of 2006;L.N. 186 of 2006.65. (1) Where any assets belonging to an economic activity of
a person are sold by judicial auction pursuant to any proceedin gs
exercised by a creditor or by creditors of that person, and whe re
that sale is treated as a supply of goods in terms of the relev ant
provisions of the Second Schedule and is subject to tax under t his
Act, the registrar of the court under the authority of which th e sale
is made shall, after notifying the person or persons appearing to be
interested therein, remit to the Commissioner from the proceedslodged in court, with preference over any other person not havi ng a
prior claim to that of the Commissioner as provided for in arti cle
62, the tax chargeable on that supply.
(2) Any interested person may oppose the remittance referred
to in subarticle (1) by means of a sworn application filed agai nst
the Commissioner within six working days from the date of thenotification referred to in the said subarticle.
Cap. 12.(3) No bid animo compensandi shall be approved for the
purposes of article 331 of the Code of Organization and Civil
Procedure  unless the tax chargeable, if any, on that supply has been
lodged in court and remitted by the Registrar in accordance wit h
subarticle (1).
Representatives.
Amended by:
X. 2003.34.66. (1) Any secretary, manager, director, liquidator or other
principal officer of an entity or of a body of persons, any hei r and
any testamentary executor and any curator of the vacant inherit ance
of a deceased person, and any person who is a tutor, curator,administrator or trustee of any other person or of any trust, f und or
other entity shall, for the purposes of this Act, be a represen tative
of that body of persons, deceased person, other person, trust, fund
or other entity, as the case may be.
 38    CAP. 406. ]               VALUE ADDED TAX 
(2) ( a) When a person who is not established in Malta and is
not established in the Community, is or is required tobe registered under this Act any person resident inMalta to whom he makes a taxable supply or who is hisagent or who otherwise has a business relationshipwith him shall, if so designated by the Commissionerby means of a notice in writing, and unless anotherperson resident in Malta and acceptable to theCommissioner has been so designated by that first-mentioned person, be a representative of the saidperson.
(b) When a person who is not established in Malta, but is
established in the Community, is, or is required to beregistered under this Act, he may, by means of a noticein writing to the Commissioner, nominate as hisrepresentative, any person resident in Malta who isacceptable to the Commissioner.
(c) For the purpose of this subarticle, the Minister may by
regulations prescribe the conditions regulating suchappointment.
(3) ( a) Subject to the provisions of subarticle (5) a
representative of a person shall be liable in the samemanner and to the same extent as the person of whomhe is a representative for all the obligations imposed byor under this Act.
(b) Anything done or omitted to be done by a
representative acting as such shall for the purposes ofthis Act be deemed to have been done or omitted to bedone by the person of whom he is a representative.
(c) Any notice served on or any refund paid to a
representative in his capacity as such under any of theprovisions of this Act shall be deemed to have beenserved on or to have been made to the person of whom
he is a representative.
(d) The existence of or the designation of a person as a
representative of another person shall not relieve thelatter person from any obligation or liability under this
Act.
(4) A representative who has under his management or control
any funds or property belonging to or due to the person of whom  he
is a representative shall not dispose of such funds or propertyunless he has made adequate provision for any tax due under thi s
Act.
(5) A representative shall be jointly and severally liable with
the person of whom he is a representative for the tax due by th at
person: provided that where the representative has acted in goo d
faith and is not knowingly in breach of subarticle (4) or of an y
other obligation under this Act, his liability under this subar ticle
shall be limited to the funds or to the value of any property u nder
his management or control which belongs or is due to the person  of
              VALUE ADDED TAX                [CAP. 406.  3 9
whom he is a representative.
Appropriation of 
payment.Substituted by:XII. 2014.81.67. (1) When a person furnishes a tax return or notice of
payment within the time laid down in the relevant provisions of  this
Act and such tax return or notice of payment is accompanied by a
payment of all or part of the tax declared to be payable therei n,
such payment shall be deemed to be made on account of the taxpayable on that tax return or notice of payment.
(2) When a person furnishes a tax return or notice of payment
within the time laid down in the relevant provisions of this Ac t and
such tax return or notice of payment is not accompanied by apayment of all the tax declared to be payable therein, such per son
may request, by the furnishing of such form as the Minister may  by
regulations prescribe, that any payment accompanying such formshall be deemed to be made on account of the tax declared to bepayable in such tax return or notice of payment, so however tha t:
(a) such request shall not be valid if it is made later than
six months from the time within which the tax returnor notice of payment is required to be furnished interms of the relevant provisions of this Act;
(b) the provisions of sub-articles (3) and (4) shall apply to
such payment.
(3) Subject to the provisions of sub-articles (1) and (2), when
any interest is due by a person on any tax, other than tax thepayment of which may be kept in abeyance in terms of theprovisions of the Ninth Schedule to this Act, any payment made by
that person to the Commissioner shall, notwithstanding anydeclaration made by that person, be appropriated to that intere st
before it is appropriated to any tax.
(4) Subject to the provisions of sub-articles (1), (2) and (3),
when an administrative penalty is due by a person, other than apenalty the payment of which may be kept in abeyance in terms o f
the provisions of the Ninth Schedule to this Act, any payment m ade
by that person to the Commissioner shall, notwithstanding anydeclaration made by that person, be appropriated to suchadministrative penalty before it is appropriated to any tax.
(5) Subject to the other provisions of this article, when tax du e
by a person, other than tax the payment of which may be kept inabeyance in terms of the provisions of the Ninth Schedule to th is
Act, became due on more than one occasion any payment made by
that person to the Commissioner shall, notwithstanding anydeclaration made by that person, be appropriated to that amount  of
tax that became due at the earliest of those occasions before i t is
appropriated to the tax that became due on subsequent occasions .
(6) When a payment is made by a person to the Commissioner
in circumstances which indicate that that person intended thatpayment to relate to a tax return or notice of payment, that pa yment
shall be deemed to relate to that tax return or notice of payme nt for
the purposes of this article without prejudice to the power of the
Commissioner under any other provision of this Act to appropria te
that payment in any other manner.
 40    CAP. 406. ]               VALUE ADDED TAX 
Refunds.
Amended by:
X. 2003.35.68. (1) Tax paid shall not be refundable except in the
circumstances provided in Part IV or articles 69, 70 and 71.
(2) When any amount is refundable by the Commissioner to a
person by whom any interest, administrative penalty or tax is d ue,
the Commissioner may deduct such tax, interest or administrativ e
penalty from that amount to the same extent to which that amoun t,
had it been a payment made by that person, would fall to beappropriated to such interest, penalty or tax in accordance wit h the
provisions of article 67 and in the same order: provided that adeduction under this subarticle may also be made with respect t o
tax that may be kept in abeyance in terms of the provisions of the
Ninth Schedule to this Act.
(3) A refund due in accordance with any provision of this Act
shall be payable without any further appropriation other than t his
Act by warrant under the hand of the Minister.
Repayment of tax 
that was paid but not due and of overpaid tax.
Amended by:
X. 2003.36.69. (1) Subject to the provisions of subarticle (2) where it
results that any tax paid by a person was not due or was in exc ess of
the tax due under this Act, the Commissioner shall, on theproduction of such evidence as he may deem fit to require, repa y
the tax or that part thereof which was not due to that person o r to
any other person who may be en titled to that repayment: provide d
that nothing in this subarticle shall be construed as overridin g or
replacing the provisions of article 43.
(2) The Minister may by regulations prescribe the manner and
the time within which a claim for a repayment under subarticle (1)
may be made and such conditions and limitations, including aminimum amount in respect of which a repayment may be claimed,
as he may deem fit.
(3) Where it results from a decision given on an appeal made in
accordance with this Act, that any amount of tax paid by a pers on
was not due, the Commissioner shall refund such amount to thatperson within thirty days from the date such decision becomes res
judicata.
(4) Interest at the rate specified in or prescribed in terms of
article 21(4) shall be due on a refund to which subarticle (3) refers
for the period ending on the date when the refund is paid or acheque or draft is posted by the Commissioner to the person towhom the refund is payable, which interest shall run -
(a) if and to the extent that the amount refundable had
been claimed as excess credit in a tax return furnishedto the Commissioner by the appellant, from the dateestablished in accordance with article 24;
(b) if and to the extent that the amount refundable was
paid by the appellant as a condition for the validity ofhis appeal in accordance with the provisions of theNinth Schedule to this Act, from the date on which thatamount was paid to the Commissioner;
(c) in any other case, from the date the refund is payable
in accordance with subarticle (3).
              VALUE ADDED TAX                [CAP. 406.  4 1
Diplomatic and 
consular arrangements.
Amended by:
X. 2003.37.70. Where it results that any tax has been paid on the
importation of goods which is ex empt from import duties in term s
of diplomatic and consular arrangements having effect in virtue  of
any enactment or that any tax has been paid on any supplies orimportations by a person who qualifies for an exemption from ta x
in terms of such international arrangements as the Minister may , by
order in the Gazette, specify, the Commissioner shall, upon arequest made within such time and in such manner as may beprescribed, and on the production of such evidence as he may de em
necessary, refund the tax so paid to the said person.
Repayment of tax 
in certain cases.Substituted by:X. 2003.38.71. The Minister may by regulations provide for the repayment
by the Government, subject to such limitations, conditions andformalities as may be prescribed in the said regulations, of:
(a) an amount not exceeding the tax chargeable on
supplies made to non-taxable physical persons ofgoods exported by them outside Malta;
(b) tax paid on the supply of goods that are exported by
the persons acquiring them in the framework of theirhumanitarian, charitable or teaching activities;
(c) tax paid on supplies to, or intra-community
acquisitions and importations by, persons or classes ofpersons eligible under such schemes as may bespecified in the regulations.
PART IX
Miscellaneous
Validity of notices, 
etc.72. (1) Any notice, warrant or other proceeding purporting to
be made in accordance with the provisions of this Act shall not  be
deemed to be void or voidable for want of form or be affected b y
the reason of a mistake, defect or omission therein, if the sam e is in
substance and effect in conformity with or according to the int ent
and meaning of this Act.
(2) In the case of a body of persons it shall be sufficient if o nly
the name of the body of persons appears on any notice, warrant or
proceeding, including any proceeding in the Court of Appeal,issued or made under or for the purposes of this Act.
Delivery and 
service of notices, etc.
Amended by:
XII. 2014.82;VII.2019.62.73. (1) Every notice to be given by the Commissioner under
this Act shall be signed by the Commissioner or by some person or
persons authorised by the Commissioner and every such noticeshall be valid if the signature is printed, stamped or written thereon.
(2) Any notice required to be given under this Act by the
Commissioner or any other person may be served either personall y
or by being sent by post. Unless the contrary is proved service  of a
notice sent by post shall be proved by means of evidence that t he
notice was properly addressed and posted and shall be deemed tohave been effected in the case of an address in Malta not later  than
the third day following the day when it was posted, and in the case
of an address outside Malta the day succeeding that on which th e
notice would have been received in the ordinary course by post:
 42    CAP. 406. ]               VALUE ADDED TAX 
Provided that, where such notice is not served on a person
because that person could not be found or for other reasonsattributable to that person and the Commissioner publishes a no tice
in the Gazette and in one or more daily newspapers stating that  a
notice has been made and inviting that person to call for it as  and
where directed by the Commissioner, then such notice shall also  be
deemed to have been duly notified on the date of such publicati on
on a daily newspaper:
Provided further that a cheque or draft posted by the
Commissioner shall be deemed to be a payment for the amountthereof made on the date it is posted.
(3) For the purposes of sub-article (2) a notice shall be deemed  to
have been properly addressed if it has been addressed:
(a) to any known business or private address of a person; or
(b) to an electronic address provided by a person for such
purpose as per regulations which the Minister mayprescribe.
(4) The Minister may by notice in the Gazette establish the
closing times for the offices of the Commissioner and any perio d
laid down in or under this Act for the furnishing, delivery orservice of a return, notice or other document to or on theCommissioner or for any payment to the Commissioner shall bedeemed to expire at the closing time of the last day of that pe riod.
Cap. 252.(5) When the date on which any return, notice or other
document is to be furnished, delivered or served or deemed to b e
served or on which a payment is to be made in terms of anyprovision of this Act falls, were it not for the provisions of this
subarticle, on a Saturday or a Sunday, or on a national day or a
public holiday as established in the 
National Day and Other Public
Holidays Act, that date shall be deemed to fall on the first working
day, other than a Saturday, following the said Saturday, Sunday ,
national day or public holiday.
Interest. 
Cap. 123.Cap. 372.74. For the purposes of the Income Tax Act and the Income
Tax Management Act - 
(a) interest paid or payable under this Act by the
Commissioner to any person shall be treated as incomeof that person;
(b) interest paid or payable under this Act by any person
to the Commissioner shall be treated as expensesincurred in the production of the income of thatperson;
(c) administrative penalties paid or payable under this Act
by any person to the Commissioner shall not be treatedas expenses incurred in the production of the incomeof that person.
Power to make 
regulations.
Amended by:
X. 2003.39;XIII. 2015.153.75. (1) The Minister may by regulations -
(a) amend, cancel or substitute any of the Schedules,
except for the Ninth Schedule, to this Act;
              VALUE ADDED TAX                [CAP. 406.  4 3
(b) prescribe any matter which may in any particular case
be deemed necessary for the purpose of avoidingsignificant distortions in competition which mightotherwise result from the application of any of theprovisions of this Act;
(c) make provision for the rounding up or down of any
amount in any computation made for any of thepurposes of this Act, or for disregarding any smallamounts in any such computation;
(d) prescribe anything that may be prescribed in virtue of
the provisions of this Act;
(e) prescribe any conditions and determination that may,
in accordance with this Act, be imposed or made bythe Commissioner;
(f) prescribe any other matter for securing the payment of
the tax and generally for giving effect to the provisionsof this Act;
(g) amend, revoke or substitute any regulations made
under this Act.
(2) Any guidelines, explanations or instructions relating to thi s
Act or to any regulations prescribed in terms of sub-article (1 )
contained in a publication or circular by or under the authorit y of the
Commissioner and distributed or made available to taxable perso ns
in general, shall be read and construed as one with such regula tions
and shall have the same effect as the regulations to the extent  that
such guidelines, explanations or instructions are not in confli ct
with this Act or the said regulations or with guidelines, expla nations
or instructions published at a later date and to the extent tha t -
(a) they give a definition of any term or an interpretation or
any provision contained in this Act or the regulations;
(b) they determine the manner in which any provision of
this Act or the regulations is to be applied;
(c) they determine the manner whic h, in accordance with this
Act or the regulations, may be determined by or subject to
the approval or the discretion of the Commissioner.
PART X
Offences and Punishments
Failure to apply for 
registration, or to keep or deliver records and returns. 
Amended by:
X. 2003.40;XIII. 2005.51;IV . 2007.41;L.N. 426 of 2007;XXXII. 2007.82;L.N. 105 of 2008;II. 2009.49;XIV . 2013.4.76. Any person who - 
(a) fails to apply for registration at the time and in the
manner required by article 10 or 12;
(b) fails to keep or to store records, documents and
accounts for the time and in the manner required bythis Act or any regulations made under this Act;
(c) fails to furnish a tax return when required to do so in
virtue of this Act;
(d) fails to furnish any additional return, statement or
 44    CAP. 406. ]               VALUE ADDED TAX 
information or to produce any books, records, documents
and accounts, or fails to pay any tax or administrativepenalty due when required to do so in virtue of this Act orof any regulations made under this Act;
(e) supplies goods or services having failed to provide the
security requested by the Commissioner under article63(5),
shall, on conviction, be liable to a fine ( multa ) of not less than seven
hundred euro (€700) and not exceeding three thousand and fivehundred euro (€3,500) and, on a request by the prosecution, the court
shall, in respect of an offence under paragraph ( c), order the offender
to comply with the law within a time sufficient for the purpose , but
in any case not exceeding three months, and in default the offe nder
shall be liable to the payment of a further fine ( multa ) of five euro (€5)
for every day that the default continues after the lapse of the  time
fixed by the Court:
Provided that the offender may, within thirty days after
final judgement, apply to the Court which convicted him,requesting a total or partial remission of the penalty imposed under
this article. The Court may grant a total or partial remission of such
penalty provided that the prosecution, with the written concurr ence
of the Commissioner to be filed with any reply to such applicat ion,
agrees to such request. Any such application shall be served on  the
prosecution which shall reply within fifteen working days fromsuch notification.
Irregularities in 
records, etc., and false representations.
Amended by:
X. 2003.41;XIII. 2005.52;IV . 2007.42;
L.N. 426 of 2007;
L.N. 105 of 2008;II. 2009.50;IV . 2011.76;V . 2012.66;XIV . 2013.5;XV . 2016.75.77. Any person who -
(a) knowingly fails to account for any taxable supply or
any intra-community acquisition made by him in therecords, documents and accounts required by this Actor any regulations made under this Act;
(b) gives any return, statement or information required for
any of the purposes of this Act which he knows to beincorrect or misleading in any material respect;
(c) falsifies any records, documents or accounts required
to be kept under this Act or prepares or draws up orhelps in the preparation or drawing up or makes use ofany false records or documents;
(d) with the intent of concealing any evidence which he
knows or is reasonably expected to know to berelevant for any purpose of this Act destroys, erases,damages or conceals any stored information or anyrecords, documents or accounts, or is in possession ofor supplies to another person any software applicationthat would erase, destroy, damage or conceal anystored information or any such records, documents oraccounts;
(e) fails to provide or produce a tax or other invoice or
document as and when required by article 50, 51 or 52or provides any such tax or other invoice or documentwhich is incorrect or misleading in any material
              VALUE ADDED TAX                [CAP. 406.  4 5
respect or fails to provide to the Commissioner,
without any valid reason, all copies of any used orunused manual fiscal receipts where required by theCommissioner;
(f) is an employee or agent of another person, and whose
functions in that capacity include that of providing orproducing a tax or other invoice or document whichthat other person is required to provide or to producein terms of article 50, 51 or 52, fails to provide orproduce such tax or other invoice or document orprovides any such tax or other invoice or documentwhich is incorrect or misleading in any materialrespect;
(g) provides an invoice or other document in respect of a
supply showing tax to be chargeable on that supply ina case where he knows that no tax is chargeable orwhere the tax chargeable is less than that shown orotherwise knowingly adds to or includes in a price fora supply any amount purporting to represent tax whichis not due or which is higher than the tax due;
(h) applies to be registered under article 11 in
circumstances indicating that he knows or could withdue diligence have known that he is not entitled to beso classified;
(i) being registered under article 11 and not being eligible
to remain so registered does not apply for thecancellation of that registration in the manner requiredand within the time laid down in this Act;
(j) being registered under article 11 purports in
connection with any transaction not to be so registered
for the purpose of obtaining any financial gain;
(k) not being registered under article 11 purports in
connection with any transaction to be so registered forthe purpose of obtaining any financial gain;
(l) having added to or included in a price for goods or
services supplied by him to another person any amountpurporting to represent tax chargeable under this Act,knowingly fails to account for that amount in hisrecords and accounts or to pay that amount to theCommissioner;
(m) acquires possession of or deals with any goods, or
accepts the supply of any services having reason tobelieve that the tax on the supply of the said goods orservices has been or will be evaded;
(n) supplies or offers to supply to another person goods or
services the acquisition or dealing with which or theacceptance of which would render that other personguilty of an offence in virtue of paragraph ( m);
(o) supplies or offers to supply to another person and, or
puts up for sale goods, without being in possession, at
 46    CAP. 406. ]               VALUE ADDED TAX 
the place where he supplies or offers to supply to
another person and, or puts up for sale goods, of afiscal cash register or manual fiscal receipt books asissued or approved by the Commissioner;
(p) being a credit or financial institution which supplies
money or grants credit by way of a loan accountfacility or by means of any other kind of facility to acustomer in connection with the supply of goods orservices by third parties to that customer for theconstruction, re-construction, repair, refurbishment ormaintenance of immovable property or for fixturesrelated thereto, and which effects payment for suchgoods or services either directly to the vendor orsupplier thereof or to a third party or to the customersubject to an understanding or to an express or impliedcondition that the amount paid will be passed on to thesaid vendor or supplier, by the debit of the customer’sloan account or other facility, on the basis ofsupporting documents, including contracts, invoices,receipts, architects’ or other certificates, or similardocuments, submitted by or on behalf of the customeror by or on behalf of suppliers, contractors or otherthird parties, and which fails to inform theCommissioner of the names and V AT registrationnumbers of the said suppliers, contractors or otherthird parties as aforesaid, other than the customer, towhom it has directly or indirectly made payments asspecified in this paragraph, in the form required by theCommissioner, as well as of the amounts of suchpayments, by not later than the end of the calendarquarter immediately following the calendar quarterduring which it directly or indirectly made anypayment as aforesaid,
shall be guilty of an offence and shall, on conviction, be liab le -
(i) to a fine ( multa ) of not less than six thousand
euro (€6,000) and not exceeding ten thousandeuro (€10,000) for an offence committed underparagraphs ( c) and ( d); and
(ii) to a fine ( multa ) of not less than seven hundred
euro (€700) and not exceeding three thousandfive hundred euro (€3,500) for an offence underthe other paragraphs,
and in addition, for any offence as above referred to in all
paragraphs, except for paragraph ( p), where tax amounting to more
than one hundred euro (€100) would be endangered, to a furtherfine ( multa ) equal to two times the endangered tax or to
imprisonment of not more than six months or to both such fines and
imprisonment:
Provided that, the two times fine ( multa ) for the endangered
tax shall in no case be less than one thousand euro (€1,000).
In addition, on a request by the prosecution, the court shall
              VALUE ADDED TAX                [CAP. 406.  4 7
order the offender to comply with the law within a time suffici ent
for the purpose, but in any case not exceeding one month, and, in
default, the offender shall be liable to the payment of a furth er fine
(multa ) of five euro (€5) for every day on which the default continues
after the lapse of the time fixed by the Court.
Recurrent offences.
Amended by:
XIII. 2005.53;L.N. 426 of 2007;L.N. 105 of 2008;II. 2009.51.78. (1) Where a person has been convicted under either article
76 or article 77 and is again convicted of an offence under eit her of
the said articles committed within six months from the date of the
previous conviction, the fine ( multa ) shall in no case be less than
one thousand and two hundred euro (€1,200).
(2) Where a person has been convicted of four offences
committed under either of the articles aforesaid in a period oftwenty-four months, the court shall on the latest of the saidconvictions impose a fine ( multa ) of not less than two thousand and
five hundred euro (€2,500) and in addition to the punishment for that
conviction order the suspension for a determinate time of not l ess
than one week and not more than one month of all licences,permits, warrants or other authorisation granted by the Police or by
any other authority to carry on the economic activity or activi ties to
which the offences relate.
Obstruction of 
officials. 
Amended by:
L.N. 426 of 2007;L.N. 105 of 2008;II. 2009.52.79. Any person who - 
(a) obstructs, hinders, impedes or does anything which is
calculated to obstruct, hinder or impede, or molests orassaults the Commissioner or any person duly engagedin the exercise of any power or duty conferred orimposed on him by or under this Act;
(b) being a person in charge of any premises which the
Commissioner or any person authorised by theCommissioner is empowered to enter in terms ofarticle 53( a) fails to allow access to the said premises
to the Commissioner or authorised officer or fails totake such measures as may be reasonably required ofhim for the purpose of any such access or of anyinspection of that premises or of any goods, assets,books, records or documents kept therein,
shall be guilty of an offence and shall, on conviction, be liab le to a
fine ( multa ) of not less than five hundred euro (€500) and not more
than two thousand and five hundred euro (€2,500), or toimprisonment of not more than six months, or to both such fine and
imprisonment.
 48    CAP. 406. ]               VALUE ADDED TAX 
Offences relating 
to importations. 
Amended by:
XIII. 2005.54;L.N. 426 of 2007;L.N. 105 of 2008;II. 2009.53;V . 2012.67.Cap. 37.
Cap. 9.80. (1) The provisions of articles 18, 60 and 62 of the
Customs Ordinance shall apply to this Act as if all references to
duties contained in those articl es were references to tax due u nder
this Act, and any person who is in contravention of the provisi ons
of the said articles construed as aforesaid in relation to any goods
whose importation is subject to tax under this Act shall, witho ut
prejudice to any liability incurred under the said Ordinance, b e
guilty of an offence under this Act and shall on conviction, beliable to a fine ( multa ) equivalent to three times the tax payable or
to a fine ( multa ) of three hundred and fifty euro (€350), whichever
shall be the greater, so however that one third of the said amo unt
shall be deemed as a civil debt due to the Commissioner, or toimprisonment for a term not exceeding two years or to both suchfine and imprisonment and the offender may be either detained o r
proceeded against by summons, in the same manner and form, andsubject to all other provisions laid down in the 
Criminal Code .
Cap. 37. (2) The provisions of article 77 of the Customs Ordinance  shall
apply in relation to goods whose importation is subject to tax under
this Act as if any reference contained therein to the duty ther ein
mentioned were also a reference to the tax chargeable under thi s
Act.
(3) The importation of goods subject to tax under this Act
shall, for all purposes of any law, be deemed as a prohibitedimportation unless the said tax i s duly paid or, where the paym ent
of the tax has been postponed in accordance with any provisions  of
this Act, the conditions imposed in connection with such apostponement are duly observed.
General offence.
Amended by:
L.N. 426 of 2007;L.N. 105 of 2008;II. 2009.54.81. Any person who knowingly contravenes or fails to comply
with any of the provisions of this Act or any regulations madeunder this Act shall be guilty of an offence and shall on convi ction,
unless the offence is subject to a greater punishment under anyother provision of this Act or any other law, be liable to a fi ne
(multa ) of not less than two hundred and fifty euro (€250) but not
exceeding one thousand and two hundred euro (€1,200), or toimprisonment for a term not exceeding three months, or to bothsuch fine and imprisonment.
Offences by 
principal officers 
of bodies of persons and by employers.
Amended by:
X. 2003.42.82. (1) In addition and without prejudice to any liability of an
employee or other person, where any thing is done or omitted to  be
done by a body of persons, the provisions of this Part shall ap ply as
if such thing were done or omitted to be done by every director ,
manager or other principal officer of that body of persons: pro vided
that a director, manager or other principal officer of a body o f
persons shall not be guilty of an offence in virtue of this sub article
if he proves that he was unaware and could not with reasonablediligence be aware of such act or omission and that he dideverything within his power to prevent that act or omission.
(2) Where anything is done or omitted to be done by an
employee in the course of his employment, or by any person acti ng
on behalf of the registered person, whether such other person i s an
employee or not, the provisions of this Part shall apply as if such
thing were done or omitted to be done both by the said employee  or
other person and by the employer or registered person: provided
              VALUE ADDED TAX                [CAP. 406.  4 9
that such an employer or registered person shall not be guilty of an
offence in virtue of this subarticle if he proves that he was u naware
and could not with reasonable diligence be aware of such an act  or
omission and that he did everything within his power to preventthat act or omission.
Prosecution.
Amended by:
VII.2019.63.83. (1) No proceedings under this Part shall be taken except at
the instance or with the sanction of the Commissioner, andproceedings that have been so taken may, at any time before fin al
judgment, be withdrawn at the request of the Commissioner.
Cap. 9. (2) Notwithstanding the provisions of the Criminal Code , the
Attorney General shall have a right of appeal to the Court of
Criminal Appeal from any judgment given by the Court ofMagistrates in respect of criminal proceedings under this Part.
(3) Deleted by 
VII of 2019
Cap. 9.
Cap. 446.(4) Article 21 of the Criminal Code  and the Probation Act shall
not apply with respect to any conviction under this Act.
(5) In any criminal proceedings under this Part the
Commissioner personally or any other officer designated by himmay, notwithstanding the provisions of any other law, produce t he
evidence, plead and otherwise conduct the prosecution instead o f or
jointly with the police.
(6) Should the evidence of the Commissioner or of the officer
designated by him as aforesaid be required as part of the case for
the prosecution, he shall be heard before assuming the duties o f a
prosecuting officer unless the necessity of his giving evidencearises at a later stage: provided that the Commissioner or othe r
officer as aforesaid may state the facts constituting the offen ce
before giving evidence.
Compromise 
penalty. 
Amended by:
X. 2003.43;XIII. 2005.55;
L.N. 426 of 2007;
L.N. 105 of 2008;II. 2009.55;V . 2012.68;XII. 2014.83;XV . 2016.76.84. (1) Notwithstanding any other provisions of this Act, the
Commissioner may, in the case of an offence under this Act, ent er
into an agreement in writing with the offender whereby the saidoffender pays a sum equivalent to the fine ( multa ) that may be
imposed by way of penalty in accordance with this Act on theconviction of that person for the said offence, sohowever thatwhere a minimum and a maximum amount is provided for inrespect of the fine ( multa ) that may be so imposed, the sum payable
pursuant to the said agreement shall be a sum equivalent to the  said
minimum amount increased by one half of the difference betweenthe said minimum and maximum amounts, and upon the signing ofany such agreement by the Commissioner and the offender allcriminal liability of the offender under this Act with regard t o the
offences in relation to which th e agreement has been entered sh all
be extinguished.
(2) The provisions of subarticle (1) shall apply also in any cas e
where the offender has been charged before a court in relation to
the offence but before final judgment has been given in the cas e:
Provided that where proceedings before a court have not
been commenced, the sum payable in accordance with anyagreement as contemplated in subarticle (1) shall be reduced by  ten
 50    CAP. 406. ]               VALUE ADDED TAX 
per cent.
(3) Notwithstanding the provisions of sub-articles (1) and (2),
the Commissioner may, in the case of an offence by any personagainst the provisions of articles 76( b), 77( e), 77( f), and 77( o),
enter into an agreement with the offender, whereby the saidoffender pays to the Commissioner within fifteen days from rece ipt
of a notice to this effect by the Commissioner the following:
(a) one hundred euro (€100) in the case of a first offence;
(b) two hundred euro (€200) in the case of a second
offence;
(c) four hundred euro (€400) in the case of a third offence;
and
(d) five hundred euro (€500) in the case where the
offender and, or any of his employees or any otherperson acting on his behalf is found in default on twoseparate occasions within a period of six months;
and upon the payment of such fine ( multa ), all criminal liability under
this Act with regard to the offences in relation to which the f ine (multa )
has been paid, shall be extinguished.
(4) Any sum due in virtue of an agreement entered into in terms
of subarticle (1) or subarticle (3) shall be due to the Governm ent as
a civil debt. The Commissioner shall not enter into an agreemen t as
is referred to in subarticle (1) or subarticle (3) unless suchagreement is accompanied b the payment of the sum due or asufficient security for its payment. 
(5) The provisions of this article shall be without prejudice to
any proceedings or forfeiture instituted or having effect in vi rtue of
any other law.
(6) The said agreement and the payment of the fine ( multa ) so
imposed shall be without prejudice to any tax, interest andadministrative penalty due under this Act:
Cap. 37.Provided that the Commissioner, as head of the Department
of Customs, may impose and collect penalties relating to tax onimportation due under this Act, in the case of an agreement hav ing
been reached in accordance with the provisions of article 63 of  the
Customs Ordinance, and may also impose and collect penalties in
the case of an agreement having been reached in accordance withthe provisions of article 63A of the said Ordinance, so however  that
any reference to the duty in the fine ( multa ) referred to in article
63A shall be construed as if it were a reference to the tax due  under
this Act.
PART XI
Transitory Provisions
Saving. 
Amended by:
X. 2003.44.Cap. 395.85.*(1) The provisions of the Customs and Excise Tax Act†
shall continue to apply fully with respect to any importation a nd
any provision of services and supply of goods made before 1January 1999 and with respect to anything required to be done o r
not to be done under that Act before that date subject to the
              VALUE ADDED TAX                [CAP. 406.  5 1
provisions of the other articles of this Part.
Cap. 341. (2) The provisions of the Expenditure Levy Act and of the
Value Added Tax Act, 1994,* shall continue to apply to the extent
that they were applicable immediately before the 1 January 1999 .
Interpretations of 
certain contracts.
Amended by:
X. 2003.45, 46.Substituted by:II. 2004.67.
Amended by:
IV . 2011.77.
Cap. 395.86. (1) Where, in the execution of a contract made before the
effective date, any goods or services are supplied on or after the
effective date and that supply is a taxable supply, that contra ct
shall, for all the purposes of any law be interpreted as if the  parties
to that contract had agreed to a change in the considerationstipulated therein to reflect the difference, if any, between t he
system under the 
Customs and Excise Tax Act and that applicable
under this Act.
(2) Where in the execution of a contract made before the date
of coming into force of any change made in the rate of tax in t erms
of article 19, any goods or services are supplied on or after t he date
of coming into force of such change, and the supply is a taxabl e
supply, that contract shall, for all the purposes of any law, b e
interpreted as if the parties to that contract had agreed to a change
in the consideration stipulated therein to reflect the differen ce
between the rate of tax applicable before the change and the ra te of
tax applicable after the change.
(3) Subarticle (2), with the application where necessary also of
subarticle (1) and of articles 85 and 88, shall apply in theinterpretation of contracts made between the 1st January 1995 and
the 30th June 1997 and between the 1st July 1997 and the 31st
December 1998 where the supply is made on or after the 1st
January 2004.
(4) Subarticles (1), (2) and (3) shall not apply -
(a) where it results from all the relevant circumstances
that the consideration determined in accordance withthe contract had already made provision for the saidadjustment or that the parties had excluded anyadjustment to the consideration on account of suchdifference;
(b) where or to the extent that the supply was, in terms of
the said contract due to take place before the effectivedate or the date of coming into force of any changereferred to in subarticle (2), as the case may be, andthe delay was due to a fault on the part of the personwho makes the supply.
*The original subarticle (1) has been omitted under the Statute  Law Revision Act,
1980.†Repealed by this Act.*Repealed by Act XII of 1997 (
Cap.395) .
 52    CAP. 406. ]               VALUE ADDED TAX 
              VALUE ADDED TAX                [CAP. 406.  5 3
 
The activities listed in the second column of the public author ities listed in the
first column of this Schedule shall be deemed to be activities performed in the course
or furtherance of an economic activity.FIRST SCHEDULE Amended by:
L.N. 198 of 1999;L.N. 387 of 2002.Substituted by:X. 2003.47.
Amended by:
L.N. 489 of 2004.[Article 5(3)]
Activities of Public Authorities
First column 
Public authoritySecond column
Activities
Malta Drydocks Corporation All activitiesMediterranean Conference Centre All activities
Any public authority Sale of leaded petrol, unleaded petrol and
diesel (gas) oil, kerosene, bottled gas and thesupply of electricity and the supply of steam;
The supply of water and gas;
Production and sale of numismatic coins and
medals;
Telecommunications;The transport of goods;
Port and airport services;Passenger transport;Supply of new goods manufactured for sale;
The transactions of agricultural intervention
agencies in respect of agricultural productscarried out pursuant to Regulations on thecommon organisation of the market in theseproducts;
The running of trade fairs and exhibitions;Warehousing;The activities of commercial publicity bodies;The activities of travel agencies;The running of staff shops, co-operatives and
industrial canteens and similar institutions;
Transactions of a commercial nature of radio
and television bodies;
Private hire of patrol boat, helicopter and
equipment;
Inspection of ships’ hulls by divers;Security duties with banks and similar
activities;
Provision of meteorological services;Book binding;Sale of bread;Sale of impounded motor vehicles;
 54    CAP. 406. ]               VALUE ADDED TAX 
The provision of accommodation facilities to
visiting  youths,  student  groups  andindividuals;
Sale of drugs and vaccines;Sale and cleaning of grave sites;Laboratory analysis;
Testing  for  standards  and  issuing  of
certificates for exported goods;
Giving technical advice in connection with
technical problems to private industries;
Printing services to government departments
and parastatal entities;
Sale of other publications;Quarantine services;Sale of milk powder, eggs and dairy produce;Sale of vegetables;Sale of livestock;Sale of decorative trees, fruit trees, vine
rootings, fruit plants, shrubs and flowers;
Sale of wheat, straw and manure;Sale of fish and fishing equipment;Bowser water services;Services of grafting, pruning and spraying;Rent and provision of cold storage facilities
and sale of ice;
Services of civil abattoir;Provision of telephonic communications;
Acting as contractor for cleaning services;
Sale of compost;Repairs to damage;Carpentry works;Hiring of plant and vehicles;Supply of metal trades goods;Repairs to plant and vehicles;Sale of prints;Sale of food prepared by students as part of
their daily training.
              VALUE ADDED TAX                [CAP. 406.  5 5
Supplies: general rule
1. Except as otherwise provided in this Schedule -
(a) a supply of goods is the transfer of the right to dispose of t angible
property as owner;
(b) a supply of services means a supply that is not a supply of go ods.
Energy2. The supply of electricity, gas, heat or cooling energy and ot her sources of
energy shall be treated as a supply of goods.
Rights over property
3. (1) The transfer of an asset which is immovable property by de finition of
the law shall be treated as a supply of goods: provided that an  emphyteutical grant
for a period not exceeding fifty years shall be treated as a su pply of a service.
(2) Subject to the other provisions of paragraph (1) of this ite m an assignment
of any rights over property or of any intangible property wheth er or not it is the
subject of a document establishing title is a supply of service s.
Delivery on deferred terms4. The delivery of the possession of goods pursuant to an agreem ent for the
sale of those goods on deferred terms shall be treated as a sup ply of those goods.
Hire purchase5. The delivery of the possession of goods pursuant to an agreem ent for the
hire of those goods for a certain period where the agreement ex pressly contemplates
that the ownership of those goods will be transferred at a time  not later than the date
on which an agreed price has been paid in full shall be treated  as a supply of those
goods.
Transfer of goods under a contract for commission6. The transfer of goods pursuant to a contract under which comm ission is
payable on purchase or sale is a supply of those goods.
Contract of works7. The delivery of goods pursuant to a contract of works, includ ing a
construction contract, whether or not the materials have been p rovided in full or in
part by the customer, shall be treated as a supply of services,  except in special
circumstances as the Minister may, otherwise, by regulations pr escribe.
Obligation to refrain from an act or to tolerate an act8. An obligation to refrain from an act or to tolerate an act or  situation is aSECOND SCHEDULE
Substituted by:
X. 2003.47.
Amended by:
L.N. 426 of 2007;L.N. 443 of 2007;L.N. 105 of 2008;L.N. 34 of 2009;L.N. 532 of 2010;L.N. 61 of 2011;L.N. 418 of 2012.[Article 6]
Supplies, Intra-Community Acquisitions and 
Importations
 56    CAP. 406. ]               VALUE ADDED TAX 
supply of services.
Incidental supplies
9. (1) The provision by a person of goods for the purpose and in the course of
maintenance or repair services supplied by that person shall be  treated as part of the
supply of those services.
(2) Save as otherwise provided in the Act or any regulations mad e under the
Act, where a supply includes the provision of both goods and se rvices and the
consideration for that supply does not distinguish between the consideration for the
goods and the consideration for the services, the supply shall be treated as a supply
of goods or as a supply of services according to the principal nature of that supply.
Exchange10. In a contract of exchange each of the parties shall be deeme d to make a
supply of any goods and any services he transfers or provides p ursuant to that
contract.
Supplies by disclosed agents11. When a supply is made through an intermediary who acts in th e name and
for the account of another person that supply shall be treated as a supply made by
that other person.
Supplies by undisclosed agents12. When goods or services are supplied through an agent who act s in his own
name they shall be deemed to be supplied to that agent and supp lied by that agent.
Supply for consideration of goods forming part of an economic activity13. The transfer or disposal by a taxable person of goods formin g part of his
economic activity for consideration including:
(a) the sale by judicial auction pursuant to any proceedings exerc ised by a
creditor or by creditors of that person;
(b) the transfer of such goods by order made by or in the name of a public
authority or in pursuance of the law against payment of compens ation
shall be treated as a supply of goods by that taxable person ac ting as
such.
Application of goods forming part of an economic activity
14. (1) Subject to paragraph (3), the application by a person reg istered under
article 10 of goods forming part of his economic activity for h is private use, or that
of his staff, or the disposal thereof free of charge or, more g enerally, their application
for purposes other than those of his economic activity, where t he value added tax on
the said goods or the component parts thereof was wholly or par tly deducted shall be
treated as a supply of goods for consideration by that taxable person acting as such.
(2) Paragraph (1) also applies with respect to the goods forming  part of the
economic activity of a person at the time when his registration  under article 10 is, for
any reason, cancelled:
Provided that the Commissioner may exempt that person from acco unting
for the supply when he has reason to believe that the taxable v alue is less than two
hundred and fifty euro (€250).
(3) This item does not apply to -
              VALUE ADDED TAX                [CAP. 406.  5 7
(a) a gift of goods made in the course or furtherance of that acti vity,
otherwise than as one forming part of a series of gifts made to  the same
person, where the cost to the donor is not more than fifty euro  (€50);
(b) a gift of an industrial sample in a form not ordinarily availa ble for sale
to the public.
Private use of goods forming part of an economic activity15. The use of goods forming part of an economic activity of a t axable person
registered under article 10 by that person himself or by any ot her person for any
purpose other than for the purpose of that economic activity, s hall be treated as a
supply of services for consideration made by that taxable perso n acting as such.
Transfer of a going concern
16. (1) Notwithstanding the other provisions of this Schedule, th e transfer by a
person of assets of his economic activity shall be treated as n either a supply of goods
nor a supply of services if:
(a) the assets are transferred to a person registered under articl e 10 to whom
he transfers his economic activity, or part of that economic ac tivity
which is capable of separate operation, as a going concern; and
(b) the said assets are to be used by the transferee in carrying o n the same
kind of activity, whether or not as part of an existing economi c activity,
as that carried on by the transferor; and
(c) the said transfer is recorded in the records of the transferor  indicating
the registration number of the transferee.
(2) Subject to approval by the Commissioner, the provisions of p aragraph (1)
shall also apply where the transferee is not registered under a rticle 10, provided that
the transferor did not qualify for a credit of the input tax at tributable to the
acquisition and the accumulation of the assets being transferre d.
Transfer of goods to another Member State
17. (1) The transfer by a taxable person of goods forming part of  his economic
activity to another Member State shall be treated as an intra-c ommunity supply of
those goods for consideration.
(2) Goods shall be deemed to be transferred by a taxable person to another
Member state if they are transported by or on his behalf from M alta to another
Member State ("the second State") for the purposes of his econo mic activity other
than for the purposes of any one of the following transactions:
(a) the installation or assembly of those goods, with or without a  trial run,
by or on behalf of the taxable person within the second State;
(b) the supply of those goods under a transaction that constitutes  a distance
sale that takes place in the second State;
(c) the supply of those goods by or on behalf of the taxable perso n on board
ships, aircraft or trains during the transport of passengers wh ere the
point of departure of that transport is in the second State;
(d) the supply of those goods by the taxable person in the second State
under a transaction which would be treated as an exempt with cr edit
supply in terms of the provisions of items 1 to 9 of Part One o f the Fifth
Schedule if made in Malta;
(e) the supply of services to the taxable person involving valuati ons of, or
 58    CAP. 406. ]               VALUE ADDED TAX 
work on, those goods physically carried out in the second State  provided
the said goods are returned to that person in Malta on the comp letion of
the said work;
(f) the temporary use of those goods in the second State for the p urpose of
the supply of services by the taxable person if that person is established
in Malta;
(g) the temporary use of those goods in the second State for a per iod not
exceeding twenty-four months if the importation of those goods into
that State for temporary use would qualify for a full exemption  from
import duties;
(h) the supply of gas through a natural gas system situated within  the territory
of the Community or any network connected to such a system, the  supply of
electricity or the supply of heat or cooling energy through hea ting or
cooling networks, in accordance with the conditions laid down i n item 5 of
Part One of the Third Schedule
(3) Where a transport of goods satisfies the conditions of any s ubparagraph of
paragraph (2) and, at a subsequent stage, those conditions are no longer met, the
transport shall, at that subsequent stage, be treated as a tran sfer to which paragraph
(1) applies.
(4) The Minister may by regulations prescribe simplification mea sures for the
application of this item and of item 18, in accordance with Art icle 395 of Council
Directive 2006/1 12/EC  or in virtue of any other article in substitution therefor.
Intra-community acquisitions
18. (1) An intra-community acquisition is:
(a) the acquisition of the right to dispose as owner of goods whic h are
transported by or on behalf of the supplier or the person acqui ring them
from a Member State to the person acquiring them in another Mem ber
State; or
(b) the use in a Member State by a taxable person for the purpose of his
economic activity of goods transported by him or on his behalf from
another Member State within the territory of which those goods were
produced, extracted, purchased, acquired or imported by him for  the
purpose of his economic activity, where the transport of those goods
would, if made from Malta to another Member State, be treated a s a
transfer of goods to another Member State in accordance with it em 17;
(c) the acquisition by a non-taxable legal person of goods importe d by that
person into the Community and transported to a Member State oth er
than the State of importation.
(2) Any transaction which is treated under this Act as a supply of goods or a
supply of goods for consideration shall also be treated as invo lving an acquisition of
the right to dispose as owner of those goods or an acquisition of those goods for
consideration.
Importation19. Importation means:
(a) the entry into Malta before the accession date of goods transp orted from
any other country;
(b) the entry into the Community on or after the accession date of  goods
              VALUE ADDED TAX                [CAP. 406.  5 9
transported from a third territory excluding, however:
(i) goods which fulfil the conditions laid down in Articles 9 an d 10
of the Treaty establishing the European Economic Community;and
(ii) goods covered by the Treaty establishing the European Coal and
Steel Community that are in free circulation.
Part One
Place of supply of goods
Supply of goods: general rule1. Except as otherwise provided in this Schedule -
(a) a supply of goods that are not transported takes place where t he goods
are at the time when they are placed at the disposal of the per son
acquiring those goods;
(b) a supply of goods that are transported takes place where the g oods are at
the time when the transport of those goods begins;
(c) when the transport of goods begins outside the Community and e nds in
a Member State the supply of those goods by the importer and an y
subsequent supply up to the acquisition of those goods takes pl ace in the
Member State where they are imported.
Goods installed or assembled2. A supply of goods that are installed or assembled, with or wi thout a trial run,
by or on behalf of the supplier takes place where the goods are  installed or
assembled.
Goods supplied on board ships, aircraft or trains3. A supply of goods on board ships, aircraft or trains during t he part of a
transport of passengers effected in the Community takes place a t the point of
departure of the transport of passengers and, for the purpose o f this item -
(a) "part of the transport of passengers effected in the Community " means
the part of the transport effected, without a stop in a third t erritory,
between the point of departure and the point of arrival of the transport
of passengers;
(b) "the point of departure of the transport of passengers" means the first
point of passenger embarkation foreseen within the Community, w here
relevant after a leg outside the Community;
(c) "the point of arrival of the transport of passengers" means th e last pointTHIRD SCHEDULE
Substituted by:
X. 2003.47.
Amended by:
L.N. 124 of 2007;L.N. 444 of 2007.Substituted by:L.N. 133 of 2009.
Amended by:
L.N. 533 of 2010;L.N. 297 of 2018.[Article 7]
Place of Supplies, Intra-Community Acquisitions 
and Importations
 60    CAP. 406. ]               VALUE ADDED TAX 
of disembarkation of passengers foreseen within the Community o f
passengers who embarked in the Community, where relevant before  a
leg outside the Community;
(d) a return trip shall be treated as a separate trip.
Distance sales
4. (1) A distance sale means an intra-community supply of goods t ransported
by or on behalf of the supplier which satisfies all the followi ng conditions:
(a) the goods are not:
(i) new means of transport; or
(ii) goods that are installed or assembled by or on behalf of th e
supplier in the Member State where the transport ends; or
(iii) goods that are supplied under a transaction subject to a m argin
scheme on second hand goods, works of art, collectors’ items an d
antiques in the Member State where the transport begins;
(b) when the transport ends in Malta, the goods are acquired by a person
who is not registered under article 10 or article 12;
(c) when the goods are transported from Malta the purchaser is not
identified on the invoice for that sale by a value added tax id entification
number assigned by the Member State where the transport ends.
(2) A distance sale takes place in the Member State where the tr ansport of the
goods in question ends, provided that a distance sale of goods which are not excise
goods shall be treated as taking place in the Member State from  where the goods are
transported if the following conditions are met:
(a) in the case goods transported to Malta -
(i) the total value of supplies of goods transported to Malta by  the
same supplier during the year in which the distance sale takesplace, including the value of the distance sale in question, orduring the calendar year immediately preceding that year does n ot
exceed the Distance Sales threshold determined in accordancewith Part Three of the Sixth Schedule; and
(ii) the supplier has not made a valid election in the Member St ate
from where the goods are transported in terms of which thedistance sale is to be treated as taking place in Malta;
(b) in the case of goods transported from Malta -
(i) the total value of supplies of goods transported to the Memb er
State where the transport ends by the supplier of the distance sale
in question during the year in which that sale takes place orduring the calendar year immediately preceding that year does n ot
exceed the threshold above which, in accordance with the valueadded tax legislation of that State, distance sales are subject  to tax
in that State by reason of their value; and
(ii) the supplier has not made a valid election in Malta in term s of
which the distance sale is to be treated as taking place in theMember State where the transport ends.
(3) A valid election for the purpose of paragraph (2)( b)(ii) shall be made by
means of a notice in writing to the Commissioner on a form acce ptable to the
Commissioner specifying the date from which it applies, not bei ng earlier than thirty
              VALUE ADDED TAX                [CAP. 406.  6 1
days from the date on which it is furnished, and shall apply to  all distance sales made
during the calendar year in which the election is made and for the two subsequent
calendar years.
Supplies of gas through a natural gas system, of electricity and of heat or cooling
energy through heating and cooling networks
5. (1)  The place of supply to a taxable dealer of the supply of gas through a
natural gas system situated within the territory of the Communi ty or any network
connected to such a system, the supply of electricity or the su pply of heat or cooling
energy through heating or cooling networks shall be deemed to b e the place where
that taxable dealer has established his business or has a fixed  establishment for
which the goods are supplied or, in the absence of such a place  of business or fixed
establishment, the place where he has his permanent address or usually resides.
For the purposes of this paragraph, "taxable dealer" shall mean  a taxable
person whose principal activity in respect of purchases of gas,  electricity, heat or
cooling energy is reselling those products and whose own consum ption of those
products is negligible.
(2) Where a supply of gas through a natural gas system situated within the
territory of the Community or any network connected to such a s ystem, the supply of
electricity or the supply of heat or cooling energy through hea ting or cooling
networks is not covered by paragraph (1), the place of supply s hall be deemed to be
the place where the customer effectively uses and consumes the goods:
Provided that where all or part of the gas, electricity or heat  or cooling
energy is not effectively consumed by the customer, those non-c onsumed goods shall
be deemed to have been used and consumed at the place where the  customer has
established his business or has a fixed establishment for which  the goods are
supplied. In the absence of such a place of business or fixed e stablishment, the
customer shall be deemed to have used and consumed the goods at  the place where
he has his permanent address or usually resides.
Part Two
Place of supply of services
Definitions1. For the purpose of applying the rules concerning this Part:
(a) a taxable person who also carries out activities or transactio ns that are
not considered to be taxable supplies of goods or services in a ccordance
with article 4 shall be regarded as a taxable person in respect  of all
services rendered to him;
(b) a non-taxable legal person who is identified for V AT purposes shall be
regarded as a taxable person.
General rules
2. (1) The place of supply of services to a taxable person acting  as such shall
be the place where that person has established his business. Ho wever, if those
services are provided to a fixed establishment of the taxable p erson located in a
place other than the place where he has established his busines s, the place of supply
of those services shall be the place where that fixed establish ment 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 receiv es such services has
his permanent address or usually resides.
 62    CAP. 406. ]               VALUE ADDED TAX 
(2) The place of supply of services to a non-taxable person shal l be the place
where the supplier has established his business. However, if th ose 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 suppl y of those services
shall be the place where that fixed establishment is located. I n the absence of such
place of establishment or fixed establishment, the place of sup ply of services shall be
the place where the supplier has his permanent address or usual ly resides.
Supply of services by intermediaries3. The place of supply of services rendered to a non-taxable per son by an
intermediary acting in the name and on behalf of another person  shall be the place
where the underlying transaction is supplied in accordance with  this Act.
Supply of services connected with immovable property4. The place of supply of services connected with immovable prop erty,
including the services of experts and estate agents, the provis ion of accommodation
in the hotel sector or in sectors with a similar function, such  as holiday camps or
sites developed for use as camping sites, the granting of right s to use immovable
property and services for the preparation and coordination of c onstruction work,
such as the services of architects and of firms providing on-si te supervision, shall be
the place where the immovable property is located.
Supply of transport
5. (1) The place of supply of passenger transport shall be the pl ace where the
transport takes place, proportionate to the distances covered.
(2) The place of supply of the transport of goods, other than th e intra-
Community transport of goods, to non-taxable persons shall be t he place where the
transport takes place, proportionate to the distances covered.
(3) The place of supply of the intra-Community transport of good s to non-
taxable persons shall be the place of departure.
For the purpose of this paragraph:
(a) "Intra-Community transport of goods" shall mean any transport of
goods in respect of which the place of departure and the place of arrival
are situated within the territories of two different Member Sta tes.
(b) "Place of departure" shall mean the place where transport of t he goods
actually begins, irrespective of distances covered in order to reach the
place where the goods are located and "place of arrival" shall mean the
place where transport of the goods actually ends.
Supply of cultural, artistic, sporting, scientific, educational, entertainment and
similar services, ancillary transport services and valuations of and work on movableproperty
6. (1) The place of supply of services in respect of admission to  cultural,
artistic, sporting, scientific, educational, entertainment or s imilar events, such as
fairs and exhibitions, and of ancillary services related to the  admissions, supplied to
a taxable person, shall be the place where those events actuall y take place.
(2) ( a) The place of supply of services and ancillary services, relati ng to
cultural, artistic, sporting, scientific, educational, entertai nment or
similar activities, such as fairs and exhibitions, including th e supply of
services of the organisers of such activities, supplied to a no n-taxable
              VALUE ADDED TAX                [CAP. 406.  6 3
person shall be the place where those activities actually take place.
(b) The place of supply of the following services to a non-taxable  person
shall be the place where the services are physically carried ou t:
(i) ancillary transport activities such as loading, unloading, h andling
and similar activities;
(ii) valuations of and work on movable tangible property.
Supply of restaurant and catering services7. The place of supply of restaurant and catering services other  than those
physically carried out on board ships, aircraft or trains durin g the section of a
passenger transport operation effected within the Community, sh all be the place
where the services are physically carried out.
Hiring of means of transport
8. (1) The place of short-term hiring of a means of transport sha ll be the place
where the means of transport is actually put at the disposal of  the customer.
(2) The place of hiring, other than short-term hiring, of a mean s of transport to a
non-taxable person shall be the place where the customer is est ablished, has his
permanent address or usually resides.
However, the place of hiring a pleasure boat to a non-taxable p erson, other
than short-term hiring, shall be the place where the pleasure b oat is actually put at
the disposal of the customer, where this service is actually pr ovided by the supplier
from his place of business or a fixed establishment situated in  that place.
(3) For the purposes of paragraphs (1) and (2), "short-term" sha ll mean the
continuous possession or use of the means of transport througho ut a period of not
more than thirty days and, in the case of vessels, not more tha n ninety days.
Supply of restaurant and catering services for consumption on board ships,
aircraft or trains
9. (1) The place of supply of restaurant and catering services wh ich are
physically carried out on board ships, aircraft or trains durin g the section of a
passenger transport operation effected within the Community, sh all be at the point of
departure of the passenger transport operation.
(2) For the purposes of paragraph (1), "section of a passenger t ransport
operation effected within the Community" shall mean the section  of the operation
effected, without a stopover outside the Community, between the  point of departure
and the point of arrival of the passenger transport operation.
"Point of departure of a passenger transport operation" shall m ean the first
scheduled point of passenger embarkation within the Community, where applicable
after a stopover outside the Community.
"Point of arrival of a passenger transport operation" shall mea n the last scheduled
point of disembarkation within the Community of passengers who embarked in the
Community, where applicable before a stopover outside the Commu nity.
In the case of a return trip, the return leg shall be regarded as a separate transport
operation.
 64    CAP. 406. ]               VALUE ADDED TAX 
Supply of telecommunications, broadcasting and electronic services to non-
taxable persons
10. (1) The place of supply of the following services to a non-t axable person
shall be the place where that person is established, has his pe rmanent address or
usually resides:
(a) telecommunications services;
(b) radio and television broadcasting services;(c) electronically supplied services, in particular services rel ating to
website supply, web-hosting, distance maintenance of programmes  and
equipment, supply of software and updating thereof, supply of i mages,
text and information and making available of databases, supply of
music, films and games, including games of chance and gamblinggames, and of political, cultural, artistic, sporting, scientif ic and
entertainment broadcasts and events, and supply of distance tea ching.
Where the supplier of a service and the customer communicate vi a electronic mail,
that shall not of itself mean that the service supplied is an e lectronically supplied
service.
(2) Paragraph (1) shall not apply where the following conditions  are met:
(a) the supplier is established or, in the absence of an establi shment, has his
permanent address or usually resides in Malta only; and
(b) services are supplied to non-taxable persons who are establi shed, have
their permanent address or usually reside in any Member State o ther
than Malta; and
(c) the total value, exclusive of V AT, of the supplies referred to in sub-
paragraph (b) does not in the current calendar year exceed EUR 10,000
and did not do so in the course of the preceding calendar year.
(3) Where, during a calendar year, the threshold referred to in paragraph (2)(c)
is exceeded, paragraph (1) shall apply as of that time.
(4) The Commissioner shall grant to those suppliers referred to in paragraph (2)
the right to opt for the place of supply to be determined in ac cordance with
paragraph (1), which shall in any event cover two calendar year s:
Provided that, a valid election for this purpose shall be made by means of a
notice in writing to the Commissioner on a form acceptable to t he Commissioner
specifying the date from which it applies, not being earlier th an thirty days from the
date on which it is furnished.
Supply of services to non-taxable persons outside the Community11. The place of supply of the following services to a non-taxab le person who is
established or has his permanent address or usually resides out side the Community,
shall be the place where that person is established, has his pe rmanent address or
usually resides:
(a) transfers and assignments of copyrights, patents, licences, tr ade marks
and similar rights;
(b) advertising services;
(c) the services of consultants, engineers, consultancy firms, law yers,
accountants and other similar services, as well as data process ing and
the provision of information;
              VALUE ADDED TAX                [CAP. 406.  6 5
(d) obligations to refrain from pursuing or exercising, in whole o r in part, a
business activity or a right referred to in this item;
(e) banking, financial and insurance transactions including reinsu rance,
with the exception of the hire of safes;
(f) the supply of staff;
(g) the hiring out of movable tangible property, with the exceptio n of all
means of transport;
(h) the provision of access to a natural gas system situated withi n the territory
of the Community or to any network connected to such a system, to the
electricity system or to heating or cooling networks, or the tr ansmission or
distribution through these systems or networks, and the provisi on of other
services directly linked thereto.
Prevention of double taxation or non-taxation12. In order to prevent double taxation, non-taxation or distort ion of
competition, the Commissioner may, with regard to services the place of supply of
which is governed by Items 2, 8, 10 and 11 of this Part:
(a) consider the place of supply of any or all of those services, if situated
within Malta, as being situated outside the Community if the ef fective
use and enjoyment of the services takes place outside the Commu nity;
(b) consider the place of supply of any or all of those services, if situated
outside the Community, as being situated within Malta if the ef fective
use and enjoyment of the services takes place within Malta.
Part Three
Place of Intra-Community Acquisitions
Intra-community acquisitions: general rule1. An intra-community acquisition takes place where the goods ar e when the
transport of the goods to the person acquiring them ends.
Place of intra-community acquisition under an identification number assigned
under this Act
2. (1) Without prejudice to item 1, when a taxable person makes a n intra-
community acquisition on which he is identified as registered u nder article 10 the
acquisition shall be deemed to take place in Malta unless the p erson acquiring the
goods establishes that the acquisition has been treated as taki ng place in another
Member State and subject to value added tax in that State in te rms of provisions in
force under the law of that State corresponding to item 1.
(2) For the purpose of paragraph (1) an intra-community acquisit ion of goods
shall be deemed to have been subject to value added tax in a Me mber State in terms
of provisions in force under the law of that State correspondin g to item 1 if all the
following conditions are fulfilled:
(a) it is made for the purpose of a subsequent supply of those goo ds in that
other Member State;
(b) the subsequent supply is made to a taxable person or a non-tax able legal
person identified for value added tax purposes in the Member St ate of
destination;
(c) the person to whom the subsequent supply is made is designated  by the
supplier as the person liable for the payment of the tax on tha t supply;
 66    CAP. 406. ]               VALUE ADDED TAX 
(d) the taxable person registered under article 10 reports the sub sequent
supply in the recapitulative statement required in terms of art icle 30(3).
Part Four
Place of Importations
Importations1. An importation of goods takes place where the goods are at th e time when
the chargeable event takes place.
Date of the chargeable event in the case of supplies of goods
1. (1) In the case of a supply of goods the chargeable event take s place on the
date when the goods are delivered.
(2) For the purpose of paragraph (1), when the delivery of goods , other than
goods referred to in paragraph (3), gives rise to successive st atements of account or
payments the goods shall be treated as delivered, up to the val ue covered by those
statements, on the last day of each period to which such statem ents of account or
payments refer:
Provided that, when a continuous supply of goods does not give rise to statements
of account or payments during a year, it shall be regarded as b eing delivered at least
at intervals of one year.
(3) Paragraph (2) does not apply to the delivery of goods pursua nt to a contract
for the hire of goods for a certain period or for the sale of g oods on deferred terms,
which provides that in the normal course of events ownership sh all pass at the latest
upon payment of the final instalment.
(4) Notwithstanding the provisions of paragraphs (2) and (3), co ntinuous
supplies of goods over a period of more than one calendar month  which  are
dispatched or transported to a Member State other than Malta an d which are supplied
V AT exempt or which are transferred V AT exempt to another Membe r State by aAmended by:
L.N. 17 of 1999;L.N. 28 of 1999;L.N. 89 of 1999;L.N. 116 of 1999;L.N. 142 of 1999;L.N. 199 of 1999;L.N. 11 of 2000;L.N. 274 of 2000;L.N. 23 of 2001;L.N. 171 of 2001;L.N. 233 of 2001;L.N. 180 of 2002;L.N. 205 of 2002;L.N. 39 of 2003.Substituted by:X. 2003.47.
Amended by:
L.N. 71 of 2010;L.N. 419 of 2012;L.N. 140 of 2013.FOURTH SCHEDULE
[Article 8]
Date when a chargeable event takes place and 
when tax becomes chargeable
              VALUE ADDED TAX                [CAP. 406.  6 7
taxable person for the purposes of his business, in accordance with the conditions
laid down in item 3, Part One, Fifth Schedule, shall be regarde d as being completed
on expiry of each calendar month until such time as the supply comes to an end.
Date of the chargeable event in the case of supplies of services
2. (1) In the case of a supply of services, the chargeable event takes place on
the date when the services are performed.
(2) For the purpose of paragraph (1), when the supply of service s gives rise to
successive statements of account or payments they shall be trea ted as performed, up
to the value covered by those statements, on the last day of ea ch period to which
such statements of account or payments refer:
Provided that, when a continuous supply of services does not gi ve rise to
statements of account or payments during a year, it shall be re garded as being
completed at least at intervals of one year.
(3) Notwithstanding the provisions of paragraph (2), when a supp ly of services
for which V AT is payable pursuant to article 20(2)( b) of the Act is supplied
continuously over a period of more than one year and it does no t give rise to
statements of account or payments during that period it shall b e regarded as being
completed on expiry of each calendar year until such time that the supply comes to
an end.
Date when tax on supplies becomes chargeable3. The tax on a supply which takes place in Malta, other than a supply to which
item 4 applies, becomes chargeable on the earlier of the follow ing two dates:
(a) the date when the chargeable event takes place;
(b) the date when a payment is made for the supply to the extent c overed by
that payment:
Provided that where a tax invoice is issued by the fifteenth day of the month
following the date determined under the foregoing provisions of  this subsection the
tax becomes chargeable on the date of the invoice.
Date when tax on exempt intra-community supplies becomes chargeable4. The tax on an exempt intra-community supply becomes chargeabl e on the
earlier of the following two dates -
(a) the fifteenth day of the month following the date when the cha rgeable
event takes place;
(b) the date on which a tax invoice is issued for that supply:
Provided that, with respect to the supply of goods and the tran sfer of goods
referred to in this item, the provision of paragraph (2) in ite m 1 and the occurrence
of sub-paragraph (b) of item 3 shall not apply.
Date of the chargeable event in the case of intra-community acquisitions5. In the case of an intra-community acquisition of goods the ch argeable event
takes place on the date which would be the date of the chargeab le event had those
goods been supplied in the Member State where the acquisition i s made.
Date when tax on intra-community acquisitions becomes chargeable6. The tax on an intra-community acquisition becomes chargeable on the
earlier of the following two dates -
 68    CAP. 406. ]               VALUE ADDED TAX 
(a) the fifteenth day of the month following the date of the acqui sition;
(b) the date on which a tax invoice is issued to the person making  the
acquisition for the supply of goods in question.
Date of the chargeable event and when tax becomes chargeable in the case of
importations
7. (1) When goods are, on importation, placed under a customs dut y
suspension regime the chargeable event takes place and the tax becomes chargeable
on the date when they cease to remain subject to that regime.
(2) When goods are, on importation, subject to customs duties, t o agricultural
levies or to charges having equivalent effect established under  a common policy, the
chargeable event takes place and tax becomes chargeable when th e chargeable event
for those Community duties takes place and those duties become chargeable.
(3) In the case of an importation of goods that is not subject t o the Community
duties referred to in paragraph (2), the chargeable event takes  place and tax becomes
chargeable when, if the importation were subject to those dutie s, the chargeable
event for those Community duties would take place and those dut ies would become
chargeable.
(4) "Customs duty suspension regime" means any of the following arrangements
and procedures to the extent that they provide, under the custo ms legislation of a
Member State, for the temporary exemption from duty chargeable on the entry of
goods into that State while the conditions required under those  arrangements and
procedures are met:
(a) the temporary storage of goods;
(b) the placing of goods in a free zone or free warehouse;
(c) customs warehousing or inward processing;
(d) the admittance into territorial waters of goods on drilling an d
production platforms;
(e) the temporary entry of goods into that State;
(f) external transit procedures;
(g) internal transit procedures.
              VALUE ADDED TAX                [CAP. 406.  6 9
This Part applies to the supplies listed herein subject to the definitions contained
in Part Five.
Exports and like transactions
1. (1) The supply of goods dispatched or transported to a destina tion outside
the Community by or on behalf of the seller.
(2) The supply of goods transported to a destination outside the  Community by
or on behalf of a purchaser not established within Malta, with the exception of goods
transported by the purchaser himself for the equipping, fuellin g and provisioning of
pleasure boats and private aircraft or any other means of trans port for private use.
(3) The supply of services other than those exempted by item 5, consisting of
work on movable goods acquired or imported for the purpose of u ndergoing such
work within Malta, and transported outside the Community by the  performer of the
services or by the customer if not established within Malta, or  on behalf of either of
them.
International goods traffic
2. (1) The supply of goods intended to be placed or while they ar e placed
under a customs duty suspension regime.
(2) The supply of services other than those exempted by item 6, consisting in
work on movable goods that are intended to be placed or while t hey are placed under
a customs duty suspension regime.
Intra-community supplies
3. (1) The intra-community supply of goods to a person who is ide ntified on
the relative invoice as a person identified for value added tax  purposes by a valid andAmended by:
L.N. 24 of 2001.Substituted by:X. 2003.47.
Amended by:
L.N. 250 of 2004;L.N. 520 of 2004;L.N. 334 of 2006;L.N. 121 of 2007;L.N. 445 of 2007;L.N. 234 of 2009;L.N. 286 of 2010;L.N. 425 of 2010;L.N. 534 of 2010;L.N. 379 of 2011;L.N. 499 of 2011;L.N. 38 of 2012;L.N. 345 of 2013;L.N. 422 of 2013;L.N. 480 of 2014;L.N. 227 of 2015;L.N. 247 of 2016;L.N. 383 of 2016;L.N.347 of 2017;L.N. 9 of 2018;L.N.155 of 2019;L.N.302 of 2019FIFTH SCHEDULE
[Article 8]
Exemptions
Part One
Exemptions with credit
 70    CAP. 406. ]               VALUE ADDED TAX 
active value added tax identification number in a Member State other than Malta,
excluding:
(a) a supply made by a person registered under article 11;
(b) a supply that is subject to the special scheme of the profit m argin in
terms of Part Two of the Fourteenth Schedule.
(2) The intra-community supply of new means of transport to a pe rson who is
not identified for the purpose of that supply by a value added tax identification
number.
(3) The intra-community supply of excise goods to a person who i s not
identified for the purpose of that supply by a value added tax identification number
where the transport of the goods is carried out in accordance w ith Article 7 (4) and
(5), or Article 16 of Directive 92/12/EEC , excluding:
(a) a supply made by a person registered under article 11;
(b) a supply that is subject to the special scheme of the profit m argin in
terms of Part Two of the Fourteenth Schedule.
(4) The intra-community supply of goods referred to in item 17(1 ) of the Second
Schedule which would benefit from the exemption referred to in paragraph (1) of
this item if it were made on behalf of another taxable person, excluding a supply that
is subject to the special scheme of the profit margin in terms of Part Two of the
Fourteenth Schedule.
International transport and ancillary services
4. (1) The international transport of persons; the transport of l uggage and
motor vehicles accompanying passengers and the supply of servic es related to the
international transport of passengers.
(2) The transport of goods from a third territory and the supply  of services
ancillary thereto, where the value of these transport and ancil lary services are
included in the taxable value of the importation of those goods .
(3) The transport of goods which is directly connected with the export of those
goods outside the Community.
(4) The transport of goods that are subject to a customs duty su spension regime.
(5) The supply of services used for the purposes of transport re ferred to in
paragraph (3) and (4) and relating to the loading, unloading, t ranshipment, handling,
stowage, weighing, measuring, control, valuation, storage, supe rvision or delivery.
(6) The supply of services relating to customs formalities on im portation into or
exportation outside the Community or on transit.
(7) The intra-community transport of goods effected to or from t he islands
composing the autonomous regions of Azores or Madera as well as  ancillary services
thereto.
Brokers or other intermediaries5. The supply of services of brokers and other intermediaries wh o act in the
name and for the account of another person when these persons t ake part in
operations exempted by items 1, 2, 6, 7, 8, 9 and 10 of this Pa rt of the Schedule.
              VALUE ADDED TAX                [CAP. 406.  7 1
Sea vessels
6. (1) The supply of vessels:
(a) used for navigation on the high seas and carrying passengers f or reward
or used for the purpose of commercial, industrial or fishing ac tivities;
(b) used for rescue or assistance at sea or for coastal fishing;
(c) of war.
(2) The supply to constructors, owners or operators of the vesse ls referred to in
(1) of equipment incorporated or used therein.
(3) The supply of services consisting of the modification, maint enance,
chartering and hiring of the vessels referred to (1) or equipme nt referred to in (2).
(4) The supply to the owners or to the operators of vessels refe rred to in (1) of
goods for the fuelling or provisioning thereof: provided that -
(a) with respect to vessels used for coastal fishing, this exempti on is not
applicable for board provisioning, and
(b) with respect to war vessels, this exemption is limited to the fuelling and
provisioning destined for vessels defined in subheading 89.01 o f the
Customs Tariff, leaving the country and bound for foreign ports  o r
anchorages.
(5) The supply of services other than those referred to in (3), carried out for the
direct needs of vessels referred to in (1), with the exception of war vessels, and for
the direct needs of their cargo such as towage, pilotage, moori ng, rescue services,
valuation, use of the ports, services provided to the ship-owne rs by the maritime
agents acting as such, services necessary for the entrance, dep arture or stay of the
vessels in ports, and assistance provided to the passengers or the crew for the
account of the shipowners.
Aircraft
7. (1) The supply of aircraft destined to be used by airline oper ators for reward
chiefly for international transport of passengers and/or goods.
(2) The supply to constructors, owners or operators of aircraft referred to in (1)
of equipment incorporated or used therein.
(3) The supply of services consisting of the modification, maint enance,
chartering and hiring of aircraft referred to in (1) or equipme nt referred to in (2).
(4) The supply to the owners or to the operators of aircraft ref erred to in (1) of
goods for the fuelling or provisioning thereof.
(5) The supply of services other than those referred to in (3), carried out for the
direct needs of aircraft referred to in (1) and for the direct needs of their cargo such
as towage, pilotage, rescue services, valuation, use of the air ports, services provided
to aircraft operators by their agents acting as such, services necessary for the
landing, take off or stay in airports, and assistance provided to the passengers or the
crew for the account of the airline operators.
Gold
8. (1) The supply of gold to the Central Bank of Malta.
(2) The supply of investment gold, including investment gold rep resented by
certificates for allocated or unallocated gold or traded on gol d accounts and
 72    CAP. 406. ]               VALUE ADDED TAX 
including, in particular, gold loans and swaps, involving a rig ht of ownership or
claim in respect of investment gold, as well as transactions co ncerning investment
gold involving futures and forward contracts leading to a trans fer of right of
ownership or claim in respect of investment gold.
(3) The supply of services of agents who act in the name and for  the account of
another when they intervene in the supply of investment gold fo r their principal.
(4) The exemptions in paragraphs (2) and (3) shall be subject to  the option for
taxation in terms of Part Six of the Fourteenth Schedule.
Food9. The supply of food for human consumption, excluding food supp lied in the
course of catering.
Pharmaceutical goods10. The supply of pharmaceutical goods.Transport11. The supply of -
(a) transport by scheduled bus service consisting of trips on sche duled
routes.
For avoidance of doubt, "scheduled bus service" shall mean publ ic
passenger transport services by an operator contracted in terms  of the
provisions of regulation 68B of the 
Passenger Transport Services
Regulations  (S.L. 499.56), or any other regulations replacing those
regulations;
(b) scheduled inter-island sea transport of passengers by authoris ed carriers
and other scheduled sea transport of passengers recognised as s uch by
the Commissioner.
For avoidance of doubt, "scheduled inter-island sea transport o f
passengers" shall mean scheduled transport of passengers betwee n the
islands of Malta and Gozo;
(c) special regular services consisting in the carriage of school pupils and
students to and from an educational establishment recognised as  such by
the Commissioner;
(d) special regular services consisting in the carriage of workers  to and
from their place of work.
In paragraphs ( c) and ( d) the term "special regular services" has the meaning
assigned to it in the Passenger Transport Services Regulations or any other
regulations replacing those regulations.
Supplies of goods on board cruise liners12. The supply of goods for consumption on board cruise liners w here the place
of taxation in terms of item 3 of the Third Schedule to the Act  is deemed to be in
Malta.
              VALUE ADDED TAX                [CAP. 406.  7 3
Part Two
Exemptions without credit
This Part applies to the supplies listed herein subject to the definitions contained
in Part Five. Items 2 and 3 are without prejudice to item 5 of Part One.
Immovable property
1. (1) The letting of immovable property excluding -
(a) the letting of or the provision of accommodation in any premis es which
for the purpose of the said letting or accommodation is require d to be
licensed in virtue of the Malta Travel and Tourism Services Act , or any
Act which may be substituted therefor or in a holiday camp or c amping
site;
(b) the letting of premises and sites for parking vehicles where s uch
premises or sites have been designated by the Commissioner as p arking
areas or which fall to be treated as such in terms of such regu lations as
may be prescribed;
(c) the letting of permanently installed equipment and machinery a nd the
hire of safes;
(d) the letting of property by a limited liability company to a pe rson
registered under article 10 for the purpose of the economic act ivity of
that other person;
(e) the letting of immovable property for not more than thirty day s by a
taxable person in the course of an economic activity, except fo r:
(i) the letting referred to in sub-paragraphs ( a), (b), (c) and ( d);
(ii) the letting of space for artistic and cultural activities;
(iii) the letting for the purposes of habitation of any premises  which
for the purpose of the said letting, those premises are not req uired
to be licensed in virtue of the Malta Travel and Tourism Servic es
Act, or any other Act which my be substituted therefor;
(iv) the letting of premises used or intended to be used as gara ges,
stores or similar uses;
(v) the letting to players of rooms or other spaces lawfully des ignated for
the playing of poker.
(2) The transfer of immovable property.Insurance services2. The supply by persons licensed under the 
Insurance Business Act or the
Insurance Distribution Act, of insurance and reinsurance transactions, including related
services, in respect of which they are so licensed, where those  services are specific to
and essential for the provision of insurance or re-insurance tr ansactions:
Provided that road assistance services provided for a fixed sub scription, by a
taxable person who undertakes to provide such assistance should  the risk of breakdown
or accident covered by that person materialise, shall be consid ered as an exempt supply
of insurance services.
Credit, banking and other services
3. (1) The granting and the negotiation of credit and the managem ent of credit
by the person granting it.
 74    CAP. 406. ]               VALUE ADDED TAX 
(2) The negotiation of or any dealings in credit guarantees or a ny other security
for money and the management of credit guarantees by the person  who is granting
the credit.
(3) Transactions, including negotiation, concerning deposit and current
accounts, payments, transfers, debts, cheques and other negotia ble instruments, but
excluding debt collection and factoring.
(4) Transactions, including negotiation, concerning currency, ba nk notes and
coins normally used as legal tender.
(5) Transactions, including negotiation, excluding management an d
safekeeping, in shares, interest in companies or associations, debentures and other
securities, excluding:
(a) documents establishing title to goods;
(b) certain interest in immovable property;
(c) rights in rem giving the holder thereof a right of user over immovable
property;
(d) shares or interests equivalent to shares giving the holder the reof de jure
or de facto rights of ownership or possession over immovable property
or part thereof.
(6) The supply of services consisting of the management of any i nvestment
scheme, provided that these services are limited to those activ ities that are specific to
and essential for the core activity of the scheme:
Provided further that investment schemes shall refer to:
"collective investment scheme" as defined under the Investment
Services Act;
"retirement scheme" as defined under the Retirement Pensions Ac t;
"securitisation vehicle" as defined under the Securitisation Ac t; and
"authorised reinsurance special purpose vehicle" as defined in the Re-
Insurance Special Purpose Vehicle Regulations.
Cultural and religious services
4. (1) Religious services.
(2) The supply of such cultural services and goods closely linke d thereto as may
be approved by the Minister.
Sports5. The supply by non-profit making organisations of such service s related to
sport or physical recreation and provided to persons taking par t in sport or
educational education as may be approved by the Minister.
Services related to certain exempt services
6. (1) The supply of staff by religious and philosophical institu tions
recognised as such by the Commissioner for the purpose of provi ding services
referred to in paragraph (2) or (4) of item 11 or in paragraph (1) or (2) of item 12 of
this Part with a view to spiritual welfare.
(2) The supply of goods and services by a non-profit making orga nisation in the
course of an activity designed to raise funds to be used for th e provision of goods
and services which are exempt in terms of paragraph (2) or (4) of item 11 or of
              VALUE ADDED TAX                [CAP. 406.  7 5
paragraph (1) or (2) of item 12 of this Part: provided the acti vity is recognised by the
Commissioner as being exclusively designed for the said purpose  and provided that
this exemption is not likely to cause distortion of competition .
Services supplied by independent groups7. Services supplied by independent groups of persons whose acti vities are
exempt from or not subject to value added tax, for the purpose of rendering to their
members the services directly necessary for the exercise of the ir activity, where
these groups merely claim from thei r members exact reimbursemen ts of their share
of the joint expenses, provided that such exemption is not like ly to produce
distortion of competition.
Services by non-profit making organisations to their members8. The supply of services for the benefit of their members in re turn for a
subscription fixed in accordance with their rules by non-profit  making organisations
with aims of a political, trade union, religious, patriotic, ph ilosophical, philanthropic
or civic nature or whose main purpose is to represent and promo te the common
business or professional interests of their members: provided t hat in any case where,
in the opinion of the Minister, this exemption is likely to cau se distortion of
competition, this exemption shall be subject to such exceptions  or limitations as the
Minister may by order in writing determine.
Lotteries9. Government lotto and lotteries, the supply of agency services  related
thereto, and such other supplies related to gambling as may be approved by the
Minister.
Postal Services10. The supply of public postal services, other than passenger t ransport and
telecommunication services, and of goods, including postage sta mps, incidental
thereto.
Health and Welfare
11. (1) The supply of medical care by a person in the exercise of  any profession
regulated by the Health Care Professions Act (Cap. 464) or the Psychology
Profession Act (Cap. 471) or any Act which may be substituted t herefor.
(2) The provision of care or medical or surgical treatment in an y government
hospital or institution or in any other hospital or institution  approved by the Minister
for the purposes of this paragraph.
(3) The supply of human organs, blood and milk.(4) The supply of welfare services, including services supplied by homes for the
elderly, and services for the protection and care of children a nd young people,
supplied by any government institution or by any institution or  organisation
recognised by the Commissioner as a non-profit making instituti on or approved by
the Minister for the purpose of this paragraph as any instituti on whose activities fall
within the social and welfare policy of the government.
(5) The supply of transport services for sick, injured or disabl ed persons in
vehicles specially designed for that purpose.
(6) The supply of goods where the said supply is connected with and essential
for the supply of services referred to in paragraphs (2) and (4 ) of this item by the
hospital, institution or home, as the case may be, supplying th e said services.
 76    CAP. 406. ]               VALUE ADDED TAX 
Education
12. (1) The provision of education or educational research, vocat ional training or
retraining, including distance learning, by a government school  or institution, by the
University of Malta, by a school or institution registered unde r the Education Act, or by
any educational establishment recognized as such by the Commiss ioner, or by any
establishment recognized for this purpose by the Minister respo nsible for education.
(2) The provision of education or educational research, includin g distance
learning, of a kind provided by a school or university, or of r eligious instruction, by
a non-profit making institution recognised as such by the Commi ssioner.
(3) Tuition given privately by teachers acting in an independent  capacity in
subjects which are normally taught in the course of education p rovided by a school
or university but excluding tuition in recreational, physical o r sporting activities or
disciplines.
(4) Any training in the arts which is provided by an organisatio n accredited by
the Register for the Accreditation in the Training of the Arts.
(5) The supply of goods and services where the said supply is co nnected with
and essential for the supply of services referred to in paragra phs (1), (2), (3) and (4)
by the school, institution, university, teacher or organisation , as the case may be,
supplying the said services, or supplied by any other organisat ion recognised by the
Commissioner as an organisation which has similar objectives.
Supplies of goods in respect of which th e supplier had not qualified for input tax
credits
13. The supply of goods which were acquired by that person or wh ich were
manufactured or produced from components acquired by that perso n under a supply
in respect of which that person did not qualify for any input t ax credit.
Broadcasting14. The activities of public radio and television bodies other t han those of a
commercial nature.
Water15. The supply of water services by a public authority.
Part Three
Exempt intra-community acquisitions
This Part applies to the intra-community acquisitions listed he rein subject to the
definitions contained in Part Five.
Intra-community acquisitions made for the purpose of a subsequent supply1. The intra-community acquisition of goods by a taxable person not
established in Malta and who is identified for value added tax purposes in another
Member State if all the following conditions are fulfilled:
(a) the acquisition of the goods is made for the purpose of a subs equent
supply of those goods in Malta by that person;
(b) the goods acquired have been directly transported from a Membe r State
other than that where that person is identified for value added  tax
purposes to the person to whom the subsequent supply is made;
              VALUE ADDED TAX                [CAP. 406.  7 7
(c) the person to whom the subsequent supply is made is a taxable person or
a non-taxable legal person registered under article 10 or 12;
(d) the person to whom the subsequent supply is made is liable for  the
payment of the tax on that supply.
Acquisitions of goods whose supply or importation is exempt
2. The intra-community acquisition of goods the supply of which if made by a
taxable person in Malta would in all circumstances be an exempt  supply or the
importation of which if made into Malta would in all circumstan ces be an exempt
importation.
Acquisitions of goods where the tax would be refundable
3. The intra-community acquisition of goods by a person who is n ot registered
or required to be registered under article 10 where that person  would in all
circumstances be entitled to a refund of the tax that would be due on that acquisition
were it not exempt.
Duty suspension regime4. The intra-community acquisition of goods intended to be place d under a
customs duty suspension regime.
Food5. The intra-Community acquisition of food.Investment gold6. The intra-community acquisition of investment gold, saving th e option for
taxation in terms of Part Six of the Fourteenth Schedule.
Goods subject to the margin scheme7. The intra-community acquisition of goods that are supplied un der a
transaction subject to a margin scheme on second hand goods, wo rks of art,
collectors’ items and antiques in the Member State where the tr ansport begins.
Part Four
Exempt importations
This Part applies to the importations listed herein subject to the definitions
contained in Part Five.
Importation of goods whose supply is exempt1. The importation of goods the supply of which by a taxable per son in Malta
would in all circumstances be an exempt supply.
Goods exempt from customs duty2. ( a) The importation of goods whose definitive importation into Mal ta is
exempt from customs duties other than as provided for in the 
Import
Duties Act.
(b) goods that are intended to be placed under a customs duty susp ension
regime.
Goods of a non-commercial character imported in the personal lu ggage of
travellers
2A. The importation of goods, the total value of which does not  exceed four
hundred and thirty euro (€430) per person, as provided for in t he Excise
 78    CAP. 406. ]               VALUE ADDED TAX 
Duty (Goods imported by Persons Travelling from Third Countries )
Regulations. S.L.382.02.
Goods transported from a third territory3. The importation of goods transported from a third territory a nd imported
into Malta where the supply of these goods by the importer is a n exempt supply in
virtue of paragraph (1) or (4) of item 3 of Part One of this Sc hedule.
The exemption provided for under this item shall apply in cases  when the
importation of goods is followed by the supply of goods exempte d under paragraph
(1) or (4) of item 3 of Part One of this Schedule only if at th e time of importation the
importer has provided to the Comptroller of Customs the followi ng information:
(a) his V AT identification number issued in terms of article 10 of  this Act;
(b) the V AT identification number of the customer, to whom the goo ds are
supplied in accordance with paragraph (1) of item 3 of Part One  of this
Schedule, issued in another Member State, or his own V ATidentification number issued in the Member State in which the d ispatch
or transport of the goods ends when the goods are subject to a transfer in
accordance with paragraph (4) of item 3 of Part One of this Sch edule;
(c) the evidence that the imported goods are intended to be transp orted or
dispatched from Malta to another Member State.
In addition, the Comptroller of Customs may impose conditions i ncluding the
production of further documentation and security.
Catches of fish4. The importation into ports by sea fishing undertakings of the ir catches,
unprocessed or after undergoing preservation for marketing but before being
supplied.
Re-importation5. The re-importation by the person who exported them outside th e
Community:
(a) of goods in the state in which they were exported outside the
Community;
(b) of goods which have undergone outside the Community repair,
transformation or adaptation, or after having been made-up or r eworked
abroad: provided that this exemption is limited to the value of  the goods
at the time they were exported outside the Community.
Food6. The importation of food.Investment gold7. The importation of investment gold, saving the option for tax ation in terms
of Part Six of the Fourteenth Schedule.
Importation of gas, electricity, heat or cooling energy, through systems or
networks
8. The importation of gas through a natural gas system or any ne twork
connected to such a system or fed in from a vessel transporting  gas into a natural gas
system or any upstream pipeline network, of electricity or of h eat or cooling energy
through heating or cooling networks.
              VALUE ADDED TAX                [CAP. 406.  7 9
Part Five
Definitions
For the purposes of this Schedule, the following terms shall ha ve the meaning
assigned to them in this Part.
Food1. "Food" means the goods specified in the Customs Tariff contai ned in the
First Schedule to the 
Import Duties Act under:
(a) Chapter 1 but excluding items falling under subheadings 0101.1 0.10.00;
0106.11.00.00; 0106.12.00.00; 0106.19.90.00; 0106.20.00.00;0106.31.00.00; 0106.32.00.00; 0106.39.90.00; 0106.90.00.00.
(b) Chapters 2 to 4 inclusive, but excluding items falling under s ubheadings
0206.10.10.00; 0206.29.10.00; 0206.80.10.00 and 0206.90.10.00 i n
Chapter 2, and 0301.10.10.00 and 0301.10.90.00 in Chapter 3.
(c) Items falling under subheadings 0504.00.00.00; 0505.90.00.00;
0506.90.00.00; 0508.00.00.00; 0510.00.00.00; 0511.10.00.00;0511.91.10.00; 0511.91.90.00; 0511.99.90.00 in Chapter 5.
(d) Items falling under subheadings 0601.20.10.00; 0602.10.10.00;
0602.20.10.00; 0602.20.90.00; 0602.90.10.00; 0602.90.20.00;0602.90.30.00 in Chapter 6.
(e) Chapters 7 to 12 inclusive, but excluding items falling under
subheadings 1207.30.90; 1207.99.91.00; 1209.30.00.00; 1209.99.1 0;
1209.99.91.00; 1209.99.99.00; 1211.90.30 in Chapter 12.
(f) Chapter 13 excluding items falling under subheadings 1301.10.0 0.00;
1302.11.00; 1302.14.00; 1302.19.05; 1302.19.30; 1302.19.91;1302.19.98; 1302.20.10; 1302.20.90.
(g) Chapters 15 to 20 inclusive, but excluding items falling under
subheadings 1501.00.11.00; 1502.00.10.00; 1503.00.11.00; 1503.0 0.19;
1503.00.30.00; 1505.00.10.00; 1505.00.90.00; 1507.10.10.00;1507.90.10.00; 1508.10.10.00; 1508.90.10.00; 1511.10.10.00;1511.90.91.00; 1512.11.10.00; 1512.19.10.00; 1512.21.10.00;1512.29.10.00; 1513.11.10.00; 1513.19.30.00; 1513.21.11.00;1513.21.19.00; 1513.29.30.00; 1514.11.10.00; 1514.19.10.00;1514.91.10.00; 1514.99.10.00; 1515.11.00.00; 1515.19.10.00;1515.21.10.00; 1515.29.10.00; 1515.30.10.00; 1515.30.90.00;1515.40.00.00; 1515.50.11.00; 1515.50.91.00; 1515.90.15.00;1515.90.15.90; 1515.90.21.00; 1515.90.31.00; 1515.90.40.00;1515.90.60.00; 1516.20.10.00; 1517.90.93; 1518.00.10.00;1518.00.31.00; 1518.00.39.00; 1518.00.91.00; 1518.00.95.00;1518.00.99.00; 1520.00.00; 1521.10.00.10; 1521.10.00.90;1521.90.10.00; 1522.00.10; 1522.00.31.00; 1522.00.39.00;1522.00.91.00; in Chapter 15 and 1702.90.10; 1704.10.11.00;1704.10.19; 1704.10.91; 1704.10.99; 1704.90.10; 1704.90.55;1704.90.61; 1704.90.65; 1704.90.71; 1704.90.75 and 1704.90.81 i n
Chapter 17 and 2006.00.10 and heading 2009 in Chapter 20.
(h) Chapter 21 but excluding items falling under heading 2105.00 a nd
subheadings 2106.90.20.00; 2106.90.98.33; 2106.90.98.37 and2106.90.98.39.
(i) Subheadings 2202.90.10.10; 2202.90.91.00; 2202.90.95.00;
2202.90.99.00; 2209.00.11.00; 2209.00.19.00; 2209.00.91.00;
 80    CAP. 406. ]               VALUE ADDED TAX 
2209.00.99.00 in Chapter 22.
(j) Chapter 23 but excluding items falling under subheading 2307.0 0.
(k) Subheading 2501.00.91.00 in Chapter 25.
(l) Subheadings 3301.90.21.00; 3302.10.29.00; 3302.10.40.00;
3302.10.90.00 in Chapter 33.
Food supplied in the course of catering
2. (1) "Food supplied in the course of catering" means food which  is suitable
for immediate consumption, whether such food is consumed in the  place where it is
supplied or not, and consisting of -
(a) meals or snacks;
(b) milkshake, tea, coffee and chocolate supplied in liquid form;
(c) ice cream or products containing ice cream except in family pa cks;
(d) yogurt or similar products.
(2) For the purposes of paragraph (1) hereof -
(a) "meals or snacks" means and includes:
(i) hot and cold dishes including antipasto and dessert;
(ii) sandwiches, toast, potato chips, sausage rolls, pizza, pastizzi ,
qassatat  and similar snacks;
(iii) biscuits, cakes, confectionery and similar items but exclu ding
those sealed in a package by the manufacturer and supplied in t hat
original sealed package and those items which individually weig h
500 grams or more;
(b) "family pack" means ice creams consisting of one component of not less
than 350 grams in weight;
(c) food supplied in terms of item 9 of Part One of this Schedul e, where
such food is served for consumption by any person in the sameestablishment, shall be considered as food supplied in the cour se of
catering.
Pharmaceutical goods3. "Pharmaceutical goods" means the goods specified in the Custo ms Tariff
contained in the First Schedule to the 
Import Duties Act under:
(a) Chapter 30 except for items falling under sub-headings 3001 an d 3002
where the use of items under these sub-headings is not for ther apeutic or
prophylactic purposes; 3005 and 3006.
(b) Subheading 3301.90.30.00 in Chapter 33.
(c) Subheading 3507.10.00.00 in Chapter 35.
(d) Subheading 3824.90.64.00 in Chapter 38.
(e) Subheadings 9619 00 21 and 9619 00 29 in Chapter 96.
(f) Subheadings 9619 00 51 and 9619 00 59 in Chapter 96.
(g) Heading 9020 excluding items falling under subheading 9020.00. 10;
heading 9021 excluding items falling under subheadings 9021.21. 10 and
9021.21.90; and 9022 in Chapter 90.
Immovable property
              VALUE ADDED TAX                [CAP. 406.  8 1
4. (1) Saving the provisions of paragraph (2) of this item "immov able
property" includes any asset that is immovable property by defi nition of the law.
(2) "Letting of immovable property" includes -
(a) the provision of any accommodation under any title in immovabl e
property and any other form of supply of the use of immovableproperty;
(b) an emphyteutical grant for a period not exceeding 50 years;
(c) the letting of space for artistic and cultural activities.
Non-profit making organisations5. A "non-profit making institution or organisation" means an in stitution or
organisation:
(a) whose objects are clearly defined in its statute;
(b) whose objects expressly exclude profit making;
(c) whose statute provides that no part of its income or property is available
directly or indirectly to any member, proprietor or shareholder ;
(d) which, in the opinion of the Commissioner, is managed and
administered in accordance with the provisions of its statute a nd for the
purpose of its stated objects;
(e) which does not systematically aim to make a profit.
Investment gold6. "Investment gold" has the meaning assigned to it in Part Six of the
Fourteenth Schedule.
Threshold at the time of application
1. (1) Subject to paragraph (2), the economic activity of a perso n who applies
for registration under article 11 qualifies as a small undertak ing at the time of the
application if his turnover for the relevant period is less tha n the Entry Threshold.
(2) When a taxable person applies for registration under article  11 at the
commencement of his economic activity or within thirty days the refrom his
economic activity qualifies as a small undertaking at the time of the application and
continues to qualify as a small undertaking up to the end of th e calendar quarter
following that during which he commenced his economic activity if the
Commissioner is satisfied that the turnover of that person for the period of twelve
months commencing on the date of the commencement of that econo mic activity will
not exceed the Entry Threshold.Amended by:
L.N. 29 of 1999.Substituted by:X. 2003.47.
Amended by:
L.N. 122 of 2007;L.N. 426 of 2007;L.N. 105 of 2008;L.N. 137 of 2009;L.N. 163 of 2018.SIXTH SCHEDULE
Thresholds
Part One
[Article 11]
Small undertakings
 82    CAP. 406. ]               VALUE ADDED TAX 
Persons registered under article 10
2. (1) Notwithstanding the provisions of item 1, the economic act ivity of a
person registered under article 10 does not qualify as a small undertaking at any time
during the first thirty-six full calendar months from the date of the said registration:
Provided that a person who is treated as registered under artic le 10 in virtue
of subarticle (6) of the said article of this Act shall be trea ted for the purpose of this
item as having been registered under that article on the date o n which he was first
registered under this Act.
(2) Without prejudice to the provisions of paragraph (1) of this  item, the
economic activity of a person registered under article 10 does not qualify as a small
undertaking if the turnover of that person for the relevant per iod exceeds the Exit
Threshold.
Threshold of persons registered under article 113. The economic activity of a person registered under article 11  continues to
qualify as a small undertaking as long as the turnover of that person for the relevant
period does not exceed the Entry Threshold.
Turnover
4. (1) Subject to the other provisions of this item, the turnover  of a person for
the purposes of this Part is the total taxable value of all sup plies made by that person
in the course or furtherance of his economic activity during th e relevant period,
excluding:
(a) exempt without credit supplies;
(b) a transfer of a business as a going concern;
(c) transactions which are treated under this Act as supplies made  by a
person to himself;
(d) the sale or disposal of fixed assets.
(2) Without prejudice to paragraph (1) of this item, where a per son registered
under article 11 provides both goods and services, the applicab le threshold shall be
determined in accordance with the principal nature of the suppl y, taking account of
the total value of all the supplies.
(3) When it appears to the Commissioner that the turnover for th e relevant
period has been negatively affected by specific extraordinary c ircumstances,
including the temporary suspension of the economic activity, th e turnover will be the
amount obtained after such adjustment as the Commissioner might  deem appropriate
in the circumstances.
(4) In the case of a company established in Malta that forms par t of a group of
companies the turnover shall be deemed to be the total of the a mounts of the
turnover of all companies established in Malta that form part o f that group. In this
paragraph "group of companies" means two or more companies whic h are controlled
by the same person, and for the purpose of this definition a pe rson shall be deemed
to control a company if he owns, directly or indirectly, more t han 50% of the shares
or the voting rights of that company or of another company whic h controls, within
the said meaning, that company.
(5) For the purpose of computing the turnover for a period that commenced
before the 1 January 1999 the taxable value and the description  of supplies made
before that date and all other terms relevant for that purpose shall be construed
              VALUE ADDED TAX                [CAP. 406.  8 3
according to their meaning under this Act as if those supplies were made after that
date.
Relevant period
5. (1) For the purposes of this Part, and subject to paragraph (2 ), the relevant
period on any particular date is a period of twelve months endi ng on the last day of
the calendar quarter preceding that in which that particular da te falls.
(2) Where the first day of the twelve-month period referred to i n paragraph (1)
determined on a particular date precedes the date of the commen cement of the
economic activity, the relevant period on that particular date is a period commencing
on the first day of the calendar quarter following that during which the economic
activity was commenced and ending on the last day of the calend ar quarter preceding
that in which that particular date falls.
Calendar quarter6. For the purposes of this Part, "calendar quarter" is a period  of three calendar
months ending on the 31 March, the 30 June, the 30 September an d the 31 December,
as the case may be.
Entry Threshold and Exit Threshold7. For the purposes of this Part the Entry Threshold or the Exit  Threshold is the
amount in the Second or Third Column respectively in the Table in this Part that
corresponds to the category in the First Column of that Table w ithin which the
economic activity of that person has been classified by the Com missioner:
Provided that the Entry or the Exit Threshold for a relevant pe riod of less
than twelve months determined in accordance with paragraph (2) of item 5 is a
proportion of the relative threshold calculated by dividing tha t threshold by four and
multiplying the result by the number of calendar quarters inclu ded in the relevant
period so determined.
Information to be given to the Commissioner8. A person who applies for registration under article 11 shall give all
information that the Commissioner may reasonably request for th e purpose of
applying the provisions of this Part.
TABLE
Part Two
[Article 12]
Acquisitions ThresholdFirst Column Second Column Third Column
Category Entry Threshold
€Exit Threshold
€
A Economic activities consisting principally
in the supply of goods 35,000 28,000
B Economic activities consisting principally
in the supply of services with a relativelylow value added 24,000 19,000
C Other economic activities 20,000 17,000
 84    CAP. 406. ]               VALUE ADDED TAX 
The acquisitions threshold
1. The Acquisitions Threshold is the equivalent of Eur 10,000 us ing the latest
conversion rate before 1 January of the year in respect of whic h that threshold is
relevant, last published by the Central Bank of Malta if that y ear is the year 2008 or
previous, and by the European Central Bank if that year is the year 2009 or after.
The value of intra-community acquisitions2. For the purpose of determining whether the value of intra-com munity
acquisitions in any particular case exceeds the Acquisitions Th reshold or not the
value of the intra-community acquisitions in question shall be taken to be the taxable
value that would be determined in accordance with the relevant provisions of the
Seventh Schedule if they were taxable intra-community acquisiti ons, provided that
no account shall be taken of the value of:
(a) intra-community acquisitions of new means of transport and of excise
goods;
(b) value added tax paid or due in a Member State other than Malta  on the
intra-community supply of the goods in question.
Part Three
[Item 4 of the Third Schedule]
Distance Sales Thresholds
Distance Sales Threshold1. The Distance Sales Threshold for any calendar year is the equ ivalent of Eur
35,000 using the latest conversion rate before 1 January of the  year in respect of
which that threshold is relevant, last published by the Central  Bank of Malta if that
year is the year 2008 or previous , and by the European Central Bank if that year is
the year 2009 or after.
Value of distance sales2. For the purpose of determining whether the value of distance sales in any
particular case exceeds the Distance Sales Threshold or not the  value of the sales of
the goods in question shall be taken to be the taxable value th at would be determined
in accordance with the relevant provisions of the Seventh Sched ule if they were
taxable supplies, excluding the value of any excise goods.
Taxable value of supplies
1. Except as otherwise provided in the other provisions of this Schedule, the
taxable value of a supply shall be the total value of the consi deration paid or payable
to the supplier by the purchaser, the customer or any other per son for the supply,
including any subsidy directly linked to the provision of that supply, but excluding
the value added tax chargeable under this Act on that supply.
2. The taxable value of a supply shall include, insofar as they are not included
in the value determined under item 1:SEVENTH SCHEDULE
Substituted by:
X. 2003.47.
Amended by:
L.N. 335 of 2008;L.N. 420 of 2012.[Article 18]
Taxable value
              VALUE ADDED TAX                [CAP. 406.  8 5
(a) taxes, duties, levies, fees and other charges (excluding the v alue added
tax chargeable under this Act) payable by reason of the supply;
(b) incidental expenses, such as commissions, packing, transport a nd
insurance costs charged by the supplier to the purchaser or cus tomer
even if they are covered by a separate agreement or a separatedocument.
3. The taxable value of a supply shall not include:
(a) price reductions by way of discounts for early payment;
(b) rebates and other price reductions allowed directly by the sup plier to the
customer and accounted for at the time when the tax becomeschargeable;
(c) penalties and interests charged for late payment after the tim e of the
supply;
(d) disbursements paid in the name and for the account of the pers on to
whom the supply is made, and resulting from documents held by t he
supplier to have been so paid, which are entered in the records  of the
supplier in a suspense account;
(e) any amount charged to the customer by way of a deposit on retu rnable
packing of goods where the deposit is lower than the cost of th e
packing.
4. When, after a supply takes place -
(a) the consideration for that supply is reduced by way of a price  discount
or rebate allowed to the customer for bona fide  commercial reasons;
(b) the consideration for that supply is not payable or is repayab le to the
customer on account of the rescission of the contract for that supply
which is declared by means of a definitive judgment or arbitrat ion
award or is agreed to by the parties in writing on grounds that  would
have been sufficient in a court of law for that rescission;
(c) the amount due as consideration for that supply becomes a bad debt,
the taxable value of that supply shall be reduced accordingly: provided that no
adjustment shall be made to the tax chargeable on that supply b y reason of such a
reduction except in the manner provided in the Tenth Schedule.
5. (1) When the consideration is paid or payable wholly or partly  in kind or
where the value of the consideration for a supply cannot be rea dily determined, the
taxable value of that supply shall be, to the extent that the c onsideration is so paid or
cannot be so determined, its open market value.
(2) The open market value of goods or services means the price w hich they
would fetch if sold or provided in the open market on the date and in the state they
were in when the said goods are delivered or the said services are performed.
6. (1) The taxable value of a supply consisting of the applicatio n or disposal of
goods for which no consideration is char ged or paid but which i s deemed in terms of
the Second Schedule to be a supply of goods made for considerat ion, and the taxable
value of a transport of goods that is treated as a supply in te rms of item 17 of the
Second Schedule (Transfer of goods to another Member State), is  the purchase price
of those or similar goods or, in the absence of a purchase pric e, the cost price,
determined at the time of the supply.
 86    CAP. 406. ]               VALUE ADDED TAX 
(2) The taxable value of a self-supply of services is the full c ost to the person
making the supply of providing those services.
7. The taxable value of a supply consisting in the transfer of g oods by order
made by or in the name of a public authority or in pursuance of  the law against
payment of compensation is the compensation for that transfer.
8. (1) Where the factors used to determine the taxable amount on importation
are expressed in a currency other than in Euro, the exchange ra te shall be determined
in accordance with the Community provisions governing the calcu lation of the value
for customs purposes.
(2) Where the factors used to determine the taxable amount of a transaction
other than the importation of goods are expressed in a currency  other than in Euro,
the exchange rate applicable shall be the latest selling rate r ecorded, at the time the
tax becomes chargeable, applied by commercial banks in Malta.
(3) The use of the latest exchange rate published by the Europea n Central Bank
at the time the tax becomes chargeable shall also be accepted. Conversion between
currencies other than the Euro shall be made by using the Euro exchange rate of each
currency.
Taxable value of intra-community acquisitions9. The taxable value of a taxable intra-community acquisition is  the amount
which would represent the taxable value in terms of this Schedu le of the supply
pursuant to which that acquisition is made if that supply were a taxable supply, and
shall include any excise duty paid or payable in a Member State  by the person
making that acquisition on the goods acquired.
10. (1) When the taxable value of an intra-community acquisition includes
excise tax paid or payable in a Member State other than Malta a nd the person who
makes the acquisition qualifies for a refund of that excise tax , the value of that
acquisition shall be reduced proportionately.
(2) When an intra-community acquisition is treated as taking pla ce in Malta by
reason of the fact that it was made by a person identified for the purpose of that
acquisition by a value added tax identification number issued b y the Commissioner
and is subsequently also treated as taking place and subject to  tax in another Member
State by reason of the fact that the transport of the goods end s in that State, the
chargeable value of that acquisition under this Act shall be re duced by the amount
subject to tax in that other Member State.
(3) When the value of a supply pursuant to which an intra-commun ity
acquisition is made is reduced after that acquisition takes pla ce for any of the
reasons mentioned in item 4 the taxable value of the acquisitio n shall be reduced
accordingly.
(4) When the taxable value of an intra-community acquisition is reduced in any
of the circumstances mentioned in this item, the tax on that ac quisition
corresponding to that reduction shall, if paid, be treated as t ax paid but not due for
the purposes of article 69 of this Act.
Taxable value of importations11. Subject to the other provisions of this Schedule, the taxabl e value of an
importation of goods shall be the value established in terms of  the 
Import Duties Act
for the determination of the value on which duty ad valorem is chargeable under that
Act, and all the relevant provisions of that Act shall apply mutatis mutandis , and for
              VALUE ADDED TAX                [CAP. 406.  8 7
the purpose of this item the references in the said provisions to the Comptroller of
Customs shall be construed as references to the Comptroller of Customs acting on
behalf of the Commissioner.
12. The value established under item 11 shall be increased, inso far as they are
not included in the value determined in accordance with item 11 , by:
(a) any taxes, levies, duties and other charges due outside Malta,  any
import duties chargeable on the said importation under the Loca l
Manufactures (Promotion) Act, any excise duty payable under theExcise Duty Act by reason of the importation of those goods;
(b) incidental expenses, such as commissions, packing, customs age ncy
costs and transport and insurance costs incurred up to the deli very of the
goods to the destination in Malta indicated on the document by means
of which the goods are imported or, in the absence of such an i ndication,
the place of the first transfer of the goods in Malta;
(c) costs for the transport of the goods to another destination wi thin the
Community if that destination is known at the time of the impor tation.
13. The taxable value of an importation shall not include:
(a) rebates and other price reductions allowed directly by the sup plier to the
customer and accounted for at the time of the importation;
(b) price reductions by way of discount for early payment.
The tax chargeable under this Act on the taxable value of the s upplies or
importations in the case of item 7, described in the first colu mn of the Table in this
Schedule shall be at the rate specified in the second column of  that Table.Amended by:
L.N. 273 of 2000;L.N. 25 of 2001;L.N. 388 of 2002;L.N. 375 of 2003;L.N. 384 of 2003;L.N. 149 of 2004.Substituted by:X. 2003.47.
Amended by:
L.N. 251 of 2004;
L.N. 376 of 2004;L.N. 436 of 2004;L.N. 123 of 2007;L.N. 446 of 2007;L.N. 235 of 2009;L.N. 499 of 2010;L.N. 523 of 2010;L.N. 381 of 2011;L.N. 500 of 2011;L.N. 39 of 2012;L.N. 64 of 2015;L.N. 43 of 2016;
L.N. 434 of 2018.EIGHTH SCHEDULE
[Article 19(2)]
Rate of tax
TABLE
First Column Second Column
Description Rate
 88    CAP. 406. ]               VALUE ADDED TAX 
1. Accommodation
The letting of or the provision of accommodation in any premise s
which for the purpose of the provision of such accommodation isrequired to be licensed in virtue of the Malta Travel and Touri sm
Services Act, or any other Act which may be substituted therefo r:7%
Provided that where the price charged for the supply of
accommodation includes the supply of goods or services notfalling within the meaning of accommodation the taxable value o f
the supply of accommodation shall be deemed to be eighty percen t
of the said price and twenty percent of that price shall be dee med
to be the taxable value of supplies not described in this Colum n.
2. The supply of electricity in accordance with Article 102 of
Council Directive 2006/1 12/EC  or any other article in substitution
therefor.5%
3. Confectionery and similar items
The goods falling under CN code in the Common Customs Tariff: 5%
(a) 1207.30.90 and 1207.99.91;
(b) 1302.11.00; 1302.14.00; 1302.19.05; 1302.19.30;
1302.19.91; 1302.19.98; 1302.20.10 and 1302.20.90;
(c) 1503.00.19; 1517.90.93; 1520.00.00 and 1522.00.10;
(d) 1702.90.10; 1704.10.11; 1704.10.19; 1704.10.91;
1704.10.99; 1704.90.10; 1704.90.55; 1704.90.61;1704.90.65; 1704.90.71; 1704.90.75 and 1704.90.81;
(e) 2006.00.10 and 2009;
(f) family packs as defined in item 2( b) of Part Five of the
Fifth Schedule to the Act falling under CN codes2105.00.10; 2105.00.91 and 2105.00.99;
(g) 2501.00.10;
(h) 3302.10.21.
4. Medical accessories
The goods falling under CN code in the Common Customs Tariff: 5%
(a) 2905.45.00;
(b) 3001 and 3002 except where the use of items under these
sub-headings is for therapeutic or prophylactic purposes;3005 and 3006;
(c) 3306 and solutions for contact lenses falling under CN
code 3307.90.00;
(d) 3407.00.00;
(e) 3822.00.00; 3824.90.61 and 3824.90.62;
(f) 9619 00 31 and 9619 00 39;
(g) 7015.10.00;
(h) 9001.30.00; 9001.40.41; 9001.40.49; 9001.40.80;
9001.50.41; 9001.50.49; 9001.50.80; 9004.90.10;9004.90.90; 9021.21.10 and 9021.21.90.
5. Printed matter
The goods falling under CN code in the Common Customs Tariff: 5%
              VALUE ADDED TAX                [CAP. 406.  8 9
(a) 4820.20.00;
(b) Chapter 49 but excluding items falling under CN code
4905.10.00; 4906.00.00; 4907.00.10; 4907.00.90.00;4908.10.00; 4908.90.00; 4909 and 4911.91.00;
(c) audio books, books and similar printed matter, other than
books and similar printed matter referred to in paragraphs(a) and (b), supplied on all physical means of supportwhich include, but not limited to, a CD, DVD, SD-cardand USB, but which excludes publications wholly orpredominantly devoted to advertising and excluding alsopublications wholly or predominantly consisting of videocontent or audible music;
(d) audio books, books and similar printed matter, other than
books and similar printed matter referred to in paragraphs(a) and (b), supplied electronically but which excludespublications wholly or predominantly devoted toadvertising and excluding also publications wholly orpredominantly consisting of video content or audiblemusic.
6. Items for the exclusive use of the disabled: 5%
(a) raised toilet seats for use by disabled persons falling
under CN code 3924.90.90;
(b) pressure relief cushions for use by disabled persons
falling under CN codes 4014.90; 8714.20.00 and9404.90;
(c) padded/inflatable toilet seats for use by disabled
persons falling under CN codes 4016.95.00 and4016.99.98;
(d) pressure relief mattresses for use by disabled persons
falling under CN codes 6306.41.00; 6306.49.00;9404.21 and 9404.29;
(e) white sticks for use by disabled persons falling under
CN code 6602.00.00;
(f) walking sticks and ferrules for use by disabled persons
falling under CN code 6603.90.00;
(g) gutter frames for use by disabled persons falling under
CN codes 7325.10; 7325.99; 7326.19; 7326.90 and7907.00;
(h) hoists for use by disabled persons falling under CN
codes 8425.11.90 and 8425.19.91;
(i) platform lift/swimming pool lifters for use by disabled
persons falling under CN codes 8428.10.91 and8428.20.99;
(j) chairlifts for use by disabled persons falling under CN
code 8428.60.00;
(k) bath tub lifters for use by disabled persons falling
under CN code 8428.90.98;
 90    CAP. 406. ]               VALUE ADDED TAX 
(l) braille typewriters for use by disabled persons falling
under CN code 8469.12.00; 8469.20.00 and8469.30.00;
(m) amplifiers for communication devices for people with
impaired hearing for use by disabled persons fallingunder CN codes 8518.40.91 and 8518.40.99;
(n) children special walkers, prone standers and
wheelchairs (manual) for use by disabled personsfalling under CN code 8713.10.00;
(o) wheelchairs (electrical) for use by disabled persons
falling under CN code 8713.90.00;
(p) car adaptation-handcontrols, swivel seats for use by
disabled persons falling under CN codes 9401.30.10and 9401.30.90;
(q) toilets frames/surrounds for use by disabled persons
falling under CN code 9401.79.00;
(r) special feeder chairs for use by disabled persons
falling under CN code 9402.90.00;
(s) lifts to get wheelchair into a car for use by disabled
persons falling under CN code 8428.90.98;
(t) mouthsticks for use by disabled persons falling under
CN code 9608.39.90;
(u) special seats/buggies/wheelchairs for use by disabled
persons falling under CN code 8713.10.00.
7. The importation of works of art, collector’s items and antiqu es as
defined in  paragraphs 1, 2 and 3 of Part Two of the FourteenthSchedule.5%
8. Minor repairing of: 5%
(a) bicycles;
(b) shoes and leather goods;
(c) clothing and household linen (including mending and
alteration.
9. Domestic care services such as home help and care of the
young, elderly, sick or disabled.5%
10. Admission to museums, art exhibitions, concerts and theatres .5 %
11. Use of sporting facilities. 7%
NINTH SCHEDULE
Substituted by:
X. 2003.47.
Amended by:
L.N. 426 of 2007;L.N. 105 of 2008;II. 2009.56.Substituted by:L.N. 89 of 2012;L.N. 185 of 2012.
Amended by:
L.N. 64 of 2013.[Article 46]
Appeals to the Administrative Review Tribunal
              VALUE ADDED TAX                [CAP. 406.  9 1
Competence of the Tribunal
1. (1) The Tribunal shall be competent to hear any appeal agains t an
assessment and to confirm, reduce or increase any taxable value  or credit or tax
assessed by the Commissioner, or cancel the assessment or make such other
declaration or order as it deems fit.
(2) The Tribunal shall be competent to determine any matter refe rred to it in
accordance with article 44.
(3) The Tribunal may, in any decision, make such order on the co sts of the case
as it may deem appropriate.
Appeals against assessments
2. (1) An appeal against an assessment shall not be valid if:
(a) a return for the tax period to which the assessment refers has  not been
delivered to the Commissioner before the appeal is entered;
(b) all tax payable by the appellant which is not in dispute has n ot been paid;
(c) it is not made within thirty days from the date of the service  of the notice
against which the appeal is made;
(d) it is not made in such form and in such manner as may be presc ribed under
the Administrative Justice Act;
(e) a payment of such fees for lodging an appeal as may be prescri bed under
the Administrative Justice Act has not been made. 
(2) The onus of proving that any taxable value assessed by the C ommissioner is
excessive or that any credit assessed by the Commissioner is in sufficient shall lie on
the appellant.
(3) The Tribunal may refuse to consider any evidence as sufficie nt for the
purpose of paragraph (2) if the appellant has failed to keep th e records and
documents required to be kept by this Act or fails to produce s uch records or
documents.
(4) The Tribunal shall deliver its decision in writing and shall  cause a copy of
the decision to be given to the appellant.
Evidence and proof3. For the purpose of -
(a) the examination of evidence and enforcing the attendance of wi tnesses;
(b) the production of books and other documentary evidence,
in any appeal to the Tribunal, the Tribunal shall also have all  such powers as are
vested by the Code of Organization and Civil Procedure in the C ivil Court, First Hall
and it shall, mutatis mutandis , be regulated by the appropriate rules set out:
Provided that -
(i) the clerk, agent, employee or other person confidentially
employed in the affairs of the appellant, and the parents, spou se
or children of such appellant, shall not be called to give evid ence
or to be examined except on the request of the appellant;
(ii) any person, other than the Commissioner, who has or has had  any
official duty, or is or has been employed, in the administratio n of
the Act, shall not be called to give evidence or to be examined  in
 92    CAP. 406. ]               VALUE ADDED TAX 
connection with any official matter concerning the assessment
under appeal except on the request of the Commissioner.
Payment of the tax
4. (1) When a valid appeal has been made against an assessment, t he payment
of so much of the tax assessed which is in dispute may be kept in abeyance until the
appeal is finally determined, provided that the running of inte rest on the said tax
shall not be meanwhile suspended.
(2) The running of the period referred to in article 58(2) shall  be suspended in
respect of any tax or administrative penalty for any time durin g which the payment
thereof may be kept in abeyance in terms of this item. 
(3) Where the tax payable as a result of a decision of the Tribu nal on an appeal
against an assessment exceeds the tax shown to be payable in th e said assessment,
the excess shall be payable by not later than the end of the mo nth during which the
said decision is served on the appellant and interest at the ra te specified in article
21(4) shall be due on such excess from the said date for any pe riod during which
such excess remains unpaid.
References to the Tribunal
5. (1) A reference to the Tribunal of any matter referred to in a rticle 44 may
not be made unless it has first been raised in correspondence w ith the Commissioner
and shall be made by means of an application in writing which s hall state clearly all
the facts relevant to that matter and the manner in which, in t he opinion of the
applicant, that matter should be determined.
(2) A reference to the Tribunal on a question referred to in art icle 44( k) (the
imposition of an administrative penalty) shall not be valid unl ess it is made by not
later than two years from the date on which a notice of the imp osition of the
administrative penalty in question was given to the person on w hom it was imposed.
(3) The Tribunal shall, after hearing all parties having an inte rest in the matter,
and obtaining all relevant information, decide the matter and c ause its decision to be
served on the parties.
Appeals against Assessments
6. (1) An appeal against an assessment shall be made by an applic ation which
shall be signed by the appellant or by his agent.
(2) An application to the Tribunal under paragraph (1) shall be drawn up and
filed with the Secretary in duplicate, and the Secretary shall cause one copy to be
delivered to the Commissioner within five working days from the  date it is so filed.
(3) The Tribunal may, at any time, allow any amendment to be ma de in any
application for the purpose of making it clearer.
Reply by the Commissioner7. When a copy of an application of an appeal against an assess ment has been
delivered to the Commissioner in accordance with paragraph (2) of item 5 above, the
Commissioner shall, within twenty days from the expiration of t he time limit laid
down in the said paragraph, file with the Secretary a reply in duplicate stating his
reasons for contesting the appeal, and the Secretary shall caus e one copy of the reply
to be served on the appellant.
Reference to the Tribunal
              VALUE ADDED TAX                [CAP. 406.  9 3
8. (1) An appeal to the Tribunal consisting of a reference of a q uestion to the
Tribunal made by a person other than the Commissioner shall be made by
application which shall be signed by the appellant or by his ag ent. 
(2) An application to the Tribunal under paragraph (1) shall be drawn up and
filed with the Secretary in duplicate, and the Secretary shall cause one copy to be
delivered to the Commissioner within five working days from the  date it is so filed.
(3) When a copy of an application under paragraph (1) has been d elivered to the
Commissioner in accordance with paragraph (2), the Commissioner  shall within
twenty days from the expiration of the time limit laid down in the said paragraph,
file with the Secretary a reply in duplicate stating his reason s for contesting the
appeal and the Secretary shall cause one copy of the reply to b e served on the
appellant.
(4) The Tribunal shall refrain from deciding on an appeal referr ed to in
paragraph (1) unless the appellant shows that he had, before ma king his application,
referred the matter to the Commissioner in writing and that:
(a) the Commissioner agreed that the question should be referred t o the
Tribunal,
(b) the Commissioner did not give a reply, or
(c) the appellant feels aggrieved by the Commissioner’s reply.
(5) An appeal to the Tribunal consisting of a reference of a que stion to the
Tribunal made by the Commissioner shall be made by an applicati on which shall
indicate the name of a person or the names of persons who, in h is opinion, has or
have a direct interest in the matter.
Parties to a reference
9. (1) The parties to an appeal consisting of a reference of a qu estion to the
Tribunal shall be:
(a) the Commissioner;
(b) where the appellant is not the Commissioner, the appellant, pr ovided
that the Tribunal may at any time, and at the request of theCommissioner, require the appellant to prove his direct interes t in the
matter;
(c) any person indicated in an application made by the Commissione r in
accordance with paragraph (3) of item 7.
(2) A decision of the Tribunal shall be binding, with respect to  the specific
matter referred to it, on the parties to the appeal but not on any other person:
Provided that the decision shall be binding as aforesaid only i f the relevant
facts have been correctly stated in the application or otherwis e recorded in the
records of the case and shall remain binding only as long as th ere have been no
material changes to the said facts or to the relevant provision s of the law. 
Appointment of date for hearing of reference to the Tribunal
10. (1) After an application has been made in accordance with ite m 7, the
Tribunal shall appoint a day for the hearing of the appeal.
(2) The Secretary shall cause a notice of the day and time appoi nted for the
hearing of the appeal to be served on all parties to the appeal . He shall, moreover,
cause a copy of the application to be served on the parties to the appeal, except for
 94    CAP. 406. ]               VALUE ADDED TAX 
the appellant himself.
11. The provisions of article 15 of the Administrative Justice Act shall apply to
any appeal or reference made to the Tribunal.
Eligibility for credit for input tax
1. Except as the Commissioner may otherwise allow no credit for input tax for
a tax period shall be allowed to a person unless a claim is mad e in accordance with
any relevant provision of this Act.
Evidence of input tax
2. (1) No amount shall be treated as input tax of a person unless  that person
proves that the tax was chargeable on supplies of goods and ser vices or intra-
community acquisitions or importations of goods which have been  or which will be
used by him in the course or furtherance of his economic activi ty.
(2) Except as the Commissioner may otherwise allow, no amount sh all be
treated as input tax of a person unless:
(a) it is supported by -
(i) a tax invoice in respect of the tax relating to goods or ser vices
supplied to him; or
(ii) a tax invoice in respect of the tax relating to goods acqui red by
him under an intra-community acquisition; or
(iii) a document of importation indicating him as the importer i n
respect of the tax on an importation; and
(b) with respect to any tax on a supply which in terms of this Act  is payable
by that person or on an intra-community acquisition, he has rep orted
that tax as due by him in his tax return; and
(c) the document referred to in paragraph ( a) is held by that person and
produced, if requested, to the Commissioner; and
(d) the amount of the tax is properly accounted for in the records  held by
that person to the extent required for the purposes of the Act.
Tax which is not to be treated as input tax
3. (1) Subject to paragraph (2) of this item, no amount shall be treated as input
tax of a person to the extent to which it represents tax charge able on:
(a) the supply to that person or the intra-community acquisition o r
importation by that person of:
(i) tobacco or tobacco products;TENTH SCHEDULE Substituted by:
X. 2003.47.
Amended by:
L.N. 426 of 2007;L.N. 105 of 2008;L.N. 86 of 2009;L.N. 535 of 2010;L.N. 382 of 2011;L.N. 421 of 2012;L.N. 231 of 2015.[Articles 22 and 23]
Deductions
              VALUE ADDED TAX                [CAP. 406.  9 5
(ii) alcoholic beverages;
(iii) works of art, collectors’ items and antiques;(iv) motor vehicles, vessels or aircraft including the supply th ereof for
hire or leasing arrangements;
(v) goods and services for the purpose of repairing, maintaining ,
fuelling and keeping any item to which item (iv) of thissubparagraph applies;
(b) the supply of any goods and services or the intra-community ac quisition
or importation of any goods used in the provision by that perso n of
receptions, entertainment or hospitality except where the said provision
is made for consideration in the normal course of that person’seconomic activity;
(c) the supply of any goods and services or the intra-community ac quisition
or importation of any goods used in the provision by that perso n to his
employees or, in the case of a body of persons, to its officers  o r
employees, of transport or entertainment: provided that this pr ovision
shall not apply to transport provided by that person to his emp loyees on
vehicles with a seating capacity of not less than seven.
(2) The provisions of sub-paragraphs (i) to (v) of paragraph (1) (a) shall not
apply to:
(a) goods supplied to or acquired under an intra-community acquisi tion or
imported by a person for the purpose of resale, whether in the state in
which they were acquired or imported or after treatment or proc essing
or inclusion in other goods supplied by that person, in the nor mal course
of that person’s economic activity;
(b) motor vehicles, vessels or aircraft supplied to or acquired un der an
intra-community acquisition or imported by a person and used by  him
for the purpose of the carriage of goods or passengers for aconsideration;
(c) vessels and aircraft supplied to or acquired under an intra-co mmunity
acquisition or imported by a person for the purpose of being pr ovided
by him under a charter or hire agreement;
(d) motor vehicles supplied to or acquired under an intra-communit y
acquisition or imported by a person for the purpose of being pr ovided
by him for hire with a driver or for self-drive hire (excluding  fuelling
for such self-drive vehicles), or of being used for driving ins tructions,
provided they are so used, in each case, in the normal course o f that
person’s economic activity;
(e) motor vehicles designed and manufactured for the carriage of g oods and
so designed and manufactured with seating accommodation normall y
adjacent to the driver or with seating accommodation for nine p ersons
or more;
(f) vessels or aircraft used for the carriage of goods or personne l in the course
of an economic activity or where the use of such vessels or air craft
constitutes a specific and essential element for the performanc e of the
economic activity which would otherwise give rise to a right of  deduction
in terms of article 22.
(3) In this item, "works of art, collectors items and antiques" shall have the
meaning assigned to it by Part B of the Fourteenth Schedule.
 96    CAP. 406. ]               VALUE ADDED TAX 
(4) Tax paid or payable on any supply to or on any intra-communi ty acquisition
or importation by a person in the name and for the account of a nother person in
respect of disbursements that, in terms of the Seventh Schedule , do not form part of
the taxable value of supplies made to that other person shall n ot be treated as input
tax of the first mentioned person.
Tax partially treated as input tax
4. (1) Where any goods or services are or will be used but not wh olly used in
the course or furtherance of an economic activity, there shall be treated as input tax
such proportion of the tax chargeable on the supplies, intra-co mmunity acquisitions
or importations in question, taking into account the proportion  of the use of those
goods or services in the course or furtherance of the economic activity to their total
use.
(2) In the case of immovable property forming part of the busine ss assets of a
taxable person and used both for purposes of the taxable person ’s business and for
his private use or that of his staff, or, more generally, for p urposes other than those
of his business, V AT on expenditure related to this property sh all be deductible in
accordance with the principles set out in this Schedule only up  to the proportion of
the property’s use for purposes of the taxable person’s busines s which give him the
right to deduct.
By way of derogation from item 15 of the Second Schedule, chang es in the
proportion of use of immovable property referred to in paragrap h (1) shall be taken
into account in accordance with the principles provided for in item 7 of this
Schedule.
(3) The provisions of paragraph (2) shall also apply in relation  to V AT on
expenditure related to capital goods other than immovable prope rty forming part of
the business assets of a taxable person.
For the purpose of this paragraph "capital goods" shall have th e meaning
assigned to it in the Value Added Tax (Adjustments relating to Input Tax on Capital
Goods) Regulations ( S.L.406.12 ).
Attribution of input tax
5. (1) Any input tax of a person registered under article 10 for a tax period
which is exclusively attributable to supplies to which article 22(4) applies shall be
allowed as a credit for that period.
(2) Any input tax which is exclusively attributable to supplies other than those
referred to in paragraph (1) shall not be allowed as a credit.
(3) Any input tax for a tax period which is attributable both to  supplies to which
article 22(4) applies and also to other supplies shall be parti ally allowed as a credit
for that tax period, which portion shall be determined in accor dance with item 6 or 8.
Partial attribution
6. (1) The portion of input tax allowable as a credit to a person  in terms of item
5(3) shall be calculated as follows:
(a) the total value of supplies to which article 22(4) applies mad e by that
person during all the tax periods ending during a calendar year  i s
divided by the total value of supplies made by that person duri ng those
tax periods;
(b) the result obtained under paragraph ( a) shall be the definitive ratio for
              VALUE ADDED TAX                [CAP. 406.  9 7
the year referred to in that paragraph and the provisional rati o for the
following year;
(c) the input tax credit of that person for each tax period ending  during a
calendar year shall be calculated provisionally by multiplying the value
of the input tax of that person for that tax period by the prov isional ratio
for that year;
(d) the total input tax credit of that person for all the tax peri ods ending
during a calendar year shall be calculated definitively by mult iplying
the total input tax for those periods by the definitive ratio f or that year;
(e) the difference between the total input tax for the tax periods  ending
during a year calculated provisionally under paragraph ( c) and the
definitive calculation for that year under paragraph ( d) shall represent
tax due by that person or a deduction allowable to that person,  as the
case may be, which tax or deduction shall be accounted for in t he tax
return for the first tax period that ends in the year following  that for
which the provisional calculation was made: provided that the t ax or
deduction in respect of a year during which the registration of  a person
under article 10 is cancelled shall be accounted for in his las t tax period.
(2) For the purposes of paragraph (1):
(a) the value of supplies not subject to tax under this Act shall be
determined in the manner applicable for the determination of th e taxable
value of taxable supplies;
(b) there shall be excluded from the value of the supplies made by  that
person -
(i) the value of any supply of capital goods used in his economi c
activity;
(ii) the value of self-supplies;
(iii) the value of any supply which is not made by a taxable per son
acting as such.
Adjustment relating to input tax on the acquisition of capital goods
7. (1) Where the input tax credit of a person ("the owner") for a ny tax period
during a calendar year ("the year of acquisition") includes tax  on the supply to that
person or the intra-community acquisition or importation by tha t person of capital
goods, an adjustment should be made to the input tax already al lowed, if the input
tax for any year during an adjustment period is allowable at a rate which is higher or
lower than that already allowed in the year of acquisition.
(2) The Minister may by regulations:
(a) define the capital goods to which this item applies;
(b) define the period or periods of adjustment applicable to capit al goods;
(c) prescribe the method in which the adjustment shall be calculat ed and the
manner in which it shall be effected.
Alternative methods of partial attribution
8. Where it appears that the method of attributing input tax lai d down in item 6
does not give a fair and reasonable result, the Commissioner ma y by notice in
writing to a registered person direct that the said method shal l not apply to the
attribution of input tax to the supplies of that person and whe re such a direction has
been given, that person shall adopt such other method of partia l attribution as the
 98    CAP. 406. ]               VALUE ADDED TAX 
Commissioner may, in the said notice, prescribe.
Rounding up
9. (1) A fraction resulting from any computation made in accordan ce with this
Schedule shall be rounded up to the nearest euro.
(2) Where the amount of input tax which results to be not allowa ble as a credit
for a tax period pursuant to an apportionment made in accordanc e with items 6 or 8
is less than €20 multiplied by the number of months or part the reof included in that
tax period that amount shall, notwithstanding the said provisio ns, be treated as
allowable as a credit for input tax.
Bad debt relief
10. (1) Where a person registered under article 10 of this Act sh ows to the
satisfaction of the Commissioner that an amount due to him as c onsideration for a
supply made to another person has, during a tax period, become a bad debt and that
output tax has been paid or is payable by the said person in re spect of that supply,
that person may claim the amount of the output tax correspondin g to the bad debt to
be allowed as a deduction by way of a bad debt relief in additi on to any other
deduction allowable to him as an input tax credit in accordance  with the other
provisions of this Schedule for tha t tax period or for such sub sequent tax period as
the Commissioner may allow.
(2) A claim for a deduction by way of a bad debt relief shall be  subject to such
directives as the Commissioner may give as to the circumstances  in which it may be
made and the documents or other evidence that should be produce d.
(3) The recovery of a bad debt in respect of which a deduction h as been allowed
in terms of this item or of a part of such a debt shall, to the  extent of the amount
recovered, be treated as a taxable supply taking place at the t ime when the said debt
or part thereof is recovered and shall be accounted for accordi ngly by the person to
whom the deduction had been so allowed.
Deductions on account of a reduction in the taxable value of supplies or intra-
community acquisitions
11. (1) Where, in terms of the Seventh Schedule, the taxable valu e of a supply
or an intra-community acquisition is reduced after that supply or acquisition takes
place any output tax corresponding to that reduction shall be a llowable as a
deduction to the person by whom that output tax was paid or is payable for the tax
period during which the cause for the reduction occurs.
(2) The deduction allowable under this item is subject to the co ndition that the
person claiming it has properly accounted for the output tax on  the taxable value in
question before the reduction.
(3) A claim for a deduction under this item shall be subject to such directives as
the Commissioner may give as to the documents or other evidence  that should be
produced.
Saving provision12. The provisions of this Schedule are without prejudice to the  provisions of
the Fourteenth Schedule and, in particular, to the limitations provided for in that
Schedule to the right of input tax credit allowable in the case  of supplies subject to a
margin scheme.
Input tax on supplies under cash accounting
              VALUE ADDED TAX                [CAP. 406.  9 9
13. Where a tax invoice indicates the words "Cash Accounting", t he right of
deduction of input tax, if applicable,  shall arise when the pay ment of the tax is made
to the supplier.
Records to be kept by persons registered under article 10
1. (1) Every person registered under article 10 shall keep the fo llowing records
and documents:
(a) proper accounts and records of his economic activity;
(b) a value added tax account;
(c) an annual value added tax account;
(d) copies of all tax invoices issued by him;
(e) all tax invoices received by him;
(f) documentation relating to customs and, where applicable, excis e
procedures with respect to importation and exportation of goods  by him;
(g) copies of all fiscal receipts issued by him in terms of the Th irteenth
Schedule to this Act;
(h) all credit notes, debit notes and other documents issued by hi m or
received by him which evidence an increase or a decrease in theconsideration for any supplies, intra-community acquisitions orimportations;
(i) a register of goods transported by him or on his behalf out of  Malta but
within the Community for the purpose of transactions referred t o in item
17 of the Second Schedule ( Transfer of goods to another Member State ),
showing:
- a description of the goods;
- their quantity;- their value;- their movements;- a description and the quantity of the goods not transported ba ck;
and
- the date and the reference to the documents issued, if any, re lating
to these operations;
(j) a record of movable tangible goods transported to him from ano ther
Member State by or on behalf of a taxable person identified forAmended by:
L.N. 60 of 1999;L.N. 200 of 1999;L.N. 217 of 1999;L.N. 272 of 2000;L.N. 93 of 2001;L.N. 235 of 2001;L.N. 389 of 2002.Substituted by:X. 2003.47.
Amended by:
L.N. 72 of 2010;L.N. 422 of 2012.ELEVENTH SCHEDULE
[Article 48]
Tax records
 100    CAP. 406. ]               VALUE ADDED TAX 
purposes of value added tax in that other State for the purpose  of the
valuation of or works on those goods showing:
- a sequential number;
- the date of receipt of the goods;- the name and address of the customer;- the value added tax identification number of the customer;- the quantity of the goods received;- a description of the goods received;- the date of the transport of the processed goods after valuati on to
the customer;
- the quantity and the description of the goods that are not
transported back to the client;
- the date and a reference to the documents issued relating to t he
services supplied.
(2) Invoices shall be stored in the original form in which they were sent or made
available, whether paper or electronic. Additionally, in the ca se of invoices stored by
electronic means, the Commissioner may require that the data gu aranteeing the
authenticity of the origin of the invoices and the integrity of  their content as
provided for in the Twelfth Schedule shall also be stored by el ectronic means.
(3) Where a taxable person stores by electronic means invoices w hich he issues
or receives, guaranteeing online  access to the data concerned t o the Commissioner,
and where the tax is due in another Member State, the competent  authorities of that
Member State shall, for control purposes, have the right to acc ess, download and use
those invoices.
Matters to be included in the accounts2. The accounts of the economic activity of every person registe red under
article 10 shall be kept in such a way as to enable the followi ng matters to be readily
ascertained:
(a) the total value, exclusive of tax, of the supplies made by him  during
each tax period;
(b) the total value, exclusive of tax claimed as input tax credit,  of his inputs
for each tax period;
(c) the output tax and any other tax payable by that person for ea ch tax
period;
(d) the input tax credits, the deductions, the excess tax credit a nd the tax
refundable, for each tax period;
(e) the calculation, where input tax credit is allowable under a p artial
attribution method, of the provisional input tax credit for eac h tax
period, of the definitive input tax credit for each year and of  the
adjustments to the input tax credit;
(f) sub-totals, breakdowns and notes to the accounts as are necess ary to
readily identify the source of the information shown in the val ue added
tax account.
The value added tax account
3. (1) The value added tax account shall be a separate account he ld for each
tax period of the taxable person and shall contain all the info rmation, including all
              VALUE ADDED TAX                [CAP. 406.  101
the totals, sub-totals and breakdowns, required to be furnished  in the tax return for
that period.
(2) The value added tax account shall contain a cross reference to the matters
referred to in item 2 that enables the matching and reconciliat ion of all information
contained therein.
Correction of mistakes by means of an adjustment in a subsequent tax return
4. (1) Where a person registered under article 10, in a return fo r a tax period
furnished to the Commissioner -
(a) overstates or understates the output tax and the overstatement  o r
understatement does not exceed five per cent of the output tax declared
in the said return, and/or
(b) overstates or understates the credit for input tax and the ove rstatement
or understatement does not exceed five per cent of the credit f or input
tax declared in the said return,
he may correct the mistake by making the necessary entries in t he value added tax
account and in the tax return for the tax period during which t he overstatement or
understatement is discovered.
(2) No correction may be made in accordance with this item for a ny tax period
which commences later than six months from the expiration of th e tax period to
which the mistake refers.
(3) When a correction is made in terms of this item the value ad ded tax account
shall contain a clear reference to the tax period to which the mistake refers and to all
the documents relating to relative transactions.
(4) A mistake in a tax return may not be corrected by means of a  correction in a
subsequent tax return except to the extent allowed and in the m anner provided in this
item.
Annual value added tax account
5. The annual value added tax account shall be an account drawn up for every
calendar year and shall show the totals of all values entered i n the value added tax
account for each of the tax periods ending during that calendar  year.
Exceptions
6. (1) The Commissioner may, in any particular case or classes of  cases,
require such additional records or documents to be kept, or all ow such variations to
the records and documents to be kept in accordance with this Sc hedule as he may
deem appropriate for any of the purposes of the Act.
(2) This Schedule shall be subject to the general requirements o f article 48 and
without prejudice to any additional records and accounts that m ay be required under
any special provision contained in the Act or in any regulation s made under the Act.
Records of intra-community acquisitions7. Every taxable person who is not registered under article 10 a nd every non-
taxable legal person shall keep records in sufficient detail as  to enable the
determination of the value of intra-community acquisitions made  by him in Malta
including:
(a) a description of the goods and the consideration paid on each
acquisition;
 102    CAP. 406. ]               VALUE ADDED TAX 
(b) the relative invoices;
(c) all other information relevant for the purposes of determining  the value
of intra-community acquisitions for the purposes of Part Two of  the
Sixth Schedule;
(d) all other supporting documents.
Records of distance sales8. Every taxable person shall keep records in sufficient detail as to enable the
determination of the value of distance sales made by him of goo ds transported from
Malta including:
(a) a description of the goods and the consideration charged on ea ch sale;
(b) a copy of the relative invoices;
(c) all other information relevant for the purposes of determining  the value
of distance sales for the purposes of Part Three of the Sixth S chedule;
(d) all other supporting documents.
Records pursuant to tax payable as per article 20(2) .
9. Every taxable person who is not registered under article 10 a nd every non-
taxable legal person identified for V AT purposes shall keep rec ords in sufficient
detail as to enable the determination of the value of the purch ases made by him in
Malta pursuant to article 20(2) including:
(a) a description of the services and/or goods and the considerati on paid;
(b) the relative invoices;
(c) all other supporting documents.
Form of tax invoice
1. (1) A document shall not constitute a tax invoice unless:
(i) all the particulars required by this Schedule are properly a nd fully
stated; or
(ii) the invoicing requirements set out in 
Directive 2006/1 12/EC are
fully complied with.
(2) Any document or message that amends and refers specifically and
unambiguously to the initial invoice shall be treated as an inv oice.
(3) A simplified invoice shall be considered as a tax invoice wh ere:
(a) the amount of the invoice inclusive of the tax, is not higher than €100;
(b) the invoice issued is a document or message treated as an invo ice;TWELFTH SCHEDULE Substituted by:
X. 2003.47.
Amended by:
L.N. 171 of 2006;L.N. 426 of 2007;L.N. 448 of 2007;L.N. 444 of 2010;L.N. 423 of 2012;
L.N. 141 of 2013;
L.N. 298 of 2018.[Article 50(5)]
Tax invoice
              VALUE ADDED TAX                [CAP. 406.  103
(c) the invoice contains all the information referred to in item 5 .
However, the provisions of this paragraph shall not apply where  invoices are
required to be issued in case of cross-border supplies or where  the taxable supply of
goods or services is carried out by a taxable person who is not  established in the
Member State in which the tax is due or whose establishment in that Member State
does not intervene in the supply within the meaning of the prov iso in article 20(2) of
the Act, and the person liable for the payment of the tax is th e person to whom the
goods or services are supplied.
(4) For the purposes of this Schedule:"electronic invoice" means an invoice that contains the informa tion required in
this Schedule, and which has been issued and received in any el ectronic format.
Issuance of tax invoice2.(1) ( a) A tax invoice shall be issued by not later than the fifteenth day of the
month following that in which the chargeable event occurs or th e date on
which a payment is received, whichever is the earlier.
(b) Sub-paragraph ( a) shall not apply to any payment on account which
precedes  an intra-Community supply of goods.
(2) (a) Invoicing shall be subject to the rules applying in the Member State in
which the supply of goods or services is deemed to be made, in accordance with the
provisions of the Third Schedule.
(b) By way of derogation from sub-paragraph (a), invoicing shall  be subject to
the following rules:
(i) the rules applying in the Member State in which the supplier  has
established his business or has a fixed establishment from whic h the
supply is made or, in the absence of such place of establishmen t or fixed
establishment, the Member State where the supplier has his perm anent
address or usually resides, where:
A. the supplier is not established in the Member State in which the
supply of goods or services is deemed to be made, in accordancewith the provisions of the Third Schedule, or his establishment  in
that Member State does not intervene in the supply within themeaning of the proviso to article 20(2) of the Act, and the per son
liable for the payment of the V AT is the person to whom the goo ds
or services are supplied unless the customer issues the invoice(self-billing);
B. the supply of goods or services is deemed not to be made with in
the Community, in accordance with the provisions of the ThirdSchedule;
(ii) the rules applying in the Member State where the supplier m aking use of
one of the special schemes referred to Parts Seven and Eight of  the
Fourteenth Schedule is identified.
(3) A summary invoice may be issued to detail several supplies o f goods or
services provided that the tax on the supplies mentioned in the  summary invoice
becomes chargeable during the same calendar month.
(4) Tax invoices may be drawn up by the customer in respect of s upplies of
goods or services made to him by a taxable person where there i s a prior agreement
between the two parties and provided that a procedure exists fo r the acceptance of
each tax invoice by the taxable person supplying the goods or s ervices. The
 104    CAP. 406. ]               VALUE ADDED TAX 
Commissioner may require that such invoices be issued in the na me and on behalf of
the taxable person.
Contents of a tax invoice3. Saving the other provisions of this Schedule, a tax invoice s hall contain the
following particulars:
(a) the date of issue;
(b) a sequential number, based on one or more series, which unique ly
identifies the invoice;
(c) the name and address of the supplier and the Value Added Tax
identification number under which he made the supply;
(d) the name and address of the person to whom the supply is made and the
Value Added Tax identification number under which the customer
acquired the goods or services supplied to him;
(e) the quantity and nature of the goods supplied or the extent an d nature of
the services rendered;
(f) the date on which the supply was made or completed or the date  o n
which a payment on account of the supply was made insofar as th at date
can be determined and differs from the date of issue of the inv oice;
(g) the taxable value per rate or exemption, the unit price exclus ive of tax
and any discounts or rebates if they are not included in the un it price;
(h) the V AT rate applied;
(i) the V AT amount payable, except where a special arrangement is applied
under which, in accordance with this Act, such a detail is excl uded;
(j) where the person liable for payment of V AT is a tax representa tive in
another Member State, the V AT identification number of that taxrepresentative, together with his full name and address;
(k) where the V AT becomes chargeable at the time when the payment is
received in accordance with Parts One and Three of the Fourteen th
Schedule, the mention "Cash accounting";
(l) where the customer receiving a supply issues the invoice inste ad of the
supplier, the mention "Selfbilling";
(m) where a tax invoice refers to supplies on which no tax is char geable, it
shall indicate a brief reference to the relevant provisions of this Act, or
the appropriate provisions of 
Council Directive 2006/1 12/EC,  or any
other indication on the grounds of which no tax is chargeable, and may
distinguish between:
(i) supplies made outside Malta;
(ii) exempt with credit supplies;
(iii) exempt without credit supplies;
(n) where the customer is liable for the payment of the V AT, the m ention
"Reverse charge";
(o) where the margin scheme for travel agents is applied, the ment ion
"Margin scheme - Travel agents";
(p) where one of the special arrangements applicable to second-han d goods,
works of art, collectors’ items and antiques is applied, the me ntion
"Margin scheme - Second-hand goods"; "Margin scheme - Works of art"
              VALUE ADDED TAX                [CAP. 406.  105
or "Margin scheme - Collector’s items and antiques" respectivel y;
(q) where the invoice is issued by a taxable person, who is not es tablished
in the Member State where the tax is due or whose establishment  in that
Member State does not intervene in the supply within the meanin g of
the proviso of article 20(2) of the Act, and who is making a su pply of
goods or services to a customer who is liable for payment of V A T, the
taxable person may omit the details referred to in sub-paragrap hs (g),
(h) and ( i) of this item and instead indicate, by reference to the quanti ty
or extent of the goods or services supplied and their nature, t he taxable
amount of those goods or services;
(r) in an invoice for the intra-Community supply of a new means of
transport the description of the goods supplied shall contain t he
particulars referred to in the definition of "new means of tran sport"
under article 2 of the Act.
Categories of supplies4. A tax invoice may also contain the type of the supply by refe rence to the
categories as follows:
(a) a supply by sale;
(b) a supply of goods under a hire-purchase agreement or in terms of which
the ownership of the goods is deferred;
(c) a supply on hire;
(d) a supply under a contract of exchange;
(e) a supply consisting in the delivery of goods made from materia ls
provided by the customer;
(f) a supply by sale on commission;
(g) a supply on sale or return or similar terms;
(h) an export;
(i) any other supply.
Simplified invoice5. A simplified invoice referred to in item 1(3) shall contain a t least the
following particulars:
(a) the date of issue;
(b) a sequential number, based on one or more series, which unique ly
identifies the invoice;
(c) the name, address and the V alue Added Tax identification numbe r of the
supplier;
(d) the Value Added Tax identification number of the person to who m the
supply is made;
(e) a description sufficient to identify the goods and services su pplied;
(f) the total amount of tax payable or the information needed to c alculate it;
(
g) where the invoice issued is a document or message treated as a n invoice
pursuant to item 1(2), specific and unambiguous reference to th at initial
invoice and the specific details which are being amended.
Electronic invoices
 106    CAP. 406. ]               VALUE ADDED TAX 
6. (1) For the purposes of this Schedule:
"authenticity of the origin" means the assurance of the identit y of the supplier or
the issuer of the invoice;
"integrity of the content" means that the content required acco rding to this
Schedule has not been altered.
(2) The use of an electronic invoice shall be subject to accepta nce by the
recipient.
(3) The authenticity of the origin, the integrity of the content  and the legibility
of an invoice, whether on paper or in electronic form, shall be  ensured from the point
in time of issue until the end of the period for storage of the  invoice.
Each taxable person shall determine the way to ensure the authe nticity of the
origin, the integrity of the content and the legibility of the invoice. This may be
achieved by any business controls which create a reliable audit  trail between an
invoice and a supply of goods or services.
(4) Other than by way of the type of business controls described  in paragraph
(3), examples of technologies that ensure the authenticity of t he origin and the
integrity of the content of an electronic invoice are those ref erred to in article 233 of
Council Directive 2006/1 12/EC .
(5) Where batches containing several electronic invoices are sen t or made
available to the same recipient, the details common to the indi vidual invoices may be
mentioned only once where, for each invoice, all the informatio n is accessible.
Currency7. The amounts which appear on the invoice may be expressed in a ny currency,
provided that the tax payable or to be adjusted under this Act is expressed in Euro,
using the conversion rate mechanism provided for in the Seventh  Schedule.
Translation of invoices8. For control purposes, and as regards invoices in respect of s upplies of goods
or services supplied in Malta and invoices received by taxable persons established in
Malta, the Commissioner may, for certain taxable persons or cer tain cases, require
translation into Maltese or English.
Interpretation
1. In this Schedule, unless the context otherwise requires -"fiscal cash register" means a cash register which conforms wit h the requirements
specified in item 13 of this Schedule;
"fiscal receipt" means a receipt or invoice issued on a form su pplied or approved
in writing by the Commissioner or issued in a manner as may be approved by the
Commissioner and containing all the information and details req uired to be specified
thereon, or a receipt issued by means of a fiscal cash register , or by a fiscal taxi
meter;THIRTEENTH SCHEDULE
Substituted by:
X. 2003.47.
Amended by:
L.N. 234 of 2011;L.N. 65 of 2015.[Article 51]
Fiscal receipts
              VALUE ADDED TAX                [CAP. 406.  107
"fiscal taxi meter" means a meter which conforms with the requi rements specified in
item 14 of this Schedule.
Obligation to issue receipt2. Subject to the other provisions of this Schedule, every perso n who makes a
supply, other than an exempt without credit supply shall, excep t where he is required
to issue a tax invoice in respect of that supply, issue a fisca l receipt in accordance
with this Schedule for the consi deration paid to him for that s upply and such fiscal
receipt shall, unless issued before the payment is made, be iss ued and delivered to
the person who effects the payment or to the person to whom the  supply is made
immediately after payment has been effected, to the extent cove red by that payment:
Provided that in respect of a supply for which no consideration  is paid but
which is deemed to have been made for a consideration in accord ance with the
Second Schedule to this Act, the fiscal receipt shall be issued  on the date of that
supply.
Supplies under the Mini One Stop Shop2A. Persons supplying services under the Mini One Stop Shop, in terms of
Articles 359 and 369b of Council Directive 2006/112/EC coming i n force as from 1st
January 2015, shall not be required to issue fiscal receipts in  terms of this Schedule
for such services.
Receipt issued by a fiscal cash register
3. (1) Subject to the provisions of items 4, 5, 6 and 7 of this S chedule, a fiscal
receipt issued by a person who is a retailer or whose business includes supplies of
food referred to in item 2 of Part Five of the Fifth Schedule t o the Act shall be issued
by means of a fiscal cash register: provided that in respect of  any supply made by
such person in any period during which he is unable, for a reas onable cause, to issue
a fiscal receipt by means of a fiscal cash register, he shall i ssue a fiscal receipt on a
form supplied by the Commissioner:
Provided that, for the purpose of this paragraph, a retailer sh all not include a
person involved in the delivery of pre-ordered goods.
(2) A fiscal receipt which is required to be issued for the prov ision of a taxi
service shall be issued by means of a fiscal taxi meter: provid ed that in respect of
any supply made by such person in any period during which he is  unable, for a
reasonable cause, to issue a fiscal receipt by means of a fisca l taxi meter, he shall
issue a fiscal receipt on a form supplied by the Commissioner.
(3) For the purposes of paragraphs (1) and (2) of this item, the  following shall
not be deemed to constitute a reasonable cause:
(a) not being in possession of a fiscal cash register or a fiscal taxi meter;
(b) not being in possession of stationery or other material requir ed for the
functions of the fiscal cash register or a fiscal taxi meter;
(c) defects in the functioning of a fiscal cash register or a fisc al taxi meter
except where prompt and reasonable measures have been taken toremedy such defects.
Door to door sales of gas, milk or bread
4. (1) A person who makes supplies from a vehicle consisting in d oor-to-door
delivery, or in the delivery to the public on a public road, of  gas, milk and milk
 108    CAP. 406. ]               VALUE ADDED TAX 
products or bread shall not be required to issue a fiscal recei pt for every such supply
if he issues one fiscal receipt (hereinafter in this item refer red to as "a daily receipt")
which accounts for all the said supplies made on each day in th e manner prescribed
in the other provisions of this item.
(2) A daily receipt shall be a fiscal receipt which accounts for  the difference
between the goods loaded on the vehicle from which the said sup plies are made and
the goods remaining on the vehicle after the said supplies are made for that day as if
such difference represented goods supplied in one supply.
(3) A person who issues daily receipts shall keep the originals therefor together
with the other records he is required to keep for the purposes of this Act.
(4) A person who issues daily receipts shall be required to issu e fiscal receipts
in accordance with the other items of this Schedule in respect of any supplies not
referred to in this item.
Supplies of bread by bakers
5. (1) A person who makes supplies of bread from the bakery where  that bread
has been baked may apply in writing to the Commissioner for aut horisation to issue
one fiscal receipt (hereinafter in this item referred to as "a daily fiscal receipt"),
which daily fiscal receipt shall account for all the said suppl ies made on each day in
the manner prescribed in the other provisions of this item.
(2) A daily fiscal receipt shall be a fiscal receipt which accou nts for all the
separate supplies of that date as if such goods were supplied i n one separate supply.
(3) The Commissioner may, by notice in writing, at any time with draw such
authorisation without giving reasons.
(4) A person who issues daily fiscal receipts shall keep the ori ginals thereof
together with the other records he is required to keep for the purposes of this Act.
(5) A person who issues daily fiscal receipts shall be required to issue fiscal
receipts in accordance with the other items of this Schedule in  respect of any other
supplies not referred to in this item, unless such other suppli es refer to relatively
small amounts.
Supplies from pumps of leaded petrol, unleaded petrol and diesel (gas) oil
6. (1) A person who makes supplies from pumps, other than automat ed pumps,
of leaded petrol, unleaded petrol and diesel (gas) oil, shall n ot be required to issue a
fiscal receipt for every such supply if he issues one fiscal re ceipt (hereinafter in this
item referred to as "a daily receipt") which accounts for all t he supplies made on
each day in the manner prescribed in the other provisions of th is item.
(2) A daily receipt shall be a fiscal receipt which accounts for  all the said
supplies of that day as if such goods were supplied in one supp ly.
(3) A person who issues daily receipts shall keep the originals thereof together
with the other records he is required to keep for the purposes of this Act.
(4) A person who issues daily receipts shall be required to issu e fiscal receipts
in accordance with the other items of this Schedule in respect of any supplies not
referred to in this item.
Supplies of food and beverages by a canteen situated in a work or study area
7. (1) A person who makes a supply of food and beverages in a can teen
situated in a work or study area may apply in writing to the Co mmissioner for
              VALUE ADDED TAX                [CAP. 406.  109
authorisation to issue one fiscal receipt in respect of the sup ply of food and another
fiscal receipt in respect of the supply of beverages (each such  receipt hereinafter in
this item referred to as "a daily receipt") which daily receipt  shall account for the
said separate supplies made on each day in the manner prescribe d in the other
provisions of this item.
(2) The daily receipts shall be the fiscal receipts which accoun t for all the said
separate supplies of that day as if such goods were supplied in  two separate supplies,
one in respect of food and one in respect of beverages.
(3) The Commissioner may, by notice in writing, at any time with draw such
authorisation without giving reasons.
(4) A person who issues daily receipts shall keep the originals thereof together
with the other records he is required to keep for the purposes of this Act.
(5) A person who issued daily receipts shall be required to issu e fiscal receipts
in accordance with the other items of this Schedule in respect of any supplies not
referred to in this item.
Supplies of goods by means of vending machines
8. (1) A fiscal receipt in respect of supplies of goods made by m eans of a
vending machine shall account for the difference in the goods s tocked in the machine
every time and immediately after goods are loaded therein and t he goods stocked in
the machine immediately before goods are loaded again therein a s if that difference
represented goods supplied in one supply: provided that the fir st receipt to be made
in accordance with this item by a person who is a registered pe rson on the 1st
January, 1999 shall account for the difference in the goods sto cked in the machine on
the 1st January 1999 and the goods stocked therein immediately before the first time
in 1999 that goods are loaded therein.
(2) A person who makes supplies of goods by means of a vending m achine shall
take readings of stocks every time goods are loaded into the ma chine and shall keep
a record of such readings and the original of all receipts issu ed in accordance with
this item together with the other records he is required to kee p for the purposes of
this Act.
Services supplied by means of machines
9. (1) A fiscal receipt in respect of supplies of services made b y means of a
machine operated by coins shall be issued every time coins are withdrawn from the
machine, and shall account for the value of the coins so withdr awn as if that value
represented the value of services supplied in one supply.
(2) A person who makes supplies referred to in paragraph (1) of this item shall
keep a record of coins withdrawn from and of coins and goods st ocked by him (if
any) in the machine, and shall keep the original of all receipt s issued in accordance
with the said paragraph together with the other records he is r equired to keep for the
purposes of this Act.
(3) A fiscal receipt in respect of supplies of services made by means of a
machine operated by an electronic card or by any other token sh all be issued every
time a card or other token is supplied and shall account for th e price charged or
chargeable for the supply of that card or token as if the suppl y of the card or other
token represented the supply of services that can be supplied b y the use of that card
or other token.
Accounting for fiscal receipts supplied or approved by the Commissioner
 110    CAP. 406. ]               VALUE ADDED TAX 
10. (1) Every person who is supplied with forms of fiscal receipt s by the
Commissioner shall account for all such forms by keeping in his  possession, and
producing at the request of the Commissioner, all unused forms,  and by keeping one
copy and producing to the Commi ssioner another copy of all rece ipts drawn out on
such forms and of all cancelled forms.
(2) Copies of used and cancelled forms of fiscal receipts suppli ed by the
Commissioner shall be delivered to the Commissioner as soon as possible after the
booklet or other form of binding in which the fiscal receipts h ave been supplied has
been fully used or at such other date as the Commissioner may r equire.
(3) Every person who issues fiscal receipts on forms approved by  the
Commissioner or in a manner approved by the Commissioner, shall  account for all
such receipts in such manner as may be directed by the Commissi oner, and for this
purpose the Commissioner may give such directions regarding the  processing,
recording and storing of the receipts and of the information to  be given therein as he
may deem appropriate.
(4) Any person who fails to account for a fiscal receipt in the manner prescribed
in this item shall be presumed, unless the contrary is proved, to have failed to
account for a taxable supply.
Exemption from obligation to issue fiscal receipt
11. (1) The Commissioner may, by means of a notice in writing, ex empt any
person, and may by means of a notice published in the Gazette e xempt any class of
persons from any obligation imposed by this Schedule, and such exemption may be
given for such time and with such limitations and subject to su ch conditions as may
be specified in the said notice.
(2) The Commissioner may at any time by means of a notice in wri ting or by
means of a notice published in the Gazette, as the case may be,  revoke any
exemption given in terms of this item.
Obligation to retain and produce receipt
12. Every person to whom a fiscal receipt is issued shall retain  the receipt in his
possession for a period of twenty-four hours and shall, upon a request made during
the said time by the Commissioner or any officer authorised by the Commissioner,
produce the said receipt to the Commissioner or such authorised  officer.
Fiscal cash register
13. (1) A fiscal cash register shall -
(a) cater for the functions listed in paragraph (2) of this item; and
(b) be of a type specifically approved by the Commissioner by mean s of a
notice published in the Gazette or approved for the purposes of  and in
accordance with the Customs and Excise Tax Act or the Value Added
Tax Act.
(2) The functions for which a fiscal cash register must cater fo r the purpose of
subparagraph ( a) of paragraph (1) of this item are:
(a) printing of an itemised receipt for the supplies made in each transaction
indicating -
(i) the name and address of the supplier and the Value Added Tax
registration number,
              VALUE ADDED TAX                [CAP. 406.  111
(ii) the goods or services supplied,
(iii) the quantity of each item supplied,(iv) whether each item is taxable or exempt,
(v) the total, inclusive of tax, of the consideration paid for t he
supplies included in the transaction,
(vi) serial number of transaction,
(vii) the tax logo type as specified by the Commissioner,
(viii) cash register serial number,
(ix) date and time of supply,
(x) and/or such other details as the Commissioner may require;
(b) registering of all day-to-day transactions on a printed journa l;
(c) storing of predefined data in an inaccessible and unalterable memory.
Fiscal taxi meter14. (1) A fiscal taxi meter shall -
(a) cater for the functions listed in paragraph (2) of this item; and
(b) be of a type approved by Transport Malta in terms of the Techn ical
Specifications published by Transport Malta according to the Ta xi Service Regulations,
or any other regulations replacing those Regulations.
(2) The functions for which a fiscal taxi meter must cater for t he purpose of
paragraph (1)( a) of this item are:
(a) printing of a receipt for the supply made in each transaction indicating -
(i) the name and the Value Added Tax registration number of the
supplier,
(ii) the taxi permit number,
(iii) date and time of supply,(iv) serial number of transaction,
(v) the service supplied and applicable rate,
(vi) the total, inclusive of tax, of the consideration paid for the supply,
(vii) the tax logo type as specified by the Commissioner,
(viii) fiscal taxi meter serial number,
(ix) and/or such other details as the Commissioner may require;
(b) storing of predefined data in an inaccessible and unalterable memory.
 112    CAP. 406. ]               VALUE ADDED TAX 
Interpretation
1. In this Part -"professional services" means:
(a) services performed by a person holding a warrant issued under any law
in force in Malta to practise a profession acting in an indepen dent
capacity in the exercise of that profession;
(b) services of a group of persons holding a warrant issued under any law in
force in Malta to practise a profession whether associated in apartnership or not but excluding a company;
(c) services performed by an arbitrator pursuant to a submission f or
arbitration made in conformity with the Arbitration Act;
(d) services performed by a judicial referee or an expert appointe d by a
court or by a tribunal set up by law.
Cash accounting option
2. (1) Subject to the other provisions of this Part, a person who  supplies
professional services and whose annual turn-over does not excee d €2,000,000,
exclusive of the tax, may opt that the tax becomes chargeable o n the earlier of:
(a) the date when a tax invoice or a fiscal receipt, as the case m ay be, is
issued for the supply, to the extent covered by that invoice or  receipt;
(b) the date when a payment is made for that supply, to the extent  covered
by that payment:
Provided that the right of deduction of input tax of that perso n shall be postponed
until the tax on any goods or services supplied to him has been  paid to his supplier.
(2) The provisions of paragraph (1) shall not apply to supplies of services in
respect of which the tax is payable by the customer and to supp lies or transfers of
goods referred to in item 4 of the Fourth Schedule.
Date when certain professional services are performed3. When, for any purpose of the Act, it is necessary to determin e the date when
the services referred to in this item are performed, the follow ing provisions shall
apply:
(a) the services of an advocate or of a legal procurator in assist ing any party
to judicial proceedings shall be treated as performed on the da te when aFOURTEENTH SCHEDULE
Amended by:
L.N. 21 of 1999;L.N. 201 of 1999;L.N. 94 of 2001.Substituted by:X. 2003.47.
Amended by:
L.N. 426 of 2007;L.N. 132 of 2009;L.N. 73 of 2010;L.N. 424 of 2012;L.N. 425 of 2012;L.N. 142 of 2013;L.N. 348 of 2017;L.N. 299 of 2018.[Article 57]
Special cases
Part One
Professional Services
              VALUE ADDED TAX                [CAP. 406.  1 1 3
final decree or judgment in those proceedings is delivered by t he court
in which the proceedings have been instituted (services relatin g to
proceedings instituted in different courts being treated as sup plied
separately) or, when the advocate or legal procurator abandons or is
abandoned by his client at an earlier date, on such earlier dat e;
(b) the services of a judicial referee or of an expert appointed b y a court or
by a tribunal set up by law shall be treated as performed on th e date on
which the report is filed in or made to the court or tribunal o r, when the
appointment is terminated on an earlier date, on such earlier d ate;
(c) the services of an arbitrator shall be treated as performed on  the date of
the award or, when the appointment is terminated on an earlier date, on
such earlier date.
Invoices and receipts for professional services
4. (1) Where a tax invoice is required to be issued for a supply of professional
services made in terms of item 2, it shall be issued by not lat er than the fifteenth day
of the month following that in w hich the payment for the said s upply of services is
made, to the extent covered by that payment.
(2) Where a fiscal receipt is required to be issued for a supply  of professional
services made in terms of item 2 it shall, unless it has been i ssued before the
payment has been made, be issued and delivered to the person wh o effects the
payment or to whom the services have been supplied, immediately  after payment has
been effected, to the extent covered by that payment.
Tax on certain professional services where tariffs of fees are established by law
5. (1) The tax chargeable on a supply of professional services sh all be an
amount over and above the amount resulting to be chargeable for  those services in
terms of any tariff of fees established under any law in force in Malta.
(2) Nothing in this item shall be construed as requiring any per son required by
law to assess or declare the fees payable in accordance with an y such tariff to declare
or assess also the said tax.
(3) In any action for the enforcement of the executive title ref erred to in article
253( c) of the Code of Organization and Civil Procedure, the amount for which
payment may be enforced shall be the amount shown in the taxed bill of costs in
question increased by any tax chargeable on the supply of profe ssional services to
which the taxed bill of costs refers as evidenced by a tax invo ice or a fiscal receipt or
a certified copy thereof attached to the said bill.
(4) The provisions of paragraph (3) of this item shall be withou t prejudice to the
right of the debtor to request the delivery of the original tax  invoice or the fiscal
receipt in accordance with item 6 of this Part.
Tax claimed from third parties6. The provisions of this item shall apply with respect to any a ction for the
payment of fees for professional services brought against any p erson other than the
person to whom the services were supplied:
(a) the person against whom the action is brought shall not be bou nd to pay
the amount relating to the tax, if any, chargeable on the suppl y of the
said services unless the original tax invoice or fiscal receipt  for those
services complying with the provisions of paragraph ( b) of this item is
delivered to him, or, where the action is brought against a num ber of
 114    CAP. 406. ]               VALUE ADDED TAX 
persons jointly, to any one of them;
(b) a tax invoice or fiscal receipt delivered as aforesaid shall, in addition to
the information required by the Act, contain -
(i) the following declaration signed by the person to whom the s aid
services were rendered:
"I declare that no credit for input tax has been or will be cla imed
by me in respect of the professional services referred to in th is tax
invoice/fiscal receipt.";
(ii) where the person against whom the action or claim is brough t is a
person registered under article 10, or, where the action is bro ught
against a number of persons jointly, when any one of them is aperson registered under article 10, the name and Value Added Ta x
identification number of the said registered person;
(c) when a tax invoice or fiscal receipt for fees for professional  services
complying with the provisions of paragraph ( b) of this item is delivered
to a taxable person who is bound at law to pay or reimburse the  said fees
it shall for the purposes of this Act be treated as if it were a tax invoice
for professional services supplied to him.
Part Two
Second-hand goods, works of art, collectors’ items and antiques
Interpretation1. In this Part unless the context otherwise requires:(1) "works of art" means -
(a) pictures, collages and similar decorative plaques, paintings a nd
drawings executed by hand by the artist, other than plans and d rawings
for architectural, engineering, industrial, commercial, topogra phical or
similar purposes, hand-decorated manufactured articles, theatri cal
scenery, studio back cloths or the like of painted canvasses;
(b) original engravings, prints and lithographs, being impressions  produced
in limited numbers directly in black and white or in colour of one or of
several plates executed entirely by hand by the artist, irrespe ctive of the
process or of the material employed by him, but not including a ny
mechanical or photomechanical process;
(c) original sculptures and statuary, in any material, provided th at they are
executed entirely by the artist sculpture casts the production of which is
limited to eight copies and supervised by the artist or his suc cessor in
title;
(d) tapestries and wall textiles made by hand from original design s
provided by artists, provided that there are not more than eigh t copies of
each;
(e) individual pieces of ceramics executed entirely by the artist and signed
by him;
(f) enamels on copper, executed entirely by hand, limited to eight
numbered copies bearing the signature of the artist or the stud io,
excluding articles of jewellery and goldsmiths’ and silversmith s’ wares;
(g) photographs taken by the artist, printed by him or under his s upervision,
signed and numbered and limited to 30 copies, all sizes and mou nts
              VALUE ADDED TAX                [CAP. 406.  1 1 5
included.
(2) "collectors’ items" means -
(a) postage or revenue stamps, postmarks, first day covers, pre-st amped
stationery and the like, franked, or if unfranked not being of legal tender
and not being intended for use as legal tender;
(b) collections and collectors’ pieces of zoological, botanical,
mineralogical, anatomical, historical, archaeological, palaeont ological,
ethnographic or numismatic interest.
(3) "antiques" means objects other than works of art or collecto rs’ items which
are more than 100 years old.
(4) "second-hand goods" means tangible movable property that is suitable for
further use as it is or after repair, other than works of art, collectors’ items or
antiques and other than precious metals or precious stones.
(5) "second-hand goods dealer" means a taxable person who, in th e course of his
economic activity, purchases or acquires for the purposes of hi s undertaking, or
imports with a view to resale, second-hand goods and/or works o f art, collectors’
items or antiques, whether that person is acting for himself or  on behalf of another
person pursuant to a contract under which commission is payable  on purchase or
sale.
(6) "auctioneer" means any taxable person who, in the course of his economic
activity, offers goods for sale by public auction with a view t o handing them over to
the highest bidder.
(7) "principal of an auctioneer" means any person who transmits goods to an
auctioneer under a contract under which commission is payable o n a sale subject to
the following provisions -
(a) the auctioneer offers the goods for sale in his own name but o n behalf of
his principal;
(b) the auctioneer hands over the goods, in his own name but on be half of
his principal, to the highest bidder at a public auction.
Second-hand goods dealer2. A second-hand goods dealer who makes supplies of second-hand goods,
works of art, collectors’ items and antiques, shall charge and collect tax on the profit
margin, in accordance with the other provisions of this Part.
Supplies
3. The supplies of goods referred to in item 2 of this Part shal l be supplies of
second-hand goods, works of art, collectors’ items and antiques , made by a second-
hand goods dealer, which had been supplied to him within the Co mmunity -
(a) by a non-taxable person; or
(b) by another taxable person, in so far as the supply of goods by  that other
person is an exempt without credit supply; or
(c) by another taxable person who is registered under article 11, in so far as
the supplies involve capital assets; or
(d) by another second-hand goods dealer, in so far as the supply o f goods by
that other second-hand goods dealer was subject to value added tax in
accordance with the other provisions of this Part.
 116    CAP. 406. ]               VALUE ADDED TAX 
Taxable Value
4. (1) The taxable value of the supplies of goods referred to in item 3 of this
Part shall be the profit margin made by the second-hand goods d ealer less the
amount of value added tax relating to the profit margin. That p rofit margin shall be
equal to the difference between the selling price charged by th e second-hand goods
dealer for the goods and the purchase price.
(2) For the purposes of paragraph (1) of this item -
(a) "selling price" means everything which constitutes the conside ration
which has been, or is to be, charged by the second-hand goods d ealer to
the purchaser, including subsidies directly linked to that tran saction,
taxes, duties, levies and charges and incidental expenses such as
commission, packaging, transport and insurance costs charged by  the
second-hand goods dealer to the purchaser but excluding discoun ts and
repayment for expenses paid out in the name and for the account  of the
purchaser;
(b) "purchase price" means everything which constitutes the consid eration
as defined in subparagraph ( a) of this paragraph, paid, or to be paid, by
the second-hand goods dealer to his supplier.
Applicable option
5. (1) Second-hand goods dealers shall have the option to apply t he provisions
of this Part, after having obtained the approval in writing of the Commissioner, in
respect of supplies of -
(a) works of art, collectors’ items or antiques which they have im ported
themselves;
(b) works of art supplied to them by their creators or their succe ssors in
title.
(2) Where a second-hand goods dealer exercises the option availa ble under
paragraph (1) of this item, such option shall cover, at least, two calendar years.
(3) Where a second-hand goods dealer exercises the option availa ble under
paragraph (1) of this item, the taxable value shall be determin ed in accordance with
item 4 of this Part. Where the supplies refer to supplies to wh ich subparagraph ( a) of
paragraph (1) of this item refers, the purchase price to be tak en into account in
calculating the profit margin shall be equal to the taxable val ue on importation, plus
the value added tax due or paid on importation.
Input Tax
6. (1) Taxable persons shall not be entitled to deduct the value added tax due
or paid in respect of goods which have been, or are to be, supp lied to them by
second-hand goods dealers, where the supply of those goods has been subject to the
provisions of this Part.
(2) Where the second-hand goods dealer accounts for value added tax in terms
of the provisions of this Part, he shall not be entitled to cla im back -
(a) value added tax due or paid in respect of works of art, collec tors’ items
or antiques which he has imported himself;
(b) value added tax due or paid in respect of works which have bee n, or are
to be supplied, to him by their creators or their successors in  title;
              VALUE ADDED TAX                [CAP. 406.  1 1 7
(c) value added tax due or paid in respect of works of art which h ave been,
or are to be, supplied to him by a taxable person other than a second
hand goods dealer.
Separate accounting7. Where a second-hand goods dealer makes supplies to which this  Part refers
and other supplies, he must keep separate accounts to distingui sh between the
supplies made to which this Part refers and those other supplie s.
Purchase invoice8. Where a supply of second-hand goods to a second-hand goods de aler has
been made by a person who had not supplied the said goods in th e course of an
economic activity, such dealer shall issue a purchase invoice a t the time when the
said goods have been supplied to him, containing the following information -
(a) the purchase invoice number;
(b) the date of the purchase;
(c) the name and address of the seller;
(d) the name and address of the purchaser;
(e) a description of the goods;
(f) the total price paid;
(g) a cross reference to the entry of the transaction in the purch aser’s
account books;
(h) the signature of the seller.
Sales invoice9. A second-hand goods dealer who makes any supply to which this  Part refers
shall not issue a tax invoice or any other document showing an amount as being tax
or as being attributed to tax, but shall issue a sales invoice containing the following
information and shall keep a copy thereof -
(a) the sales invoice number;
(b) the date of the sale;
(c) the name, address and value added tax registration number of t he seller;
(d) the name and address of the purchaser;
(e) a description of the goods;
(f) the total price inclusive of tax;
(g) a cross reference to the entry of the transaction in the selle r’s account
books;
(h) the following declaration signed by the seller:
"I declare that no credit for input tax has or will be claimed by me in
respect of the goods sold on this invoice.".
Option available for second-hand goods dealers
10. (1) A second-hand goods dealer may account for value added ta x in terms
of the other provisions of the Ac t to any supply to which items  2 and 3 of this Part
refer, without any reference to this Part.
(2) Where a second-hand goods dealer so opts in respect of -
 118    CAP. 406. ]               VALUE ADDED TAX 
(a) the supply of works of art, collectors’ items or antiques whic h he has
imported himself, he shall be entitled to claim back the value added tax
due or paid on the importation of those goods;
(b) the supply of works of art supplied to him by their creator, h e shall be
entitled to claim back the value added tax due or paid for the work of art
supplied to him;
(c) the supply of works of art supplied to him by a taxable person  other than
a second-hand goods dealer, he shall be entitled to claim back the value
added tax due or paid for the work of art supplied to him.
(3) The right to claim back input tax on supplies to which parag raph (1) of this
item refers shall arise at the time of submitting the value add ed tax return.
Sales by public auction
11. (1) Where an auctioneer makes a supply of second-hand goods, works of
art, collectors’ items or antiques by public auction, acting in  his own name, pursuant
to a contract under which commission is payable on the sale of those goods by public
auction, on behalf of -
(a) a non-taxable person; or
(b) another taxable person in so far as the supply of goods by tha t other
registered person is made pursuant to a contract under whichcommission is payable on purchase or sale and is an exempt supp ly in
terms of Part Two of the Fifth Schedule to the Act; or
(c) another taxable person who is registered under article 11 in s o far as the
supply of goods by that other person involves capital assets an d is made
pursuant to a contract under which commission is payable on pur chase
or sale; or
(d) another second-hand goods dealer, in so far as the supply of g oods by
that other second-hand goods dealer is made pursuant to a contr act
under which commission is payable on purchase or sale and is su bject to
value added tax in terms of the other provisions of this Part,
the taxable value of each supply of goods shall be that specifi ed in the other
paragraphs of this item.
(2) The taxable value of each supply of goods to which paragraph  (3) of this
item applies is the total amount invoiced to the purchaser by t he auctioneer in
accordance with paragraph (4) of this item, less -
(a) the net amount paid or to be paid by the auctioneer to his pri ncipal,
determined in accordance with paragraph (3) of this item, and
(b) the amount of the tax due by the auctioneer in respect of that  supply.
(3) The net amount paid or to be paid by the auctioneer to his p rincipal shall be
equal to the difference between -
(a) the price of the goods at the public auction, and
(b) the amount of the commission obtained or to be obtained by the
auctioneer from his principal, under the contract whereby commi ssion is
payable on the sale.
(4) An auctioneer must issue to the purchaser a sales invoice co ntaining the
following information -
(a) the sales invoice number;
              VALUE ADDED TAX                [CAP. 406.  1 1 9
(b) the date of the sale;
(c) the name, address and value added tax registration number of t he seller;
(d) the name and address of the purchaser;
(e) a description of the goods;
(f) the auction price of the goods;
(g) taxes, dues, levies and charges;
(h) incidental expenses such as commission, packing, transport and
insurance costs charged by the auctioneer to the purchaser;
(i) reference to the entry of the transaction in the seller’s acco unt books;
(j) the following declaration signed by the seller:
"I declare that no credit for input tax has or will be claimed by me in
respect of the goods sold on this invoice.";
and the sales invoice shall not show any amount of value added tax separately.
(5) The auctioneer to whom the goods were transmitted under a co ntract
whereby commission is payable on a public auction sale must iss ue an invoice to his
principal, containing the following information:
(a) a consecutive invoice number;
(b) the date of the transaction;
(c) the name and address of the principal;
(d) the name, address and value added tax registration number of t he
auctioneer;
(e) a description of the goods;
(f) the amount of the transaction (i.e. the auction price of the g oods less the
amount of commission obtained or to be obtained from the princi pal);
(g) the signature of the principal:
Provided that where the principal is a taxable person, the invo ice so drawn
up shall serve as the tax invoice required to be issued in term s of the Twelfth
Schedule to the Act.
(6) Auctioneers who supply goods under the conditions laid down in paragraph
(1) of this item, must indicate in the suspense account of thei r accounts -
(a) the amounts obtained or to be obtained from the purchaser of t he goods;
(b) the amount reimbursed or to be reimbursed to the vendor of the  goods;
and the above amounts must be substantiated by the relevant doc umentation.
(7) The supply of goods by an auctioneer shall be deemed to be m ade at the time
when the sale of those goods by public auction is effected.
Repossessed goods12. Where any goods are repossessed -
(a) under the terms of a finance agreement, or
(b) by any insurer in the settlement of a claim under an insurance  policy, or
(c) by a mortgagee in terms of his rights under a mortgage over a ship or
aircraft,
and supplied by the person who repossessed them in the same con dition as they were
 120    CAP. 406. ]               VALUE ADDED TAX 
in at the time they were repossessed, the said supply by that p erson shall be treated
as neither a supply of goods nor as a supply of services.
Part Three
Supplies by Retailers and by Civil, Mechanical and 
Electrical Engineering Contractors
Applicability
1. This Part applies to retailers, civil, mechanical and electri cal engineering
contractors whose annual turn-over does not exceed €2,000,000, exclusive of the
tax.
Cash accounting option2.(1) ( a) Subject to the other provisions of this Part, any person refer red to in
item 1 of this Part may opt that the tax on supplies made by hi m
becomes chargeable on the date when a payment is made for that supply,
to the extent covered by that payment.
Provided that the right of deduction of input tax of that perso n shall be
postponed until the tax on the goods or services supplied to hi m has
been paid to his supplier.
(b) Where a tax invoice issued in terms of the Twelfth Schedule by  a person
who has made an option in terms of sub-paragraph ( a) does not mention the
words "cash accounting" the option shall not apply and the tax on that
supply shall become chargeable in terms of the other provisions  of the Act.
(2) The provisions of paragraph (1) shall not apply to supplies of goods or
services in respect of which the tax is payable by the customer  and to supplies or
transfers of goods referred to in item 4 of the Fourth Schedule .
Part Four
Travel Agents
Interpretation1. In this Part "travel agent" means and includes any person who , without
material alterations, buys in and re-sells travel, hotel, holid ay and other related
services to travellers, and shall include a tour operator.
Application
2. The provisions of this Part shall apply to the operations of travel agents,
where the travel agent deals with the customer in his own name and uses the supplies
and services of other persons in the provision of travel facili ties:
Provided that this Part shall not apply to a travel agent who a cts only as an
intermediary and merely makes a repayment of expenses to anothe r person in the
name and for the account of the traveller.
Services supplied to be deemed as a single transaction3. All transactions performed by a travel agent for the benefit of the traveller in
connection with the journey shal l be treated as a single supply  of services supplied
by him to the traveller.
Place of supply4. The place of supply of services to which item 3 applies is th e place where
the travel agent is established.
              VALUE ADDED TAX                [CAP. 406.  121
Taxable value
5. The taxable value of supplies referred to in item 3 of this P art made by a
travel agent shall be the difference between the cost of those supplies to the travel
agent inclusive of value added tax and the total price charged to the traveller
exclusive of value added tax, where the supplies are for the di rect benefit of the
traveller:
Provided that where a supply to a travel agent is required in t erms of this Act
to be supported by a tax invoice, the cost of that supply shall  only be taken into
account for the purposes of this item if the travel agent holds  such a tax invoice.
Input tax6. Value added tax charged to the travel agent by other register ed persons on
supplies made by those registered persons to the travel agent f or the purpose of
supplies to which item 3 applies and for the direct benefit of the traveller shall not be
eligible for deduction or refund.
Supplies outside the Community7. If transactions entrusted by the travel agent to other taxabl e persons are
performed by such persons outside the Community, the travel age nt’s service shall
be treated as the service of an intermediary which is exempt wi th credit in terms of
item 5 of Part One of the Fifth Schedule. When these transactio ns are performed
both inside and outside the Community, only that part of the tr avel agent’s services
relating to transactions outside the Community shall be so trea ted as exempt with
credit.
Powers of the Commissioner8. The Commissioner may give such directives to, and require suc h
information from, a travel agent as he may deem necessary for t he application of this
Part.
Records9. A travel agent shall keep, in addition to the records require d to be kept in
terms of the other provisions of this Act, such other records a s may be necessary to
readily ascertain the amount of tax chargeable under this Part.
Part Five
Tax in Danger
1. Where, in any particular contract of supply, and in order to secure the
regular payment of the tax in terms of the Act, the Commissione r may, by a notice in
writing to the parties to the contract direct that the person t o whom the supply is
made shall be deemed to have made that supply to himself in the  course or
furtherance of his economic activity and the provisions of the Act, including the
obligation to account for and to pay the tax, shall be read and  construed accordingly.
2. When a direction to which item 1 of this Part refers has been  given by the
Commissioner, the person to whom the supply is made shall keep,  in addition to the
records required to be kept in terms of the other provisions of  the Act, such other
records as may be necessary to ascertain the amount of tax paya ble under this Part.
3. When a direction has been given by the Commissioner in terms of item 1 of
 122    CAP. 406. ]               VALUE ADDED TAX 
this Part, the tax invoice which is required to be issued in te rms of the Act by the
person who makes the supply shall, in lieu of the information r equired by item
2(1)( j) of the Twelfth Schedule to the Act, indicate the words "direc tion in terms of
the Fourteenth Schedule to the Act".
4. When a direction has been given by the Commissioner in terms of item 1 of
this Part, such direction shall not in any way limit the right to claim any input tax to
which any of the persons to whom the direction has been given, may still be entitled
to claim in accordance with the other provisions of the Act.
Part Six
Investment Gold
Meaning of investment gold
1. (1) "Investment gold" means:
(a) gold, in the form of a bar or a wafer of weights accepted by t he bullion
markets, of a purity equal to or greater than 995 thousandths, whether or
not represented by securities. Member States may exclude from t he
scheme small bars or wafers of a weight of 1g or less;
(b) gold coins which:
(i) are of a purity equal to or greater than 900 thousandths,
(ii) re-minted after 1800,
(iii) are or have been legal tender in the country of origin, an d
(iv) are normally sold at a price which does not exceed the open
market value of the gold contained in the coins by more than 80 %.
(2) Coins referred to in paragraph (1)( b) shall not, for the purpose of this Act,
be considered to be sold for numismatic interest.
Option for taxation
2. (1) Taxable persons who produce investment gold or transform a ny gold
into investment gold have a right of option for taxation of sup plies of investment
gold to another taxable person which would otherwise be exempt in terms of Part
One of the Fifth Schedule.
(2) An agent who, acting in the name and for the account of anot her, intervenes
for his principal in a supply in respect of which the supplier has exercised the option
referred to in paragraph (1) has a right of option for taxation  of the supply of his
services.
(3) An option referred to in this item shall be exercised by mea ns of an
irrevocable notice in writing delivered to the Commissioner. Su ch notice:
(a) shall specify clearly that it is a notice made pursuant to thi s item and
indicate whether it is an option of the supplier or an option o f the agent;
(b) shall be made before the supplies to which it refers are made or by not
later than thirty days after the date of any such supplies;
(c) shall specify the name and value added tax identification numb er of the
taxable person to whom the supplies are made or to be made and their
taxable value.
Special obligations for traders in investment gold3. Traders in investment gold keep account of all substantial tr ansactions in
              VALUE ADDED TAX                [CAP. 406.  123
investment gold and keep the documentation to allow identificat ion of the customer
in such transactions.
Part Seven
Special scheme for telecommunications, broadcasting or electron ic services
supplied by taxable persons not established within the Communit y
Interpretation1. In this Part, unless the context otherwise requires:
(a) "taxable person not established within the Community" means a taxable
person who has not established his business in the territory of  the
Community and who has no fixed establishment there;
(b) "Member State of consumption" means the Member State in which the
supply of the telecommunications, broadcasting or electronic se rvices is
deemed to take place according to item 10(1) in Part Two of the  Third
Schedule to this Act;
(c) "telecommunications services" and "broadcasting services" mean  the
services referred to in points ( a) and ( b) of the first paragraph of item
10(1) in Part Two of the Third Schedule to this Act;
(d) "electronic services" and "electronically supplied services" m ean the
services referred to in point ( c) of the first paragraph of item 10 in Part
Two of the Third Schedule to this Act;
(e) "V AT return" means the statement containing the information ne cessary
to establish the amount of V AT due in each Member State.
2. The Commissioner shall permit any taxable person not establis hed within
the Community supplying telecommunications, broadcasting or ele ctronic services
to a non-taxable person who is e stablished in a Member State or  has his permanent
address or usually resides in a Member State, to use this speci al scheme. This
scheme applies to all those services supplied within the Commun ity.
3. The taxable person not established within the Community shall  state to the
Commissioner when he commences or ceases his activity as a taxa ble person, or
changes that activity in such a way that he no longer meets the  conditions necessary
for use of this special scheme. He shall communicate that infor mation electronically.
4. (1) The information which the taxable person not established w ithin the
Community must provide to the Commissioner when he commences a taxable
activity shall contain the following details:
(a) name;
(b) postal address;
(c) electronic addresses, including websites;
(d) national tax number, if any;
(e) a statement that the person has not established his business i n the territory
of the Community and has no fixed establishment there.
(2) The taxable person not established within in the Community s hall notify the
Commissioner of any changes in the information provided.
5. The Commissioner shall allocate to the taxable person not est ablished within
the Community an individual V AT identification number and shall  notify him of that
number by electronic means. On the basis of the information use d for that
 124    CAP. 406. ]               VALUE ADDED TAX 
identification, Member States of consumption may have recourse to their own
identification systems.
6. The Commissioner shall delete the taxable person not establis hed within the
Community from the identification register in the following cas es:
(a) if he notifies the Commissioner that he no longer supplies
telecommunications, broadcasting or electronic services;
(b) if it may otherwise be assumed that his taxable activities hav e ceased;
(c) if he no longer meets the conditions necessary for use of this  special
scheme;
(d) if he persistently fails to comply with the rules relating to this special
scheme.
7. The taxable person not established within the Community shall  submit by
electronic means to the Commissioner a V AT return for each cale ndar quarter,
whether or not telecommunications, broadcasting or electronic s ervices have been
supplied. The V AT return shall be submitted within 20 days foll owing the end of the
tax period covered by the return.
8. The V AT return shall show the identification number and, for each Member
State of consumption in which V AT is due, the total value, excl usive of VAT, of
supplies of telecommunications, broadcasting and electronic ser vices carried out
during the tax period and total amount per rate of the correspo nding V AT. The
applicable rates of V AT and the total V AT due must also be indi cated on the return.
9. The value added tax return shall be made out in euro.
If the supplies have been made in other currencies, the taxable  person not
established within the Community shall, for the purpose of comp leting the V AT
return, use the exchange rate applying on the last day of the t ax period.  The
exchange rates shall be those published by the European Central  Bank for that day,
or if there is no publication for that day, on the next day of publication.
10. The taxable person not established within the Community shal l pay the V AT,
making reference to the relevant V AT return, when submitting th e V AT return, at the
latest, however, at the expiry of the deadline by which the ret urn must be submitted.
Payment shall be made to a bank account denominated in euro, de signated
by the Commissioner.
11. A taxable person not established within the Community making  use of the
scheme shall, instead of making the deductions under article 23  of this Act, upon
application, be granted a refund, under such conditions and sub ject to such
limitations as the Minister may by regulations prescribe.
12. (1) The taxable person not established within the Community s hall keep
records of the transactions covered by this special scheme. Tho se records must be
sufficiently detailed to enable the tax authorities of the Memb er State of
consumption to verify that the V AT return is correct.
(2) The records referred to in paragraph (1) must be made availa ble
electronically on request to the Commissioner and to the Member  State of
consumption.
Those records must be kept for a period of ten years from the e nd of the year
during which the transaction was carried out.
              VALUE ADDED TAX                [CAP. 406.  125
Part Eight
Special scheme for telecommunications, broadcasting or electron ic services supplied 
by taxable persons established within the Community but not in the Member State
of consumption
Interpretation1. In this Part, unless the context otherwise requires:
(a) "taxable person not established in the Member State of consump tion"
means a taxable person who has established his business in the territory
of the Community or has a fixed establishment there but has notestablished his business and has no fixed establishment within the
territory of the Member State of consumption;
(b) "Member State of identification" means the Member State in the
territory of which the taxable person has established his busin ess or, if
he has not established his business in the Community, where he has a
fixed establishment.
Where a taxable person has not established his business in the
Community, but has more than one fixed establishment therein, t he
Member State of identification shall be the Member State with a  fixed
establishment where that taxable person indicates that he will make use
of this special scheme. The taxable person shall be bound by th is
decision for the calendar year concerned and the two calendar y ears
following;
(c) "Member State of consumption" means the Member State in which the
supply of the telecommunications, broadcasting or electronic se rvices is
deemed to take place according to item 10(1) in Part Two of the  Third
Schedule to the Act;
(d) "telecommunications services" and "broadcasting services" mean  the
services referred to in points (a) and (b) of the first paragra ph of item
10(1) in Part Two of the Third Schedule to the Act;
(e) "electronic services" and "electronically supplied services" m ean the
services referred to in point ( c) of the first paragraph of item 101) in
Part Two of the Third Schedule to the Act;
(f) "V AT return" means the statement containing the information ne cessary
to establish the amount of V AT due in each Member State.
2. The Commissioner shall permit any taxable person not establis hed in the
Member State of consumption supplying telecommunications, broad casting or
electronic services to a non-taxable person who is established or has his permanent
address or usually resides in that Member State, to use this sp ecial scheme. This
special scheme applies to all those services supplied in the Co mmunity.
3. The taxable person not established in the Member State of con sumption
shall state to the Commissioner when he commences and ceases hi s taxable activities
covered by this special scheme, or changes those activities in such a way that he no
longer meets the conditions necessary for use of this special s cheme. He shall
communicate that information electronically.
4. A taxable person making use of this special scheme shall, for  the taxable
transactions carried out under this scheme, be identified for V AT purposes in Malta
only. For that purpose the Commissioner shall use the individua l V AT identification
number already allocated to the taxable person in respect of hi s obligations under the
 126    CAP. 406. ]               VALUE ADDED TAX 
internal system.
On the basis of the information used for that identification, M ember States
of consumption may have recourse to their own identification sy stems.
5. The Commissioner shall exclude the taxable person not establi shed in the
Member State of consumption from this special scheme in any of the following
cases:
(a) if he notifies that he no longer supplies telecommunications,
broadcasting or electronic services;
(b) if it may otherwise be assumed that his taxable activities cov ered by this
special scheme have ceased;
(c) if he no longer meets the conditions necessary for use of this  special
scheme;
(d) if he persistently fails to comply with the rules relating to this special
scheme.
6. The taxable person not established in the Member State of con sumption
shall submit by electronic means to the Commissioner a V AT retu rn for each
calendar quarter, whether or not telecommunications, broadcasti ng or electronic
services have been supplied. The V AT return shall be submitted within 20 days
following the end of the tax period covered by the return.
7. The V AT return shall show the identification number referred to in item 4 of
this Part and, for each Member State of consumption in which V A T is due, the total
value, exclusive of V AT, of supplies of telecommunications, bro adcasting or
electronic services carried out during the tax period and the t otal amount per rate of
the corresponding V AT. The applicable rates of V AT and the tota l V AT due must also
be indicated on the return.
Where the taxable person has one or more fixed establishments, other than
that in Malta, from which the services are supplied, the V AT re turn shall in addition
to the information referred to in the first paragraph include t he total value of supplies
of telecommunications, broadcasting or electronic services cove red by this special
scheme, for each Member State in which he has an establishment,  together with the
individual V AT identification number or the tax reference numbe r of this
establishment, broken down by Member State of consumption.
8. The value added tax return shall be made out in euro.
If the supplies have been made in other currencies, the taxable  person not
established in the Member State of consumption shall, for the p urpose of completing
the V AT return, use the exchange rate applying on the last day of the tax period. The
exchange rates shall be those published by the European Central  Bank for that day,
or if there is no publication for that day, on the next day of publication.
9. The taxable person not established in the Member State of con sumption
shall pay the V AT, making reference to the relevant V AT return,  when submitting the
V AT return, at the latest, however, at the expiry of the deadli ne by which the return
must be submitted.
Payment shall be made to a bank account denominated in euro, de signated
by the Commissioner.
10. The taxable person not established in the Member State of co nsumption
making use of this special scheme may not, in respect of his ta xable activities
covered by this scheme, deduct V AT pursuant to article 23 of th is Act.
Notwithstanding this, upon application, the taxable person in q uestion shall be
              VALUE ADDED TAX                [CAP. 406.  127
granted a refund under such conditions and subject to such limi tations as the
Minister may by regulations prescribe.
If the taxable person not established in the Member State of co nsumption
making use of this special scheme also carries out in the Membe r State of
consumption activities not covered by this scheme in respect of  which he is obliged
to be registered for V AT purposes, he shall deduct V AT in respe ct of his taxable
activities which are covered by this scheme in the V AT return t o be submitted in the
Member State of consumption.
11. (1) The taxable person not established in the Member State of  consumption
shall keep records of the transactions covered by this special scheme. Those records
must be sufficiently detailed to enable the tax authorities of the Member State of
consumption to verify that the V AT return is correct.
(2) The records referred to in paragraph (1) must be made availa ble
electronically on request to the Member State of consumption an d to the
Commissioner.
Those records must be kept for a period of ten years from 31 De cember of
the year during which the transaction was carried out.
Interpretation
1. In this part:"voucher" means an instrument where there is an obligation to a ccept it as
consideration or part consideration for a supply of goods or se rvices and where the
goods or services to be supplied or the identities of their pot ential suppliers are
either indicated on the instrument itself or in related documen tation, including the
terms and conditions of use of such instrument;
"single-purpose voucher" means a voucher where the place of sup ply of the goods
or services to which the voucher relates, and the V AT due on th ose goods or services,
are known at the time of issue of the voucher;
* Comes into force on 1st January , 2019.
"multi-purpose voucher" means a voucher, other than a single-pu rpose voucher.
Single-purpose voucher2. (1) Each transfer of a single-purpose voucher made by a taxab le person
acting in his own name shall be regarded as a supply of the goo ds or services to
which the voucher relates.  The actual handing over of the good s or the actual
provision of the services in return for a single-purpose vouche r accepted as
consideration or part consideration by the supplier shall not b e regarded as an
independent transaction.
(2) Where a transfer of a single-purpose voucher is made by a ta xable person
acting in the name of another taxable person, that transfer sha ll be regarded as a
supply of the goods or services to which the voucher relates ma de by the other
taxable person in whose name the taxable person is acting.
(3) Where the supplier of goods or services is not the taxable p erson who, actingPart Nine*
V ouchers Added by:
L.N.348 of 2017.
 128    CAP. 406. ]               VALUE ADDED TAX 
in his own name, issued the sing le-purpose voucher, that suppli er shall however be
deemed to have made the supply of the goods or services related  to that voucher to
that taxable person.
Multi-purpose voucher3. (1) The actual handing over of the goods or the actual provisi on of the
services in return for a multi-purpose voucher accepted as cons ideration or part
consideration by the supplier shall be subject to V AT pursuant to article 4 of the
Value Added Tax Act, whereas each preceding transfer of that mu lti-purpose voucher
shall not be subject to V AT.
(2) Where a transfer of a multi-purpose voucher is made by a tax able person
other than the taxable person carrying out the transaction subj ect to V AT pursuant to
paragraph (1) of this item, any supply of services that can be identified, such as
distribution or promotion services, shall be subject to V AT.
Taxable value4. Without prejudice to item 1 of the Seventh Schedule to the Va lue Added Tax
Act, the taxable amount of the s upply of goods or services prov ided in respect of a
multi-purpose voucher shall be equal to the consideration paid for the voucher or, in
the absence of information on that consideration, the monetary value indicated on
the multi-purpose voucher itself or in the related documentatio n, less the amount of
V AT relating to the goods or services supplied.
1. Subject to the other provisions of this Schedule, "Member Sta te" means the
area of application of the Treaty establishing the European Eco nomic Community as
defined in respect of that State in Article 299 of that Treaty excluding, with respect
to the States listed in the Column One of the Table in this ite m, the territories listed
in the Second Column:Amended by:
L.N. 22 of 1999;L.N. 30 of 1999;L.N. 223 of 1999;L.N. 271 of 2000;L.N. 149 of 2001;L.N. 234 of 2001.Substituted by:X. 2003.47.FIFTEENTH SCHEDULE
[Article 2]
Territories of the Community
Column One Column Two
Excluded Territories
Federal Republic of Germany The Island of Heligoland
The territory of Busingen
Finland Aland IslandsFrench Republic The overseas departmentsHellenic Republic Mount AthosKingdom of Spain Ceuta
Melilla
The Canary Islands
              VALUE ADDED TAX                [CAP. 406.  129
2. Notwithstanding the foregoing provisions the Isle of Man and the
Principality of Monaco shall be treated as territories of Membe r States and
transactions originating in or intended for:
(a) the Isle of Man shall be treated as originating in or intended  for the
United Kingdom of Great Britain and Northern Ireland;
(b) the Principality of Monaco shall be treated as originating in or intended
for the French Republic.
"Excise goods" means products un der any of the following descri ptions in so far
as they are subject to excise duty in terms of the Excise Duty Act:
(a) energy products including mineral oils;
(b) alcohol and alcoholic beverages;
(c) manufactured tobacco:
Provided that gas supplied through a natural gas system situate d within the territory of
the Community or any network connected to such a system shall n ot fall under the
description of excise goods.Republic of Italy Livigno
Campione d’Italia
The Italian waters of Lake Lugano
United Kingdom Gibraltar
The Channel Islands
SIXTEENTH SCHEDULE Added by:
X. 2003.47.Substituted by:L.N. 536 of 2010.[Article 2]
Excise Goods