Value Added Tax Act (Cap. 406), article 5

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 sub-article (3) an economic activity means an activ ity carried on by a person, other than a n employee acting as such, and consisting of any one or more of t he following - (a) any trade or business; (b) any profession or vocation and the provision of any personal services; (c) the exploitation of tangible or intangible property for the purpose of obtaining income therefrom on a continuing basis; (d) the provision by a club, association or organisation (for a subscription or other consideration) of the facilities or advantages av ailable 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 persons would 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 to time, makes an intra-community supply of new means of transport shall, 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’s liability and includes the holder of an office. ( 6 ) A f t e r c o n s u l t a t i o n w i t h t h e V A T C o m m i t t e e s e t u p i n accordance with Article 398 of Council Directive 2006/112/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 and organisational links. VALUE ADDED TAX [CAP. 406. 9 Operations constituting supplies, intra- community acquisitions and importations. Substituted by: X. 2003.6.