Value Added Tax Act (Cap. 406), article 86

86. (1) Where, in the execution of a contract made before the effective date, any goods or serv ices 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 consideration stipulated 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 c ontract 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 serv ices 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) Sub-article (2), with the appl ication where necessary also o f sub-article (1) and of articles 85 and 88, shall apply in the interpretation of contracts made between the 1 st January 1995 and the 30 th June 1997 and between the 1 st July 1997 and the 31 st December 1998 where the suppl y is made on or after the 1 st January 2004. (4) Sub-articles (1), (2) and (3) shal l not apply - (a) where it results from all the relevant circumstances that the consideration det ermined in accordance with the contract had already made provision for the said adjustment or that the parties had excluded any adjustment to the consider ation on account of such difference; (b) where or to the extent that the supply was, in terms of the said contract due to take place before the effective date or the date of coming into force of any change referred to in sub-article (2 ), as the case may be, and *The original sub-article (1) ha s been omitted under the Statut e Law Revision Act, 1980. †Repealed by this Act. ‡Repealed by Act XII of 1997 ( Cap.395) . 62 CAP. 406.] VALUE ADDED TAX the delay was due to a fault on the part of the person who makes the supply. VALUE ADDED TAX [CAP. 406. 63 The activities listed in the sec ond column of the public author ities listed in the first column of this Schedule sh all 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 authority Second column Activities Malta Drydocks Corporation All activities Mediterranean Conferen ce Centre All activities Any public authority Sale of leaded petrol, unleaded petrol and diesel (gas) oil, kerosene, bottled gas and the supply 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 m anufactured for sale; The transactions of agri cultural intervention agencies in respect of agricultural products carried out pursuant to Regulations on the common organisation of the market in these products; 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; 64 CAP. 406.] VALUE ADDED TAX The provision of accommodation facilities to visiting youths, student groups and individuals; 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 ci vil abattoir; Provision of teleph onic 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. 65 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 su pply that is not a supply of go ods. Energy 2. 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 su pply 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 establishin g title is a supply of service s. Delivery on deferred terms 4. The delivery of the possession of goods pursuant to an agreem ent for the sale of those goods on deferred te rms shall be tr eated as a sup ply of those goods. Hire purchase 5. 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 commission 6. 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 works 7. 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 ma y, otherwise, by regulations pr escribe. SECOND 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; L.N. 251 of 2019; L.N. 219 of 2020; L.N. 140 of 2022; III.2026.66. [Article 6] Supplies, Intra-Community Acquisitions and Importations 66 CAP. 406.] VALUE ADDED TAX Obligation to refrain from an act or to tolerate an act 8. An obligation to refrain from an act or to tolerate an act or situation is a 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 servi ces according to the principal nature of that supply. Exchange 10. 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 agents 11. 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 agents 12. 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. Facilitation of supplies of goods through an electronic interface 12A. (1) Where a taxable person facilitates, through the use of an electronic interface such as a marketplace, platform, portal or similar me ans, distance sales of goods imported from third territories or third countries in con signments of an intrinsic value not exceeding on e-hundred and fifty euro (€150) , that taxable person shall be deemed to have received and supplied those goods himse lf.(2) Where a taxable person facilitates, through the use of an electronic in terface such as a marketplace, platform, portal or similar means, the supply of g oods within the Community by a taxable person not established within the Commun ity to a non- taxable person, the taxable person who facilitates the supply s hall be deemed to have received and supplied those goods himself. Supply for consideration of goods forming part of an economic activity 13. The transfer or disposal by a taxable person of goods formin g part of his economic activity for co nsideration 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 VALUE ADDED TAX [CAP. 406. 67 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 - (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 d onor 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 ec onomic activity and serv ices supplied free of charge. 15. (1) The use of goods forming part of an economic activity for the private use of a taxable person or of his staff or, more generally, for purposes other than those of his economic activity, where the V AT on such goods or the component parts thereof was wholly or partly deductible, sha ll be treated as a supply of se rvices for consideration made by that taxable person acting as such: Provided that this sub-item shall not apply where such supply o f services would be subject to an exemption in accordance with Part One of the Fifth Schedule. (2) The supply of services carried out free of charge, other tha n a service which would be subject to an exemption in accordance with Part One of the Fifth Schedule, by a taxable person for his private use or for that of his staff, or more generally, for purposes other than those of his economic activity, where any goods or s ervices on which V AT was wholly or partly deducted are used or applied to provide such f ree of charge services, shall be treated as a supply of services for consideration made by th at taxable person acting as such: Provided that this shall not apply to services carried out free of charge made to non-profit making organisations as defined in item 5 of Part Five of the Fifth Schedule. 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 ope ration, as a going concern; and (b) the said assets are to be used by the transferee in carrying o n the same 68 CAP. 406.] VALUE ADDED TAX 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 o f 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 o f 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 tra nsport 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 provision s 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 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 t he 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. VALUE ADDED TAX [CAP. 406. 69 (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 2006/112/EC or in virtue of any other article in substitution therefor. Call-off stock arrangements 17A. (1) The transfer by a taxable person of goods forming par t of his business assets to another Member State u nder call-off stock arrangement s shall not be treated as a supply of goods for consideration. (2) For the purposes of this item, call-off stock arrangements shall be deemed to exist where the following conditions are met: (a) goods are dispatched or transported by a taxable person, or by a third party on his behalf, to another Member State with a view to tho se goods being supplied there, at a later stage and after arrival, to an other taxable person who is entitled to take ownership of those goods in acco rdance with an existing agreement between both taxable persons; (b) the taxable person dispatching or transporting the goods has n ot established his business nor has a fixed establishment in the M ember State to which the goods are dispatched or transported; (c) the taxable person to whom the goods are intended to be suppli ed is identified for V AT purposes in the Member State to which the go ods are dispatched or transported and both his identity and the V AT identification number assigned to him by that Member State are known to the taxable person referred to in paragraph ( b) at the time when the dispatch or transport of goods begins; (d) the taxable person dispatching or transporting the goods recor ds the transfer of the goods in the regi ster provided for in paragraph (1)( k) of item 1 of the Eleventh Schedule and includes the identity of th e taxable person acquiring the goods and the V AT identification number as signed to him by the Member State to which the goods are dispatched or transported in the r ecapitulative statement provided for in art icle 30(2). (3) Where the conditions laid down in sub-item (2) are met, the following rules shall apply at the time of the t ransfer of the right to dispose of the goods as owner to the taxable person referred to in paragraph ( c) of sub-item (2), provided that the transfer occurs within the deadline referred to in sub-item (4) : (a) a supply of goods in accordance with item 3(1) of Part One of the Fifth Schedule shall be deemed to be made by the taxable person that dispatched or transported the go ods either by himself or by a t hird party on his behalf in the Member State from which the goods were dispatched or transported; (b) an intra-Community acquisition of goods shall be deemed to be made by the taxable person to whom those goods are supplied in the Memb er State to which the goods wer e dispatched or transported. (4) If, within twelve (12) months after the arrival of the goods in the Member State to which they where dispat ched or transported, the goods have not been supplied to the taxable person for whom they were intended, ref erred to in paragraph (c) of sub-item (2) and sub-item (6), and none of the circumstanc es laid down in sub- item (7) have occurred, a transfer within the meaning of item 1 7 shall be deemed to take place on the day following th e expiry of the twelve (12) m onth period. (5) No transfer within the meaning o f i t e m 1 7 s h a l l b e d e e m e d t o take place 70 CAP. 406.] VALUE ADDED TAX where the following conditions are met: (a) the right to dispose of the goods has not been transferred, an d those goods are returned to the Member State from which they were dis patched or transported within the time limit referred to in sub-item (4); and (b) the taxable person who dispatched or transported the goods rec ords their return in the register provided for in paragraph (1)( k) of item 1 of the Eleventh Schedule. (6) Where, within the period referred to in sub-item (4), the ta xable person referred to in paragraph ( c) of sub-item (2) is substituted by another taxable person, no transfer within the meaning of item 17 shall be deemed to ta ke place at the time of the substitution, provided that: (a) all other applicable conditions in sub-item (2) are met; and (b) the substitution is recorded by the taxable person referred to i n paragraph ( b) of sub-item (2) in the register provided for in paragraph (1)( k) of item 1 of the Eleventh Schedule. (7) Where, within the time limit referred to in sub-item (4), a ny of the conditions set out in sub-items (2) and (6) ceases to be fulfilled, a tran sfer of goods according to item 17 shall be deemed to take place at the time that the rele vant condition is no longer fulfilled. If the goods are supplied to a person other than the taxable pe rson referred to in paragraph ( c) of sub-item (2) or in sub-item (6), it shall be deemed that t he conditions set out in sub-items (2) and (6) cease to be fulfill ed immediately before such supply. If the goods are dispatched or transported to a country other t han the Member State from which they were initially moved, it shall be deemed that the conditions set out in sub-items (2) and (6) cease to be fulfilled immediat ely before such dispatch or transpor t of goods starts. In the event of the destruction, loss or theft of the goods, it shall be deemed that the conditions set out in sub-items ( 2) and (6) cease to be fulfill ed on the date that the goods were actually removed or destroyed, or, if it is impossible to determine that date, the date on which the goods were found to be destroyed or missing. 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 S tate by a taxable pers on for the pur pos e 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 t h e purpose of his economic activity, where the transport of those goods would, if made from Malta to anot her 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 VALUE ADDED TAX [CAP. 406. 71 person into the Community and transported to a Member State oth er than the State of importation. (d) The application by the armed forces of a Member State taking p art in a defence effort carried out for the implementation of a European Union activity under the common security and defence policy, for thei r use or for the use of the civilian staff accompanying them, of goods which they have not purchased subject to the general rules governing taxation o n the domestic market of an EU Member State shall be treated as an in tra- Community acquisition of goods for consideration, where the imp ortation of those goods would not be eligible for the exemption provided f o r i n paragraph (b) of item 9 of Par t Four of the Fifth Schedule. (2) Any transaction which is treat ed under this Act as a supply of goods or a supply of goods for considerati on 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. Importation 19. 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 o n or after the accession date of goods transported from a third ter ritory 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 ar e in free circulation. Supply of goods: general rule 1. 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 pl aced at the disposal of the per son acquiring those goods; (b) a supply of goods that are tran sported takes place where the g oods are at the time when the transport of those goods begins: Provided that: (i) where the same goods are s upplied successively and those go ods are dispatched or transported from o ne (1) Member State to another THIRD 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; L.N. 250 of 2019; L.N. 220 of 2020; L.N. 344 of 2024; IX.2025.73. [Article 7] Place of Supplies, Intra -Community Acquisitions and Importations Part One Place of supply of goods 72 CAP. 406.] VALUE ADDED TAX Member State directly from the first supplier to the last custo mer in the chain, the dispatch or transport shall be ascribed only to the supply made to the intermediary operator; (ii) by way of derogation from sub-paragraph (i), the dispatch or transport shall be ascribed only to the supply of goods by the intermediary operator when the intermediary operator has communicated to his supplier the V AT identification number issued to him by the Member State from which the goods are dispatched or transported; and (iii) for the purpose of this proviso, "intermediary operator" means a supplier within the chain other than the first supplier in the chain who dispatches or transports the goods either himself or throug h a third party acti ng on his behalf: Provided further that where a taxable person is deemed to have received and supplied goods in accordance with item 12A of the Second Schedule, the dispatch or transport of the goods sha ll be ascribed to the supply made by that taxable person; (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 assembled 2. 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 trains 3. 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 pa ssengers and, for the purpose o f this item - (a) "part of the transport of passe ngers effected in the Community " means the part of the transport effect ed, 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 point 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 tr eated as a separate trip. Distance sales 4. (1) Intra-Community distance sales of goods "means supplies of goods dispatched or transported by or on behalf of the supplier, incl uding where the supplier intervenes indirectly in the transport or dispatch of the goods, from a Member State other than that in which dispatch or transport of the goods to the customer ends, where the following conditions are met: (a) the supply of goods is carried out for a taxable person, or a non-taxable VALUE ADDED TAX [CAP. 406. 73 legal person, whose intra-Community acquisitions of goods are n ot subject to V AT pursuant to Article 3(1) of Council Directive 20 06/112/ EC, or for any other non-taxable person; (b) the goods supplied are neither new means of transport nor good s supplied after assembly or inst allation, with or without a tria l run, by or on behalf of the supplier. (2) "Distance sales of goods imported from third territories or third countries" means supplies of goods dispatche d or transported by or on beha lf of the supplier, including where the supplier inte rvenes indirectly in the trans port or dispatch of the goods, from a third territory or third country, to a customer i n a Member State, where the following conditions are met: (a) the supply of goods is carried out for a taxable person, or a non-taxable legal person, whose intra-Community acquisitions of goods are n ot subject to V AT pursuant to Article 3(1) of Council Directive 20 06/112/ EC, or for any other non-taxable person; (b) the goods supplied are neither new means of transport nor goo ds supplied after assembly or installation, with or without a trial run, by or on behalf of the supplier. (3) ( a) The place of supply of intra-Com munity distance sales of good s shall be deemed to be the place where the goods are located at the time when dispatch or transport of the goods to the customer ends. (b) The place of supply of distance sales of goods imported from third territories or third countries int o a Member State other than t hat in which dispatch or transport of the goods to the customer ends, shall be deemed to be the place where the goods are located at the time when dispatch or transport of the goods to the customer ends. (c) The place of supply of distance sales of goods imported from third territories or third countries into the Member State in which d ispatch or transport of the goods to the customer ends shall be deemed to be in that Me mber State, provided that V AT on those goods shall be declared under the special sch eme in item 4 of Part Seven of the Fourteenth Schedule or the corresponding legislati on of any another Member State. (4) Sub-item (3) shall not apply to supplies of second-hand goo ds, works of art, collectors’ items or antiques, as defined in item 1 of Part Two of the Fourteenth Schedule, nor to supplies of sec ond-hand means of transport whi ch do not qualify as new means of transport, subject to V AT in accordance with the r elevant special arrangements. (5) Paragraph ( a) of sub-item (3) shall not apply where the following condition s are met: (a) (i) the supplier is established or, in the absence of an est ablishment, has his permanent address or usually resides only in one (1) Member State; and (ii) the goods are dispatched or transported to any Member Stat e other than the Member State referred to in sub-paragraph (i); and (iii) the total value, exclusive of V AT, of the supplies refer red to in sub- paragraph (ii), together with the total value of the supplies o f services referred to in paragraph ( b) of sub-item (2) of item 10of Part Two of this Schedule does not in the current calendar year exceed ten-thous and euro (€10,000) nor did it do so in the course o f the preceding calen dar year. 74 CAP. 406.] VALUE ADDED TAX (b) Where, during a calendar year, the threshold referred to in s ub- paragraph (iii) of paragraph ( a) is exceeded, paragraph ( a) of sub-item (3) shall apply as of that time. (c) The Commissioner shall grant to those taxable persons providi ng supplies eligible under paragraph ( a) the right to opt for the place of supply to be determined in accordance with paragraph ( a) of sub-item (3), which shall in any event cover two (2) calendar years: Provided that, a valid election for this purpose 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 shall app ly, not being earlier than thirty (30) days from the date on which it i s furnished. 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 su pply 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 i n 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 parag raph (1), the place of supply s hall be deemed to be the place where the customer eff ectively 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 co nsumed 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 add ress or usually resides. Part Two Place of supply of services Definitions 1. For the purpose of applying t he rules concerning this Part: (a) a taxable person who also carri es out activities or transactio ns that are not considered to be taxable s upplies of goods or services in a ccordance with article 4 shall be regarded as a taxable person in respect o f a l l 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 VALUE ADDED TAX [CAP. 406. 75 2. Except as otherwise provided in this Schedule: (a) The place of supply of services to a taxable person acting as such shall be the place where that person ha s established his business. Ho wever, if those services are provided to a fixed establishment of the tax able person located in a place other than the place where he has est ablished his business, the place of supply of those services shall be th e place where that fixed establishment is located. In the absence of su ch place of establishment or fixed estab lishment, the place of supply of services shall be the place where the taxable person who receives such s ervices has his permanen t address or usu ally resides. (b) The place of supply of services to a non-taxable person shall be the place where the supplier has established his business. However, if th ose services are provided from a fixed establishment of the supplier located in a place other than the place where he ha s established his business, the p l a c e o f supply of those services shall be the place where that fixed es tablishment is located. In the absence of such place of establishment or fixed establishment, the place of supp ly of services shall be the pla ce where the supplier has his permanent a ddress or usually resides. Supply of services by intermediaries 3. 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 transactio n is supplied in accordance with this Act. Supply of services connected with immovable property 4. 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 architec ts and of firms providing on-si te supervision, shall be the place where the immova ble 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 tra nsport 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 in tra-Community tra nsport 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 pl ace of departure and the place of arrival are situated within the territori es 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 transp ort of the goods actually ends. Supply of cultural, artistic, sporting, sc ientific, educational, entertainment and 76 CAP. 406.] VALUE ADDED TAX similar services, ancillary tr ansport services and valuations of and work on movable property 6. (1) The place of supply of ser vices in respect of admission t o cultural, artistic, sporting, scientific, educational, entertainment or s imilar events, such as fairs and exhibitions, and of anc illary services related to the admission, supplied to a taxable person, shall be the place where t hose events actually take place: Provided that the provisions of this sub-item shall not apply t o admission to the events referred to in this sub-item wh ere the attendance is virtual. (2)(a) The place of supply of services and ancillary services, relat ing to cultural, artistic, sporting, scientific, e ducational, entertainment or s imilar activities, such as fairs and exhibitions, including the supply of services of the organi sers of such activities, supplied to a non-taxable person shall be the place where those activities actually take place: Provided that where the services and ancillary services relate to activities which are streamed or otherwise made virtually available, the p lace of supply shall, however, be the place where the non-taxable person is establish ed, has his permanent address or usually resides. (b) The place of supply of the following services to a non-taxable person shall be the place where t he services are physically carried out: (i) ancillary transport activities such as loading, unloading, h andling and similar activities; and (ii) valuations of and work on movable tangible property. Supply of restaurant and catering services 7. The place of supply of restaur ant 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 p hysically 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 tra nsport is actually put at the disposal of the customer. (2) The place of hiring, other tha n 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 pl easure 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, wh ere this service is actually pr ovided by the supplier from his place of busin ess or a fixed establishment situated in that place. (3) For the purposes of paragraphs ( 1 ) a n d ( 2 ) , " s h o r t - t e r m " s h all 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 VALUE ADDED TAX [CAP. 406. 77 9. (1) The place of supply of resta urant and catering services wh ich are physically carried out on board ships, aircraft or trains durin g the section of a passenger transport operation ef fected 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 Co mmunity" shall mean the section of the operation effected, withou t a stopover outside the Community, between the point of departure and the point of arri val 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 befor e a stopover outs ide the Commu nity. In the case of a return trip, the return leg shall be regarded as a separate transport operation. 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 per son is established, has his pe rmanent address or usually resides: (a) telecommunications services; (b) radio and television b roadcasting services; (c) electronically supplied services, in particular services relat ing to websites supply, web-hosting, dis tance maintenance of programme s and equipment, supply of software and updating thereof, supply of i mages, text and information, and making available of databases, supply o f music, films and games, includi ng games of chance and gambling games, 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 o f itself mean that the service supplied is an electronically supplied service. (2) Sub-item (1) shall not apply where the following conditions are met: (a) the supplier is established or, in the absence of an establish ment, has his permanent address or u sually resides only in one (1) Member Sta te; and (b) s e r v i c e s a r e s u p p l i e d t o n o n - t a x a b l e p e r s o n s w h o a r e e s t a b l i s hed, or have their permanent address or usually reside in any Member St ate other than the Member State referred to in paragraph ( a); and (c) the total value, exclusive of V AT, of the supplies referred to i n paragraph ( b), together with the total value of the supplies referred to sub-paragraph (ii) of paragraph ( a) of sub-item (5) of item 4 of Part One of this Schedule does not in the current calendar year exceed t en- thousand euro (€10,000) nor did it do so in the course of the p receding calendar year. (3) Where, during a calendar year, the threshold referred to in paragraph ( c) of sub-item (2) is exceed ed, sub-item (1) sha ll apply as of that t ime. 78 CAP. 406.] VALUE ADDED TAX (4) The Commissioner shall grant to those taxable persons provid ing supplies eligible under sub-item (2) the right to opt for the place of s upply to be determined in accordance with sub-item (1), which shall in any event cover tw o (2) calendar years: Provided that, a valid election for this purpose shall be made by means of a notice in writing to the Commissi oner on a form acceptable to t he Commissioner specifying the date from which i t shall apply, not being earlie r than thirty (30) days from the date on which it is furnished. Supply of services to non-taxable persons outside the Community 11. The place of supply of the fo llowing 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 serv ices, as well as data process ing and the provision of information; (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 ta xation or non-taxation 12. In order to prevent double taxation, non-taxation or distort ion of competition, the Commissioner may, with regard to services the place of supp ly of which is governed by item 2, the proviso to item 6( 2)(a), item 8, item 10 and ite m 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-Commu nity Acquisitions Intra-community acquisitions: general rule 1. An intra-community acquisiti on takes place where the goods ar e when the transport of the g oods to the person acquiring them ends. VALUE ADDED TAX [CAP. 406. 79 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 acqui sition 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 St ate correspond ing 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; (d) the taxable person registered under article 10 reports the sub sequent supply in the recapitulative statement required in accordance with art icle 30(2). The Acquisitions Threshold 3. The Acquisitions Threshold is the equivalent of ten thousand euro (€10,000) using the latest conversion rate before 1st January of the year in respect of which that threshold is relevant, as published by the Central Bank of Malta if such year is the year 2008 or prior, and by the European Central Bank if suc h year is the year 2009 or subsequent. The value of intra-community acquisitions 4. For the purpose of determining whether the value of intra-com munity acquisitions in any particular case exceeds the Acquisitions Th reshold or otherwise, the value of the intra-community acquisitions in question shall be taken to be the taxable value that would be det ermined in accordance with the r elevant provisions of the Seventh Schedule if they were taxable intra-community acqui sitions, provided that no account shall be taken of the value of: (a) intra-community acquisitions of new means of transport and of excise goods; and (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 Four Place of Importations Importations 1. An importation of goo ds takes place where the goods are at th e time when 80 CAP. 406.] VALUE ADDED TAX the chargeable event takes place. Date of the chargeable event in the case of su pplies 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 transpor ted to a Member State other than Malta an d which are supplied V AT exempt or which are transfe rred V AT exempt to another Membe r State by a 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 th e case of supplies of services Amended 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; L.N. 221 of 2020; III.2026.68. FOURTH SCHEDULE [Article 8] Date when a chargeable event takes place and when tax becomes chargeable VALUE ADDED TAX [CAP. 406. 81 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 mo re 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 chargeable 3. The tax on a supply which takes place in Malta, other than a supply to which item 4 applies, becomes chargeab le on the earlier of the follow ing two dates: (a) the date when the charg eable 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 da y of the month following the date determined und er the foregoing provisions of this subsection the tax becomes chargeable on the date of the invoice. Chargeable event and chargeability of VAT for the supply of goods facilitated through an electronic interface 3A. By way of derogation from items 1, 2 and 3, the chargeable e vent of the supply of goods by a taxable person who is deemed to have received and supplied the goods in accordance with item 12A of the S econd Schedule and of the supp ly of goods to that taxable person shall occur and V AT shall become chargeable at t he time when the payment has been accepted. Date when tax on exempt intra-Community supplies becomes chargeable. 4. The tax on an intra-Community supply which is exempt in accor dance with item 3 of Part One of the Fifth Schedule becomes chargeable on the earlier of the following two (2) dates: (a) the date on which a tax invoice is issued for such supply; and (b) t h e f i f t e e n t h ( 1 5 ) d a y o f t h e m o n t h f o l l o w i n g t h e d a t e w h e n t he chargeable event takes place in accordance with sub-item (1) or (4) of item 1, if no invoice has been issued by such date. Date of the chargeable event in the case of intra-community acquisitions 5. In the case of an intra-community acquisition of goods the ch argeable event takes place on the date which w ould 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 chargeable 6. The tax on an intra-community acquisition becomes chargeable on the 82 CAP. 406.] VALUE ADDED TAX earlier of the following two dates - (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 t h e 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 importa tion, 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 r emain subject t o that regime. (2) When goods are, on importation, subject to customs duties, t o agricultural levies or to charges having equi valent effect established under a common policy, the chargeable event takes place and tax becomes chargeable when th e chargeable event for those Community duties take s 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. 83 . 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 him self for the equipping, fuellin g and provisioning of pleasure boats and private aircra ft 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 g oods intended to be placed or while they ar e placed under a customs duty suspension regime. Amended 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 2019; L.N.253 of 2019; L.N.222 of 2020; L.N. 4 of 2021; L.N. 358 of 2021; VII.2022.70; L.N. 138 of 2022; L.N. 12 of 2024; L.N. 228 of 2024; L.N. 345 of 2024; L.N. 355 of 2024; L.N. 88 of 2025; III.2026.69; L.N. 75 of 2026; L.N. 86 of 2026. FIFTH SCHEDULE [Article 8] Exemptions Part One Exemptions with credit 84 CAP. 406.] VALUE ADDED TAX (2) The supply of services other than those exempted by item 6, consisting in work on movable goods that are i ntended 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 and active value added tax identification number in a Member State other than Malta, excluding: (a) a supply made by a person regist ered under articles 11 and 11B . (b) a supply that is subject to the special scheme of the profit m argin in terms of Part Two of the Fourteenth Schedule: Provided that, the exemption provided for under this sub-item s hall not apply where the supplier has not complied with the obligation t o submit a recapitulative statement in terms of article 30(2) or the recap itulative statement submitted by him does not indicate the correct inform ation concerning the supply as required in terms of the said article 30(2), unless the supplier can duly justify his shortcoming to the satisfacti on of the Commissioner. (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 regist ered under articles 11 and 11B . (b) a supply that is subject to the special scheme of the profit m argin in terms of Part Two of t he 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 beh alf 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 pass engers 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 valu e 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 relati ng to the loading, unloading, t ranshipment, handling, stowage, weighing, measuring, control, valuation, storage, supe rvision or delivery. VALUE ADDED TAX [CAP. 406. 85 (6) The supply of services relatin g 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 Madeira as well a s ancillary services thereto. Brokers or other intermediaries 5. 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. 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 com mercial, industrial or fishing ac tivities; (b) used for rescue or assistance at sea or for coastal fishing; (c)o f w a r . (2) The supply to constructors, owners or operators of the vesse ls referred to in (1) of equipment incorpor ated or used therein. (3) The supply of services consisting of the modification, maint enance, chartering and hiring of the vesse ls 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, th is 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 s uch 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 86 CAP. 406.] VALUE ADDED TAX direct needs of aircraft referred to in (1) and for the direct needs of their cargo such as towage, pilotage, rescue serv ices, valuation, use of the air ports, services provided to aircraft operators by their a gents 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 t he 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 including, in particular, gold loans and swaps, involving a rig ht of ownership or claim in respect of investment g old, 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 re spect 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 Si x of the Fourteenth Schedule. Food 9. The supply of food for human consumption, excluding food supp lied in the course of catering. Pharmaceutical goods 10. The supply of pharmaceutical goods. 10A. Until the 31 December 2022, services closely linked to COV ID-19 vaccines falling under sub-heading 3002.20 of the Customs Tariff contain ed in the First Schedule to the Import Duties Act. Transport 11. The supply of: (a) transport by scheduled bus service consisting of trips on sche duled routes; (b) scheduled inter-island sea tran sport of passengers by authoris ed carriers and other services of scheduled sea transport of passengers rec ognised as such by the Commissioner; (c) special regular services consis ting in the carriage of school pupils and students to and from an educational establishment recognised as such by the Commissioner; (d) special regular services consis ting in the carriage of workers t o a n d from their work; and (e) scheduled passenger transport se rvices by means of public lift recognised as such by the Commissioner. Supplies of goods on board cruise liners 12. The supply of goods for consumption on board cruise liners w here the place of taxation in terms of item 3 o f the Third Schedule to the Act is deemed to be in Malta. Supplies of goods in accordance with sub-item (2) of item 12A of the Second VALUE ADDED TAX [CAP. 406. 87 Schedule 13. The supply of goods to a taxable person who is deemed to hav e received and supplied those goods in accordan ce with sub-item (2) of item 12 A of the Second Schedule. Certain transactions treated as exports 14. (1) The supply of goods or services to the European Commissi on or to an agency or a body established under European Union law where the European Commission or such an agency or body purchases those goods or s ervices in the execution of the tasks conferred on it by European Union law in order to respond to the COVID-19 pandemic, except where the goods and services purchase d are used, either immediately or at a later date, for the purposes of onward supp lies for consideration by the European Commission or such an agency or body: Provided that, when the conditions for the exemption cease to a pply, the European Commission or the agency or body concerned which recei ved the exempt supply shall inform the Commissi oner and the supply of those go ods or services shall be subject to tax under the cond itions applicable at that time. (2) The supply of goods or services within Malta, intended eithe r for the armed forces of other Member States for the use of those forces, or o f the civilian staff accompanying them, or for supplying their messes or canteens wh e n suc h f or ces ta ke part in a defence effort carried out for the implementation of a European Union activity under the common security and defence policy. (3) The supply of goods or services to another Member State, int ended for the armed forces of any Member State other than the Member State of destination itself, for the use of those forces, or of the civilian staff accompany ing them, or for supplying their messes or canteen s when such forces take part i n a defence effort carried out for the implementation of a European Union activity under the common security and defence policy. Supplies of certain devices and aids to non-profit making organisations 15. The supply to non-profit making organisations specifically r ecognised as such by the Commissioner for this purpose, of devices and aids, including related goods, which are essential to compensate or overcome disability in humans. Products used for fema le sanitary protection 16. The supply of products used fo r female sanitary protection. Medical items essential to compensa te and overcome cancer in humans 17. The supply of: (a) mastectomy undergarments; (b) urinary incontinence management devices; (c) vacuum constriction devices; 88 CAP. 406.] VALUE ADDED TAX (d) scalp cooling systems; (e) absorbent incontinence care products; and (f) supportive medical undergarments. Supplies for the benefit of disaster victims. 18. The supply of goods for the benefit of disaster victims, and services related to such goods supplied or acquired including rental services, s ubject to the conditions and limitations establi shed under Article 101a of Co uncil Directive 2006/ 112/EC. 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 o f an economic activity, except fo r: (i) the letting referred to in sub-paragraphs ( a), ( b), ( c) and ( d); (ii) the letting of s pace for artistic and cultural activities; (iii) the letting for the purposes of habitation of any premises which for the purpose of the said letti ng, 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. VALUE ADDED TAX [CAP. 406. 89 Insurance services 2. The supply by persons licensed under the Insurance Business Act o r t h e Insurance Distribution Act , of insurance and reinsurance tr ansactions, including related services, in respect of which they are so licensed, where those services are specific to and essential for the provision o f 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. (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 coll ection 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)r i g h t s 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 investme nt schemes shall refer to: "collective investment scheme" a s defined under the Investment Services Act; "retirement scheme" as defined under the Ret irement Pensions Ac t; "securitisation vehicle" as defi ned under the Securitisation Ac t; and "authorised reinsurance special p urpose 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. 90 CAP. 406.] VALUE ADDED TAX Sports 5. 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 connection with events, organised exclusively for their own ben efit, designed to raise funds which shall be used for the provision of goods and services which are exempt in terms of sub-items (2) or (4) of item 11 or of sub-it ems (1) or (2) of item 12 of this Part: Provided that the event is rec ognised by the Commissioner as be ing exclusively designed for the said purpose a nd provided that this exemption is not likely to cause distortion of competition. Services supplied by independent groups 7. 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 ne cessary for the exercise of the ir activity, where these groups merely claim from their 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 members 8. The supply of services for the benefit of their members in re t u r n f o r 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. Gambling 9. Betting, lotteries and other forms of gambling, as may be app roved by the Minister. Postal Services 10. 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 provision of medical c are by a person in the exercise of any profession regulated by the Health Care Prof essions Act (Cap. 464), the Ps ychology Profession Act (Cap. 471), the Counselling Profes sion Act (Cap. 538), the Psyc hotherapy Profession Act (Cap. 587), or any Act which may substitute them. VALUE ADDED TAX [CAP. 406. 91 (2) The provision of hospital and medical care undertaken by any government hospital or institution, or by any other hospital, institution or centre for medical treatment or diagnosis approved by the Minister for the purpose s of this sub-item. (3) The supply of services by dental technicians in their profes sional capacity and the supply of dental prostheses by dentists and dental technici ans. (4) The supply of welfare services, including services supplied by homes for the elderly, and services for the pro tection 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 welfar e policy of the government. (5) The supply of transport services for sick, injured or disabl ed persons in vehicles specially desig ned for that purpose. (6) The supply of human organs, blood and milk. (7) The supply of goods and services by the same hospital, insti tution, centre or home, as the case may be, supplying the services referred to in sub-items (2) and (4), and which are connected with, and essential for the supply of those services, provided that this exemption is not likely to cause distortion of competition . Education 12. (1) The provision of education or educational research, vocat ional training or retraining, including distance l earning, by a government school or institution, by the University of Malta, by a school o r institution registered unde r the Education Act , or by any educational establishment r ecognized 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 t eachers 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 tuitio n 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 Accreditati on 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, unive rsity, 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 the 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 produ ced 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. Broadcasting 14. The activities of public radio and television bodies other t han those of a commercial nature. 92 CAP. 406.] VALUE ADDED TAX Water 15. The supply of water servi ces by a public authority. Exemption for small enterprises 16. (1) The supply by a person registered under article 11 and e ntitled to be so registered, of goods and services in accordance with the provis ions of Part One of the Sixth Schedule. (2) The supply by a person registered under article 11A and enti tled to be so registered, of goods and services in accordance with the provis ions of Part Two of the Sixth Schedule. (3) The supply by a person registered under article 11B and enti tled to be so registered, of goods and services in accordance with the provis ions of Part Three of the Sixth Schedule. 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 supply 1. 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 t a x purposes to the person to whom the subsequent supply is made; (c) the person to whom the subsequent supply is made is a taxable person or a non-taxable legal person regi stered under article 10 or 12; (d) the person to whom the subsequent supply is made is liable for t h e payment of the tax on that supply. Acquisitions of goods whose supp ly 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 ref und of the tax that would be due on that acquisition were it not exempt. Duty suspension regime 4. The intra-community acquisition of goods intended to be place d under a customs duty suspension regime. Food 5. The intra-Community acquisition of food. VALUE ADDED TAX [CAP. 406. 93 Investment gold 6. The intra-community acquisition of investment gold, saving th e option for taxation in terms of Part Six of the Fourt eenth Schedule. Goods subject to the margin scheme 7. 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. Acquisitions of certain devices and aids by non-profit making organisations 8. The intra-community acquisition by non-profit making organisa tions specifically recognised as such by the Commissioner for this pu rpose, of devices and aids, including related goods, which are essential to compensat e or overcome disability in humans. Acquisitions for the benefit of disaster victims. 9. The intra-Community acquisitions of goods for the benefit of disaster victims subject to the conditions and limitations established under Art icle 101a of Council Directive 2006/112/EC. 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 exempt 1. 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 duty 2. ( 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. Objects of a non-commercial nature imported in the personal luggage of travellers. 2A. The importation of objects, where their total value does no t exceed the limits provided in the Excise Duty (Goods Imported by Persons Travelli ng from Third Countries) Regulati ons. S.L. 382.02. Importation of goods where VAT shall be declared under the special scheme in Section 4 of Part Seven of the Fourteenth Schedule 2B. The importation of goods where the V AT shall be declared un der the special scheme in Section 4 of Part Seven of the Fourteenth Schedule an d where, at the latest upon lodging of the import declaration, the individual value ad ded tax identification number for the application of the special scheme of the supplie r or of the intermediary acting on his behalf, allocated in terms of Sectio n 4 of Part Seven of the Fourteenth Schedule, has been provided to the competent customs office in Malta. Goods transported from a third territory 94 CAP. 406.] VALUE ADDED TAX 3. 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) o f 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 Com ptroller 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 parag raph (1) of item 3 of Part One of this Schedule, issued in another Member State, or his own V AT identification 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 docum entation and security. Catches of fish 4. The importation into ports by sea fishing undertakings of the ir catches, unprocessed or after undergoing preservation for marketing but before being supplied. Re-importation 5. 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 export ed outside the Community. Food 6. The importation of food. Investment gold 7. The importation of investment gold, saving the option for tax ation in terms of Part Six of the F ourteenth 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. Certain importations of goods in an official capacity 9. (a) The importation of goods by the European Commission or by an VALUE ADDED TAX [CAP. 406. 95 agency or a body established under European Union law where the E u r o p e a n Commission or such an agency or body imports those goods in the execution of tasks conferred on it by European Union law in order to respond to th e COVID-19 pandemic, except where the goods imported ar e used, either immediately or at a later date, for the purposes of onward supplies for consideration by the European C ommission or such an agency or body: Provided that, when the conditions for the exemption cease to a pply, the European Commission or the agency or body concerned shall infor m the Comptroller of Customs and the importation of those goods shall be subject to tax under the conditions applicable at that time. (b) The importation of goods by th e armed forces of other Membe r States for the use of those forces, or of the civilian staff accompany ing them, or for supplying their messes or canteens when such forces take part in a defence effort carried out for the implementation of a European Union activity under the common security and defence policy. Importations of certain devices and aids by non-profit making organisations 10. The importation by non-profit making organisations specifica lly recognised as such by the Commissioner for this purpose, of devices and aids, including related goods, which are essential to compensate or overc ome disability in hum ans. Part Five Definitions For the purposes of this Schedule, the following terms shall ha ve the meaning assigned to them in this Part. Food 1. "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; 0 106.19.90.00; 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; 0 206.80.10.00 and 0206.90.10.00 i n Chapter 2, and 0301.10.10.00 a nd 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; 1207.9 9.91.00; 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 96 CAP. 406.] VALUE ADDED TAX 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; 1 505.00.90.00; 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; 1 512.19.10.00; 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; 1 515.30.10.00; 1515.30.90.00; 1515.40.00.00; 1515.50.11.00; 1 515.50.91.00; 1515.90.15.00; 1515.90.15.90; 1515.90.21.00; 1 515.90.31.00; 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; 1 518.00.91.00; 1518.00.95.00; 1518.00.99.00; 1520.00.00; 15 21.10.00.10; 1521.10.00.90; 1521.90.10.00; 1522.00.10; 15 22.00.31.00; 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 and 2106.90.98.39. (i) Subheadings 2202.90.10.10; 2202.90.91.00; 2202.90.95.00; 2202.90.99.00; 2209.00.11.00; 2 209.00.19.00; 2209.00.91.00; 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) tea and coffee supplied in liquid form; (c) ice cream or products containing ice cream except in family pa cks; (d) milkshake, yogurt, chocolate and similar products, including t hose supplied in liquid form, but excluding those sealed in a package by the manufacturer and supplied in that original sealed package. (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 th e manufacturer and supplied in t hat original sealed package and those items which individually weig h 500 grams or more; VALUE ADDED TAX [CAP. 406. 97 (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 Schedule, wher e such food is served for consumption by any person in the same establishment, shall be considered as food supplied in the cour se of catering. Pharmaceutical goods 3. "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 a nd 9619 00 29 in Chapter 96. (f) Subheadings 9619 00 51 a nd 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 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 accommodati on under any title in immovabl e property and any other form of supply of the use of immovable property; (b) an emphyteutical grant for a period not exceeding 50 years; (c) the letting of space for artis tic and cultura l activities. Non-profit making organisations. 5. A "non-profit making organisation" means: (a) a public authority, or (b) a body of persons: (i) whose objects are clearly defined in its statute; (ii) whose objects expressl y exclude profit making; (iii) whose statute provides that no part of its income or prope rty is available directly or indirectly to any member, proprietor or shareholder; (iv) which is managed and admi nistered in accordance with the provisions of its statute and for the purpose of its stated obj ects; and (v) which is registered as a voluntary organisation with the off ice of the Commissioner for V oluntary Organisations, or as may be 98 CAP. 406.] VALUE ADDED TAX approved by the Commissioner. Investment gold 6. "Investment gold" has the meaning assigned to it in Part Six of the Fourteenth Schedule. Transport 7. (1) "Scheduled bus service" means: (a) public passenger transport services by an operator contracted in terms of the provisions of regulation 68B of the Passenger Transport Services Regulations ; and (b) regular passenger transport services by an operator authorised i n terms of the provisions of regulation 69 of the Passenger Transport Services Regulations . (2) "Scheduled inter-island sea transport of passengers" means s cheduled transport of passengers between t he islands of Malta and Gozo. (3) "special regular services" shall have the meaning as assigne d to it in the Passenger Transport S ervices Regulations . (4) "public lift" shall have the same meaning as assigned to it in the Passenger Transport Services Regulations a nd which is operated in accorda nce with the provisions of regulation 68S of t he said regulations. Definitions For the purposes of this Schedul e, the following terms shall ha ve the meaning assigned to them in this Part. Calendar quarter 1. "calendar quarter" means a pe riod of three (3) calendar month s ending on the 31st March, 30th June, 30th Sept ember and 31st December, as the case may be. Calendar year 2. "calendar year" means a period of twelve (12) months commenci ng on 1st January and ending on 31st December. 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; L.N. 223 of 2020; L.N. 463 of 2020; L.N. 346 of 2024; IX.2025.74. SIXTH SCHEDULE Small Enterprises VALUE ADDED TAX [CAP. 406. 99 Turnover 3. (1) "turnover" means the turnover consisting of the following amounts, exclusive of V AT: (a) the value of supplies of goods and services, in so far as they would be taxed were they supplied by a per son registered under article 1 0; (b) the value of transactions which are exempt with credit in term s of items 1, 3, 5, 6, 7, and 8(1) of Pa rt One of the Fifth Schedule; (c) the value of immovable property transactions, financial transa ctions referred to in item 3 of Part Two of the Fifth Schedule, and in surance and reinsurance services, unless those transactions are ancilla ry transactions. (2) Disposals of the tangible or intangible capital assets of a taxable person shall not be taken into account for the purposes of calculating the t urnover referred to in sub-item (1). (3) For the purposes of calculating the turnover referred to in sub-item (1) of persons, other than physical persons, registered or applying t o register under article 11, account shall be taken of the turnover of related persons i n accordance with the provisions of item 4 of Part One. (4) The turnover shall be denominated in euro (€). Domestic annual turnover 4. "Domestic annual turnover" mean s the total annual turnover fr om supplies of goods and services, exclusive of V AT, made by a taxable person taking place within Malta during a calendar year. Domestic threshold 5. "Domestic threshold" means the threshold fixed in Malta in ac cordance with Article 284(1) of Council Directive 2006/112/EC which shall be an amount equivalent to thirty-fiv e thousand euro (€35,000). Union annual turnover 6. "Union annual turnover" means the total annual turnover from supplies of goods and services, exclusive of V AT, made by a taxable person taking place within the territory of the Community during a calendar year. Union Threshold 7. "Union Threshold" means an amount equivalent to one hundred t housand euro (€100,000). Member State annual turnover 8. "Member State annual turnover" means the total annual turnove r in a Member State from supplies of go ods and services, exclusive of V AT, made by a taxable person within such Member State during a calendar year. Part One [Article 11] Special scheme for small enterpri ses for supplies made within M alta by persons established in Malta Threshold at the time of application 1. A taxable person who applies for registration under article 1 1 qualifies as a small enterprise at the time of the application where his Domes tic annual turnover 100 CAP. 406.] VALUE ADDED TAX during the preceding calendar year , if any, is not more than th e Domestic threshold. Persons registered under article 10 2. (1) Notwithstanding the provisions of item 1, a person regist ered under article 10 who applies for registration under article 11 shall not qualify as a small enterprise at any time during the first whole twelve (12) calen dar months from the date of the said registration: Provided that a person who is deemed to be registered under art icle 10 by virtue of sub-article (6) of the said article shall be deemed f or the purpose of this item as having been registered u nder the said article on the da te on which he was first registered under this Act. (2) Notwithstanding the provisions of sub-item (1), where a pers on who registers under article 10 makes a request to the Commissioner to convert to a registration under article 11, the Commissioner may accept the request where : (a) the Commissioner is satisfied th at the person qualifies as a s mall enterprise; and (b) such person has not claimed any input tax credits during the p eriod in which he was so registered under article 10. Threshold of persons registered under article 11 3. A person registered under article 11 shall continue to qualif y a s a s m a l l enterprise where his turnover during a calendar year does not e xceed the Domestic threshold: Provided that such person shall no longer qualify as a small en terprise on the date the Domestic threshold is e xceeded within a calendar year. Turnover of related persons 4. For the purpose of this Part, the turnover of a person, othe r than a physical person, registered or applying to register under article 11 sha ll include the proportionate turnover of any other person, including a physica l person, who is related to the person registered or applying to be registered u nder article 11. In this item, a person shall be deemed to be related to a person regist ered or applying to be registered under article 11 where the latter person is owned or controlled, directly or indirectly, as to more than ten percent (10%) by the former per son, or as may be prescribed by the Commissioner. Declaration to be submitted to the Commissioner 5. (1) The declaration which is required to be submitted to the Commissioner by a person registered under article 11 in terms of article 30( 1) shall be submitted to the Commissioner elect ronically through the web portal designat ed by the Commissioner for this purpose a nd including any information req uested therein: Provided that the Commissioner m ay otherwise direct any person or class of persons to submit the said declaration by other means. (2) The declaration referred to in sub-item (1) shall be submitt ed for a period of twelve (12) months, or as may be directed by the Commissioner: Provided that persons registered under article 11 may opt for a shorter period. (3) The period of twelve (12) months referred to in sub-item (2) shall commence on the 1st January and end on t he 31st December of the same cal endar year: Provided that where the effective date of registration of a per son under VALUE ADDED TAX [CAP. 406. 101 article 11 is a date other than 1st January, the first period o f such person shall commence on such effective date and shall end on the 31st Decem ber of the same calendar year. (4) Where a person ceases to be registered under article 11, the last period of such person shall end on the date when that registration is can celled by the Commissioner in accord ance with the provisions of articles 11(6 ), (7) and (8). (5) A declaration which is require d to be furnished for a period t o t h e Commissioner in terms of this Part shall be so furnished by not later than the fifteenth (15 th) day of the second (2) month following the month during which such period ends. Other information to be given to the Commissioner 6. A person who applies for registration under article 11 shall submit all information that the Commissioner may reasonably request for th e purpose of applying the provisions of this Part. Part Two [Article 11A] Special scheme for smal l enterprises for supplies made in other Member States by persons established in Malta Threshold at the time of application 1. (1)A taxable person who applies for registration under articl e 11A qualifies as a small enterprise at the tim e of the application where the following conditions are satisfied: (a) his Union annual turnover duri ng the preceding calendar year i s less than the Union threshold; (b) he makes supplies in at least one (1) Member State in which he is not established, where he is eligible to avail himself of the exemp tion in terms of the special scheme for small enterprises applicable in t h e respective Member State in accord ance with Chapter 1 of Title X II of Council Directive 2006/112/EC; and (c) the value of the supplies made in the Member State referred to i n paragraph (b) during the precedin g calendar year does not excee d the threshold applicable in that Mem ber State for gr anting the exem ption in accordance with Chapter 1 of Title XII of Council Directive 200 6/112/ EC: Provided that the period referred to in paragraph (c) may be ex tended to two (2) calendar years where required by the respective Member State in accordance with Article 288a(1) of Council Directive 2006/112/EC. Prior notification 2. An application for a registration under article 11A shall be submitted electronically directly through t he established web portal desi gnated by the Commissioner for such purpose, and shall contain the following information: (a) the name, activity, legal form and address of the taxable pers on; (b) the Member State or Member Stat es in which the taxable person intends to avail himself of the special scheme for smal l enterprises; (c) the turnover from supplies of goods and, or services carried o ut in Malta and in each of the other Member S tates during the previous cale ndar year; 102 CAP. 406.] VALUE ADDED TAX (d) the turnover from supplies of goods and, or services carried o ut in Malta and in each of the other Member States during the current calen dar year prior to the application for a registration under article 11A; and (e) any other information requested therein. Update to a prior notification 3. (1) A taxable person registered under article 11A shall infor m in advance the Commissioner electronically directly through the established we b portal designated by the Commissioner for such purpose of any changes to the info rmation previously provided in the prior notification referred to in item 2, inclu ding: (a) the intention to avail himself of the exemption in a Member St ate or Member States other than the ones indicated in such prior notif ication; and (b) the decision to cease applying the special scheme for small en terprises in a Member State or Member Stat es in which such taxable person is not established. (2) The exemption in any Member State referred to in sub-item (1 )(a) shall be effective as from the date the Commissioner notifies the taxabl e person that he may start to avail himself of the exemption in the respective Membe r State. (3) The cessation referred to in sub-item (1)(b) shall be effect ive as of the first (1) day of the next calendar qua rter following the receipt of t he information from the taxable person or, where such information is received during th e last month of a calendar quarter, as of the first (1) day of the second (2) mon th of the next calendar quarter. Declaration to be submitted to the Commissioner 4. (1) The declaration which is required to be submitted to the Commissioner by a person registered under art icle 11A in terms of article 30 (1) shall be submitted to the Commissioner electronical ly through the web portal desig nated by the Commissioner for this purpose a nd including the following infor mation: (a) the turnover from supplies carried out during the calendar qua rter in Malta or "0" if no supplies have been made; (b) the turnover from supplies carried out during the calendar qua rter in each of the Member States other than Malta or "0" if no supplie s have been made; (c) where the Member State in which the special scheme for small enterprises is availed of applies varying thresholds as referre d to in the second sub-paragraph of Article 284(1) of Council Directive 200 6/112/ EC, the taxable person shall be obliged in respect of such Memb er State to report separately the total value of supplies of goods and, or services as regards each threshold th at may be applicable; and (d) any other information requested therein. (2) The values referred to in sub -item (1) shall be denominated in euro (€): Provided that where the Member State in which the special schem e for small enterprises is availed of has no t adopted the eu ro (€), the Com missioner may require such values to be expressed in t he national curr encies of those Member States. If the supplies have been made in other currencies, the taxable person shall use the exchange rate which ap plies on the first (1) day of the calenda r year. The conversion shall be made by applying the exchange rate published by the Eu ropean Central VALUE ADDED TAX [CAP. 406. 103 Bank for that day or, if there is no publication on such day, o n the next day of publication. (3) The declaration referred to in sub-item (1) shall be furnish ed for each calendar quarter. (4) Where the effective date of registration of a person under a rticle 11A is a date other than the first (1) day of a calendar quarter, the fi rst (1) period of such person shall commence on such effective date and shall end on t he last day of the said calendar quarter. (5) Where a person ceases to be registered under article 11A, th e last period of such person shall end on the date when the said registration is cancelled by the Commissioner in accordance with article 11A(5). (6) A declaration which is required to be submitted to the Commi ssioner in terms of this Part shall be so submitted by not later than the last day of the month following the end of the r espective calendar quarter: Provided that, in accordance with article 11A(4)(c), the taxabl e person shall inform the Commissioner within fifteen (15) working days from t he date when the Union annual turnover threshold i s exceeded. At the same time, the taxable person shall submit to the Commissioner a further declaration electron ically through the web portal designated by the Commissioner for this purpose, ind icating the value of the supplies referred to in sub- item (1) that have been made fr om the beginning of the current calendar quarter up until the date the Union annual turnover threshold was exceeded. Exceeding the Union Threshold 5. Notwithstanding the provisions of article 11A(5), where the U nion annual turnover of a person registered under the said article during a calendar year exceeds the Union threshold, the exemption provided for in article 284(1) o f Council Directive 2006/ 112/EC granted in the Member Sta tes in which such person is not established shall cease to apply as from the date the Union threshold is exceeded. Part Three [Article 11B] Special scheme for small enterpri ses for supplies made within M alta by persons established in oth er Member States 1. A taxable person established in another Member State deemed t o have made a registration under article 11B may be approved by the Commiss ioner where he qualifies as a small enterprise at the time of the application by satisfying the following conditions: (a) his Union annual turnover during the preceding calendar year i s less than the Union threshold; and (b) the Domestic annual turnover during the preceding calendar yea r does not exceed the D omestic turnover threshold. Exceeding the Domestic threshold 2. Notwithstanding the provisions of article 11B(3), where the D omestic annual turnover of a person registered under the said article during a calendar year exceeds the Domestic threshold, the exemption provided for in item 16(3 ) of Part Two of the Fifth Schedule shall cease to apply as from the date the Domest ic threshold is exceeded. Exceeding the Union Threshold 104 CAP. 406.] VALUE ADDED TAX 3. Notwithstanding the provisions o f article 11B(3), where the U nion annual turnover of a person registered under the said article during a calendar year exceeds the Union threshold, the exemption provided for in item 16(3) o f Part Two of the Fifth Schedule shall cease to app ly as from the date the Union threshold is exceeded. 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: (a) taxes, duties, levies, fees and other charges (excluding the v alue added tax chargeable under this Act) pa yable by reason of the supply; (b) incidental expenses, such as co mmissions, packing, transport a nd insurance costs charged by the supplier to the purchaser or cus tomer even if they are covered by a se parate agreement or a separate document. 3. The taxable value of a supply shall not include: (a) price reductions by way of d iscounts for early payment; (b) rebates and other price reductions allowed directly by the sup plier to the customer and accounted for at th e time when the tax becomes chargeable; (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, wh ich 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 depos it is lower than the cost of th e packaging or where the deposit is regulated in terms of the Beverage Cont ainers Recycling Regulations or any la w which may be substituted there for. 4. When, after a su pply 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 SEVENTH SCHEDULE Substituted by: X. 2003.47. Amended by: L.N. 335 of 2008; L.N. 420 of 2012; L.N. 52 of 2021; III.2026.70. [Article 18] Taxable value VALUE ADDED TAX [CAP. 406. 105 customer on account of the resci ssion 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 pr ovided 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 d elivered 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 charged or paid but which i s deemed in terms of the Second Schedule to be a supp ly 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 good s 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. (2) The taxable value of a self-s upply 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 provision s governing the calcu lation of the value for customs purposes. ( 2 ) W h e r e t h e f a c t o r s u s e d t o d e t e r m i n e t h e t a x a b l e a m o u n t o f a transaction other than the importation of goods are expressed in a currency other than in Euro, the exchange rate applicable sha ll be the latest selling rate r ecorded, at the time the tax becomes chargeable, applie d 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 certain supplies between related persons. 8A. (1) In respect of the supply of goods or services by a person to a related person, the taxable amount shall be the open market value of su ch goods or services where: (a) the consideration is lower than the open market value and the recipient of the supply does not have a fu ll right of deduction in accord ance with 106 CAP. 406.] VALUE ADDED TAX the provisions of the Tenth Schedule; (b) the consideration is lower than the open market value and the supplier does not have a full right of deduction in accordance with the provisions of the Tenth Schedule and the su pply is subject to an exemption i n accordance with Part Two of the Fifth Schedule; or (c) the consideration is higher than the open market value and the supplier does not have a full right of deduction in accordance with the provisions of the Tenth Schedule. (2) For the purpose of this item a person shall be deemed to be a "related person" to another person where: (a) that person is part of the same family as the other person; (b) that person is an employee, including a holder of office, of t he other person, and including any fa mily member of that employee; (c) those persons are cohabitants; (d) those persons, directly or indirectly, jointly own and, or hol d the same asset; (e) any persons who owns and, or holds, directly or indirectly, as to more than fifty per cent (50%) of the ir ordinary share capital or eq uivalent interests, voting rights or equiva lent rights, or rights to pro fits available for distribution, by the related persons referred to in paragra phs (a) to (c); (f) one (1) person owns and, or holds, directly or indirectly, mor e than fifty per cent (50%) of the ordinary share capital or equivalent inte rests, voting rights or equivalent rights, or rights to profits availa ble for distribution, of the other person; (g) those persons who own and, or hold, directly or indirectly, as to more than fifty per cent (50%) of the ir ordinary share capital or eq uivalent interests, voting rights or equiva lent rights, or rights to pro fits available for distribution, by the sa me person or persons; or (h) those persons collectively own and, or hold, directly or indir ectly, as to more than fifty per cent (50%) of the ordinary share capital or equivalent interests, voting rights or equivalent rights, or ri ghts to profits available for distribution, of another person: Provided that where a person is deemed to be a "related person" t o another person in accordance with this sub-item, any immediate family members of such person shall also be deemed to be a related per son to the other person. (3) For the purposes of this item, "open market value" shall mea n the full amount that, in order to obtain the goods or services in question at that time, a customer at the same marketing stage at which the supp ly of goods or services takes place, would have to pay, under conditions of fair competition, to a supplier at arm’s length within the territory of the Member State in which the supply is subject to tax: Provided that where no comparable supply of goods or services c an be ascertained, "open market value" shall mean the following: (a) in respect of goods, an amount that is not less than the purch ase price of VALUE ADDED TAX [CAP. 406. 107 the goods or of similar goods or, in the absence of a purchase price, the cost price, determined at the time of supply; and (b) in respect of services, an amoun t that is not less than the fu ll cost to the taxable person of providing the service. Taxable value of intra-community acquisitions 9. 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 pa id 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 tha t 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 a fter 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 articl e 69 of this Act. Taxable value of importations 11. 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 the purpose of this item the ref erences in the said provisions to the Comptroller of Customs shall be construed as re ferences 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 deter mined in accordance with item 11 , by: (a) any taxes, levies, duties and other charges due outside Malta, a n y import duties chargeable on the said importation under the Loca l Manufactures (Promotion) Act, any excise duty payable under the Excise Duty Act by reason of t he importation of those goods; (b) incidental expenses, such as commissions, packing, customs age ncy costs and transport and insuran ce 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 trans fer of the goods in Malta; 108 CAP. 406.] VALUE ADDED TAX (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 sp ecified in the s econd 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; L.N. 186 of 2020; L.N. 5 of 2021; L.N. 231 of 2023; L.N. 354 of 2024; IX.2025.75; III.2026.71. EIGHTH SCHEDULE [Article 19(2)] Rate of tax TABLE First Column Second Column Description Rate 1. Accommodation The letting of or the provision of accommodation in any premise s which for the purpose of the provision of such accommodation is required to be licensed in virtue of the Malta Travel and Touri sm Services Act, or any other Act w hich may be substituted therefo r: 7% Provided that where the pri ce charged for the supply of accommodation includes the supply of goods or services not falling within the meaning of acco mmodation the taxable value o f the supply of accommodation shall be deemed to be eighty percen t of the said price and twenty per cent of that price shall be dee med to be the taxable value of supp lies not described in this Colum n. 2. The supply of electricity. 5% VALUE ADDED TAX [CAP. 406. 109 3. Consumable goods and other similar goods 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; 1 520.00.00 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 d efined in item 2( b) of Part Five of the Fifth Schedule to the Act falling under CN codes 2105.00.10; 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) Deleted by Legal Notice 354 of 2024 ; (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; (i) p r o t e c t i v e f a c e m a s k s a n d v i s o r s , e x c l u d i n g d i v i n g equipment; (j) until the 31 December 2022, 9027.80.80 and 3821.00 where the goods under these sub-headings consist of COVID-19 in vitro diagnostic medical devices. 4A. Services closely linked to COVID-19 in vitro diagnostic devices: Until the 31 December 2022, services closely linked to goods under sub-headings 3822; 3002.15; 9027.80.80 and 3821.00 where the goods under these sub-headings consist of COVID-19 in vitro diagnostic devices. 5% 5. Printed matter The goods falling under CN code in the Common Customs Tariff: 5% (a) 4820.20.00; 110 CAP. 406.] VALUE ADDED TAX (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; 4 909 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 support which include, but not limited to, a CD, DVD, SD-card and USB, but which excludes publications wholly or predominantly devoted to advertising and excluding also publications wholly or predominantly consisting of video content 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 excludes publications wholly or predominantly devoted to advertising and excluding also publications wholly or predominantly consisting of video content or audible music. 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 and 9404.90; (c) padded/inflatable toilet seats for use by disabled persons falling under CN codes 4016.95.00 and 4016.99.98; (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 and 7907.00; (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 and 8428.20.99; (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; (l) braille typewriters for use by disabled persons falling under CN code 8469.12.00; 8469.20.00 and 8469.30.00; VALUE ADDED TAX [CAP. 406. 111 (m) amplifiers for communication devices for people with impaired hearing for use by disabled persons falling under CN codes 8518.4 0.91 and 8518.40.99; (n) children special walkers, prone standers and wheelchairs (manual) for u se by disabled persons falling 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 9401.30.10 and 9401.30.90; (q) t o i l e t s f r a m e s / s u r r o u n d s f o r u s e b y d i s a b l e d p e r s o n s falling under CN code 9401.79.00; (r) special feeder chairs fo r 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/wheel chairs 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 Fourteenth Schedule. 5% 8. Minor repairing of: 5% (a)b i c y c l e s ; (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% 12. Custody and management of securities. 12% 13. Management of credit and credit guarantees by a person or bo dy other than those who granted the credit. 12% 14. Hiring of a pleasure boat to a person according to an agreement for any term or part of a term that, when added to the term of a pr evious hiring, of the same goods or of other goods of the same kind, to the said person during the previous twelve (12) months ending on the dat e of the beginning of the existing hiring, does not exceed five (5) weeks. 12% 15. Services consisting of the care of the human body required t o be delivered by a person in the exercise of any profession regu lated by the Health Care Professions Act (Cap. 464), including services supplied in the course of a health studio business or similar business, but not including exempt supplies referred to in item 11 of Part Two of the Fifth Schedule. 12% 112 CAP. 406.] VALUE ADDED TAX 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 ord er 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 asse ssment shall not be valid if: (a) a return for the tax period to which the assessment refers has not been delivered to the Commissioner be fore 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 proof 3. For the purpose of - (a) the examination of evidence and enforcing the attendance of wi tnesses; 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. 113 (b) the production of books and o ther 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 ap propriate 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 th e 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 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 ref erred 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 abeya nce 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 b een 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 da te on which a notice of the imp osition of the administrative penalty in questi on 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 infor mation, decide the matter and c ause its decision to be served on the parties. Appeals against Assessments 6. (1) An appeal against an assessm ent 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 114 CAP. 406.] VALUE ADDED TAX 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 purpo se of making it clearer. Reply by the Commissioner 7. 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 8. (1) An appeal to the Tribunal c onsisting 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 signe d 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 p aragraph (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 ca use 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 appellan t shows that he had, before ma king his application, referred the matter to the Commissioner in writing and that: (a) the Commissioner agreed that th e question should be referred t o the Tribunal, (b) the Commissioner did n ot give a reply, or (c) the appellant feels aggrieved by the Commissioner’s reply. (5) An appeal to the Tribunal con sisting 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 the Commissioner, require the appella nt to prove his direct interes t in the matter; (c) any person indicated in an application made by the Commissione r in VALUE ADDED TAX [CAP. 406. 115 accordance with parag raph (3) of item 7. (2) A decision of the Tribunal shall be binding, with respect to t h e s p e c i f i c matter referred to it, on the pa rties 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 re main binding only as long as th ere have been no material changes to the said fact s or to the rele vant 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 not ice 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 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 provi sion 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 fur therance of his e conomic activi ty. ( 2 ) E x c e p t a s t h e C o m m i s s i o n e r m a y o t h e r w i s e a l l o w , n o a m o u n t s hall be treated as input tax o f 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 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 116 CAP. 406.] VALUE ADDED TAX (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 i n his tax return; and (c) the document referred to in paragraph ( a) is held by that person and produced, if requested, t o the Commi ssioner; 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; (ii) alcoholic beverages; (iii) works of art, collect ors’ items and antiques; (iv) motor vehicles, vessels or a ircraft 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 this subparagraph 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 hosp itality except where the said provision is made for consideration in the normal course of that person’s economic 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 entert ainment: provided that this pr ovision shall not apply to transport provided by that person to his emp loyees on vehicles with a sea ting capacity of not less than seven. (2) The provisions of sub-paragra phs (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 pur pose of resale, whether in the state in which they were acquired or impo rted 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 imp orted by a person and used by him for the purpose of the carriage of goods or passengers for a consideration; (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 chart er 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 VALUE ADDED TAX [CAP. 406. 117 by him for hire with a driver or for self-drive hire (excluding fuelling for such self-drive vehicles), o r 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 w ith seating accomm odation normall y adjacent to the driver or with seating accommodation for nine p ersons or more; (f) vessels or aircraft used for th e 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 Fourt eenth Schedule. (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 t o V A T o n 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 118 CAP. 406.] VALUE ADDED TAX allowed as a credit for that period. (2) Any input tax which is exclus ively attributable to supplies other than those referred to in paragraph (1) sha ll 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, w hich 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 the year referred to in that paragraph and the provisional rati o for the following year; (c) the input tax credit of that p erson 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 th at 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 pe riods 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 th at 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 r e t u r n f o r t h e f i r s t t a x p e r i o d t h a t e n d s i n t h e y e a r f o l l o w i n g t h a t f o r 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 t h a t 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 yea r of acquisition") includes tax on the supply to that VALUE ADDED TAX [CAP. 406. 119 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 adjus tment period is allowable at a rate which is higher or lower than that already allo wed 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 o f adjustment applicable to capit al goods; (c) prescribe the method in which the adjustment shall be calculat ed and the manner in which it s hall 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 ad opt such other method of partia l attribution as the 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 that 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 taxa ble 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 Sev enth Schedule, the taxable valu e of a supply 120 CAP. 406.] VALUE ADDED TAX or an intra-community acquisition is reduced after that supply or acquisition takes place any output tax c orresponding 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 provision 12. 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 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 econom ic 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 impor tation and exportation of goods by him; (g) copies of all fiscal receipts i ssued by him in terms of the Th irteenth Schedule to this Act; Amended 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; L.N. 252 of 2019; L.N. 224 of 2020; L.N. 347 of 2024. ELEVENTH SCHEDULE [Article 48] Tax records VALUE ADDED TAX [CAP. 406. 121 (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 the consideration for any supplies, intra-community acquisitions or importations; (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; -t h e i r v a l u e ; - 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 for 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 recei pt of the goods; - the name and address of the customer; - the value added tax identifi cation 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; (k) (i) a register of goods transferred under the call-off stock arrangements referred to in item 17A of the Second Schedule that permits the Commissioner to verify the correct application of the rules in terms of the provisions of the said item 17A of the Second Schedule; and (ii) a register of those goods supplied to him under the call-o ff stock arrangements referred to in it em 17A of the Second Schedule. (2) Invoices shall be stored in the original form in which they were sent or made available, whether paper or el ectronic. 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 Sche dule shall also be stored by el ectronic means. (3) Where a taxable person stores by electronic means invoices o r fiscal receipts which he issues or receives, such person shall ensure the possi bility for online access, download and use of the d ata concerned to the Commissio ner: Provided that where any invoices relate to V AT due in another M ember State, 122 CAP. 406.] VALUE ADDED TAX the competent authorities of such Member State shall, for contr ol purposes, have the right to access, download and use those invoices. Matters to be included in the accounts 2. 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 d u r i n g each tax period; (b) the total value, exclusive of t ax 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 de ductions, the excess tax credit a nd the tax refundable, for each tax period; (e) the calculation, where input ta x credit is allowable under a p artial attribution method, of the provisional input tax credit for eac h tax period, of the definitive inpu t tax credit for each year and of t h e 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 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 enab les 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 f ive 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 i n 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 t erms of this item the value ad ded tax account VALUE ADDED TAX [CAP. 406. 123 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 peri ods ending during that calendar year. Exceptions 6. (1) The Commissioner may, in any particular case or classes of cases, require such additiona l 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 a ny 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 acquisitions 7. Every taxable person who is not registered under article 10 a nd every non- taxable legal person shall keep r ecords 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; (b) the relative invoices; (c) all other information relevant f or the purposes of determining the value of intra-community acquisitions for the purposes of Part Two of t h e Sixth Schedule; (d) all other supporting documents. Records of distance sales and supplies facilitated through the use of an electronic interface 8. (1) Every taxable person shall keep records in sufficient de tail as to enable the determination of the value of distance sales made by him of goods transported from Malta including: (a) a description of the goods and the consideration charged on e ach sale; (b) a copy of the rel ative invoices; (c) all other supporting documents. (2) ( a) Where a taxable person facilit ates, through the use of an ele ctronic interface such as a market pla ce, platform, portal or similar m eans, the supply of goods or services to a non-taxable person within the Community in accordance with the provisions of the Third Sche dule, the taxable person who fa cilitates the supply shall be obliged to keep records of those supplies. Those recor ds shall be sufficiently detailed to enable the tax authorities of the Member States whe re those supplies are taxable to verify that V AT has been accounted f or correctly. (b) The records referred to in paragraph ( a) must be made available 124 CAP. 406.] VALUE ADDED TAX electronically on request to the Member States concerned. Those records shall be kept for a period of ten (10) years from the end of the year du ring which the transaction wa s carried out. 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. Records to be kept by persons registered under articles 11 and 11A 10. (1) Every person registered under articles 11 and 11A shall keep the following records and documents: (a) proper accounts and record s of his economic activity; (b) copies of all fiscal receipts issued by him in terms of the Th irteenth Schedule; (c) all fiscal receipts and tax invoices received by him; (d) all credit notes, debit notes and other documents issued by hi m or received by him which evidence an increase or a decrease in the consideration for any supplies, intra-community acquisitions or importations; and (e) any other documentation issued to customers in relation to sup plies made by him. (2) Invoices and fiscal receipts shall be stored in the original f or m in whic h they were sent or made available, whether paper or electronic. Additionally, in the case of invoices stored by electronic means, the Commissioner may re quire that the data guaranteeing the authenticity of the origin of the invoices and the integrity of their content as provided for in the Act shall also be stored by elec tronic means. (3) Where a taxable person stores by electronic means invoices o r fiscal receipts which he issues or receives, such person shall ensure the possibility for online access, download and use of the data conc erned to the Commissio ner: Provided that where any invoices relate to V AT due in another M ember State, the competent authorities of such Member State shall, fo r control purposes, have the right to access, downloa d and use those invoices. (4) The accounts and records of the economic activity of every p erson registered under articles 11 and 11A shall be kept in such a ma nnar as to enable the following matters to be r eadily ascertained: (a) the total value, exclusive of ta x, of the supplies made to, an d by him during each tax period; and VALUE ADDED TAX [CAP. 406. 125 (b) the output tax and any other ta x payable by such person for ea ch tax period, as may be applicable. 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 2006/112/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 in a n y o f t h e following cases: (a) where the amount of the invoice inclusive of the tax is not hi gher than one hundred euro (€100); (b) where the invoice issued is a document or message treated as a n invoice pursuant to sub-item (2); (c) where the taxable person is benefitting from the exemption for small enterprises provided for under ite m 16 of Part Two of the Fifth Schedule: Provided that the provi sions of this sub-item shall not apply wh ere 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 such Me mber State does not intervene in the supply within t he meaning of the proviso to ar ticle 20(2), and the person liable for the payment of the tax is the person to whom the goo ds 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 b een issued and received in any el ectronic format. Issuance of tax invoice 2.(1) (a) A tax invoice shall be issued by not later than the fifteenth day of the 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; L.N. 225 of 2020; L.N. 348 of 2024; III.2026.72. [Article 50(5)] Tax invoice 126 CAP. 406.] VALUE ADDED TAX 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) s h a l l n o t a p p l y t o a n y p a y m e n t o n a c c o u n t w h i c h precedes an intra-Community supply of goods. (c) A tax invoice shall not be required in respect of a distance s ale made by a person who is making use of the special scheme in Section 3 of Part Seven of the Fourteenth Schedule. (2) ( a) Invoicing shall be subject to the rules applying in the Membe r 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 ) t h e r u l e s a p p l y i n g i n t h e M e m b e r S t a t e i n w h i c h t h e s u p p l i e r h a s 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 accordance with the provisions of the Third Schedule, or his establishment in that Member State does not intervene in the supply within the meaning 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 o r s e r v i c e s a r e s u p p l i e d u n l e s s 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 Third Schedule; (ii) the rules applying in the Member State where the supplier m aking use of one of the special schemes referred to Part Seven of the Fourte enth 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 provid ed that a procedure exists fo r the acceptance of each tax invoice by the taxable person supplying the goods or s ervices. The Commissioner may require that such invoices be issued in the na me and on behalf of the taxable person. Contents of a tax invoice 3. 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; VALUE ADDED TAX [CAP. 406. 127 (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 per son 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 th is Act, such a detail is excl uded; (j) where the person liable for payment of V A T is a tax representa tive in another Member State, the V AT identification number of that tax representative, together wit h his full nam e and address; (k) where the V AT becomes chargeable at the time when the payment is received in accordance with Part One of the Fourteenth 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 referen ce to the relevant provisions of this Act, or the appropriate provisions of Council Directive 2006/112/EC, o r a n y 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 arrange ments 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" or "Margin scheme - Collector’s i tems 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 ta x 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 deta ils referred to in sub-paragrap hs ( g), (h) and ( i) of this item and instead indicat e, 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; 128 CAP. 406.] VALUE ADDED TAX (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 supplies 4. 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-p urchase agreement or in terms of which the ownership of the goods is deferred; (c) a supply on hire; (d) a supply under a co ntract 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 ret urn or similar terms; (h) an export; (i) any other supply. Simplified invoice 5. 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 Valu e 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 iden tify 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 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 VALUE ADDED TAX [CAP. 406. 129 in time of issue until the end of the period for storage of the invoice. Each taxable person shall determ ine 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 el ectronic invoice are those ref erred to in article 233 of Council Directive 2006/112/EC . (5) Where batches containing sever al 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 t he informatio n is accessible. Currency 7. 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 mechan ism provided for in the Seventh Schedule. Translation of invoices 8. 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 cas h 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; "fiscal taxi meter" means a meter which conforms with the requi rements specified in item 14 of this Schedule. Obligation to issue receipt 2. Subject to the other provisions of this Schedule, every perso n who makes a supply shall, except where he is required to issue a tax invoic e in respect of such supply, issue a fiscal receipt in accordance with this Schedule for the consideration paid to him for that supply and such fiscal receipt shall, unle ss issued before the THIRTEENTH SCHEDULE Substituted by: X. 2003.47. Amended by: L.N. 234 of 2011; L.N. 65 of 2015; L.N. 241 of 2021; L.N. 349 of 2024; III.2026.73. [Article 51] Fiscal receipts 130 CAP. 406.] VALUE ADDED TAX payment is made, be issued and d elivered to the person who effe cts the payment or to the person to whom the supply is made immediately after payment has been effected, to the extent covered by such 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, the fiscal recei pt shall be issued on the date of that supply: Provided further that the provisions of this item shall not app ly to supplies which are exempt without credit in accordance with Part Two of the Fifth Schedule other than supplies referred to under item 16(1) of Part Two of the said Schedule. Supplies under the One Stop Shop and the Import One Stop Shop 2A. Persons supplying goods or services under the One Stop Sho p or the Import One Stop Shop, in terms of Chapter 6 of Title XII of Council Di rective 2006/112/EC entering into force as from 1 st July 2021, shall not be requ ired to issue fiscal receipts in terms of this Schedule for such supplies of goods and servic es. Supplies taking place outside Malta 2B. Without prejudice to the provisions of the Twelfth Schedul e, persons who supply goods or services which, in terms of the Third Schedule, take place outside Malta shall not be required to issue fiscal receipts in terms o f this Schedule for such supplies. 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 regist er: provided that in respect of any supply made by such person in any period durin g which he is unable, for a reas onable cause, to issue a fiscal receipt by means of a f iscal 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 constit ute a reasonable cause: (a) not being in possession of a fis cal 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 re gister 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 reasonab le measures have been taken to remedy such defects. Door to door sales of gas, milk or bread VALUE ADDED TAX [CAP. 406. 131 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 products or bread sha ll 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 fis cal receipt which accounts for t h e d i f f e r e n c e between the goods loaded on the vehicle from which the said sup plies are made and the goods remaining on the vehic le 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 recei pts 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 ite ms 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 o ther 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 a s 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 f iscal 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 rece ipt") which accounts for all t he supplies made on each day in the manner prescribed in the ot her provisions of th is item. (2) A daily receipt shall be a fi scal receipt which accounts for a l l t h e s a i d supplies of that day as if such goods were supplied in one supp ly. (3) A person who issues daily recei pts 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 ite ms 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 132 CAP. 406.] VALUE ADDED TAX 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 authorisation to issue one fis cal 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 eac h day in the manner prescribe d in the other provisions of this item. (2) The daily receipts shall be t he 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 recei pts shall keep the originals thereof together with the other records he is re quired to keep for the purposes of this Act. (5) A person who issued daily recei pts 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 o f supplies of goods made by m eans of a vending machine shall account fo r 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 go ods 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 ar e 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 t he 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 th e value of the coins so withdr awn as if that value represented the value of ser vices 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. VALUE ADDED TAX [CAP. 406. 133 Accounting for fiscal r eceipts supplied or approved by the Commissioner 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 Commissioner 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 t he Commissioner may r equire. (3) Every person who issues fis cal receipts on forms approved by t h e 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 r eceipts 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 a fiscal receipt. 11. (1) The Commissioner may, by means of a notice in writing, ex empt any person and may by means of a no tice published on the Government Gazette and the web portal designated by the Commissioner for that purpose exempt a ny class of persons from any obligation imposed by this Schedule, and such exemptio n may be given for such time and with such limitations and subject to such conditi ons as may be specified in the said notice. (2) The Commissioner may at any time by means of a notice publis hed on the Government Gazette and the web portal designated by the Commiss ioner for that purpose revoke any exemption given by virtue 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 twent y-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 on the Government Gazette and the web portal d esignated by the Commissioner for this purpose or approved for the purpos es of and in accordance with this 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) issuance of an itemised receipt for the supplies made in each transaction 134 CAP. 406.] VALUE ADDED TAX indicating - (i) the name and address of the supplier and the Value Added Tax registration number, (ii) the goods or services supplied, (iii) the quantity o f 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 speci fied by the Co mmissioner, (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 or ele ctronic journal; (c) storing of predefined data in an inaccessible and unalterable memory. Fiscal taxi meter 14. (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 Tran sport Malta according to the Ta xi Service Regulations, or any other regulations rep lacing those Regulations. (2) The functions for which a fis cal taxi meter must cater for t he purpose of paragraph (1)( a) of this item are: (a) printing of a receipt for the s upply 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 speci fied by the Co mmissioner, (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. VALUE ADDED TAX [CAP. 406. 135 Part One Cash Accounting Interpretation 1. In this Part: "qualifying supplies" means: (a) services performed by a person h olding a warrant issued under any law in force in Malta to practise a profession acting in an ind ependent capacity in the exercise of such profession; (b) services performed by a group of persons holding a warrant iss ued under any law in force in Malta t o practise a profession whethe r associated in a partnership or otherwise , but excluding a company; (c) services performed by a company, which if performed by a physi cal person would require a warrant i ssued under any law in force in Malta to perform s u c h s e r v i c e s i n t h e e x e r c i s e o f a p r o f e s s i o n , a n d w h i c h i s r e gistered in accordance with any law in force in Malta to practice such prof ession; (d) services performed by an arbitrator pursuant to a submission f or arbitration made in conformity with the Arbitration Act; (e) services performed by a judicial referee, or an expert appoint ed by a court or a tribunal set up by law; (f) services performed by civil, mec hanical and electrical enginee ring contractors in their pro fessional capacity; and (g) supplies made by retailers. Cash accounting option 2. (1) Subject to the other provisions of this Part, a taxable pe rson registered under article 10 who carries out qualifying supplies a n d w h o s e a n n u a l turnover, calculated in accordance with item 3 of the Definitio ns in the Sixth Schedule, FOURTEENTH 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; L.N. 350 of 2024. [Article 57] Special cases 136 CAP. 406.] VALUE ADDED TAX does not exceed €2,000,000, excluding tax, may opt for such tax to become chargeable on the earlier of: (a) the date when a tax invoice or fiscal receipt, as the case may be, is issued for the supply, to the extent covered by such tax invoic e or fiscal receipt; or (b) t h e d a t e w h e n a p a y m e n t i s m a d e f o r s u c h s u p p l y , t o t h e e x t e n t covered by that payment: Provided that the right of deduction of input tax of such perso n shall be postponed until the tax on any goods or services supplied to hi m has been paid to his supplier. (2) The provisions of sub-item (1) shall not apply to supplies o f 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. Invoices and receipts for qualifying supplies 3. (1) Where a tax invoice is required to be issued for a qualify ing supply made in terms of item 2, it shall be issued by not later than t he fifteenth (15) day of the month following the month in which the payment for the said sup ply is made, to the extent covered by such payment. (2) Where a fiscal rece ipt is required to be issued for a qualif ying supply made in terms of item 2, unless it has been issued before the paymen t has been made, it shall be issued and delivered to the pe rson who effects the payment o r to whom the supply is made, immediately after payment has been effected, to the exten t covered by such payment. Transfers of debts arising from s upplies subject to cash accounting 4. Notwithstanding the other provisions of this Part, where a pe rson transfers any debts owed to him arising as a result of a supply made in t erms of item 2, the tax on such a supply shall become charg eable on the date of such trans fer. Cancellation of a registration under article 10 5. Notwithstanding the other provisions of this Part, where the registration of a person registered under article 10 is, for any reason cancelled , the tax on a supply made in terms of item 2 shall become chargeable, at the latest, on t he last day of his last tax period. Part Two Second-hand goods, works of art, collectors’ items and antiques Interpretation 1. In this Part unless the context otherwise requires: (1) "works of art" means - VALUE ADDED TAX [CAP. 406. 137 (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 t he 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 entirel y by hand by the artist, irrespe ctive of the process or of the material employed by him, but not including a ny mechanical or phot omechanical 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 m ade by hand from original design s provided by artists, provided tha t there are not more than eigh t copies of each; (e) individual pieces of ceramics ex ecuted 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 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 fo r use as legal tender; (b) collections and collectors’ pi eces of zoological, botanical, mineralogical, anatomical, hist orical, 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 re pair, other than works of art, collectors’ items or antiques and other than preciou s 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 138 CAP. 406.] VALUE ADDED TAX 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 dealer 2. A second-hand goods dealer who makes supplies of second-hand goods, works of art, collectors’ items a nd 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 not b eing a taxable person covered b y the exemption for small enterprises provided for in Article 284 of Council Directive 2006/112/EC, in so far as the supply of goods by such o t h e r person is an exempt without credit supply; (c) by another taxable person, in so far as the supply of goods by such other taxable person is covered by the exemption for small enterprise s provided for in Article 284 of Council Directive 2006/112/EC and involve s capital goods. (d) by another second-hand goods dealer, in so far as the supply o f goods by that other second-hand goods deal er was subject to value added tax in accordance with the other p rovisions of this Part. 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 an d the purchase price. (2) For the purposes of par agraph (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 subsidie s directly linked to that tran saction, taxes, duties, levies and charges and incidental expenses such as commission, packaging, transport and insurance costs charged by t h e 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 everythi ng 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 the provisions of this Part, after having obtained the approval of the Commiss ioner in writing, in VALUE ADDED TAX [CAP. 406. 139 respect of supplies of: (a) works of art supplied to them by their creators or their succe ssors in title; and (b) works of art supplied to them by a taxable person other than a taxable dealer. (2) Where a second-hand goods deal er exercises the option availa ble under sub- item (1), such option shall cover, a minimum of, two (2) calend ar years. (3) Where a second-hand goods dealer exercises the option availa ble under sub-item (1), the taxable value shall be determined in accordance with i tem 4 of this Part. 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 r espect 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; (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 accounting 7. Where a second-hand goods dealer makes supplies to which this Part refers and other supplies, he must kee p separate accounts to distingui sh between the supplies made to which this Part refers and those other supplie s. Purchase invoice 8. 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 s hall 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 addre ss of the purchaser; (e) a description of the goods; (f) the total price paid; (g) a c r o s s r e f e r e n c e t o t h e e n t r y o f t h e t r a n s a c t i o n i n t h e p u r c haser’s account books; (h) the signature of the seller. Sales invoice 140 CAP. 406.] VALUE ADDED TAX 9. A second-hand goods dealer who makes any supply to which this Part refers shall not issue a tax invoice or a ny 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 o f 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 Act 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 dea ler so opts in respect of - (a) the supply of works of art, collectors’ items or antiques whic h he has imported himself, he shall be ent itled 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 w ork 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 t ime 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 which commission is payable on purchase or sale and is an exempt supp ly in terms of Part Two of the Fif th Schedule to the Act; or (c) another taxable person, in so f ar as the supply of goods, carr ied out by such taxable person in accordance with a contract under which commis sion is payable on sale, is covered by th e exemption for small enterpri ses provided VALUE ADDED TAX [CAP. 406. 141 for in Article 284 of Council Directive 2006/112/EC and involve s capital goods; 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 th i s item applies is the total amount invoiced to the purchaser by t he auctioneer in accordance with paragraph (4) of this item, less - (a) t h e n e t a m o u n t p a i d o r t o b e p aid by the auctioneer to his pri ncipal, determined in accordance with par agraph (3) of this item, and (b) the amount of the tax due by t he 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, u nder 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; (b) the date of the sale; (c) the name, address and value adde d tax registration number of t he seller; (d) the name and addre ss 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 char ged 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 in put tax has or will be claimed by me in respect of the goods sold on this invoice."; and the sales invoice shall not s how 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 addre ss of the principal; (d) the name, address and value added tax registration number of t he 142 CAP. 406.] VALUE ADDED TAX 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 principa l 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 r eimbursed to the vendor of the goods; and the above amounts must be su bstantiated 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 goods 12. Where any goods are repossessed - (a) under the terms of a finance agreement, or (b) by any insurer in the settlement of a cla im 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 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 Professional Services Definition of professional services 1. For the purpose of this Part, "professional services" shall mean the qualifying services referred to in Part One of this Schedule." Date when certain services are performed 2. When, for any purpose of this Act, it is necessary to determi n e t h e d a t e when professional services refe rred to in this Part are perform ed, the following 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 date when a final decree or judgment in those proceedings is delivered by t he court in which the proceedings have been instituted, or, when the advocate or legal procurator abandons or is abandoned by his client at an earlier date, on s uch earlier date: Provided that services relating to proceedings instituted in di fferent courts are to be treated as supplied separately; VALUE ADDED TAX [CAP. 406. 143 (b) the services of a judicial ref eree or of an expert appointed b y a court or a tribunal set up by law shall be treated as performed on th e date on which the report is filed or made to the court or tribunal or, when the a ppointment is terminated on an earlier date , on such earlier date; and (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 earli er date, on such earlier date. Tax on certain professional services where tariffs of fees are established by law 3. (1) The tax chargeable on a supply of professional services sh all be an amount over and above the amount r esulting to be chargeable for those services in terms of any tariff of fees establishe d under any law in force in Mal ta. (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 enforc ement of the executive title ref erred to in article 253(c) of the Code of Organization and Civil Procedure, the amo unt for which payment may be enforced shall be the amount indicated in the taxed bill of costs concerned increased by any tax chargeable on the supply of professional s ervices to which the taxed bill of costs refers as evidenced by a tax invoice or a fiscal receipt or a certified copy thereof attached to the said bill. (4) The provisions of sub-item (3 ) shall be without prejudice to the right of the debtor to request the delivery of the original tax invoice or t he fiscal receipt in accordance with item 4 of this Part. Tax claimed from third parties 4. 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 ser vices 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 s upply of the said services unless the original tax invoice or fiscal receipt for those services complying with the provisions of paragraph (b) is delivered to him or, where the action is brought against a numbe r of persons jointly, to any o ne of them; (b) a tax invoice delivered as aforesaid shall, in addition to the information required by this Act, contain: (i) the following declaration signed by the person to whom the said services were rendered: "I declare that no credit for input tax has been or shall be claimed by me in respect of the professional services referred to in this tax invoice; 144 CAP. 406.] VALUE ADDED TAX (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 b r o u g h t against a number of persons jointly, when any one of them is a person registered under article 10, the name and value added tax ident ification number of the said registered person; and (c) when a tax invoice or fiscal receipt for fees for professional services, complying with the provisions of paragraph (b) if applicable, i s delivered to a taxable person who is bound at law to pay or rei mburse the said fees it shall for the purposes of this Act be deemed a s if it were a tax invoice for professi onal services supplied to him. Part Four Travel Agents Interpretation 1. In this Part "travel agent" means and includes any person who , without material alterations, buys in an d 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 r epayment of expenses to anothe r person in the name and for the acc ount of the traveller. Services supplied to be deemed as a single transaction 3. All transactions performed by a travel agent for the benefit of the traveller in connection with the journey shall be treated as a single supply of services supplied by him to the traveller. Place of supply 4. The place of supply of services to which item 3 applies is th e place where the travel agent is established. 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 ta x 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 i tem if the travel agent holds such a tax invoice. Input tax 6. 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 ded uction or refund. Supplies outside the Community VALUE ADDED TAX [CAP. 406. 145 7. 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 S chedule. 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 Commissioner 8. The Commissioner may give such directives to, and require suc h information from, a travel age nt as he may deem necessary for t he application of this Part. Records 9. 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 ta x 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 this Act, the Commissioner may, by notice in writing to the parties to the contract direct that the payment of the tax on a taxable supply made to a person established in Malta and registered under articles 10 or 12 shall be a liability of the person to whom the supply is made. 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 t erms of the other provisions of the Act, such other records as may be necessary to as certain 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 this Part, the tax invoice which is required to be issued in terms o f this Act by the person who makes the supply shall, instead of the information required by item 3(i) of the Twelfth Schedule, indicate the words "Dir ection for customer to self-ch arge V AT in terms of Part Five of the Fourteenth Schedule to the V AT 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 o ther provision s 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. Me mber 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 g reater than 900 thousandths, 146 CAP. 406.] VALUE ADDED TAX (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 pri ce 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 rig ht 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 whic h 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 deli vered 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 t he date of any such supplies; (c) shall specify the name and valu e 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 gold 3. Traders in investment gold ke ep account of all substantial tr ansactions in investment gold and keep the documentation to allow identificat ion of the customer in such transactions. Interpretation 1. In this Part, the follow ing definition shall apply: "V AT return" means the statement containing the information nec essary to establish the amount of V AT due in each Member State. Section 2 Special scheme for services supp lied by taxable persons not est ablished within the Community Part Seven Special schemes for taxable per sons supplying services to non- taxable persons or making dist ance sales of good s or certain domestic supplies of goods Section 1 General Provisions Substituted by: L.N. 226 of 2020. VALUE ADDED TAX [CAP. 406. 147 Interpretation 1. For the purpose of this Section, without prejudice to other p rovisions of this Act, the following definitions shall apply: "Member State of consumption" mean s the Member State in which t he supply of services is deemed to take pl ace according to Part Two of the T hird Schedule; "Member State of identification" means the Member State which t he taxable person not established within the Community chooses to contact to state when his activity as a taxable person wit hin the territory of the Commun ity commences in accordance with the provisions of this Section; "taxable person not established within the Community" means a t axable person who has not established his business in the territory of the Co mmunity and who has no fixed establishment there. Permission to use the special scheme 2. The Commissioner shall permit any taxable person not establis hed within the Community supplying services to a non-taxable person who is established in a Member State or has his permanent address or usually resides in a Member State, to use this special scheme. This scheme applies to all those servi ces supplied within the Community. Notification to the Commissioner 3. The taxable person not established within the Community shall state to the Commissioner when he commences o r ceases his activity as a taxa ble person, or changes that activity in such a w ay that he no longer meets the conditions necessary for use of this special scheme. H e shall communicate that infor mation electronically. Information that shall be provided to the Commissioner 4. (1) The information which the taxable person not established within the Community shall 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 code number, if any; (e) a statement that the person has not established his business in the territory of the Community and ha s no fixed establishment there . (2) The taxable person not estab lished within in the Community s hall notify the Commissioner of any changes in the information provided. VAT identification number 5. The Commissioner shall allocate to the taxable person not est ablished within the Community an individual V AT identification number for the a pplication of this special scheme and shall notify him of that number by electroni c means. On the basis of the information used for that identification, Member States of consumption may have recourse to their ow n identifica tion systems. Cancellation from identification register 6. The Commissioner shall delete the taxable person not establi shed within the Community from the identification register in the following cas es: (a) if he notifies the Commissioner that he no longer supplies se rvices 148 CAP. 406.] VALUE ADDED TAX covered by this special scheme; (b) if it may otherwise be assumed that his taxable activities ha ve ceased; (c) if he no longer meets the condi tions necessary for use of thi s special scheme; (d) if he persistently fails to comply with the rules relating to this special scheme. Submission of VAT return 7. The taxable person not established within the Community makin g use of this special scheme shall submit by electronic means to the Commissi oner a V A T return for each calendar quarter, whether or not services covered by t his special scheme have been supplied. The V AT return shall be submitted by the en d of the month following the end of the tax p eriod covered by the return. Details and adjustments that shall be included in VAT return 8. The V AT return shall show the individual V AT identification n umber for the application of this special scheme and, for each Member State o f consumption in which V AT is due, the total value, exclusive of V AT, of supplies of services covered by this special scheme carried out during the tax period and to tal amount per rate of the corresponding V AT. The applicable rates of V AT and the tota l V AT due shall also be indicated on the return. Where any amendments to the V AT ret urn are required after its submission, such amendments shall be included in a su bsequent return within three (3) years of the date on which the initial return was required to be submitted pursuant to item 7. That subsequent V AT return shall identify the relevant Member State of consumption, the tax period and the amount of V AT for which any amendments are required. Reporting currency 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 establish ed within the Community shall, for the purpose of completing the V AT return, use the exchange rate applying on the last day of the tax period. The conversion shall be made by applying the exchange rates published by the European Central B ank for that day, or if there is no publication for that day, on the next day of pub lication. Payment of the tax 10. The taxable person not established within the Community shal l pay the V AT, making reference to the relevan t V AT return, when submitting the V AT return, at the latest, at the expiry of the deadline by which the return shall be submitted. Payment shall be made to a ban k account denominated in euro, de signated by the Commissioner. Deduction of input tax 11. The taxable person not established within the Community maki ng use of this special scheme may not deduct V A T pursuant to Article 168 of Co uncil Directive 2006/112/EC. Notwithstanding paragraph 1 of Article 1 of Directive 86/560/EEC, the taxable person in question shall be refunded in accordance with that Directive. Article 2(2) and (3), and Article 4(2) of Directive 86/560/EEC shall not apply to refunds relating to services cov ered by this s pecial scheme. If the taxable person making use of this special scheme is requ ired to be registered in a Member State for activities n ot covered by this special sc heme, he shall deduct V AT incurred in that Member State in respect of his taxable act ivities which are VALUE ADDED TAX [CAP. 406. 149 covered by this special scheme in the V A T return that shall be submitted pursuant to Article 250 of Council Directive 2006/112/EC. Records 12. (1)The taxable person not established within the Community shall keep records of the transactions cover ed by this special scheme. Tho se records shall be sufficiently detailed to enable the tax authorities of the Memb er State of consumption to verify that t he V AT return is correct. (2) The records referred to in sub -item (1) shall be made availa ble electronically on request to the Commissioner an d to the Member State of consu mption. Those records shall be kept for a period of ten (10) years from the end of the year during which the trans action was carried out. Section 3 Special scheme for intra-Commun ity distance sales of goods, for supplies of goods within a Member State made by electronic interfaces facil itating those supplies and for serv ices supplied by taxa ble persons establish ed within the Community but not in the Member State of consumption Interpretation 1. For the purpose of this Section, without prejudice to other p rovisions of this Act, the following definitions shall apply: "Member State of consumption" means one (1) of the following: (a) in the case of the supply of services, the Member State in whi ch the supply is deemed to take place in terms of Part Two of the Thir d Schedule; (b) in the case of intra-Community distance sales of goods, the Me mber State where the dispat ch or transport of the goods to the custo mer ends; (c) in the case of the supply of goods made by a taxable person fa cilitating those supplies in accordance with sub-item (2) of item 12A of t he Second Schedule, where the dispatch or transport of the goods s upplied begins and ends in the same Me mber State, that Member State; "Member State of identification" means the Member State in the territory of which the taxable person has established his business or, if he has n ot 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 (1) fixed establis hment therein, the Member State of identification shall be the Member State with a fixed establishment where that taxable person indicates that he shall make use of this special scheme. The ta xable person shall be bound by this decision for the ca lendar year concerned and the two (2) calendar years following. Where a taxable person has not established his business in the Community and has no fixed establishment therein, the Member State of identificat ion shall be the Member State in which the dispatch or transport of the goods be gins. Where there is more than one (1) Member State in which the dispatch or transpo rt of the goods begins, the taxable person shall indicate which of those Member States shall be the Member State of identification. The taxable person shall be bou nd by that decision for the calendar year concerned and the two (2) calendar years following; "taxable person not established in the Member State of consumpt ion" means a 150 CAP. 406.] VALUE ADDED TAX taxable person who has established his business in the Communit y or has a fixed establishment there but has not established his business and ha s no fixed establishment within the territo ry of the Member State of consu mption. Permission to use the special scheme 2. The Commissioner shall permit the following taxable persons t o use this special scheme: (a) a taxable person carrying out intra-Community distance sales of goods; (b) a taxable person facilitating the supply of goods in terms of sub-item (2) of item12A of the Second Schedule where the dispatch or transpo rt of the goods supplied begins and e nds in the same Member State; (c) a taxable person not established in the Member State of consu mption supplying services to a non-taxable person. This special scheme applies to a ll those goods or services supp lied in the Community by the taxable person concerned. Notification to the Commissioner 3. A taxable person shall state to the Commissioner when he comm ences and ceases his taxable activities co vered by this special scheme, o r changes those activities in such a way that he no longer meets the conditions necessary for use of this special scheme. H e shall communicate that information by e lectronic means. VAT identification number 4. A taxable person making use of this special scheme shall, for th e ta x a b l e 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 internal system. On the basis of the information used for that identification, M ember States of consumption may have recourse to their own identification syste ms. Exclusion from the special scheme 5. The Commissioner shall exclude a taxable person from the spe cial scheme in any one (1) of the following cases: (a) if he notifies that he no longer carries out supplies of good s and services covered by this special scheme; (b) if it may otherwise be assumed that his taxable activities co vered by this special scheme have ceased; (c) if he no longer meets the condi tions necessary for use of thi s special scheme; (d) if he persistently fails to comply with the rules relating to this special scheme. Submission of VAT return 6. The taxable person making use of thi s special scheme shall submit b y electronic means to the Commissioner a V AT return for each cale ndar quarter, whether or not supplies of goods and services covered by this s pecial scheme have been carried out. The V AT return shall be submitted by the end of the month following the end of the tax p eriod covered by the return. Details and adjustments that shall be included in VAT return VALUE ADDED TAX [CAP. 406. 151 7. (1) The V AT return shall show the V AT identification number referred to in item 4 and, for each Member Stat e of consumption in which V AT i s due, the total value exclusive of V AT, the applicable rates of V AT, the total amount per rate of the corresponding V AT and the total V AT due in respect of the follo wing supplies covered by this special scheme carried out during the tax perio d: (a) intra-Community distance sales of goods; (b) supplies of goods in accordance with sub-item (2) of item 12A of the Second Schedule where the dispat ch or transport of those goods provided begins and ends i n the same Member State; (c) supplies of services. The V AT return shall also include amendments relating to previo us tax periods as provided in sub-item (4). (2) Where goods are dispatched or transported from Member States other than Malta, the V AT return shall also include the total value exclus ive of V AT, the applicable rates of V AT, the total amount per rate of the corre sponding V AT and the total V AT due in respect of the following supplies covered by t his special scheme, for each Member State where such goods are dispatched or transp orted from: (a) intra-Community distance sales of goods other than those made b y a taxable person in accordance with sub-item (2) of item 12A of t he Second Schedule; (b) intra-Community distance sales of goods and supplies of goods where the dispatch or transport of those goods begins and ends in the s a m e Member State, made by a taxabl e person in accordance with sub-i tem (2) of item 12A of the Second Schedule. In relation to the supplies referred to in paragraph ( a), the V A T return shall also include the individual V AT identification number or the tax ref erence number allocated by each Member State where such goods are dispatched or transported from. In relation to the supplies referred to in paragraph ( b), the V A T return shall also include the individual V AT identification number or the tax ref erence number allocated by each Member State where such goods are dispatched or transported from, if available. The V AT return shall include the information referred to in thi s sub-item broken down by Member State of consumption. (3) Where the taxable person supplying services covered by this special scheme has one (1) or more fixed establishments, other than that in Ma lta, from which the services are supplied, the V AT return shall also include the to tal value exclusive of V A T, the applicable rates of V A T, the total amount per every ra te of the corresponding V AT and the total V AT due of such supplies, for each Member State in which he has an establishment, together with the individual V AT identification number or the tax reference number of this establishment, broke n down by Member State of consumption. (4) Where any amendments to the V AT return are required after i ts submission, such amendments shall be included in a subsequent return within three (3) years of the date on which the initial return was required to be submitt ed pursuant to item 6. That subsequent V AT return shall identify the relevant Member S tate of consumption, the tax period and the amount of V AT for which any amendments are required. 152 CAP. 406.] VALUE ADDED TAX Reporting currency 8. The V AT return shall be made out in euro. If the supplies have been made in other currencies, the taxable person making use of this special scheme shall, for the purpose of completing the V A T return, use the exchange rate applying on the la st date of the tax period. The conversion shall be made by applying the exchange rates published by the European C entral Bank for that day, or if there is no pub lication for that day, on the ne xt day of publication. Payment of the tax 9. The taxable person making use of this special scheme shall pa y the V AT, making reference to the relevant V A T return, at the latest at the expiry of the deadline by when the ret urn shall be submitted. Payment shall be made to a ban k account denominated in euro, de signated by the Commissioner. Deduction of input tax 10. The taxable person making use of this special scheme may not, in re spect of his taxable activities covered by this special scheme, deduct V AT incurred in the Member State of consumption pursuant to Article 168 of Council Directive 2006/ 112/EC. Notwithstanding Article 2(1), Article 3 and point ( e) of Article 8(1) of Directive 2008/9/EC, the taxable person in question shall be re funded in accordance with that Directive. If the taxable person making use of this special scheme is requ ired to be registered in a Member State for activities n ot covered by this special sc heme, he shall deduct V AT incurred in that Member State in respect of his taxable act ivities which are covered by this special scheme in the V A T return that shall be submitted pursuant to Article 250 of Council Directive 2006/112/EC. Records 11. (1) The taxable person making use of this special scheme s hall keep records of the transactions covered by th is special scheme. Those recor ds shall 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 s ub-item (1) shall be made avail able electronically on request to the Member State o f consumption and to the Commis sioner. Those records shall be kept for a period of ten (10) years from 31 December of the year during which the tran saction was carried out. Section 4 Special scheme for distance sa les of goods imported from third territories or third countries Interpretation 1. For the purposes of this Section, without prejudice to other provisions of this Act, the following definitions shall apply: "intermediary" means a person established in the Community appo inted by the taxable person carrying out dist ance sales of goods imported fr om third territories or third countries as the person liable for payment of the V AT and to fulfil the obligations laid down in this sp ecial scheme in the name and on behalf of the taxable person; VALUE ADDED TAX [CAP. 406. 153 "Member State of consumption" means the Member State where the dispatch or transport of the goods to the customer ends; "Member State of identifi cation" means the following: (a) where the taxable person is not established in the Community, t h e Member State in which he chooses to register; (b) where the taxable person has e stablished his business outside t h e Community but has one (1) or more fixed establishments therein, t h e Member State with a fixed establishment where the taxable perso n indicates he shall make use of this special scheme; (c) where the taxable person has established his business in a Me mber State, that Member State; (d) where the intermediary has established his business in a Membe r State, that Member State; (e) where the intermediary has established his business outside th e Community but has one (1) or more fixed establishments therein, t h e Member State with a fixed establishment where the intermediary indicates he shall make use of this special scheme. For the purposes of sub-paragraphs ( b) and ( e), where the taxable person or the intermediary has more than one (1) fixed establishment in the C ommunity he shall be bound by the decision to indicate the Member State of establ ishment for the calendar year concerned and the two (2) calendar years followin g; "taxable person not established within the Community" means a t axable person who has not established his business in the territory of the Co mmunity and who has no fixed establishment there. Distance sales of goods imported from third territories or third countries 2. For the purposes of this Section, distance sales of goods imp orted from third territories or third countries shall only cover goods, except g oods subject to excise duty, in consignments of an intrinsic value not exceeding one-h undred and fifty euro (€ 150). Permission to use the special scheme 3. (1) The Commissioner shall permit the following taxable perso ns carrying out distance sales of goods imported from third territories or third countries to use this special scheme: (a) any taxable person established in the Community carrying out distance sales of goods imported from third territories or third countri es; (b) any taxable person whether or not established in the Communit y carrying out distance sales of goods imported from third territ ories or third countries and who is represented by an intermediary estab lished in the Community; (c) any taxable person established in a third country with which the Union has concluded an agreement on mu tual assistance similar in scop e to Council Directive 2010/24/EU and Regulation (EU) No 904/2010 an d who is carrying out distance sales of goods imported from that third country. Those taxable persons shall apply this special scheme to all their distance sales of goods im ported from third territories o r third countries. (2) For the purposes of paragraph ( b) of sub-item (1), any taxable person shall 154 CAP. 406.] VALUE ADDED TAX not appoint more than one (1) i ntermediary at t he same time. Chargeable event and chargeability of tax 4. For distances sales of goods i mported from third territories or third countries on which V AT is declared under this special scheme, the chargea ble event shall occur and V AT shall become chargeable at the time of supply. The good s shall be regarded as having been supplied at the time when the payment has been a ccepted. Notification to the Commissioner 5. The taxable person making use of this special scheme or an in termediary acting on his behalf, shall state to the Commissioner when he c ommences or ceases his activity under this special s cheme, or changes that activit y in such a way that he no longer meets the conditions necessary for use of this specia l scheme. That information shall be com municated electronically. Information that shall be provided to the Commissioner 6. (1) The information which the taxable person not making use o f an intermediary shall provide to the Commissioner before he commen ces the use of this special scheme, shall conta in the following details: (a) name; (b) postal address; (c) electronic addre ss and websites; (d) V AT identification number or national tax code number. (2) The information which the intermediary shall provide to the Commissioner before he commences the use of this special scheme on behalf of a taxable person shall contain the following details: (a) name; (b) postal address; (c) electronic address; (d) V AT identification number. (3) The information which the intermediary shall provide to the Commissioner in respect of each taxable person which he represents before th at taxable person commences the use of th is special scheme, shall contain the fol lowing details: (a) name; (b) postal address; (c) electronic addre ss and websites; (d) V AT identification number or national tax code number; (e) his individual identification number allocated in accordance w ith sub- item (3) of item 7. (4) Any taxable person making use of this special scheme or, wh ere applicable, his intermediary shall notify th e Commissioner o f any changes i n the information provided. VAT identification number 7. (1)The Commissioner shall allocate to the taxable person maki ng use of this special scheme an individual V AT identification number for the application of this special scheme and shall notify him of that number by electroni c means. VALUE ADDED TAX [CAP. 406. 155 (2) The Commissioner shall allocat e to an intermediary an indiv idual identification number and shall notify him of that number by el ectronic means. (3) The Commissioner shall allocate an individual V AT identific ation number for the application of this speci al scheme to the intermediary in respect of each taxable person for which he is appointed. (4) The V AT identification number allocated under sub-items (1), (2) and (3) shall be used only for the pur poses of this special scheme. Cancellation from identification register 8. (1) The Commissioner shall del ete the taxable person not maki ng use of an intermediary from the identification register in the following cases: (a) if he notifies the Commissioner that he no longer carries out distance sales of goods imported from third territories or third countri es; (b) if it may otherwise be assumed that his taxable activities of d i s t a n c e sales of goods imported from third territories or third countri es have ceased; (c) if he no longer meets the cond i ti o n s n e c e s s a r y f o r us e of t his special scheme; (d) if he persistently fails to comply with the rules relating to this special scheme. (2) The Commissioner shall delet e the intermediary from the ide ntification register in the following cases: (a) if for a period of two (2) consecutive calendar quarters he h as not acted as an intermediary on behalf of a taxable person making use of this special scheme; (b) if he no longer meets the ot her conditions necessary for acti ng as an intermediary; (c) if he persistently fails to comply with the rules relating to this special scheme. (3) The Commissioner shall delete the taxable person represente d by an intermediary from the identification register in the following cases: (a) if the intermediary notifies the Commissioner that this taxab le person no longer carries out distance sa les of goods imported from thi rd territories or third countries; (b) if it may otherwise be assumed that the taxable activities of d i s t a n c e sales of goods imported from third territories or third countri es of this taxable person have ceased; (c) if this taxable person no lon ger meets the conditions necessa ry for use of this special scheme; (d) if this taxable person persistently fails to comply with the rules relating to this special scheme; (e) if the intermediary notifies the Commissioner that he no long er represents this taxable person. Submission of VAT return 9. The taxable person making use of this special scheme or his intermediary shall submit by electronic means to the Commissioner a V AT retu rn for each month, 156 CAP. 406.] VALUE ADDED TAX whether or not distance sales of goods imported from third terr itories or third countries have been carried out. The V AT return shall be submitted by the end of the month following the end of the tax period covered by the return . Where a V AT return shall be submitted in accordance with this i tem, the Commissioner shall not impose, for V AT purposes, any additional obligation or any other formality upon importation. Details and adjustments that shall be included in VAT return 10. (1)The V AT return shall show t he V AT identification number referred to in item 7 and, for each Member Stat e of consumption in which V AT i s due, the total value, exclusive of V AT, of distance sales of goods imported fr om third territories or third countries for which V AT has become chargeable during the tax period and the total amount per rate of the corresponding V AT. The applicable rates of V AT and the total V AT due shall also be indicated on the return. (2) Where any amendments to the V AT return are required after it s submission, such amendments shall be included in a subsequent return within three (3) years of the date on which the initial return was required to be submitt ed pursuant to item 9. That subsequent V AT return shall identify the relevant Member S tate of consumption, the tax period and the amount of V AT for which any amendments are required. Reporting currency 11. The V AT return shall be made out in euro. If the supplies have been made in other currencies, the taxable person making use of this special scheme or his intermediary shall, for the purpo ses of completing the V AT return, use the exchange rate applying on the last date of the tax period. The conversion shall be made by applying the exchange rates publish ed by the European Central Bank for that day, or, if there is no publication on th at day, on the next day of publication. Payment of the tax 12. The taxable person making use of this special scheme or his intermediary shall pay the V AT, making reference to the relevant V AT return at the latest at the expiry of the deadline by which the return shall be submitted. Payment shall be made to a ban k account denominated in euro, de signated by the Commissioner. Deduction of input tax 13. The taxable person making use of this special scheme may not , in respect of his taxable activities covered by this special scheme, deduct V AT incurred in the Member States of consumption pursuant to Article 168 of Council Directive 2006/ 112/EC. Notwithstanding Article 1(1) of Directive 86/560/EEC an d Article 2(1) and Article 3 of Directive 2008/9/EC , the taxable person in questio n shall be refunded in accordance with those Directives. Article 2(2) and (3) and Arti cle 4(2) of Directive 86/560/EEC shall not apply to refunds relating to goods covered by this special scheme. If the taxable person making use of this special scheme is requ ired to be registered in a Member State for activities n ot covered by this special sc heme, he shall deduct V AT incurred in that Member State in respect of his taxable act ivities which are covered by this special scheme in the V A T return that shall be submitted pursuant to Article 250 of Council Directive 2006/112/EC. VALUE ADDED TAX [CAP. 406. 157 Records 14. (1)The taxable person making u se of this special scheme shal l keep records of the transactions covered by th is special scheme. An intermed iary shall keep records for each of the taxable pe rsons he represents. Those re cords shall be sufficiently detailed to enable the tax authorities of the Memb er State of consumption to verify that t he V AT return is correct. (2) The records referred to in sub -item (1) shall be made availa ble electronically on request to the Member State of consumption and to the Commis sioner. Those records shall be kept for a period of ten (10) years from the end of the year during which the trans action was carried out. Permission to use the special arrangement 1. Where, for the importation of goods, except goods subject to excise duties, in consignments of an intrinsic value not exceeding one-hundred and fifty euro (€150), the special scheme in Section 4 of Part Seven of this S chedule is not used, the Commissioner shall permit the person presenting the goods t o Customs on behalf of the person for whom the goods are destined within Malta to m ake use of special arrangements for declaration and payment of import V AT in respe ct of goods for which the dispatch or tr ansport ends in Malta. Liability and collection of the tax 2. (1)For the purpose of this special arrangement, the following shall apply: (a) the persons for whom the goods are destined shall be liable fo r the payment of the V AT; (b) the person presenting the goods to Customs in Malta shall collect the V AT from the person for whom the goods are destined and effect payment of such V AT. (2) The Commissioner shall establish an administrative procedure t o b e followed by the person presenting the goods to Customs by which that person should take appropriate measures to ensure that the correct tax is pai d by the person for whom the goods are destined. Reporting, payment and records 3. (1)The person presenting the goods to Customs under this spec ial arrangement shall report electro nically the V AT collected from the persons for whom the goods are destined in a mont hly declaration. The declaratio n shall include the total V AT collected during the relevant calendar month. (2) The Commissioner shall require that the V AT referred to in sub-item (1) be payable monthly by the deadline for payment applicable to the p ayment of import duty. (3) The persons making use of thi s special arrangement shall kee p records of the transactions covered by this sp ecial arrangement for a period o f at least three (3) years and that period shall star t to run from the end of the ye ar in which the customs declarations for release for fr ee circulation are accepted. Tho se records shall be sufficiently detailed to enable the Commissioner or the Comptro ller of Customs to verify that the V AT declared is correct and be made available e lectronically on Part Eight Special arrangements for declara tion and payment of import V AT Substituted by: L.N. 226 of 2020. 158 CAP. 406.] VALUE ADDED TAX request to the Commissioner or the Comptroller of Customs as th e case may be. Interpretation 1. In this part: "voucher" means an instrument wh ere there is an obligation to a ccept it as consideration or part consider ation 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 instrume nt itself or in related documen tation, including the terms and conditions of us e of such instrument; "single-purpose voucher" means a voucher where the place of sup ply of the goods or services to which the voucher r elates, and the V AT due on those 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 t han a single-pu rpose voucher. Single-purpose voucher 2. (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 act ual handing over of the goods or the actual provision of the services in return for a single-purpose vouche r accepted as consideration or part consider ation 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 tax able 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 t he taxable person is acting. (3) Where the supplier of goods or services is not the taxable p erson who, acting in his own name, issued the single-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 voucher 3. (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 car rying 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 value 4. Without prejudice to item 1 of the Seventh Schedule to the Va lue Added Tax Act, the taxable amount of the supply of goods or services prov ided in respect of a Part Nine* V ouchers Added by: L.N. 348 of 2017. VALUE ADDED TAX [CAP. 406. 159 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: 2. Notwithstanding the foregoing provisions, Northern Ireland, t he United Kingdom Sovereign Base Areas of Akrotiri and Dhekelia and the P rincipality of Monaco shall be treated as territ ories of Member States and, su bject to the following conditions, transactions origi nating in or intended for: (a) Northern Ireland shall be treat ed as originating in or intende d for a Member State where the transactions consist of supplies of good s. For the purpose of the "value added tax identificati on number" as d efined in a r t i c l e 2 ( 1 ) o f t h e A c t , t h e p r e f i x " X I " s h a l l b e u s e d f o r N o r thern Ireland; (b) the United Kingdom Sovereign Base Areas of Akrotiri and Dhekel ia shall be treated as transactions originating in or intended for Cyprus; and 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. Amended by: L.N. 477 of 2020. 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 Islands French Republic The overseas departments Hellenic Republic Mount Athos Kingdom of Spain Ceuta Melilla The Canary Islands Republic of Italy Livigno Campione d’Italia The Italian waters of Lake Lugano 160 CAP. 406.] VALUE ADDED TAX (c) the Principality of Monaco shall be treated as originating in or intended for the Fren ch Republic. "Excise goods" means products under any of the following descri ptions in so far as they are subject to exc ise 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. SIXTEENTH SCHEDULE Added by: X. 2003.47. Substituted by: L.N. 536 of 2010. [Article 2] Excise Goods