L.S. 406.01 Regolamenti dwar Taxxa fuq il-Valur Miżjud (Ħlas lura ta' Taxxa tas-Sisa fuq Ħażniet Kummerċjali)

(1)In these regulations unless context otherwise requires - "the Act" means the Value Added Tax Act; "excise tax" means excise tax on imports or excise tax on products paid or payable in terms of the Customs and Excise Tax Act; Citation. Interpretation. Cap.

1. Cap.
2. "registered person" means a person who is registered in terms of the Act but shall not include a registered person who is classified as an exempt person or who is so classified up to 30 June, 1999; "trading stock" means stock held for resale by a registered person as on the 31 December, 1998 but shall not include stock on which no excise tax has been paid.

(2)Other terms and expressions shall have the meaning assigned to them in the Act. 3.

(1)Subject to the other provisions of these regulations, a registered person may make an application for a refund of excise tax to be determined in accordance with the other provisions of these regulations.

(2)An application for purpose of these regulations must reach the office of the Commissioner, in the case of a registered person who avails himself of the option referred to in regulation 4, 5, 6, 7, or 8, by not later than 12 noon of the 30 July, 1999, or such other later dates as the Commissioner may, for valid reasons, accept, and in the case of a registered person who avails himself of the option referred to in regulation 9, by not later than 12 noon of the 30 July, 1999, or such other later dates as the Commissioner may, for valid reasons, accept: Provided that the provisions of regulation 12 shall not apply where the application made for the purposes of the said regulation reached the office of the Commissioner, in the case of a registered person who availed himself of the options referred to in regulations 4, 5, 6, 7 or 8, after 12 noon of the 30 June, 1999, and in the case of a registered person who availed himself of the option referred to in regulation 9, after 12 noon of the 30 March, 1999.

(3)An application by a registered person who avails himself of the option referred to in regulation 4, 5, 6, 7 or 8 shall be made on the form prescribed in the First Schedule. Application for refund. Amended by: L.N. 53 of 2001. 1 2 VALUE ADDED TAX (REFUND OF EXCISE DUTY ON TRADING STOCK) [ S.L.406.01

(4)An application by a registered person who avails himself of the option referred to in regulation 9 shall be made on the form prescribed in the Second Schedule. Contents of application. 4.

(1)The application referred to in regulation 3

(3)shall include an itemised list of the goods held as trading stock by the applicant as on 31 December, 1998 and shall show the cost at which the applicant had acquired the said goods. Such goods shall be classified by category showing: (

1. a)Category A - goods on which excise tax on imports at the rate of 15% has been paid; (
2. b)Category B - goods on which excise tax on imports at the rate of 15% and excise tax on products at the rate of 5% has been paid; (
3. c)Category C - goods which were subject to a levy under the Local Manufacturers (Promotion) Act, and on which only excise tax on products at the rate of 5% has been paid; Cap. 336. (
4. d)Category D - locally manufactured goods on which only excise tax on products at the rate of 5% has been paid; (
5. e)Category E - locally manufactured goods on which excise tax on imports at the rate of 15% and excise tax on products at the rate of 5% has been paid; (f)

(2)Category F - goods exempt from excise tax. It shall also (

1. a)include trading stock belonging to the applicant and held on consignment by another person; (
2. b)not include, subject to the provisions of paragraph (c), trading stock held on consignment by the applicant and belonging to another person; (
3. c)include goods held on consignment by the applicant if they form part of the trading stock belonging to a person who does not have a place of business in Malta and if the goods are imported goods on which the applicant paid excise tax on imports. Inported goods on which excise tax on imports has been paid. 5. This regulation shall apply in the case of imported goods on which excise tax on imports at the rate of 15% has been paid: (
4. a)where the applicant is an importer, such refund shall be at the rate of 15% of the invoice cost of the taxable goods paid on the importation of those goods by that importer, inclusive of the cost of freight and insurance, but excluding the excise tax on imports paid thereon; (
5. b)where the applicant is a wholesaler, such refund shall be at the rate of 11% of the invoice cost, exclusive of the excise tax on products paid thereon; (
6. c)where the applicant is a retailer, such refund shall be at the rate of 15% of invoice cost, exclusive of the excise VALUE ADDED TAX (REFUND OF EXCISE DUTY ON TRADING STOCK) [ S.L.406.01 3 tax on products paid thereon. 5A.

(1)Where the applicant is a wholesaler and the trading stock consists of locally manufactured goods consisting mainly or wholly of raw materials on which excise tax on imports has been paid, such refund shall be at the rate of 5% of the invoice cost, exclusive of excise tax on products paid thereon. Trading of locally manufactured goods held by a wholesaler. Added by: L.N. 45 of 1999.

(2)An application by an applicant to whom subregulation

(1)refers, shall be made separately on the forms set out in the First Schedule and shall clearly indicate that it refers to trading stock of locally manufactured goods on which excise tax on imports had been paid. The value of refund being claimed shall be entered in lieu of Category F shown on page 1 of the First Schedule. 6. Where the applicant is a retailer and the trading stock on which refund is being claimed were subject to a levy in terms of the Local Manufacturers (Promotion) Act, and were therefore exempt from excise tax on imports, but on which excise tax on products at the rate of 5% has been paid, such refund shall be at the rate of 5% of the invoice cost, exclusive of the excise tax on products paid thereon. Goods subject to levy in terms of the Local Manufacturers (Promotion) Act. Cap. 336. 7. Where the applicant is a manufacturer producing goods for the local market, and the trading stock consists of - Where applicant is a manufacturer. (

1. a)goods directly imported by such manufacturer and on which excise tax on imports has been paid at the rate of 15%, including such goods incorporated in work in progress but excluding such goods as are incorporated in finished goods, such refund shall be at the rate of 15% of the invoice cost of the taxable goods paid on the importation of those goods, inclusive of the cost of freight and insurance, but excluding the excise tax on imports paid thereon; (
2. b)imported goods which were subject to excise tax on imports at the rate of 15% but which were purchased locally from third parties, including such goods incorporated in work in progress but excluding such goods as are incorporated in finished goods, such refund shall be at the rate of 12% of the invoice cost, but exclusive of excise tax on products paid thereon. 8. Where the applicant is a retailer and the trading stock consists of loeally manufactured goods: (
3. a)consisting of raw materials on which no excise tax on imports had been paid, such refund shall be at the rate of 5% of the invoice cost, but exclusive of excise tax on products paid thereon; Trading stock of locally manufactured goods held by a retailer. (
4. b)consisting mainly or wholly of raw materials on which excise tax on imports has been paid, such refund shall be at the rate of 10% of invoice cost, but exclusive of excise tax on products paid thereon. 9. Where a registered person so opts, he may, in lieu of the Registered person’s option. 4 [ S.L.406.01 VALUE ADDED TAX (REFUND OF EXCISE DUTY ON TRADING STOCK) provisions of regulations 4, 5, 6, 7 and 8, apply for a refund of the excise tax on trading stock by computing such refund in the following manner: Cap. 395. (
5. a)where the registered person is an importer, at the rate of 85% of the value of input tax refunded by that registered person in terms of the provisions of article 78 of the Customs and Excise Tax Act; Cap. 395. (
6. b)where the registered person is a wholesaler, at the rate of 50% of the value of input tax refunded by that registered person in terms of the provisions of article 78 of the Customs and Excise Tax Act; Cap. 395. (
7. c)where the registered person is a retailer, at the rate of 100% of the value of input tax refunded by that registered person in terms of the provisions of article 78 of the Customs and Excise Tax Act; Cap. 395. (
8. d)where the registered person is a manufacturer, at the rate of 75% of the value of input tax refunded by that registered person in terms of the provisions of article 78 of Customs and Excise Tax Act. Refund to be effected within specified dates. 10. Where a valid application for a refund in terms of these regulations has been received by the Comnussioner, such refund shall be effected: (
9. a)in the case of an application to which regulation 4, 5, 6, 7, or 8 refers, by not later than three months from the end of the month during which such application was received by the Commissioner; (
10. b)in the case of an application to which regulation 9 refers, within fifteen working days from the date on which such application was received by the Commissioner, but in any case not earlier than the 1 April, 1999: Provided that in the case of a registered person who is eligible to be classified as an exempt person but does not apply to the Commissioner to be so classified, such refund shall not be effected earlier than 1 July, 1999. Set off. Cap. 406. Cap. 395. 11. Where a registered person is a debtor to Govemment in terms of the Value Added Tax Act, in terms of the Customs and Excise Tax Act, or in terms of these regulations, or where such person has failed to furnish a tax return in terms of any of the abovementioned Acts, the Commissioner may set off such debts against any refund due in terms of these regulations. Interest. 12. Interest at rate of 1% per month or part thereof shall be due by the Commissioner to a person to whom a refund is due in accordance with these regulations, from the date when the refund becomes payable until the date when it is paid or when a cheque or draft for the payment thereof is given or posted to that person by the Commissioner. VALUE ADDED TAX (REFUND OF EXCISE DUTY ON TRADING STOCK) 13. [ S.L.406.01 An application to which regulation 3

(3)refers (

1. a)shall be signed, on every sheet thereof, by the registered person, or, in the case of a body of persons, by a principal officer of that body of persons and by the person responsible for the accounting functions of the business of the applicant; 5 Signatures and certifications. Amended by: L.N. 45 of 1999; L.N. 426 of 2007. (
2. b)shall be certified by a certified public accountant in the manner specified in the First Schedule, where the amount claimed as refund in such application exceeds eleven thousand and six hundred and forty-six euro and eighty-seven cents (€11,646.87). 13A. In lieu of the certification referred to in regulation 13(b), a certified public accounta nt may opt to make the following certification: Option for certification. Added by: L.N. 45 of 1999. "In accordance with paragraph (
3. b)of regulation 13 of the Value Added Tax (Refund of Excise Tax on Trading Stock) Regulations, I/we have conducted a verification and valuation exercise on the attached application. In order to ascertain that the application is free of any material misstatement, I/we have conducted this exercise in accordance with International Standards on Accounting and Auditing. This exercise included assessing and accounting principles used and significant estimates made by the applicant, as well as evaluating the overall presentation of the application. More specifically my/our tests consisted in the performance of sample tests on the existence, ownership, cost, cut-off and categorisation of stock, and on the calculations contained in the application, as well as a review of the overall reasonableness of the stock figures. I/we believe that such an exercise provides a reasonable basis for my/our opinion. In my/our opinion the application has been drawn up in accordance with the provisions of the Value Added Tax (Refund of Excise Tax on Trading Stock) Regulations, and the information contained in such application and in the accompanying statements is fairly stated in all material respects.". 14. Every application to which regulation 3 refers, shall be accompanied by an authorisation signed by the applicant authorising the Commissioner of Inland Revenue to furnish any information in his possession relating to information declared or required to be declared in such application which the Commissioner of Value Added Tax may request for the purpose of verifying the said information. Authorisation by applicant to the Commissioner of Inland Revenue. 15. The Commissioner may request any applicant to give such information or clarification and to produce such import documents, purchase invoices, accounts and other records relating to the trading stock of that applicant, and may carry out such Commissioner may request further information. 6 [ S.L.406.01 VALUE ADDED TAX (REFUND OF EXCISE DUTY ON TRADING STOCK) investigations as he may deem necessary for the purpose of determining or verifying the correctness or otherwise of the amount due or paid as a refund to that applicant in accordance with these regulations. Revision of refund. 16.

(1)Notwithstanding the other provisions of these regulations, where it results to the Commissioner at any time that any amount claimed as refund or paid by the Commissioner in accordance with these regulations has not been properly computed or that it was computed on the basis of incorrect information, the Commissioner may revise the amount and, subject to the provisions of subregulation

(2), any amount which results to have been excessively paid by the Commissioner shall be repayable by the applicant to the Commissioner within thirty days from the date he is served with a notice by the Commissioner requesting the said repayment.

(2)Where the revision is occasioned by information which results to have been grossly misreported, the relative application for a refund shall be treated as having been invalidly made, and no refund shall be due to the applicant, and any amount paid by the Commissioner shall be repaid by the applicant to the Commissioner in full and immediately upon a demand by the Commissioner.

(3)Any person signing or certifying any application which results to be invalid in terms of subregulation

(2)shall be jointly and severally liable with the applicant for the repayment due by the applicant, unless such person proves that he was not aware and could not have been reasonably expected to be aware of such misreporting.

(4)Where any false or incorrect statement or claim constitutes an offence under the Act or under any other law, the liability to a repayment in terms of this regulation shall be without prejudice to any liability for any penalty which may be imposed for the said offence. Validity of application for refund.

1. An application for refund in terms of these regulations shall not be deemed to have been submitted unless it is full and complete in all material respects, including the signatures required to be appended thereon in terms of these regulations. Change in prices. Added by: L.N. 20 of
2. Substituted by: L.N. 127 of
3. Amended by: L.N. 153 of
4. 18.

(1)Subject to the other provisions of these regulations, an application for a refund in accordance with these regulations shall be accepted in full on the condition that the applicant will make a change in the prices, if such a change is necessary, which shall be fairly commensurate with such a refund, otherwise chargeable by him on and after 1 January, 1999, for the sale of goods in respect of which the refund is claimed.

(2)Where an applicant was required to make a change in the prices and such change was not fairly commensurate with the amount of refund claimed in the application for refund, the amount of refund claimed shall be deducted by the applicable percentage as shown hereunder: (

1. a)where the difference between the actual change and the expected change does not exceed twenty-five per VALUE ADDED TAX (REFUND OF EXCISE DUTY ON TRADING STOCK) [ S.L.406.01 7 cent of the expected change, by the actual resulting percentage; (
2. b)where the difference between the actual change and the expected change exceeds twenty-five per cent but does not exceed one hundred per cent of the expected change, by thirty per cent; (
3. c)where the difference between the actual change and the expected change exceeds one hundred per cent of the expected change, by thirty-five per cent: Provided that the Commissioner may adjust the applicable percentage to be deducted to reflect the changes expected to be made in respect of the class of economic activity of applicants. 19. Regulation 12 shall not apply in all cases where the provisions of regulation 18

(2)apply. Saving. Added by: L.N. 127 of

1. 8 [ S.L.406.01 Amended by: L.N. 426 of
2. VALUE ADDED TAX (REFUND OF EXCISE DUTY ON TRADING STOCK) FIRST SCHEDULE VALUE ADDED TAX (REFUND OF EXCISE DUTY ON TRADING STOCK) [ S.L.406.01 9 10 [ S.L.406.01 VALUE ADDED TAX (REFUND OF EXCISE DUTY ON TRADING STOCK) SECOND SCHEDULE VALUE ADDED TAX (REFUND OF EXCISE DUTY ON TRADING STOCK) [ S.L.406.01 11