Chapter 406 | Europaius

In short

This law establishes a Value Added Tax (VAT) system, replacing an older excise tax system on imports, products, and services. It outlines how VAT is imposed, collected, and administered.

What it regulates

The imposition of Value Added Tax on imports, products, and services.
The scope of the tax, including what constitutes a taxable supply, acquisition, or importation.
The registration process and tax periods for businesses.
The determination and payment of the tax, including returns, assessments, penalties, and appeals.

Who it concerns

Any "person" carrying on an "economic activity," including physical persons, bodies of persons, public authorities, and other entities.
Importers of goods.

Key points

The law defines "tax" as the value added tax chargeable, excluding administrative penalties or interest.
A "taxable person" is defined in article 5.
"New means of transport" have specific definitions based on size, weight, power, and usage limits (e.g., land vehicles supplied not more than six months after first entry into service or not travelled more than 6,000 kilometres).
The administration of the Act is vested in the Commissioner for Tax and Customs.

Legal text

VA L U E A D D E D TAX [ CAP.

1 CHAPTER 406 VALUE ADDED TAX ACT To make provision for the imposition of a value added tax in place of an excise tax system on imports, products and services. 1st January, 1999 ACT XXIII of 1998, as amended by Legal Notices 17, 21, 22, 28, 29, 30, 60, 89, 116, 142, 198, 199, 200, 201, 217, 223 of 1999, 11, 271, 272, 273, 274 of 2000, 23, 24, 25, 93, 94 of 2001; Act VI of 2001; Legal Notices 149, 171, 233, 234, 235 of 2001, 180, 205, 387, 388, 389 of 2002, 39, 375, 384 of 2003, 149 of 2004; Acts X of 2003, II, III of 2004; Legal Notices 250, 376, 436, 489, 520 of 2004; Act XIII of 2005; Legal Notices 171, 181, 186, 334 of 2006; Acts IV, XIX, XXXII of 2007; Legal Notices 121, 122, 123, 124, 426, 443, 444, 445, 446, 447 and 448 of 2007, 105, 335 of 2008, 34, 86, 132, 133, 137, 234, 235 of 2009; Acts II of 2009, I of 2010; Legal Notices 71, 72, 73, 286, 425, 444, 499, 523, 532, 533, 534, 535, 536 of 2010, 61, 234, 379, 380, 381, 382, 499, 500 of 2011; Acts IV, V, XXII of 2011; Legal Notices 38, 39, 89, 185, 418, 419, 420, 421, 422, 423, 424, 425, 426 of 2012; Act V of 2012; Legal Notices 64, 140, 141, 142 of 2013; Acts III, XIV of 2013; Legal Notices 236, 345, 422 of 2013, Acts XII, XLIII of 2014; Legal Notices 480 of 2014, 64, 65, 227, 231 of 2015; Act XIII of 2015; Legal Notices 43, 247, 383 of 2016; Act XV of 2016, Legal Notice 347, 348 of 2017, 9 of 2018,163 of 2018, 297 of 2018, 298 of 2018 299 of 2018,434 of 2018 and VII of 2019.and Legal Notices 155 of 2019, 302 of 2019 and 250, 251, 252 and 253 of 2019 and 186, 219, 220, 221, 222, 223, 224, 225, 226, 463 and 477 of 2020 and 4, 5 and 5, 241 of 2021 and 358 of 2021 and 138 and 140 of 2022 and Acts VIII of 2020, VIII of 2021 and VII of 2022 and XII, XXVII and XXXV of 2023.and Legal Notices 231 of 2023 and 12, 228, 344, 345, 346, 347, 348, 349, 350, 354 and 355 of 2024 and Acts XIII and XXXVIII of
and IX and XXX of 2025 and Legal Notice 88 of 2025and Act III of 2026 and Legal Notice 75 of
ARRANGEMENT OF ACT Part I Part II Part III Part IV Part V Part VI Part VII Part VIII Part IX Part X Part XI Preliminary Scope of the Tax Registration and tax period Determination and Payment of the Tax Returns, Assessments, Penalties and Appeals Records and Information Special Cases Collection, Security and Refunds Miscellaneous Offences and Punishments Transitional Provisions Articles 1-3 4-9 10 - 17 18 - 26 27 - 47 48 - 56 58 - 71 72 - 75 76 - 84 85 - 86 SCHEDULES FIRST SCHEDULE SECOND SCHEDULE THIRD SCHEDULE FOURTH SCHEDULE FIFTH SCHEDULE Activities of Public Authorities Supplies, Intra-Community Acquisitions and Importations Place of Supplies, Intra-Community Acquisitions and Importations Time of Supplies, Intra-Community Acquisitions and Importations Exemptions SIXTH SCHEDULE SEVENTH SCHEDULE EIGHTH SCHEDULE NINTH SCHEDULE TENTH SCHEDULE ELEVENTH SCHEDULE TWELFTH SCHEDULE THIRTEENTH SCHEDULE FOURTEENTH SCHEDULE FIFTEENTH SCHEDULE SIXTEENTH SCHEDULE VA L U E A D DE D TA X Small Enterprises Taxable Value Rate of Tax Appeals to the Administrative Review Tribunal Deductions Records Tax Invoice Fiscal Receipt Special Cases Territories of the Community Excise goods VA L U E A D D E D TAX [ CAP.
3 PART I Preliminary
The short title of this Act is the Value Added Tax Act. 2.

(1)In this Act, unless the context otherwise requires - "accession date" means the 1st May 2004; "accommodation", when provided on a bed and breakfast, half board or full board basis, includes the provision of any services normally falling within the meaning of accommodation on such a basis and included in the price therefor; "acquisitions threshold" means the threshold determined in accordance with Part Three of the Third Schedule; Short title. Interpretation. Substituted by: X. 2003.

Amended by: XXII 2011.5; L.N. 89 of 2012; XII. 2014.77; XXXV.2023.47; XXXVIII.2024.3; III.2026.
"administrative penalty" means a penalty imposed in virtue of the provisions of Part V; "assessment" means an assessment that may be made in virtue of the provisions of Part V but does not include a provisional assessment; "Commissioner" means the Commissioner for Tax and Customs appointed in terms of the provisions of article 3

(1)or any public officer or other person to whom a delegation has been made in accordance with sub-article

(2)or

(3)of that article while he is acting within the terms of that delegation; "Community" means the territories of the Member States as defined in the Fifteenth Schedule; "customs duty suspension regime" has the meaning assigned to it in the Fourth Schedule; "Council Directive 2006/112/EC" means Council Directive 2006/ 112/EC of 28 November 2006 on the common system of value added tax, as may be amended from time to time; "Coun cil Regul atio n (EU ) N o. 904 /20 10" m eans Co unci l Regulation (EU) No. 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value added tax (recast), as may be amended from time to time; "distance sale" has the meaning assigned to it in the Third Schedule; "economic activity" has the meaning assigned to it in article 5; "established" shall be construed in accordance with the provisions of sub-articles

(2)and

(3)of this article; "excise goods" means the goods defined in the S ixteenth Schedule; "exclusive economic zone area" shall have the same meaning as assigned to it in the Exclusive Economic Zone Act; "exempt supply", "exempt acquisition" or "exempt importation" means a supply, an intra-community acquisition or an importation which is exempt in terms of article 9; VA L U E A D DE D TA X "exempt with credit supply" is a supply to which Part One of the Fifth Schedule applies; "exempt without credit supply" is a supply to which Part Two of the Fifth Schedule applies; "goods" means any asset the supply of which is treated as a supply of goods in terms of the Second Schedule; "goods forming part of an economic activity" means goods, including fixed assets, used by a taxable person for the purpose of his economic activity; "importation" has the meaning assigned to it in the Second Schedule, and "imported" shall be construed accordingly; "importer" with respect to imported goods means the person in whose name the goods are at the time when tax on the importation becomes chargeable in accordance with the Fourth Schedule; "input tax" has the meaning assigned to it in article 22

(2)and "input tax credit" has the meaning assigned to it in article 22

(3); "intra-community acquisition" has the meaning assigned to it in the Second Schedule; "intra-community supply" means a supply of goods that are transported by or on behalf of the supplier or the person to whom the supply is made from a Member State to another Member State; "Malta" means the Island of Malta, the Island of Gozo and the other islands of the Maltese Archipelago, including the territorial waters thereof, the continental shelf and subject to the provisions of subarticle

(4), also includes any exclusive economic zone area; "Member State" has the meaning assigned to it in the Fifteenth Schedule; "Minister" means the Minister responsible for finance; "new means of transport" means a means of transport to which paragraph (

a)hereof applies and which meets the conditions of paragraph (
b)hereof (
a)this paragraph applies to a vessel exceeding 7.5 metres in length, an aircraft the takeoff weight of which exceeds 1,550 kilograms or a motorised land vehicle the capacity of which exceeds 48 cubic centimetres or the power of which exceeds 7.2 kilowatts, intended for the transport of passengers or goods except for: (
i)a sea-going vessel which is used for navigation on the high seas and carrying passengers for reward, or for the purpose of commercial, industrial or fishing activities, or for rescue or assistance at sea, or for inshore fishing but does not include ships’ provisions; and (
ii)aircraft used by airlines operating for reward chiefly on international routes; (
b)the conditions that must be met for the purpose of this definition are: VA L U E A D D E D TAX [ CAP. 406. 5 (
i)in the case of a land vehicle, that it was supplied not more than six months after the date of first entry into service or has not travelled more than 6,000 kilometres; (
ii)in the case of sea vessels, that it was supplied not more than three months after the date of first entry into service or has not sailed for more than 100 hours; (iii) in the case of an aircraft, that it was supplied not more than three months after the date of first entry into service or has not flown for more than 40 hours; "non-taxable legal person" means a person, other than a physical person, who is not a taxable person; "non-taxable person" means a person who is not a taxable person; ''notice of payment'' means the notice required to be furnished in terms of article 30

(3); "output tax" has the meaning assigned to it in article 22

(1); "person" includes a physical person, a body of persons, a public authority and any entity capable of carrying on an economic activity; "provisional assessment" means a provisional assessment made in terms of article 32; "public authority" means the Government of Malta, a department or division of the Government of Malta, a local council set up in accordance with the Local Government Act, an authority vested with distinct personality set up by an Act of Parliament , corporation constituted by an Act of Parliament or any other body governed by public law; " "revenue acts" shall have the same meaning as assigned to it in the Commissioner for Tax and Customs Act; "self-supply" means the use or application of goods forming part of the economic activity of a person that does not consist of the delivery of goods to or the performance of services for another person but which is treated as a supply of goods or a supply of services in terms of the Second Schedule; "supply" means an operation which is treated as a supply of goods or a supply of services in terms of the Second Schedule; "tax" means the value added tax chargeable under this Act but does not include an administrative penalty or interest; "tax invoice" means an invoice or a document serving as invoice that contains the information required by the Twelfth Schedule; "tax period" means a period determined in accordance with article 17; "tax return" means the return required to be furnished in terms of article 27; VA L U E A D DE D TA X "taxable acquisition" means an intra-community acquisition on which tax is chargeable in terms of article 4 and which is not exempt from tax in terms of article 9; "taxable importation" means an importation on which tax is chargeable in terms of article 4 and which is not exempt from tax in terms of article 9; "taxable person" has the meaning assigned to it in article 5; "taxable supply" means a supply on which tax is chargeable in terms of article 4 and which is not exempt from tax in terms of article 9; "taxable value" m eans the value of a supply, of an intrac o m m u ni t y ac q ui s i t i o n o r o f a n i m p or t a ti o n d e t e r m i n e d i n accordance with the Seventh Schedule; "third territory" means any territory which is not a Member State; "transport" and "transported" include dispatch and dispatched; " Tr i b u n a l " m e a n s t h e A d m i n i s t r a t i v e R e v i e w Tr i b u n a l established by article 5 of the Administrative Justice Act; "VAT" or "value added tax" shall mean any value added tax as referred to in Council Directive 2006/112/EC; "value added tax identification number" means an individual number assigned by the competent authority of a Member State that has a prefix in accordance with ISO International Standard 3166 alpha 2, and "a person identified for value added tax purposes in a Member State" means a person to whom such an individual number h a s b e e n a s s i g n e d a n d w h o , f o r t h e p u r p o s e o f a s u p p l y, communicates that number to the supplier.

(2)The provisions of this sub-article and of sub-article

(3)shall apply for the purpose of determining the place where a person is established: (

a)a taxable person is established in a country if he has established his economic activity or has a fixed place of establishment from which he carries on that economic activity in that country or, being a physical person who has not fixed his economic activity or who does not have a fixed place of establishment in any country, has a permanent address or usually resides in that country; (
b)a non-taxable legal person is established in a country if it is constituted under the law of that country or if it has a fixed place in that country from which it carries on its activities; (
c)a non-taxable physical person is established in the country where he has a permanent address or usually resides.

(3)Where, in terms of sub-article

(2), a taxable person falls to be treated as established in Malta and in another country with respect to the same transaction, and where it is necessary for the VA L U E A D D E D TAX [ CAP. 406. 7 proper application of any provision of this Act that he should be treated as established only in one of those two countries, he shall, to the extent that it is so necessary, be treated as established only in the country with which that transaction is more closely connected.

(4)For the purpose of sub-article

(1), an exclusive economic zone area shall be deemed to form part of Malta only to the extent of activities undertaken pursuant to, or which are directly related to, an authorization or licence granted in accordance with the Exclusive Economic Zone Act. 3.

(1)The administration of the Act is vested in the Commissioner for Tax and Customs, hereinafter in this Act referred to as "the Commissioner", who shall be a public officer appointed as such by the Prime Minister. Administration. Amended by: XXII 2011.5.

(2)The Commissioner may delegate to any public officer any of the rights, duties, powers and other functions vested in him, conferred to him or imposed upon him by this Act.

(3)The Commissioner may delegate to any other person such of the rights, duties, powers and other functions vested in him, conferred to him or imposed upon him by this Act as the Minister may direct in writing: Provided that the Commissioner may not delegate those rights, duties, powers and other functions vested in him if that person is not considered by the Commissioner as a fit and proper person to exercise those rights, duties, powers and other functions and that such person shall be subject to the obligations imposed by article 56. PART II Scope of the Tax 4. Subject to the other provisions of this Act there shall be charged, levied and collected on account of the Government a value added tax (

a)on every supply of goods or of services that takes place in Malta made on or after 1 January 1999 for consideration by a taxable person acting as such; (
b)on every intra-community acquisition made for consideration on or after the accession date in Malta where (
i)it is an acquisition of goods, other than new means of transport and excise goods, made by a taxable person acting as such, or a non-taxable legal person, where the vendor is a taxable person acting as such who is not eligible for the exemption for small enterprises provided for in Article 284 of Council Directive 2006/112/EC and where such vendor is not covered by Articles 33 and 36 of the said Directive; (
ii)it is an acquisition of new means of transport Charge to tax. Substituted by: X. 2003.4. Amended by: IV. 2011.73; XXXVIII.2024.4. VA L U E A D DE D TA X made by any person; or (iii) it is an acquisition of excise goods made by a taxable person or a non-taxable legal person; (
c)on every importation that takes place in Malta on or after 1 January 1999. Taxable person and economic activity. Amended by: X. 2003.5; III. 2013.72. 5.

(1)"Taxable person" means a person who carries on an economic activity, whatever the purpose or result of that activity.

(2)Saving the provisions of sub-article

(3)an economic activity means an activity carried on by a person, other than an employee acting as such, and consisting of any one or more of the following (

a)any trade or business; (
b)any profession or vocation and the provision of any personal services; (
c)the exploitation of tangible or intangible property for the purpose of obtaining income therefrom on a continuing basis; (
d)the provision by a club, association or organisation (for a subscription or other consideration) of the facilities or advantages available to its members; (
e)the admission, for a consideration, of persons to any premises.

(3)The activities of a public authority acting in the exercise of the functions assigned to it by law shall not be deemed to be an economic activity except as and to the extent provided in the First Schedule and except where such treatment as non-taxable persons would lead to significant distortions in competition.

(4)A person who does not carry on an economic activity within the meaning of the foregoing provisions but who, from time to time, makes an intra-community supply of new means of transport shall, for the purpose of any such supply, be treated as a taxable person.

(5)For the purpose of this article "employee" means an individual bound to an employer by a contract of employment or by other legal ties creating the relationship of employer and employee as regards working conditions, remuneration and the employee’s liability and includes the holder of an office.

(6)After consultation with the VAT Committee set up in accordance with Article 398 of Council Directive 2006/112/EC, the Minister may make regulations to regard as a single taxable person any persons established in Malta who, while legally independent, are closely bound to one another by financial, economic and organisational links. VA L U E A D D E D TAX [ CAP. 406. 9 6. The provisions of the Second Schedule shall apply for the purpose of determining any question as to whether an operation is to be treated as: (

a)a supply of goods, a supply of services, an intracommunity acquisition or an importation; (
b)made for consideration; Operations constituting supplies, intracommunity acquisitions and importations. Substituted by: X. 2003.6. (
c)made by a taxable person acting as such. 7. The provisions of the Third Schedule shall apply for the purpose of determining the place where a supply or an intracommunity acquisition or an importation takes place. Place of supplies, intra-community acquisitions and importations. Substituted by: X. 2003.7. 8. The date when a chargeable event takes place and the date when tax thereon becomes chargeable shall be determined in accordance with the provisions of the Fourth Schedule. Date of the chargeable event and date when tax becomes chargeable. Substituted by: X. 2003.8. 9.

(1)There shall be exempt from tax - (

a)the supplies to which Part One or Part Two of the Fifth Schedule applies; (
b)the intra-community acquisitions to which Part Three of the Fifth Schedule applies; Exemptions. Substituted by: X. 2003.9. Amended by: III.2026.57. (
c)the importations to which Part Four of the Fifth Schedule applies.

(2)Any provision contained in or under any law empowering the Minister to grant an exemption from import duties on the importation of goods chargeable under the Import Duties Act shall be construed as empowering the Minister to grant, in the same circumstances, in the same manner, and subject to the same conditions and limitations provided for in any such provision, an exemption from tax chargeable under this Act on the importation of the said goods.

(3)The Minister may by regulations prescribe for the exemption from tax on: (

a)supplies made to; (
b)intra-community acquisitions made by; and (
c)importations made by, diplomatic or consular arrangements or a person who qualifies for an exemption from tax in accordance with such international arrangements as the Minister may in accordance with such regulations prescribe: Provided that the grant of such exemption shall be subject to such conditions and limitations as may be established in the said VA L U E A D D E D TA X regulations. PART III Registration and Tax Period Registration of taxable persons. Substituted by: X. 2003.10. Amended by: II. 2009.37; V. 2012.59; XIII.2024.35; XXXVIII.2024.5; IX.2025.63; III.2026.58. 10.

(1)(

a)A taxable person established in Malta who is not registered under this article or under article 11 shall apply to be registered under this article by not later than thirty days from the date on which he makes a supply for consideration in Malta other than an exempt without credit supply. (
b)A taxable person established in Malta who is not registered under this article or under article 11 and who supplies services within the territory of another Member State for which the tax is payable solely by the recipient shall apply to be registered under this article by not later than thirty days from the date on which he makes a supply for consideration.

(2)Paragraph (a) of sub-article

(1)does not apply to a person who is treated as a taxable person only by reason of the fact that he makes, from time to time, an intra-community supply of new means of transport.

(3)A taxable person established in Malta who is not registered under this article shall, if so requested by the Commissioner, apply to be registered under this article within thirty days from the date on which he is served with a notice containing such a request.

(4)A taxable person who is not established in Malta, who is not registered in accordance with this article and who makes a taxable or exempt with credit supply taking place in Malta on which he would be liable for the payment of the tax on the said supply in accordance with article 20 had that supply been a taxable supply, shall apply to be registered in accordance with this article by not later than thirty

(30)days from the date of that supply: Provided that such person shall be relieved of the obligation to be registered in accordance with this sub-article when such person notifies the Commissioner that any of the special schemes provided for in accordance with Chapter 6 of Title XII of Council Directive 2006/112/EC shall be used to declare and pay the tax which such person is liable to pay, in line with the provisions of the respective special scheme, by not later than ten

(10)days from the date of such supply: Provided further that a taxable person who is not established in Malta but is established in another Member State shall be relieved of the obligation to be registered in accordance with this sub-article when the Commissioner is notified, and approves, the use by such person of the special scheme for small enterprises provided for in accordance with Chapter 1 of Title XII of Council Directive 2006/112/EC.

(5)Any person who is not a person registered under this article and who carries on or intends to carry on an economic activity may apply to be registered under this article. VA L U E A D D E D TAX

(6)[ CAP. 406. 11 The Commissioner shall register under this article: (a) every person who in his opinion is liable to apply for registration in terms of sub-articles

(1),

(3)or

(4); (b) any person who has made an application in terms of sub-article

(5)if the Commissioner is satisfied that that person carries on or intends to carry on an economic activity and (

i)is likely to be entitled, if he becomes so registered, to claim input tax credits under the provisions of article 22; or (
ii)has made or is likely to make an intracommunity acquisition in Malta for the purpose of operations carried out outside Malta; (
c)any person whose registration under article 11 is cancelled in accordance with sub-articles

(6),

(7)or

(8)thereof, in cases where such person would be liable to apply for registration under this article; (d) any person whose registration under article 11B is cancelled in accordance with sub-article

(3)thereof, in cases where such person would be liable to apply for registration under this article.

(7)(Deleted by Act V. 2012.59).

(7a)A registration in accordance with paragraphs (a) and (d) of subarticle

(6)shall take effect as from the date the taxable person should have been registered under this article. A registration in accordance with paragraph (c) of sub-article

(6)shall take effect as from the date the registration under article 11 is cancelled. A registration in accordance with paragraph (b) of sub-article

(6)shall take effect as from the date such person applies to be registered under this article.

(8)Without prejudice to article 11

(3), the Commissioner may at any time cancel the registration of a person under this article if he has reason to believe that that person would not, if he were not so registered, be required to apply for registration or entitled to be registered under this article.

(9)Nothing in this article shall prevent or shall be deemed to prevent the Commissioner from enforcing any of the provisions of Council Regulation (EU) No. 904/2010.

(10)A person registered under this article who ceases to be required or entitled to be registered under this article, if he were not so registered, shall within fifteen

(15)days from the occurrence of this event apply with the Commissioner to cancel his registration under this article. Special scheme for small enterprises for supplies made within Malta. Substituted by: X. 2003.10; XXXVIII.2024.6. Amended by: IX.2025.64. VA L U E A D D E D TA X 11.

(1)When a taxable person established in Malta who is not registered under this article qualifies as a small enterprise in terms of the provisions of Part One of the Sixth Schedule he may apply to the Commissioner to be registered under this article.

(2)The Commissioner shall register under this article any person who has submitted an application under sub-article

(1)if he is satisfied that such person is eligible for such registration in accordance with the provisions of Part One of the Sixth Schedule: Provided that such registration shall only take effect as from the first day of the month in which the Commissioner receives the application in accordance with sub-article

(1)from a taxable person w h o i s n ot r e g i s t e r e d u n d e r a r t i c l e 1 0, o r f r o m t he d a te o f commencement of the economic activity of the taxable person, whichever is the later: Provided further that such registration shall only take effect as from the first day of the month following the month in which the Commissioner receives the application under sub-article

(1)from a taxable person registered under article 10.

(3)Any person registered under this article shall be subject to the provisions of Part One of the Sixth Schedule.

(4)When a person is, immediately before his registration under this article, registered under article 10 the Commissioner shall, upon the registration of such person under this article, cancel the registration under article 10.

(5)A person registered under this article: (

a)may, at any time, apply to the Commissioner for the cancellation of his registration under this article; (
b)shall, within fifteen

(15)days from the date on which such person no longer qualifies as a small enterprise in terms of the relevant provisions of Part One of the Sixth Schedule, apply to the Commissioner for the cancellation of the said registration; (c) shall, within fifteen

(15)days from the cessation of his economic activity, apply to the Commissioner for the cancellation of such registration.

(6)When a taxable person submits an application for the cancellation of his registration under this article pursuant to paragraph (a) of sub-article

(5), such cancellation shall apply with effect from the first day of the following calendar month.

(7)When a taxable person submits an application for the VA L U E A D D E D TAX [ CAP. 406. 13 cancellation of his registration under this article pursuant to paragraph (b) of sub-article

(5), such cancellation shall apply with effect from the first day of the calendar month following the date on which such taxable person no longer qualifies as a small enterprise.

(8)Where the Commissioner has reason to believe that the taxable person no longer qualifies as a small enterprise in terms of the r e l e v a n t p r o v i s i o n s o f P a r t O n e of th e S i x th S c h e d u l e , th e Commissioner shall cancel the registration of that taxable person under this article with effect from the date that such taxable person no longer qualifies as a small enterprise as may be determined by the Commissioner: Provided that the Commissioner shall immediately upon the cancellation of a registration under this article, register that person under article 10 if, in the opinion of the Commissioner, such person is liable to apply for registration in terms of the said article.

(9)Without prejudice to sub-articles

(6),

(7)and

(8), the Commissioner may at any time cancel the registration of a person under this article if he has reason to believe that such person does not carry on or has ceased to carry on an economic activity or that it is not likely that his economic activity shall include any activities other than those exempt activities without credit supplies.

(10)Without prejudice to the other provisions of this article, a taxable person registered under this article which carries out any of the following transactions shall also be required to register under article 12 in accordance with the provisions thereof if such person: (

a)makes intra-Community acquisitions of goods subject to VAT pursuant to article 4(b); (
b)receives services for which he is liable to pay VAT pursuant to article 20; (
c)supplies of services within the territory of another Member State for which VAT is payable solely by the recipient. 11A.

(1)A taxable person established in Malta qualifying as a small enterprise in terms of the provisions of Part Two of the Sixth Schedule, who makes supplies of goods and services within the territory of another Member State, and who intends to avail of the exemption in terms of the special scheme for small enterprises applicable in the respective Member State in which the supplies are made in accordance with Chapter 1 of Title XII of Council Directive 2006/112/EC, may apply to the Commissioner to be registered under this article.

(2)The Commissioner shall register under this article any person who has submitted an application under sub-article

(1)if he is Special scheme for small enterprises for supplies made within other Member States. Added by: XXXVIII.2024.7. VA L U E A D D E D TA X satisfied that that person is eligible for such registration in accordance with the provisions of Part Two of the Sixth Schedule: Provided that such registration shall only take effect as from the date notified by the Commissioner to the taxable person.

(3)Any person registered under this article shall be subject to the provisions of Part Two of the Sixth Schedule.

(4)A person registered under this article: (

a)may, at any time, apply to the Commissioner for the cancellation of his registration under this article; (
b)shall, within fifteen

(15)working days from the date on which such person is no longer eligible to avail of the special scheme for small enterprises in terms of the provisions of Part Two of the Sixth Schedule in any Member State, apply to the Commissioner for an update or cancellation of such registration, as the case may be; (c) shall, within fifteen

(15)working days from the date on which the Union annual turnover of that person referred to in the Sixth Schedule exceeds the Union threshold referred to in the same Schedule, apply to the Commissioner for the cancellation of the said registration.

(5)The Commissioner shall cancel the registration of a person under this article with immediate effect: (

a)in cases where the Commissioner has reason to believe that the taxable person is no longer eligible to avail of the special scheme for small enterprises in terms of the provisions of Part Two of the Sixth Schedule; (
b)if such person notifies the Commissioner through the established web portal designated for this purpose by the Commissioner, that such person no longer intends to avail himself of the special scheme for small enterprises in all Member States, or whose Union annual turnover referred to in the Sixth Schedule exceeded the Union threshold referred to in the said Schedule; (
c)if such person notifies the Commissioner through the established web portal designated for this purpose by the Commissioner, or it may otherwise be presumed by the Commissioner, that the economic activity of such person has ceased. VA L U E A D D E D TAX [ CAP. 406. 15 11B.

(1)A taxable person who is not established in Malta but is established in another Member State shall be deemed to have applied to register under this article once the Commissioner is notified by the Member State in which such person is established in accordance with Chapter Xa of Council Regulation (EU) 904/2010 of the person’s intention to avail itself of the exemption for small enterprises in relation to supplies of goods and services made in Malta: Special scheme for small enterprises for persons not established in Malta. Added by: XXXVIII.2024.

Amended by: IX.2025.
Provided that the registration of such person under this article shall only be deemed to be effective as from the date the Commissioner notifies the Member State of establishment, through the designated electronic means for this purpose, of his approval to register the said person under this article in accordance with the provisions of Part Three of the Sixth Schedule.

(2)The Commissioner shall notify by electronic means the Member State of establishment of his approval or otherwise in accordance with sub-article

(1)within fifteen

(15)working days after receiving the information referred to in Article 37a

(1)(a) of Council Regulation 904/2010.

(3)The Commissioner may cancel the registration of a person under this article with immediate effect where the Commissioner has reason to believe that the taxable person is no longer eligible to avail himself of the special scheme for small enterprises in terms of the provisions of Part Three of the Sixth Schedule and notify the Member State of establishment of such person without delay of the date on which the said person has ceased to be eligible for the exemption for small enterprises in relation to supplies of goods and services made in Malta.

(4)The Commissioner may cancel the registration of a person under this article with immediate effect where the Commissioner is notified pursuant to Article 37a of Council Regulation (EU) No. 904/ 2010 that the person intends to cease to apply the exemption for small enterprises to supplies of goods and services in Malta, or is not eligible to benefit from such an exemption. 12.

(1)When a taxable person who is not registered under article 10 or a non-taxable legal person intends to make an intracommunity acquisition in Malta and, on account of that acquisition, the value of his intra-community acquisitions in Malta during the calendar year in which he makes that acquisition exceeds the acquisitions threshold he shall apply to be registered under this article, unless he is already so registered, by not later than the date of that acquisition.

(2)For the purpose of sub-article

(1), a taxable person who is not registered or liable to be registered under article 10 or a non-taxable legal person may, unless he is registered under this article, at any time apply to be registered under this article.

(3)A taxable person established in Malta, other than a taxable Registration of persons who make intra-community acquisitions. Substituted by: X. 2003.

Amended by: II. 2009.38; XXXVIII.2024.
VA L U E A D D E D TA X person registered under article 10, who receives services for which he is liable to pay the tax pursuant to article 20

(2), shall apply to be registered under this article by not later than the date on which he receives a service.

(3a)A taxable person established in Malta, other than a taxable person registered under article 10, who supplies services within the territory of another Member State for which VAT is payable solely by the recipient of the service pursuant to Article 196 of Council Directive 2006/112/EC, shall apply to be registered under this article by not later than the date on which he supplies such service.

(4)The Commissioner shall register under this article any person who in his opinion is liable to apply for such registration in terms of sub-articles

(1),

(3)or

(3a)or who submits an application for registration when he is so entitled in terms of sub-article

(2).

(5)When a person is liable to apply for registration in terms of sub-article

(1)on account of an intra-community acquisition, the registration of that person under this article shall be deemed to be effective as from the date of that acquisition.

(6)A person registered under this article in the circumstances mentioned in sub-article

(1)may apply for the cancellation of his registration at any time after the expiration of the calendar year following that in which he was so registered if the value of his intra-community acquisitions has not exceeded the acquisitions threshold in the year in which he makes such an application or in the preceding calendar year.

(7)A person registered under this article upon an application in accordance with sub-article

(2)may apply for the cancellation of his registration at any time after the expiration of two consecutive calendar years following the year in which he was so registered if the value of his intra-community acquisitions has not exceeded the acquisitions threshold in the year in which he makes such an application or in the preceding calendar year.

(8)A person registered under this article in the circumstances mentioned in sub-article

(3)may apply for the cancellation of his registration at any time if he no longer receives supplies of services for which he is liable to pay the tax pursuant to article 20

(2).

(8a)A person registered under this article in the circumstances mentioned in sub-article

(3a)may apply for the cancellation of his registration at any time if he no longer supplies services for which the recipient is liable to pay VAT.

(9)The value of intra-Community acquisitions for the purpose of this article shall be determined in accordance with Part Three of the Third Schedule.

(10)The Commissioner shall cancel the registration of a person under this article (

a)if that person is registered under article 10, in which case the cancellation shall take effect from the effective date of the said registration: Provided that if that person ceases to be registered VA L U E A D D E D TAX [ CAP. 406. 17 under article 10 on a date when he would not have been entitled to apply for the cancellation of his registration under this article had he remained registered under this article, the Commissioner shall, on that date, register that person again under this article; or (
b)if such person is entitled to have his registration under this article cancelled and applies for such a cancellation in accordance with sub-article

(6)or

(7)or

(8)or

(8a), in which case the cancellation shall take effect on 1st January of the year in which the application is made. 13.

(1)An application for registration or for the cancellation of a registration in accordance with this Part shall be submitted electronically through the established web portal designated by the Commissioner for this purpose and shall contain the information requested therein.

(2)The Commissioner shall allocate a registration number to every person registered under articles 10, 11, 11A or 12 and shall make, through the established web portal designated by the Commissioner for this purpose, electronically available a registration certificate to every such person containing the registration number, the article under which the registration was made, the effective date of the registration and such other particulars as the Commissioner may deem appropriate. The Commissioner may change the registration number of any person as he may consider necessary and shall notify the said person of any such change.

(3)A registration number allocated under articles 10 or 12 shall have the prefix "MT" in accordance with ISO International Standard 3166 - alpha 2. A registration number allocated under article 11 shall not have such a prefix and shall not be treated for any purposes of this Act as a value added tax identification number.

(4)A registration number allocated under article 11A shall be the same registration number as that allocated to the person under article 10 or 11 in accordance with sub-article

(3)but with the suffix "EX" added to it.

(5)When the registration of a person under articles 10, 11, 11A or 12 is cancelled, the Commissioner shall serve a notice on such person indicating the effective date of the cancellation.

(6)The cancellation of the registration of a person shall not relieve that person from any liability incurred in accordance with this Act by virtue of anything done before the date of the cancellation or from the obligation to submit an application for a fresh registration in any of the circumstances under which he is required to apply for registration in terms of any provision of this Part. General provisions with respect to registrations. Substituted by: X. 2003.10. Amended by: V. 2012.60; III. 2013.73. Substituted by: XXXVIII.2024.9. VA L U E A D D E D TA X

(7)A number of persons regarded as a single taxable person in terms of article 5

(6)shall be registered as one

(1)person.

(8)The Minister may by regulations exempt any person or class of persons from any of the provisions of this Part and may by such regulations make such an exemption subject to such conditions and limitations as may be prescribed.

(9)Any person registered under articles 10, 11, 11A or 12 shall, within fifteen

(15)days from the occurrence of any of the following events, inform the Commissioner of such event electronically through the established web portal designated by the said Commissioner for this purpose and including any information requested therein: (

a)in cases where there is a change in circumstances that affects the particulars declared in the application for his registration under articles 10, 11, 11A or 12 or otherwise furnished to the Commissioner in connection with his registration or appearing in the registration certificate; (
b)in cases where there is the cessation or transfer of his economic activity or part thereof; or (
c)such other event as may be prescribed by the Commissioner. Further classification of registered persons. Substituted by: X. 2003.10. 14. Without prejudice to the other provisions of this Part the Commissioner may classify persons registered under this Part by reference to the description or sector of their activities and such other matters as he may deem necessary or appropriate and any classification so made shall unless the contrary is proved be deemed to be a correct classification for the purpose of determining the applicability or otherwise of any provision of this Act to which the classification may be relevant. Notice relating to certain operations. Substituted by: X. 2003.10. Amended by: III. 2004. 114; XIII. 2005.41. 15.

(1)Any person who is not registered under article 10 or 12 and who intends to make an intra-community acquisition of a new means of transport shall give notice thereof to the Commissioner by not later than the date of that acquisition.

(2)Any person who is not registered under article 10 and who intends to make an intra-community supply of a new means of transport shall give notice thereof to the Commissioner by not later than the date of that supply.

(3)Any taxable person or non-taxable legal person who is not registered under article 10 or 12 and who intends to make an intracommunity acquisition of excise goods shall give notice thereof to the Commissioner by not later than the date of that acquisition.

(4)A notice to the Commissioner under this article shall be given with respect to each transaction to which this article applies on such form as the Minister may by regulations prescribe. VA L U E A D D E D TAX [ CAP.

19
Every taxable person or non-taxable legal person who is not registered under this Part shall supply any such information relating to the date of the commencement or cessation of his activity, the nature of that activity and the transactions made in the course or furtherance thereof as may be prescribed. Information by persons who are not registered under this Part. Substituted by: X. 2003.
17.

(1)The Commissioner shall allocate a tax period to every person registered under articles 10, 11, 11A and 12. Tax period. Substituted by: X. 2003.10; XXXVIII.2024.10.

(2)Except as otherwise provided in this article, a tax period means a period of three

(3)calendar months commencing on the first day immediately following the end of the preceding tax period.

(3)The Minister may by regulations prescribe in respect of such class or classes of persons as may be specified in the said regulations a tax period of either more or less than three

(3)months.

(4)The first tax period of a person registered under articles 10 or 12 shall commence on the date that such person is registered in accordance with the said articles, and end on such date as may be determined by the Commissioner: Provided that such a period shall not exceed one

(1)year.

(5)When, during a tax period of a person, his registration under articles 10 or 12 is cancelled, such period shall end on the last day of the month in which that cancellation is made and shall be the last tax period of the said person, saving the allocation of a new tax period to that person should he be subsequently registered again under the said articles 10 or 12.

(6)The Commissioner may by means of a notice served on a person registered under articles 10 or 12 in any particular case vary any tax period for such person in such manner as may be specified in the said notice.

(7)Notwithstanding the other provisions of this article, the relevant provisions relating to the tax periods of a person registered under articles 11 and 11A to the extent provided in the Sixth Schedule shall apply to persons registered under those articles. PART IV Determination and Payment of the Tax 18. The taxable value of supplies, intra-community acquisitions and importations shall be established in the manner laid down in the Seventh Schedule. Taxable value. Substituted by: X. 2003.10. 19.

(1)The tax chargeable on every taxable supply, other than a supply referred to in sub-article

(2), shall be at the rate of eighteen per cent of the taxable value of the supply. Rate of tax. Substituted by: X. 2003.10. Amended by: II. 2004.66; III. 2004.114.

(2)The tax chargeable on every taxable supply specified in the Eighth Schedule shall be at such rate or rates, not being higher than VA L U E A D D E D TA X eighteen per cent or lower than five per cent of the taxable value of the supply, as specified in that Schedule.

(3)The tax chargeable on every taxable intra-community acquisition of goods shall be that applicable to the supply of like goods in terms of the foregoing provisions of this article.

(4)The tax chargeable on every taxable importation, other than an importation referred to in sub-article

(5), shall be at the rate of eighteen per cent of the taxable value of the importation.

(5)The tax chargeable on every taxable importation as may be specified in the Eighth Schedule shall be at such rate or rates, not being higher than eighteen per cent or lower than five per cent of the taxable value of the importation, as may specified in that Schedule. Persons liable for the payment of the tax. Substituted by: X. 2003.10. Amended by: II. 2009.39; VII.2022.69. 20.

(1)Saving the other provisions of this article (

a)the payment of the tax on a taxable supply shall be a liability of the person who makes the supply; (
b)the payment of the tax on a taxable acquisition shall be a liability of the person who makes the acquisition; (
c)the payment of the tax on a taxable importation shall be a liability of the importer.

(2)The payment of the tax on a taxable supply made by a person who is not established in Malta and who is not registered under article 10 to a person established in Malta shall be a liability of the person to whom the supply is made if the supply is (

a)a supply of goods made to a taxable person registered under article 10 or 12 or to a non-taxable legal person registered under article 12 who is identified as such on a tax invoice for that supply, where: (
i)the person who supplies the goods is identified for value added tax purposes in another Member State and has made an exempt intra-community acquisition of those goods in Malta for the purpose of that supply; and (
ii)the goods acquired under the said intracommunity acquisition were transported from a Member State, other than the State where the taxable person who made the supply is so identified, to the person to whom the supply is made; and (iii) the supplier designates the person to whom the supply is made as the person liable to pay the tax on that supply; or (
b)a supply of services made to a taxable person or a nontaxable legal person identified for purposes of Value Added Tax, in terms of item 2.(
a)in Part Two of the Third Schedule; or (
c)a supply of goods or of services, other than a supply to which paragraph (
a)or (
b)refers, made to a taxable VA L U E A D D E D TAX [ CAP. 406. 21 person registered under article 10 or article 12, or to a non-taxable legal person identified for purposes of Value Added Tax: Provided that, for the purposes of this sub-article, a taxable person who has a fixed establishment within Malta shall be regarded as a taxable person who is not established within Malta when the following conditions are met: (
i)he makes a taxable supply of goods or of services within Malta; (
ii)an establishment which the supplier has within Malta does not intervene in that supply.

(3)When a person mentions the tax on an invoice or a document serving as an invoice for a supply he shall, unless he is the person liable for the tax in terms of the foregoing provisions of this article, be jointly and severally liable for the tax on that supply together with that person.

(4)A person who is a representative of another person in terms of article 66 shall, within the limits set out in that article, be jointly and severally liable for the tax together with the person of whom he is a representative. 21.

(1)Every person registered under article 10 shall pay to the Commissioner by not later than the date on which he is required to furnish a tax return for a tax period an amount equivalent to the excess, if any, of the output tax for that period over the deductions that he has a right to make in accordance with article 23: Provided that that person may set off any excess tax credit for a previous tax period, that has not been refunded or become refundable in terms of article 24, against any tax payable in accordance with this subarticle.

(2)Every person liable for the payment of the tax in accordance with article 20

(1)or

(3), other than tax payable in accordance with sub-article

(1)of this article, shall pay that tax to the Commissioner by not later than the fifteenth day of the month following that during which it becomes chargeable.

(3)Every person liable for the payment of the tax in accordance with article 20

(2), other than tax payable in accordance with sub-article

(1)of this article, shall pay that tax to the Commissioner by not later than the fifteenth day of the second month next following either the date of invoice or of the month during which the consignment or the supply of services is received, as the case may be, whichever is the earlier.

(4)Interest shall be due on any tax which is not paid by the date on which it becomes payable at a rate which the Minister shall, from time to time, by regulations prescribe for each month or part thereof during which that tax remains unpaid or at such other rate as may be prescribed: Provided that the running of interest on any amount of tax due which is the merit of an appeal before the Tribunal, shall be suspended for the period that exceeds two months from the date of Payment of the tax. Substituted by: X. 2003.

Amended by: XIII. 2005.42; II. 2009.40; V. 2011.28; L.N. 89 of 2012; V. 2012.61; XIV. 2013.2; XIII.2024.
VA L U E A D D E D TA X the last sitting of the Tribunal relating to such appeal and the date when a decision is given by the Tribunal or a final judgement is delivered by the Court of Appeal (Inferior Jurisdiction), as the case may be: Provided further that the Minister may by regulations prescribe conditions under which part or all the interest incurred under this sub-article may be remitted. Such regulations may also make provision for the remission of any interest due under the Value Added Tax Act, 1994, and under the Customs and Excise Tax Act. (4A) Notwithstanding the other provisions of this article, no interest shall be due where a return required to be furnished under a r t i c l e 2 7 i s f u r n i s h e d i n a n e l e c t r o n i c f o r m a t t h r o u g h th e established web portal designated for the purpose by the Commissioner, together with payment of the tax due on the return, not later than seven days following the date on which the tax becomes payable under the provisions of this Act. (4B) Notwithstanding the other provisions of this article, interest in a particular tax period shall cease to accrue where the total amount of payments appropriated to that tax period in terms of article 67 is equivalent to or exceeds the amount of tax payable for that tax period.

(5)The payment of the tax shall be accompanied by the delivery to the Commissioner of the respective form as the Minister may by regulations prescribe: Provided that tax on importations shall be payable to the Commissioner and shall be made at such place and be accompanied by such forms as the Commissioner may direct. Output tax, input tax and credit for input tax. Substituted by: X. 2003.10. Amended by: XLIII. 2014.2. 22.

(1)The output tax of a person registered under article 10 is the tax on supplies and on intra-community acquisitions that becomes chargeable during that period and for which that person is liable in terms of article 20

(1)and

(2).

(2)The input tax of a taxable person is the tax that becomes chargeable on (

a)supplies made to him, (
b)intra-community acquisitions made by him, and (
c)importations made by him, to the extent that the supplies so made and the goods so acquired or imported have been or are intended to be wholly used by him in the course or furtherance of his economic activity.

(3)Subject to sub-article

(5)(a) the input tax credit for a tax period of a person registered under article 10 is an amount equivalent to so much of the input tax of that person that becomes chargeable during that period as is attributable to supplies made or intended to be made by him, being supplies to which sub-article

(4)applies; VA L U E A D D E D TAX [ CAP. 406. 23 (b) the input tax credit for the last tax period of a person whose registration under article 10 has been cancelled is an amount equivalent to so much of the input tax of that person that becomes chargeable during that period as is attributable to supplies made by him up to the end of that period, being supplies to which sub-article

(4)applies.

(4)This sub-article applies to: (

a)taxable supplies; (
b)exempt with credit supplies; (
c)supplies which take place outside Malta which would, if made in Malta, be treated under the provisions of this Act as taxable supplies or as exempt with credit supplies or supplies taxed outside Malta which if made in Malta would have been treated as exempt without credit supplies; (
d)operations exempt from VAT, relating to: (
i)supplies by persons licensed under the Insurance Business Act or the Insurance Distribution Act, of insurance and reinsurance services, including related transactions, in respect of which they are so licensed; (
ii)the granting and negotiation of credit and the management of credit by the person granting it; (iii) the negotiation of or any dealings in credit guarantees or any other security for money and the management of credit guarantees by the person who is granting the credit; (
iv)transactions, including negotiation, concerning deposit and current accounts, payments, transfers, debts, cheques and other negotiable instruments, but excluding debt collecting and factoring; (
v)transactions, including negotiation, concerning currency, bank notes and coins normally used as legal tender; (
vi)transactions, including negotiation, excluding management and safekeeping, in shares, interest in companies or associations, debentures and other securities, excluding documents establishing title to goods, when the customer is established outside the Community or when those operations are directly linked with goods to be exported to a country outside the Community.

(5)The right to an input tax credit, the amount of the credit and the manner in which input tax is attributable to supplies are subject to the conditions, limitations, revisions and adjustments set out in the Tenth Schedule. Deductions. Substituted by: X. 2003.10. VA L U E A D D E D TA X 23. Every person registered under article 10 who furnishes a tax return for a tax period shall have the right to deduct from the output tax for that period (

a)the input tax credit for that period; (
b)any other deductions to which he may be entitled for that period in accordance with the Tenth Schedule. Refund of excess credit to persons registered under article 10. Substituted by: X. 2003.10. Amended by: XIII. 2005.43; I. 2010.67; III.2026.59. 24.

(1)Saving the other provisions of this Act, when the deductions allowable to a person registered under article 10 for a tax period exceed the output tax of that person for that period the excess shall be an excess credit of that person for that period.

(2)The amount of excess credit of a person registered under article 10 for a tax period shall, to the extent that it is not set off against any amount due by that person to the Commissioner in accordance with article 21

(1), be a refund payable to such person by not later than five

(5)months from the expiration of the time allowed for the furnishing of the tax return for that tax period or from the day on which the said return has been furnished to the Commissioner, whichever is the later: Provided that where a person to whom a refund is payable in terms of this sub-article has, by the date the refund claim is due, failed to submit a tax return, or return of income in respect of the year of assessment 1999 or any subsequent years of assessment by the date required to be submitted in accordance with the provisions of the Income Tax Management Act, and such failure persists until the date such refund becomes payable, any such refund shall not be paid to such person and shall be withheld by the Commissioner until such time as the said tax return or return of income is submitted; and provided further that notwithstanding any other provisions of this Act, no interest shall be due by the Commissioner in respect of the period during which the said refund was withheld on account of failure to submit a tax return or return of income for the purposes of the Income Tax Management Act: Provided further that notwithstanding the foregoing provisions of this sub-article, the Commissioner may set off any amount of excess credit of a person, to the extent that it is not set off against any amount due by that person to the Commissioner in accordance with article 21

(1), against any amounts due by that person to the Commissioner in accordance with any of the provisions of the revenue acts.

(3)Interest shall be due to a person to whom a refund is due in accordance with this article at the rate specified in or prescribed in terms of article 21

(4)from the date by which the refund is payable in accordance with this article until the date when it is paid or when a cheque or draft for the payment thereof is given or posted to that person by the Commissioner: Provided that no interest shall be due for any period during which such person fails to produce information and, or documentation as may be requested by the Commissioner, for the verification of the amount claimed. VA L U E A D D E D TAX [ CAP. 406. 25

(4)For the purpose of any such verifications as he may consider necessary to ascertain the amount refundable, the Commissioner may, by notice in writing to the person to whom a refund is due, extend the time limit referred to in sub-article

(2)by not more than twelve months: Provided that the running of interest on the said refund shall not be meanwhile suspended. 25.

(1)A person who is not registered or liable to be registered under article 10 but who is treated as a taxable person by reason of the fact that he makes an exempt supply of new means of transport may claim a refund of the tax charged on the supply to him or the intra-community acquisition or importation by him of that new means of transport: Provided that the refund shall not exceed the tax that would be chargeable if the supply by him of the new means of transport in question were a taxable supply. Refunds to persons not registered under article 10. Substituted by: X. 2003.10.

(2)A taxable person who is not registered or liable to be registered under article 10 and who is not established in Malta but is established in another Member State may claim a refund of his input tax.

(3)A taxable person who is not registered or liable to be registered under article 10 and who is not established in the Community may claim a refund of his input tax if, in terms of the laws of the country in which he is established, a taxable person established in Malta would be entitled to a comparable benefit with respect to value added tax or similar taxes levied in that country.

(4)When goods transported from a third territory are imported into Malta by a non-taxable legal person, and when the place of arrival of the goods transported is a Member State other than Malta, the importer may claim a refund of the tax on the importation of those goods if he establishes that his acquisition of those goods was subject to value added tax in that other Member State.

A claim for a refund referred to in article 25 shall be made on such form as the Minister may by regulations prescribe and shall be made within such time, be accompanied by such documents and information and be subject to such limitations and conditions as may be prescribed. Claim for refund under article
Substituted by: X. 2003.
PART V Returns, Assessments, Penalties and Appeals 27.

(1)Every person registered under article 10 shall furnish the Commissioner with a tax return for every tax period by not later than the fifteenth day of the second month following the month during which that tax period ends.

(2)Every person whose registration under article 10 is cancelled shall provide the Commissioner with a tax return relating to the last tax period within thirty

(30)days from the date on which he is served with a notice referred to in article 13

(5)or within such longer period as may be specified in the said notice: Provided that this sub-article shall not apply when the Tax returns. Amended by: X. 2003.11; V. 2012.62; XII. 2014.78; XXXVIII.2024.11; IX.2025.66. VA L U E A D D E D TA X registration under article 10 is cancelled in the circumstances mentioned in article 11

(4).

(3)A tax return furnished by a person registered under article 10 shall contain a declaration of the output tax, the input tax and any other declarations and particulars for that tax period that are required under this Act and shall be furnished either on such form as the Minister may by regulations prescribe or in an electronic format through the established web portal designated for the purpose by the Commissioner: Provided that the Minister may by regulations prescribe conditions whereby a tax return shall only be furnished in an electronic format.

(4)A tax return shall not be deemed to have been furnished unless it is full and complete in all material aspects. Adjustments to tax returns. Substituted by: X. 2003.12. Amended by: XIII.2024.37. 28.

(1)Subject to sub-article

(2), a person registered under article 10 who has made an incorrect declaration in a tax return furnished to the Commissioner for a tax period may correct the declaration by the delivery of such form as the Minister may by regulations prescribe. The provisions of article 27

(4)with respect to tax returns shall apply mutatis mutandis to the delivery of the said form.

(2)An incorrect declaration in a tax return may be corrected by means of an adjustment in a subsequent tax return without the need for the delivery of a form as required by sub-article

(1)to the extent allowed by and in the manner provided in the Eleventh Schedule, and when a correction has been so made the tax return shall not be deemed, with respect to the matters so corrected, to have contained any understatement or overstatement for the purpose of article 37

(2).

(3)Notwithstanding the other provisions of this article, where a provisional assessment made in accordance with article 32

(1)and

(2)is served to a person, any tax return furnished to the Commissioner to which such an assessment relates may not be corrected after being served with that provisional assessment, until such time an assessment in accordance with article 32

(3)and

(4)is made or until such time the provisional assessment is cancelled by the Commissioner: Provided that this shall not prejudice the person’s right to cooperate with the Commissioner in order for the assessment made in accordance with article 32

(3)to contain such variations as may be agreed to by the said person.

(4)Notwithstanding the other provisions of this article, when a correction is required to be made to a tax return in accordance with subarticle

(1), after an assessment has been made in accordance with article 32

(3)and

(4), any such correction shall be subject to the approval of the Commissioner. VA L U E A D D E D TAX [ CAP.

27
When a person registered under article 10 has furnished the Commissioner with a tax return for a tax period, the output tax and the deductions of that person for that period shall, except as provided in article 36, be deemed to be the output tax and the deductions declared in that return as adjusted by any adjustment made in accordance with article 28: Provided that any such adjustment shall not give rise to any reduction in the tax liability or a tax credit or refund with respect to that tax period if it is made after the expiration of six years from the end of the year in which that tax period ends. Presumption as to declarations in tax returns. Amended by: X. 2003.
30.

(1)Every person registered under articles 11 and 11A shall furnish the Commissioner with the periodical declarations relating to his economic activity by such means and at such intervals as may be specified in the Sixth Schedule. Further declarations and statements. Substituted by: X. 2003.14. Amended by: II. 2009.41; I. 2010.68; V. 2012.63. Substituted by: XXXVIII.2024.12.

(2)Every taxable person registered under article 10 shall submit a recapitulative statement electronically through the established web portal designated by the Commissioner for this purpose and include any information requested therein at such intervals as the Minister may by regulations prescribe for the following supplies: (a) intra-Community supplies of goods exempt in accordance with items 3

(1)and 3

(4)of Part One of the Fifth Schedule; (b) the supply of goods which were supplied to him by way of intra-Community acquisition of goods which satisfy the conditions referred to in item 2

(2)of Part Three of the Third Schedule; (c) services, other than services that are exempted from VAT in the Member State where the transaction is taxable, and for which the recipient is liable to pay the tax made to taxable persons and non-taxable legal persons identified for purposes of value added tax.

(3)Every taxable person and non-taxable legal person shall make such statements and shall produce such information and documents as may be reasonably required by the Commissioner for any purpose of this Act or as may be prescribed. 30A. A person registered under article 12 shall furnish the Commissioner with a notice of payment in terms of article 21

(5)and declarations of his intra-community acquisitions and purchases made for which the customer is liable for the payment of the tax pursuant to articles 20

(2)(b) and 20

(2)(c) on such form as the Minister may be regulations prescribe. The provisions of article 27

(4)with respect to tax returns shall apply mutatis mutandis to the delivery of the said form. Declarations and other notices by persons registered under article

Added by: XXXVIII.2024.
Power to make assessments where a return has not been furnished. Amended by: X. 2003.
VA L U E A D D E D TA X 31.

(1)When a person liable to furnish a tax return under article 27 for a tax period does not furnish that return the Commissioner may make an assessment of the output tax and the deductions of that person for that period and of the administrative penalty to which that person became liable and serve that assessment on that person at any time after the expiration of the time allowed in terms of this Act for the furnishing of that return and by not later than six years from the end of the said tax period.

(2)An assessment made for a tax period of a person in virtue of this article shall not relieve that person from his obligation to furnish a tax return for that period and from his liability to any or to further administrative penalties in accordance with the relevant provisions of this Act.

(3)When a tax return for a tax period is furnished after an assessment has been made in accordance with sub-article

(1)the Commissioner may cancel that assessment without prejudice to his power to make further assessments in terms of the other provisions of this Act.

(4)The cancellation of an assessment as aforesaid shall not relieve the person who has been in default from his liability to an administrative penalty in accordance with the other provisions of this Act. Power to make assessments when a return has been furnished. Amended by: X. 2003.16; XIII. 2005.44; IV. 2011.74; XV. 2016.73. 32.

(1)When the Commissioner has reason to believe that a tax return furnished by a person registered under article 10 for a tax period does not contain a full and correct statement of the matters required to be declared in that return he may make a provisional assessment and serve that provisional assessment on that person by not later than six years from the end of the said tax period or from the date in which the tax return for that tax period is submitted, whichever date is the later: Provided that where the provisional assessment refers to the adjustment relating to input tax on capital goods mentioned in the Tenth Schedule, it shall be served by not later than six years from the end of the adjustment period mentioned in the said schedule: Provided further that, where a person makes a correction in terms of article 28

(1), the six year period in which the Commissioner may make a provisional assessment as provided for in this sub-article shall start to run from the date on which the Commissioner receives the request for the correction.

(2)A provisional assessment shall indicate clearly that it is a provisional assessment and that it may be followed by an assessment within the time limits specified in sub-article

(3). Save a s af o r es ai d a pr o v i si on a l as se s s m e nt s h a l l c o n ta i n a ll t he particulars that are required to be given in an assessment and such further particulars as the Commissioner may deem appropriate.

(3)After the expiration of a period of not less than thirty days and not more than six months from the service on a person of a provisional assessment in respect of a tax period the Commissioner may make an assessment of the output tax and the deductions of that person for that period and of the administrative penalty to VA L U E A D D E D TAX [ CAP. 406. 29 which that person became liable and serve that assessment on that person.

(4)The assessment made in virtue of sub-article

(3)may not contain any variations to the amounts specified in the relative provisional assessment except for (

a)variations requested by or agreed to by the said person; (
b)variations consisting in the substitution for amounts shown in the provisional assessment of amounts that are equal or closer to those declared in the relative tax return.

(5)The Commissioner may, for the purposes of this Act, cancel any provisional assessment raised by him, and issue a fresh provisional assessment, and such cancellation shall be without prejudice to the raising of a fresh provisional assessment required to be raised under this Act in replacement of the provisional assessment so cancelled which shall be deemed not to have been raised. Such fresh provisional assessment has to be raised within the time limit specified in sub-article

(1). 33.

(1)When the Commissioner has reason to believe that a person has become liable to an administrative penalty with respect to anything made by him during any period in which he was registered under article 11 he may make an assessment of that penalty and serve that assessment on that person within six years from the end of that period. Power to make assessments on other persons. Amended by: X. 2003.17.

(2)When a person who is not registered under article 10 and who is liable to pay tax under this Act does not pay the tax within the time allowed in terms of this Act for the said payment, the Commissioner may make an assessment of the tax payable by that person.

(3)When a person who is not registered under article 10 or 11 becomes liable to an administrative penalty under this Act the Commissioner may make an assessment of the administrative penalty to which that person became liable and serve that assessment on that person at any time within six years from the date on which that administrative penalty was payable. 34.

(1)An assessment made in virtue of article 31, article 32 or article 33 shall be made on such form and contain such further particulars as the Commissioner may deem appropriate or as may be prescribed.

(2)An assessment may be made by reference to such information, estimations or criteria as the Commissioner may, in his judgement, deem appropriate, and the Commissioner may also attribute the taxable value of taxable supplies, the output tax, the deductions allowable and the tax payable or excess credit resulting in respect of a number of tax periods to a particular tax period, provided that the person subject to the said aggregated assessment shall not be made liable to more tax, administrative penalty or Assessments. Amended by: X. 2003.

VA L U E A D D E D TA X interest than he would have been liable to had the amounts been attributed to particular tax periods. Additional and revised assessments.
The power to make an assessment includes the power to make an additional or a revised assessment within the same time limits and subject to the same provisions applicable to an original assessment: provided that the Commissioner may not reopen any matter that has been decided on appeal. Presumption as to amounts shown in assessments. Substituted by: X. 2003.
Where an assessment is made on any person any amount of tax, deductions or administrative penalty assessed in that assessment shall, except if and to the extent that the assessment is cancelled or revised, be deemed for any of the purposes of this Act to be and to have always been the tax, the deductions and the administrative penalty properly due and allowable with respect to the tax period or the transactions to which that assessment refers. Administrative penalty for incorrect tax return. Amended by: X. 2003.20; XIII. 2005.45; L.N. 426 of 2007; L.N. 105 of 2008; II. 2009.
37.

(1)Saving the provisions of sub-article

(2), when a tax return furnished by a person registered under article 10 for a tax period contains an understatement of the output tax or an overstatement of the deductions for that period, that person becomes liable to an administrative penalty in an amount equivalent to twenty per cent of the total of (

a)the excess, if any, of the correct amount of output tax over the output tax as declared in the return; and (
b)the excess, if any, of the deductions as declared in the return over the correct amount of the deductions.

(2)Where a person corrects an understatement or overstatement as is referred to in sub-article

(1)in accordance with the provisions of article 28

(1)before he is served with a provisional assessment for that period, that person becomes liable to an administrative penalty in an amount equivalent to ten per cent of the total of (

a)the excess, if any, of the correct amount of output tax over the output tax as declared in the return; and (
b)the excess, if any, of the deductions as declared in the return over the correct amount of the deductions.

(3)Where a tax return for a tax period furnished to the Commissioner by a person registered under article 10 who only supplies goods or services listed under Part One of the Fifth Schedule to this Act, does not contain a full and correct statement of the matters required to be declared by that person in that return and to the extent that that person does not correct such an understatement or overstatement in accordance with the provisions of article 28 before he is served with an assessment for that period he shall, unless that person has in virtue of that default become liable to a higher administrative penalty under the other provisions of this article, be liable to an administrative penalty of one hundred and fifty euro (€150).

(4)Where, during the course of an investigation, a person cooperates with the Commissioner, accepts an agreement and within one month from the signing of the agreement pays the amount of tax due, the agreed administrative penalty and the interest due, that VA L U E A D D E D TAX [ CAP. 406. 31 person shall be liable to an administrative penalty in an amount equivalent to 10 per cent of the amount of tax due. 37A. Where a notice of payment furnished by a person registered under article 12 contains an understatement of the tax payable in accordance with articles 21

(2)and 21

(3)or where the Commissioner makes an assessment of the tax payable by that person in terms of article 33

(2), that person shall become liable to an administrative penalty in an amount equivalent to twenty per cent of the understated tax payable or the assessed tax. Administrative penalty for understated or assessed tax under article 12. Added by: V. 2012.64. 38.

(1)Any person registered under article 10 who, being required to furnish a tax return for a tax period, does not furnish that return within the time laid down in the relevant provisions of this Act shall be liable to an administrative penalty in an amount equivalent to the higher of (

a)one per cent of the excess, if any, of the output tax over the deductions, disregarding any excess credit brought forward from a previous tax period, as declared in the return; and Administrative penalty for default in the furnishing of a tax return or other declarations and statements. Amended by: X. 2003.21; XIII. 2005.46; L.N. 426 of 2007; L.N. 105 of 2008; II. 2009.43; XII.2023.58. (
b)twenty euro (€20), XXXVIII.2024.14. for every month or part thereof that elapses from the date by which the tax return should have been furnished in accordance with this Act and the date when it is furnished to the Commissioner: Provided that where the tax payable is less than two hundred and fifty euro (€250), such administrative penalty shall not exceed the equivalent of the tax payable to the nearest euro or fifty euro (€50), whichever is the greater, and it shall not exceed two hundred and fifty euro (€250) in all other cases.

(2)Any person who: (a) being required to furnish a declaration in terms of article 30

(1)or article 30A, does not furnish such declaration within the time stipulated in the relevant provisions of this Act shall be liable to an administrative penalty of ten euro (€10) for every month or part thereof that elapses from the date by which the declaration should have been furnished in accordance with this Act and the date when it is actually furnished to the Commissioner: Provided that such administrative penalty shall in no case exceed one hundred and twenty euro (€120) for each such declaration; and (b) being required to furnish a recapitulative statement in terms of sub-article

(3)of article 30, does not furnish that statement within the time laid down in the relevant provisions of this Act shall be liable to an administrative penalty of fifty euro (€50) for every month or part thereof that elapses from the date by which the statement should have been furnished in accordance with this Act and the date when it is VA L U E A D D E D TA X furnished to the Commissioner: Provided that such administrative penalty shall in no case exceed six hundred euro (€600) for each such statement; and (c) being required to furnish any information in terms of article 55A, does not furnish that information within the time laid down in the relevant provisions of this Act shall be liable to an administrative penalty of fifty euro (€50) for every month or part thereof that elapses from the date by which the information should have been furnished in accordance with this Act and the date when it is furnished to the Commissioner: Provided that such administrative penalty shall in no case exceed six hundred euro (€600) for every time such information is not provided. Administrative penalty for default in applying for registration or giving a notice. Amended by: X. 2003.22; XIII. 2005.47; L.N. 426 of 2007; L.N. 105 of 2008; II. 2009.44; XIV.2013.3; XXXVIII.2024.15. 39.

(1)Any person who, being required to apply for registration under article 10, does not make such an application within the time laid down in the relevant provisions of this Act shall be liable to an administrative penalty in an amount equivalent to the higher of (

a)one per cent of the excess, if any, of the output tax over the deductions for the first tax period following the registration; and (
b)twenty euro (€20), for every month or part thereof that elapses from the date on which the application should have been made and the earlier of the date on which the application registration is furnished to the Commissioner and the date when that person is registered by the Commissioner: Provided that where the excess, if any, of the output tax over the deductions for the first tax period following registration is two thousand euro (€2,000) or less, such administrative penalty shall not exceed two hundred and fifty euro (€250), and where the excess of the output tax over the deductions for the first tax period following r e g i s t r a ti o n i s m o r e t ha n t w o t ho u s a n d e u r o ( € 2 , 0 0 0 ) su c h administrative penalty shall not exceed twenty per cent of such excess.

(2)Any person who, being required to apply for registration under article 12, does not make such an application within the time laid down in the relevant provisions of this Act shall be liable to an administrative penalty of the higher of (

a)one per cent of the tax chargeable on the intracommunity acquisitions or the services received or both such intra-community acquisitions and services received, in respect of which he is required to make such application; and (
b)twenty euro (€20), for every month or part thereof that elapses from the date on which the application should have been made and the earlier of the date on which the application is furnished to the Commissioner and the date when that person is registered by the Commissioner: VA L U E A D D E D TAX [ CAP. 406. 33 Provided that where the tax chargeable on the intracommunity acquisitions or the services received or both such intracommunity acquisitions and services received, in respect of which that person is required to make such application is two thousand euro (€2,000) or less, such administrative penalty shall not exceed two hundred and fifty euro (€250), and where the tax chargeable on the intra-community acquisitions or the services received or both such intra-community acquisitions and services received, in respect of which that person is required to make such application is more than two thousand euro (€2,000) such administrative penalty shall not exceed twenty per cent of such tax chargeable.

(3)Any person who, being required to give notice or provide information under articles 13 or 15, does not give that notice or information within the time stipulated in the relevant provisions of this Act shall be liable to an administrative penalty of twenty euro (€20) for every month or part thereof that elapses from the date on which th e notice or information should have been g iven in accordance with those articles and the date when such notice or information is given to the Commissioner: Provided that such administrative penalty shall in no case exceed two hundred and fifty euro (€250) for each such notice or information. 40. Any person registered under article 11 who does not remain eligible to be so registered and who does not apply for the cancellation of his registration under article 11 within the time laid down in the relevant provisions of this Act shall be liable to an administrative penalty in an amount equivalent to the higher of (

a)ten per cent of the excess, if any, of the output tax over the deductions for the first tax period following the cancellation of his registration under article 11; and Administrative penalty for default by person registered under article 11. Amended by: X. 2003.23; XIII. 2005.48; L.N. 426 of 2007; L.N. 105 of 2008; II. 2009.45. (
b)one hundred euro (€100), for every month or part thereof that elapses from the date on which the application should have been made in terms of the said provisions and the earlier of the date on which the application is furnished to the Commissioner and the date when the registration under article 11 is cancelled by the Commissioner: Provided that such administrative penalty shall in no case exceed five hundred euro (€500). 41. Any administrative penalty to which a person becomes liable in terms of this Act shall be due and payable by that person without the need of any assessment to be made with respect thereof, and any amount of any administrative penalty due by a person shall not relieve that person from a higher or from a further penalty to which he may have become or may become liable in terms of the relevant provisions of this Act. Liability to administrative penalties. Reasonable excuse. Amended by: XIII. 2005.49. Substituted by: II. 2009.46. Amended by: V. 2011.29; L.N. 89 of 2012; VIII.2020.70. VA L U E A D D E D TA X 42.

(1)Notwithstanding the provisions of articles 37 to 41, both inclusive (

a)no administrative penalty shall be due by a person for any default if that person proves that there is a reasonable excuse for the default; (
b)if a person does not prove that there is a reasonable excuse for a default, but the Commissioner is of the view that the default resulted from particular circumstances that merit a mitigation of the administrative penalty, he may, in his discretion, remit part of the administrative penalty for that default; (
c)if the Commissioner is of the view that the default resulted from a genuine mistake he may remit in whole or in part the administrative penalty for that default; (
d)no administrative penalty under article 38 shall be due where a return required to be made in terms of article 27 or a declaration required to be made in terms of article 30

(1)is furnished in an electronic format through the established web portal designated for the purpose by the Commissioner, not later than seven days from the date on which the said return or declaration should have been submitted under the provisions of this Act.

(2)For the purposes of sub-article

(1)(

a)and (
b)(
a)an insufficiency of funds to pay any tax due; or (
b)when reliance is placed on any other person to perform any task, the fact of that reliance or any dilatoriness or inaccuracies on the part of the person relied upon, shall not constitute a reasonable excuse.

(3)Notwithstanding the provisions of articles 43 and 44, the use of the Commissioner’s discretion for the purpose of sub-article

(1)(

b)and (
c)shall not be questioned in any appeal or in any reference made to the Tribunal.

(4)The Minister may by regulations prescribe other conditions under which part of, or all, the administrative penalty incurred under articles 37 to 41 may be remitted. Such regulations may also make provision for the remission of any administrative penalties due under the Value Added Tax Act, 1994, and under the Customs and Excise Tax Act. Appeal against an assessment. Amended by: L.N. 89 of 2012. 43. Any person aggrieved by an assessment served upon him may appeal against that assessment to the Tribunal. Other matters that may be referred to Appeal. Amended by: X. 2003.24; II. 2009.47; L.N. 89 of 2012. 44. to - If any question arises, other than on an assessment, relating (

a)the registration of a person under this Act or the cancellation of such a registration; (
b)any tax chargeable on a supply or an acquisition other VA L U E A D D E D TAX [ CAP. 406. 35 than tax assessed in an assessment and any deductions that may be claimed against such tax; (
c)whether a transaction made or to be made by a person is a taxable supply or a taxable acquisition or not or whether an importation of goods made or to be made by a person is a taxable importation or not; (
d)any tax chargeable on the importation of goods; (
e)the place, the time or the taxable value of a supply or of an acquisition; (
f)the amount of deductions allowable to a person registered under article 10 for any tax period; (
g)any security required by the Commissioner under this Act; (
h)whether any refund of tax claimed by any person is due or payable to that person or not; (
i)any question of law not falling within the foregoing provisions of this article; (
j)any matter which, in terms of any provision of this Act, or of any regulations made under this Act, may be referred to appeal; (
k)the imposition of any administrative penalty except where it is imposed as a result of an assessment, that question may be referred to the Tribunal by any person who shows to the satisfaction of the Tribunal that he has a direct interest in that question or by the Commissioner. 45. There shall be an Administrative Review Tribunal for the purpose of hearing and determining appeals and references made in accordance with articles 43 and 44. The Administrative Review Tribunal. Amended by: L.N. 89 of 2012. 46. The Ninth Schedule to this Act shall apply with respect to any appeal made or any question referred to the Tribunal, the composition and competence of the Tribunal, and the regulation of the procedures of the Tribunal. Matters regulated by the Ninth Schedule. Amended by: L.N. 89 of 2012. 47.

(1)Any of the parties to an appeal or to a reference to the Tribunal who feel aggrieved by the decision of that Tribunal may, by means of an application which shall be filed within thirty

(30)days from the date of the decision of the Tribunal, appeal against that decision only on the following questions of law: Appeal to the Court of Appeal. Amended by: VI. 2001.30; IV. 2007.36; L.N. 426 of 2007; L.N. 105 of 2008; L.N. 89 of 2012; XIII.2024.38; III.2026.60. (

i)where the total amount of tax, administrative penalty, and interest for the tax period or periods under appeal up to the date of receipt of the appeal by the Tribunal is less than one million and one hundred and fifty thousand euro (€1,150,000), to the Court of Appeal (Inferior Jurisdiction); and (
ii)where the total amount of tax, administrative penalty, and interest for the tax period or periods under appeal up to the date of receipt of the appeal by the Tribunal is of one million and one hundred and fifty thousand VA L U E A D D E D TA X euro (€1,150,000) or more, to the Court of Appeal.

(2)The board established under article 29 of the Code of Organization and Civil Procedure may make regulations governing appeals under this article.

(3)The Minister responsible for justice may by regulations under this sub-article establish the fees payable in the registry of the court in relation to the filing of judicial acts in connection with appeals to the Court of Appeal or to the Court of Appeal (Inferior Jurisdiction), as the case may be, under this Act: Provided that until fees are so established by the Minister, the fees contained in Schedule A to the Code of Organization and Civil Procedure shall apply. The Administrative Review Tribunal. Added by: L.N. 89 of 2012. Re-numbered by: L.N. 236 of 2013. Amended by: IX.2025.67. 47A.

(1)The Tribunal shall be competent to hear and determine appeals in accordance with the provisions of article 46.

(3)The provisions of article 25 of the Administrative Justice Act shall apply to any proceedings pending before the Value Added Tax Appeals Board, arising out of appeals made under the Value Added Tax Act, 1994, the Customs and Excise Tax Act, 1997 and this Act, and any such proceedings shall be assigned to the Tribunal in terms of the aforesaid article 25 with effect from 1st April, 2012.

(2)The provisions of the Administrative Justice Act, in so far as they apply to the Tribunal, shall apply to any proceedings before the said Tribunal and the words "public administration" in the said enactment shall be construed as a reference to the Commissioner.

(4)Any pending appeal before the Value Added Tax Appeals Board constituted under this Act prior to its abolition shall continue to be heard before the Tribunal and any appeal which under this Act could be made before the Value Added Tax Appeals Board shall be made before the Tribunal.

(5)Any appeal pending on 1st April, 2012 before the Court of Appeal from a decision of the Value Added Tax Appeals Board shall continue to be heard by that Court: Provided that if the said Court were to annul a decision of the said Board and remit it back to the said Board, the remittance shall instead be made to the Tribunal which shall hear and decide that case accordingly.

(6)The Commissioner shall publish all decisions given by the Tribunal on points of law. PART VI Records and Information VA L U E A D D E D TAX [ CAP. 406. 37 48.

(1)Every taxable person established in Malta shall keep full and proper records of all transactions carried out in the course or furtherance of his economic activity.

(2)Every person who is liable to tax on any transaction or who identifies himself as a person registered under this Act for the purpose of any transaction shall keep full and proper records of any such transaction. Records to be kept. Substituted by: X. 2003.25. Amended by: IV. 2007.37; L.N. 89 of 2012; XV. 2016.74; XIII.2024.39.

(3)Every taxable person and every non-taxable legal person shall keep full and proper records of all intra-community acquisitions made by him.

(4)The records referred to in sub-articles

(1),

(2)and

(3)shall be kept and stored in such manner, contain such details and be supported by such information, documents and accounts as set out in the Eleventh Schedule and such records, information, documents and accounts shall be retained for a period of at least six years from the end of the year to which they relate, or such other period or periods as the Minister may, in special cases, by regulations prescribe: Provided that, where a tax return is furnished after its due date or, in the case where a person makes a correction in terms of article 28

(1), the six year period provided for in this sub-article shall start to run from the date on which a tax return is furnished or the date on which the Commissioner receives a request for the correction.

(5)The Commissioner may, at any time within the period specified in sub-article

(4), request any person to produce, or may remove from any person, including a third party, the records, documents, accounts and electronic data required to be kept by him in virtue of this article and to make copies thereof: Provided that, if there is evidence that after being requested by the Commissioner by means of a notice in writing, that such person failed to produce without any reasonable excuse any records, documents, accounts and electronic data within thirty days from the date of service of such notice, such person shall not be al lowed to produ ce such records, do cu ments, account s and electronic data at a later stage after the issue of the provisional assessment or assessments or before the Tribunal or in any Court of law: Provided further that when reliance is placed on any other person to perform any task, the fact of that reliance or any delay or inaccuracy on the part of the person relied upon shall not constitute a reasonable excuse for the purposes of this sub-article. 49.

(1)Where any person registered or required to be registered in accordance with this Act, indicates the price or consideration payable for goods or services which shall be supplied to any other person, such price or consideration shall be deemed to be inclusive of any tax chargeable under this Act.

(2)Notwithstanding the provisions of sub-article

(1), where: Inclusion of tax in the price for supplies. Amended by: X. 2003.26. Substituted by: III.2026.61. VA L U E A D D E D TA X (

a)the tax chargeable in accordance with this Act cannot be determined at the time the price or consideration payable for a supply is indicated; or (
b)the supply is made to another person who identifies himself for the purpose of that supply by means of a valid value added tax identification number, and it is specifically and unequivocally indicated that such price or consideration payable excludes the tax chargeable under this Act, such price or consideration shall be deemed to be exclusive of any tax chargeable under this Act. Tax invoice. Substituted by: X. 2003.27. Amended by: IV. 2011.75; V. 2012.65. 50.

(1)Every person registered under article 10 who makes a supply, other than an exempt without credit supply, to another person who identifies himself for the purpose of that supply by means of a value added tax identification number shall provide that other person a tax invoice within the time determined in accordance with the provisions of the Twelfth Schedule.

(2)When there is an application, disposal, transport or use of goods for which no consideration is charged or paid but which is deemed in terms of the Second Schedule to be a supply made by a person for consideration, that person shall, if he is a person registered under article 10, issue a tax invoice in which he indicates himself both as the person who made the supply and as the person to whom the supply is made.

(3)Every taxable person shall issue a tax invoice within the time stated in sub-article

(1)in respect of every distance sale made by him.

(4)Where a person provides a document to himself which purports to be a tax invoice in respect of a taxable supply made to him by a person registered under article 10, that document may, subject to the provisions of the Twelfth Schedule, be treated as the tax invoice required to be issued and delivered by the supplier in terms of this article.

(5)A tax invoice shall be issued in the form and in the manner and shall contain the particulars set out in the Twelfth Schedule. Documents to be provided in other cases. Substituted by: X. 2003.27; XXXVIII.2024.16. 51.

(1)Any person who makes any supply, other than a supply in respect of which a tax invoice is required to be issued in terms of article 50, shall provide to the person to whom the supply is made an invoice, receipt or other document which shall be issued in the form and in the manner and shall contain the details indicated in the Thirteenth Schedule.

(2)The provisions of sub-article

(1)shall not apply to supplies which are exempt without credit in accordance with Part Two of the Fifth Schedule other than supplies referred to under sub-item 16

(1)of Part Two of the said Schedule. VA L U E A D D E D TAX [ CAP. 406. 39 52.

(1)A person to whom any tax invoice or other invoice, receipt or document is provided as required by article 50 or 51 shall, if so requested in accordance with the other provisions of this Act, produce the said invoice, receipt or other document to the Commissioner or to any officer authorised by the Commissioner. Production of invoices by persons to whom a supply is made. Amended by: XIX. 2007.2.

(2)Any person who transports goods in the course of an economic activity, on his own behalf or on behalf of or to third parties, shall be in possession at any time of an identification document and a tax invoice or a delivery note or a transport document showing a description of all the goods being transported, the value of the goods, the unit quantity, the date of the delivery, the destination address, the name and address and value added tax registration number of the supplier and the name and address and value added tax registration number of the person to whom the supply is made. In the course of an inspection of the means which is transporting the goods, a copy of the aforementioned documents shall upon demand be produced to the Commissioner or to any other officer authorised by the Commissioner. A person who fails to produce the documents as required in accordance with the provisions of this sub-article or whose goods are not found to be in agreement with the said document, shall be guilty of an offence against this Act. 53. The Commissioner shall, for the purpose of ensuring compliance with the provisions of this Act, have the power (

a)to enter and inspect any premises where an economic activity is carried on or suspected to be carried on or where any goods, assets, books, records or documents relating to such activity are kept or suspected to be kept, and to stop, enter and inspect any means which is transporting goods or any means for the transport of goods, to direct the delivery of the said means to another location and to open the said goods to verify the quantity and value of goods with invoices, books, records or documents relating to such goods to determine whether or not value added tax has been accounted for under the provisions of this Act; (
b)to inspect and to require electronic access to any books, records, information and documents, including those contained in any computerised system, and to request a copy or extracts thereof, relating to the economic activity of any person; (
c)without prejudice to the provisions relating to the duty of professional secrecy, to require any person to give such information as may be requested for the purpose of determining whether any supplies have been made by or to that person or any third party on which that person may have information, or whether any intra-community acquisitions or importations have been made by that person or any third party on which that person may have information, or the value of any such supply, acquisition or importation, and to require the attendance of any Inspections and requests for information. Amended by: X. 2003.28; III. 2004.115; XIX. 2007.3; L.N. 426 of 2012; XIII.2024.40. VA L U E A D D E D TA X person at the office of the Commissioner for the purpose of providing such information; (
d)to request the particulars including the name, surname, address and the production of a legally valid identification document of any person suspected to be in breach of any of the provisions of this Act or of any regulations made under this Act; and (
e)to require electronic access to any invoices issued or received electronically by a taxable person or nontaxable legal person identified for Value Added Tax purposes, established in Malta. Access to places of habitation. 54. If access is required for the purposes of article 53(
a)to any premises occupied in whole or in part for the purpose of habitation, such access shall require the prior warrant signed by a Magistrate and shall not take place between seven o’clock in the evening and seven o’clock in the morning. Information held by certain licensed persons. 55.

(1)Without prejudice to the provisions relating to the duty of professional secrecy, no information shall be requested by the Commissioner by virtue of this Act from any persons to whom subarticle

(2)refers except solely for the purpose of determining the tax payable by and the deductions allowable to such person under this Act or of ensuring compliance by such person with the provisions of this Act.

(2)This sub-article refers to - (

a)a bank licensed under the Banking Act; (
b)an insurance company in respect of long term insurance business which is carried on pursuant to a licence granted under the Insurance Business Act; (
c)any person licensed to carry on investment business under the Investment Services Act; (
d)a collective investment scheme licensed under the Investment Services Act; Information provided to achieve the objective of combating VAT fraud. Added by: XII.2023.59. Official secrecy. Amended by: X. 2003.29; IV. 2007.38; VIII.2021.14; XIII.2024.41; XXXVIII.2024.17; IX.2025.68. (
e)a stockbroker licensed under the Malta Stock Exchange Act. 55A. Notwithstanding the provisions relating to the duty of professional secrecy, and anything contained in any other provision of this Act, the Minister may by regulations prescribe requirements for any person to retain and furnish the Commissioner such information as may be required in order to achieve the objective of combating VAT fraud. 56.

(1)Except as may be necessary for the purposes of this Act, or where the Commissioner otherwise directs, every person having any official duty or being employed in the administration of this Act shall regard and deal with all documents and information relating to this Act as secret and confidential.

(2)No person appointed under or employed in carrying out the provisions of this Act shall be required to produce any document or to VA L U E A D D E D TAX [ CAP. 406. 41 divulge any matter coming under his notice in the performance of his duties under this Act except as may be lawfully required for the purpose of carrying into effect the provisions of this Act, or for the purpose or in the course of any appeal made in accordance with this Act or a prosecution for any offence against any of the provisions of this Act, or in the course of an investigation or a prosecution for any relevant offence or during any judicial or quasi-judicial proceedings when ordered by a court or tribunal to disclose information: Provided that the provisions of this article shall not prejudice the international obligations that the Commissioner or any person referred to in this sub-article may have, including confidentiality obligations under arrangements made under article 76 of the Income Tax Act. (2A) For the purposes of this article, "relevant offence" means a criminal offence, not being one of an involuntary nature, consisting of any act or omission which if committed in Malta, or in corresponding circumstances, would constitute an offence liable to the punishment of imprisonment or of detention for a term of one

(1)year or more.

(3)Notwithstanding the other provisions of this article, the Commissioner may permit the Auditor General or any officer authorised by the Auditor General to have access to any records or documents as may be necessary for the performance of his official duties and for this purpose the Auditor General and any such authorised officer shall be deemed to be a person employed in the administration of this Act.

(4)Notwithstanding the other provisions of this article or of any other law, the Commissioner shall furnish to the competent authority designated under the Eco-Contribution Act such information being information obtained by the Commissioner for any of the purposes of this Act.

(5)Nothing contained in this article shall, after the accession d a t e , p r e v e n t t h e d i s c l o s u r e b y t h e C o m m i s s i o n e r, o f a n y information that is required to be disclosed in terms of Council Regulation (EU) No. 904/2010 or of any such other Council Regulation as may be prescribed.

(6)For the purposes of this article, any information disclosed to the Commissioner by the fiscal authorities of another Member State in terms of any Council Regulation referred to in sub-article

(5)shall be treated as information relating to and obtained for the purposes of this Act. PART VII Special Cases 57.

(1)The provisions of the Fourteenth Schedule shall apply with respect to the special cases prescribed by the Minister in the said Schedule.

(2)With respect to the special cases to which the Fourteenth Special cases. Substituted by: X. 2003.

Amended by: II. 2009.
Substituted by: IX.2025.
VA L U E A D D E D TA X Schedule applies and the obligations of persons involved in such cases, the said Schedule shall have effect notwithstanding anything to the contrary contained in the other provisions of this Act: Provided that the other provisions of this Act shall apply to the said cases and obligations insofar as they are not inconsistent with anything contained in the said Schedule. PART VIII Collection, Security and Refunds Court case instituted by the Commissioner. Amended by: IV. 2007.39; XII. 2014.80; XIII. 2015.
Substituted by: III.2026.
58.

(1)All tax, interest and administrative penalties due under this Act may be sued for and recovered, as the case may require in the competent court of civil jurisdiction.

(2)Subject to the provisions of sub-article

(3), the Commissioner may institute an action for the payment of all tax, interest and administrative penalties at any time within six

(6)years from the date on which such tax, interest or administrative penalty becomes payable.

(3)The period referred to in sub-article

(2)shall be interrupted by a demand note served through registered post or by publication of a notice in the Gazette and in one

(1)or more daily newspapers by the Commissioner stating that a demand note has been made or by publication of a notice on the web portal designated by the Commissioner for that purpose stating that a demand note has been made, or by any judicial act filed by the Commissioner before the expiration of such period requesting the payment of the amount claimed. Executive title. Amended by: XIII. 2005.50. 59.

(1)Any notice issued by the Commissioner showing any amount of tax and administrative penalty due by a person shall, unless the contrary is proved, be sufficient evidence that that amount is due to the Commissioner by that person and shall constitute an executive title within the meaning and for the purposes of Title VII of Part I of Book Second of the Code of Organization and Civil Procedure.

(2)The Commissioner may request the payment of any tax and administrative penalty payable by any person in terms of this Act by means of a demand note, and if the payment requested is not made within thirty days from the date when the said demand note is served on that person, the Commissioner may proceed to enforce payment in virtue of the executive title referred to in sub-article

(1)after two days from the service on that person of an intimation for payment made by means of a judicial act. Upon the lapse of the period of two days mentioned in this sub-article the Commissioner shall be entitled to register in the public registry or land registry, as the case may be, a note of privilege for the amount demanded in the judicial act which note of privilege shall be registered by any advocate or notary.

(3)The provisions of article 468 of the Code of Organization VA L U E A D D E D TAX [ CAP. 406. 43 and Civil Procedure shall apply with respect to any warrant issued on the strength of an executive title mentioned in this article and to the paying out of the proceeds of the sale by auction of the property seized, and no opposition or reservation in the schedule of deposit shall stay the paying of any sum deposited in court following any such warrant as aforesaid. 60.

(1)No goods imported into Malta shall be delivered for use in Malta or taken out, cleared or delivered from any customs bond except - Restrictions on the release of imported goods. (

a)where the importation of those goods is an exempt importation; or (
b)where the tax on the said importation has been paid in accordance with this Act; or (
c)with the authorisation of the Commissioner.

(2)An authorisation for the purpose of paragraph (c) of subarticle

(1)may be given under such conditions and against the granting of such security as the Commissioner may establish. 61.

(1)The Commissioner shall, for the purpose of ascertaining, collecting and protecting the tax chargeable under this Act on taxable importations, have the same powers and shall follow the same procedures as are in accordance with any other law exercisable and followed by him for the purpose of ascertaining, collecting and protecting import duties. Powers relating to imported goods. Amended by: XIII.2024.42.

(2)Any provision in the Customs Ordinance or in the Import Duties Act or in any regulations made thereunder relating to the application of the proceeds from a sale of imported goods towards the payment of import duties due on those goods shall be construed as providing for the application of the said proceeds towards the payment of import duties and of any tax due under this Act on the importation of those goods.

The Commissioner shall have a special privilege over the assets of a person in respect of any tax due by that person under this Act and the said tax shall, notwithstanding anything contained in any other law, be paid in preference to a debt having any other privilege, excepting a debt having a general privilege and a debt mentioned in article 2009(a) or (b) of the Civil Code. Special privilege. Amended by: IX.2025.
63.

(1)If, in any particular case, the Commissioner has reason to believe that tax due by a person might not be recoverable at the time when that tax becomes payable in terms of this Act, he may by a notice served on that person, demand the payment of the tax within such time as may be specified in that notice and the tax shall thereupon become payable within that time notwithstanding any other provision of this Act.

(2)When a payment has been demanded from a person in accordance with sub-article

(1), that person may, instead of making the said payment, furnish such security for the tax payable as may be acceptable to the Commissioner. Security for tax due on supplies. Amended by: X. 2003.31; IV. 2007.40. VA L U E A D D E D TA X

(3)The co-contracting party of the person liable to pay the tax shall be held jointly and severally liable for the payment of the tax.

(4)The provisions of sub-article

(3)shall not apply to an operation referred to in article 20

(1)when and to the extent that the co-contracting party proves that he has paid the price and the related tax due to the supplier.

(5)Where it appears to the Commissioner that it is necessary for the protection of Government revenue, he may, at any time, under conditions approved by the Minister, require a taxable person, as a condition for that person to supply goods or services, to give such security, or further security, for that amount and in such manner as the Commissioner may determine, for the payment of any tax that is or may become due by him under this Act. Shorter period for the delivery of a return. Amended by: X. 2003.

If, in any particular case, the Commissioner has reason to believe that the tax due by a person registered under article 10 could otherwise be prejudiced, he may, by means of a notice in writing, require that person to furnish a tax return for a tax period before the time allowed in terms of the other provisions of this Act, and in respect of that tax return any reference in this Act to the time allowed in terms of any provision of this Act shall thereupon be construed as a reference to the period specified in the said notice. Judicial auction. Substituted by: X. 2003.
Amended by: L.N. 181 of 2006; L.N. 186 of
65.

(1)Where any assets belonging to an economic activity of a person are sold by judicial auction pursuant to any proceedings exercised by a creditor or by creditors of that person, and where that sale is treated as a supply of goods in terms of the relevant provisions of the Second Schedule and is subject to tax under this Act, the registrar of the court under the authority of which the sale is made shall, after notifying the person or persons appearing to be interested therein, remit to the Commissioner from the proceeds lodged in court, with preference over any other person not having a prior claim to that of the Commissioner as provided for in article 62, the tax chargeable on that supply.

(2)Any interested person may oppose the remittance referred to in sub-article

(1)by means of a sworn application filed against the Commissioner within six working days from the date of the notification referred to in the said sub-article. Representatives. Amended by: X. 2003.34; IX.2025.71.

(3)No bid animo compensandi shall be approved for the purposes of article 331 of the Code of Organization and Civil Procedure unless the tax chargeable, if any, on that supply has been lodged in court and remitted by the Registrar in accordance with sub-article

(1). 66.

(1)Any secretary, manager, director, liquidator or other principal officer of an entity or of a body of persons, any heir and any testamentary executor and any curator of the vacant inheritance of a deceased person, any parent or guardian of a minor, and any person who is a tutor, curator, administrator or trustee of any other person or of any trust, fund or other entity shall, for the purposes of this Act, be a representative of that body of persons, deceased person, minor, other person, trust, fund or other entity, as the case may be. VA L U E A D D E D TAX

(2)[ CAP. 406. 45 (

a)When a person who is not established in Malta and is not established in the Community, is or is required to be registered under this Act any person resident in Malta to whom he makes a taxable supply or who is his agent or who otherwise has a business relationship with him shall, if so designated by the Commissioner by means of a notice in writing, and unless another person resident in Malta and acceptable to the Commissioner has been so designated by that firstmentioned person, be a representative of the said person. (
b)When a person who is not established in Malta, but is established in the Community, is, or is required to be registered under this Act, he may, by means of a notice in writing to the Commissioner, nominate as his representative, any person resident in Malta who is acceptable to the Commissioner. (
c)For the purpose of this sub-article, the Minister may by regulations prescribe the conditions regulating such

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AI explanation based on the official legal text. Indicative, not a substitute for legal advice.