{"html": "

regulations prescribe the conditions regulating such appointment.

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(3)(a) Subject to the provisions of sub-article (5) a representative of a person shall be liable in the same manner and to the same extent as the person of whom he is a representative for all the obligations imposed by or under this Act. (b) Anything done or omitted to be done by a representative acting as such shall for the purposes of this Act be deemed to have been done or omitted to be done by the person of whom he is a representative. (c) Any notice served on or any refund paid to a representative in his capacity as such under any of the provisions of this Act shall be deemed to have been served on or to have been made to the person of whom he is a representative. (d) The existence of or the designation of a person as a representative of another person shall not relieve the latter person from any obligation or liability under this Act.
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(4)A representative who has under his management or control any funds or property belonging to or due to the person of whom he is a representative shall not dispose of such funds or property unless he has made adequate provision for any tax due under this Act.
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(5)A representative shall be jointly and severally liable with the person of whom he is a representative for the tax due by that person: provided that where the representative has acted in good faith and is not knowingly in breach of sub-article (4) or of any other obligation under this Act, his liability under this sub-article shall be limited to the funds or to the value of any property under his management or control which belongs or is due to the person of VA L U E A D D E D TA X whom he is a representative.
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Appropriation of payment.

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Substituted by:

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XII. 2014.81.

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Art. 67

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67.(1) When a person furnishes a tax return or notice of payment within the time laid down in the relevant provisions of this Act and such tax return or notice of payment is accompanied by a payment of all or part of the tax declared to be payable therein, such payment shall be deemed to be made on account of the tax payable on that tax return or notice of payment.
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(2)When a person furnishes a tax return or notice of payment within the time laid down in the relevant provisions of this Act and such tax return or notice of payment is not accompanied by a payment of all the tax declared to be payable therein, such person may request, by the furnishing of such form as the Minister may by regulations prescribe, that any payment accompanying such form shall be deemed to be made on account of the tax declared to be payable in such tax return or notice of payment, so however that: (a) such request shall not be valid if it is made later than six months from the time within which the tax return or notice of payment is required to be furnished in terms of the relevant provisions of this Act; (b) the provisions of sub-articles (3) and (4) shall apply to such payment.
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(3)Subject to the provisions of sub-articles (1) and (2), when any interest is due by a person on any tax, other than tax the payment of which m ay be kept in abeyance in terms of the provisions of the Ninth Schedule to this Act, any payment made by that person to the Commissioner shall, notwithstanding any declaration made by that person, be appropriated to that interest before it is appropriated to any tax.
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(4)Subject to the provisions of sub-articles (1), (2) and (3), when an administrative penalty is due by a person, other than a penalty the payment of which may be kept in abeyance in terms of the provisions of the Ninth Schedule to this Act, any payment made by that person to the Commissioner shall, notwithstanding any declaration made by that person, be appropriated to such administrative penalty before it is appropriated to any tax.
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(5)Subject to the other provisions of this article, when tax due by a person, other than tax the payment of which may be kept in abeyance in terms of the provisions of the Ninth Schedule to this Act, became due on more than one occasion any payment made by that person to the Commissioner shall, notwithstanding any declaration made by that person, be appropriated to that amount of tax that became due at the earliest of those occasions before it is appropriated to the tax that became due on subsequent occasions.
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(6)When a payment is made by a person to the Commissioner in circumstances which indicate that that person intended that payment to relate to a tax return or notice of payment, that payment shall be deemed to relate to that tax return or notice of payment for the purposes of this article without prejudice to the power of the Commissioner under any other provision of this Act to appropriate that payment in any other manner.
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VA L U E A D D E D TAX [ CAP. 406. 47

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Art. 68

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68.(1) Tax paid shall not be refundable except in the circumstances provided in Part IV or articles 69, 70 and 71.
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Refunds.

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Amended by:

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X. 2003.35.

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(2)When any amount is refundable by the Commissioner to a person by whom any interest, administrative penalty or tax is due, the Commissioner may deduct such tax, interest or administrative penalty from that amount to the same extent to which that amount, had it been a payment made by that person, would fall to be appropriated to such interest, penalty or tax in accordance with the provisions of article 67 and in the same order: provided that a deduction under this sub-article may also be made with respect to tax that may be kept in abeyance in terms of the provisions of the Ninth Schedule to this Act.
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(3)A refund due in accordance with any provision of this Act shall be payable without any further appropriation other than this Act by warrant under the hand of the Minister.
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Art. 69

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69.(1) Subject to the provisions of sub-article (2) where it results that any tax paid by a person was not due or was in excess of the tax due under this Act , the Comm issioner shall, on the production of such evidence as he may deem fit to require, repay the tax or that part thereof which was not due to that person or to any other person who may be entitled to that repayment: provided that nothing in this sub-article shall be construed as overriding or replacing the provisions of article 43.
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(2)The Minister may by regulations prescribe the manner and the time within which a claim for a repayment under sub-article (1) may be made and such conditions and limitations, including a minimum amount in respect of which a repayment may be claimed, as he may deem fit.
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(3)Where it results from a decision given on an appeal made in accordance with this Act, that any amount of tax paid by a person was not due, the Commissioner shall refund such amount to that person within thirty days from the date such decision becomes res judicata.
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(4)Interest at the rate specified in or prescribed in terms of article 21(4) shall be due on a refund to which sub-article (3) refers for the period ending on the date when the refund is paid or a cheque or draft is posted by the Commissioner to the person to whom the refund is payable, which interest shall run (a) if and to the extent that the amount refundable had been claimed as excess credit in a tax return furnished to the Commissioner by the appellant, from the date established in accordance with article 24; (b) if and to the extent that the amount refundable was paid by the appellant as a condition for the validity of his appeal in accordance with the provisions of the Ninth Schedule to this Act, from the date on which that amount was paid to the Commissioner; (c) in any other case, from the date the refund is payable in accordance with sub-article (3).
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Repayment of tax that was paid but not due and of overpaid tax.

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Amended by:

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X. 2003.36.

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Repayment of tax for diplomatic and consular arrangements, and certain international organisations.

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Amended by:

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X. 2003.37.

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Substituted by:

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III.2026.63.

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Repayment of tax in certain cases.

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Substituted by:

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X. 2003.38.

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VA L U E A D D E D TA X

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Art. 70

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70.The Minister may by regulations prescribe for the refund by the Commissioner of the tax paid on supplies, intra-community acquisitions or importations by diplomatic or consular arrangements or by 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:
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Provided that the grant of such refund shall be subject to such conditions and limitations as may be established in the said regulations.

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Art. 71

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71.The Minister may by regulations provide for the repayment by the Government, subject to such limitations, conditions and formalities as may be prescribed in the said regulations, of: (a) an amount not exceeding the tax chargeable on supplies made to non-taxable physical persons of goods exported by them outside Malta; (b) tax paid on the supply of goods that are exported by the persons acquiring them in the framework of their humanitarian, charitable or teaching activities; (c) tax paid on supplies to, or intra-community acquisitions and importations by, persons or classes of persons eligible under such schemes as may be specified in the regulations.
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PART IX

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Miscellaneous Validity of notices, etc.

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Art. 72

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72.(1) Any notice, warrant or other proceeding purporting to be made in accordance with the provisions of this Act shall not be deemed to be void or voidable for want of form or be affected by the reason of a mistake, defect or omission therein, if the same is in substance and effect in conformity with or according to the intent and meaning of this Act.
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(2)In the case of a body of persons it shall be sufficient if only the name of the body of persons appears on any notice, warrant or proceeding, including any proceeding in the Court of Appeal, issued or made under or for the purposes of this Act.
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Delivery and service of notices, etc.

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Amended by:

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XII. 2014.82;

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VII.2019.62.

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Substituted by:

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III.2026.64.

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Art. 73

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(1)Every notice to be served on a person by the Commissioner under this Act shall be signed by the Commissioner or by any person authorised by the Commissioner and every such notice shall be valid if the signature is printed, stamped or written thereon:
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Provided that any notice given electronically by the Commissioner shall not be required to be signed and shall be valid if it is: (a) made available to that person through the web portal designated by the Commissioner for that purpose; or (b) given to that person from any electronic address VA L U E A D D E D TAX [ CAP. 406. 49 belonging to the Commissioner, including generic electronic addresses, or belonging to a person authorised by the Commissioner.

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(2)Any notice required to be given to a person under this Act by the Commissioner or any other person authorised by the Commissioner may be served either personally, electronically or by being sent by post. A notice shall be deemed served where: (a) it is sent by registered post, as evidenced by proof that the notice was properly addressed and shall be deemed to have been served in the case of an address in Malta not later than the third day subsequent to the day when it was posted, and in the case of an address outside Malta on the day subsequent to that on which the notice would have been received in the ordinary course by registered post; (b) it is sent electronically to an electronic address provided by that person, or on behalf of that person, to the Commissioner through the web portal designated by the Commissioner for that purpose; or (c) it is made available to that person through the web portal designated by the Commissioner for that purpose:
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Provided that where such notice is not served on a person because that person could not be found or for other reasons attributable to that person and the Commissioner publishes a notice in the Gazette and in one (1) or more daily newspapers, or the Commissioner makes a notice publicly available on the web portal designated by the Commissioner for such purpose, stating that a notice has been made and inviting that person to collect it as and where directed by the Commissioner, then such notice shall also be deemed to have been duly notified on the date of such publication on that web portal:

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Provided further that a cheque or draft posted by the Commissioner shall be deemed to be a payment for the amount thereof made on the date indicated on that cheque or draft.

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(3)For the purposes of sub-article (2), a notice sent by registered post shall be deemed to have been properly addressed if it has been addressed to any known business or private address of a person.
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(4)The Commissioner may publish on the web portal designated by the Commissioner for this purpose the closing times of the offices of the Commissioner and any period established in, or under this Act for the furnishing, delivery or service of a return, notice or other document VA L U E A D D E D TA X to the Commissioner or for any payment to the Commissioner and such period shall be deemed to expire at the closing time of the last day of such period:
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Provided that this sub-article shall not apply to any return, notice, other document or payment made electronically through the means designated for such purpose by the Commissioner.

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General anti-abuse provision.

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Substituted by:

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XIII.2024.43.

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(5)When the date on which any return, notice or other document is to be furnished, delivered or served or deemed to be served or on which a payment is to be made in terms of any provision of this Act falls, were it not for the provisions of this sub-article, on a Saturday or a Sunday, or on a national day or a public holiday as established in the National Holidays and other Public Holidays Act, such date shall be deemed to fall on the first working day, other than a Saturday, following the said Saturday, Sunday, national day or public holiday.
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Art. 74

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(1)Any artificial or fictitious scheme which directly or indirectly results in the accrual of a tax advantage when the essential aim of that scheme is for a person to obtain said advantage the grant of which would be contrary to the purpose of the provisions of this Act, shall be disregarded in such a manner as to redefine the scheme so as to re-establish the situation that would have prevailed in the absence of such scheme.
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(2)Notwithstanding the other provisions of this Act, no amount shall be treated as input tax of a person in terms of article 22(2) to the extent to which it represents tax chargeable on goods or services having been the subjects of VAT fraud committed upstream or downstream in the chain of supply, when that person knew or should have known of such fraud, irrespective as to whether that person actively participated in that fraud.
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(3)When the Commissioner has reason to believe that the provisions of sub-articles (1) or (2) apply, he may make an assessment in accordance with articles 31, 32 or 33 determining the tax liability or the entitlement to any input tax credit, refund or set-off of tax of the said person, for any tax period, in such manner and in such amount as may be necessary according to the circumstances of the case:
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Provided that this shall not prejudice the right of a person to object to such an assessment and to appeal from a decision of the Commissioner refusing that objection. The relevant provisions of this Act relating to objections and appeals shall apply mutatis mutandis.

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(4)In this article \"scheme\" includes any transaction or sequence of transactions, disposition, agreement, arrangement, trust, grant, covenant, transfer of assets, structure, alienation of property, irrespectively of the date on which such scheme was made, entered into or set up.
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VA L U E A D D E D TAX [ CAP. 406. 51

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Art. 75

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75.(1) The Minister may by regulations (a) amend, cancel or substitute any of the Schedules, except for the Ninth Schedule, to this Act; (b) prescribe any matter which may in any particular case be deemed necessary for the purpose of avoiding significant distortions in competition which might otherwise result from the application of any of the provisions of this Act; (c) make provision for the rounding up or down of any amount in any computation made for any of the purposes of this Act, or for disregarding any small amounts in any such computation; (d) prescribe anything that may be prescribed in virtue of the provisions of this Act; (e) prescribe any conditions and determination that may, in accordance with this Act, be imposed or made by the Commissioner; (f) prescribe any other matter for securing the payment of the tax and generally for giving effect to the provisions of this Act, including enforcement provisions and applicable fines (multi) and administrative penalties; and (g) amend, revoke or substitute any regulations made under this Act.
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(2)Any guidelines, explanations or instructions relating to this Act or to any regulations prescribed in terms of sub-article (1) contained in a publication or circular by or under the authority of the Commissioner and distributed or made available to taxable persons in general, shall be read and construed as one with such regulations and shall have the same effect as the regulations to the extent that such guidelines, explanations or instructions are not in conflict with this Act or the said regulations or with guidelines, explanations or instructions published at a later date and to the extent that (a) they give a definition of any term or an interpretation or any provision contained in this Act or the regulations; (b) they determine the manner in which any provision of this Act or the regulations is to be applied; (c) they determine the manner which, in accordance with this Act or the regulations, may be determined by or subject to the approval or the discretion of the Commissioner.
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PART X

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Offences and Punishments Power to make regulations.

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Amended by:

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X. 2003.39;

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XIII. 2015.153;

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XIII.2024.44.

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Failure to apply for registration, or to keep or deliver records and returns.

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Amended by:

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X. 2003.40;

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XIII. 2005.51;

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IV. 2007.41;

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L.N. 426 of 2007;

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XXXII. 2007.82;

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L.N. 105 of 2008;

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II. 2009.49;

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XIV. 2013.4;

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XIII.2024.45.

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Art. 76

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VA L U E A D D E D TA X Any person who (a) fails to apply for registration at the time and in the manner required by article 10 or 12; (b) fails to keep or to store records, documents and accounts for the time and in the manner required by this Act or any regulations made under this Act; (c) fails to furnish any tax return, additional return, statement or information when required to do so in virtue of this Act or of any regulations made under this Act; (d) fails to produce or provide access to any books, records, documents, information and accounts, or fails to pay any tax or administrative penalty due when required to do so in virtue of this Act or of any regulations made under this Act; (e) supplies goods or services having failed to provide the security requested by the Commissioner under article 63(5), shall, on conviction, be liable to a fine (multa) of not less than seven hundred euro (€700) and not exceeding three thousand and five hundred euro (€3,500) and, on a request by the prosecution, the court shall, in respect of an offence under paragraph (c), order the offender to comply with the law within a time sufficient for the purpose, but in any case not exceeding three months, and in default the offender shall be liable to the payment of a further fine (multa) of five euro (€5) for every day that the default continues after the lapse of the time fixed by the Court:

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Provided that the offender may, within thirty days after final judgement, apply to the Court which convicted him, requesting a total or partial remission of the penalty imposed under this article. The Court may grant a total or partial remission of such penalty provided that the prosecution, with the written concurrence of the Commissioner to be filed with any reply to such application, agrees to such request. Any such application shall be served on the prosecution which shall reply within fifteen working days from such notification.

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Irregularities in records, etc., and false representations.

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Amended by:

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X. 2003.41;

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XIII. 2005.52;

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IV. 2007.42;

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L.N. 426 of 2007;

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L.N. 105 of 2008;

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II. 2009.50;

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IV. 2011.76;

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V. 2012.66;

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XIV. 2013.5;

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XV. 2016.75;

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XXXVIII.2024.18.

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Art. 77

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Any person who (a) knowingly fails to account for any taxable supply or any intra-community acquisition made by him in the records, documents and accounts required by this Act or any regulations made under this Act; (b) gives any return, statement or information required for any of the purposes of this Act which he knows to be incorrect or misleading in any material respect; (c) falsifies any records, documents or accounts required to be kept under this Act or prepares or draws up or helps in the preparation or drawing up or makes use of any false records or documents; (d) with the intent of concealing any evidence which he knows or is reasonably expected to know to be VA L U E A D D E D TAX [ CAP. 406. 53 relevant for any purpose of this Act destroys, erases, damages or conceals any stored information or any records, documents or accounts, or is in possession of or supplies to another person any software application that would erase, destroy, damage or conceal any stored information or any such records, documents or accounts; (e) fails to provide or produce a tax or other invoice or document as and when required by article 50, 51 or 52 or provides any such tax or other invoice or document which is incorrect or misleading in any material respect or fails to provide to the Commissioner, without any valid reason, all copies of any used or unused manual fiscal receipts where required by the Commissioner; (f) is an employee or agent of another person, and whose functions in that capacity include that of providing or producing a tax or other invoice or document which that other person is required to provide or to produce in terms of article 50, 51 or 52, fails to provide or produce such tax or other invoice or document or provides any such tax or other invoice or document which is incorrect or misleading in any material respect; (g) provides an invoice or other document in respect of a supply showing tax to be chargeable on that supply in a case where he knows that no tax is chargeable or where the tax chargeable is less than that shown or otherwise knowingly adds to or includes in a price for a supply any amount purporting to represent tax which is not due or which is higher than the tax due; (h) applies to be registered under articles 11 or 11A in circumstances indicating that he knows or could with due diligence have known that he is not entitled to be so classified; (i) being registered under articles 11 or 11A and not being eligible to remain so registered does not apply for the cancellation of such registration in the manner required

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and within the time stipulated in this Act; (j) being registered under articles 11 or 11A purports in connection with any transaction not to be so registered for the purpose of obtaining any financial gain; (k) not being registered under articles 11, 11A or 11B purports in connection with any transaction to be so registered for the purpose of obtaining any financial gain; (l) having added to or included in a price for goods or services supplied by him to another person any amount purporting to represent tax chargeable under this Act, knowingly fails to account for that amount in his records and accounts or to pay that amount to the Commissioner;

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VA L U E A D D E D TA X (m) acquires possession of or deals with any goods, or accepts the supply of any services having reason to believe that the tax on the supply of the said goods or services has been or will be evaded; (n) supplies or offers to supply to another person goods or services the acquisition or dealing with which or the acceptance of which would render that other person guilty of an offence in virtue of paragraph (m); (o) supplies or offers to supply to another person and, or puts up for sale goods, without being in possession, at the place where he supplies or offers to supply to another person and, or puts up for sale goods, of a fiscal cash register or manual fiscal receipt books as issued or approved by the Commissioner; (p) being a credit or financial institution which supplies money or grants credit by way of a loan account facility or by means of any other kind of facility to a customer in connection with the supply of goods or services by third parties to that customer for the construction, re-construction, repair, refurbishment or maintenance of immovable property or for fixtures related thereto, and which effects payment for such goods or services either directly to the vendor or supplier thereof or to a third party or to the customer subject to an understanding or to an express or implied condition that the amount paid will be passed on to the said vendor or supplier, by the debit of the customer’s loan account or other facility, on the basis of supporting documents, including contracts, invoices, receipts, architects’ or other certificates, or similar documents, submitted by or on behalf of the customer or by or on behalf of suppliers, contractors or other third parties, and which fails to inform the Commissioner of the names and VAT registration numbers of the said suppliers, contractors or other third parties as aforesaid, other than the customer, to whom it has directly or indirectly made payments as specified in this paragraph, in the form required by the Commissioner, as well as of the amounts of such payments, by not later than the end of the calendar quarter immediately following the calendar quarter during which it directly or indirectly made any payment as aforesaid, shall be guilty of an offence and shall, on conviction, be liable (i) to a fine (multa) of not less than six thousand euro (€6,000) and not exceeding ten thousand euro (€10,000) for an offence committed under paragraphs (c) and (d); and (ii) to a fine (multa) of not less than seven hundred euro (€700) and not exceeding three thousand

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five hundred euro (€3,500) for an offence under VA L U E A D D E D TAX [ CAP. 406. 55 the other paragraphs, and in addition, for any offence as above referred to in all paragraphs, except for paragraph (p), where tax amounting to more than one hundred euro (€100) would be endangered, to a further fine (multa) equal to two times the endangered tax or to imprisonment of not more than six months or to both such fines and imprisonment:

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Provided that, the two times fine (multa) for the endangered tax shall in no case be less than one thousand euro (€1,000).

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In addition, on a request by the prosecution, the court shall order the offender to comply with the law within a time sufficient for the purpose, but in any case not exceeding one month, and, in default, the offender shall be liable to the payment of a further fine (multa) of five euro (€5) for every day on which the default continues after the lapse of the time fixed by the Court.

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Art. 78

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78.(1) Where a person has been convicted under either article 76 or article 77 and is again convicted of an offence under either of the said articles committed within six months from the date of the previous conviction, the fine (multa) shall in no case be less than one thousand and two hundred euro (€1,200).
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Recurrent offences.

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Amended by:

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XIII. 2005.53;

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L.N. 426 of 2007;

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L.N. 105 of 2008;

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II. 2009.51.

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(2)Where a person has been convicted of four offences committed under either of the articles aforesaid in a period of twenty-four months, the court shall on the latest of the said convictions impose a fine (multa) of not less than two thousand and five hundred euro (€2,500) and in addition to the punishment for that conviction order the suspension for a determinate time of not less than one week and not more than one month of all licences, permits, warrants or other authorisation granted by the Police or by any other authority to carry on the economic activity or activities to which the offences relate.
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Art. 79

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79.Any person who (a) obstructs, hinders, impedes or does anything which is calculated to obstruct, hinder or impede, or molests or assaults the Commissioner or any person duly engaged in the exercise of any power or duty conferred or imposed on him by or under this Act; (b) being a person in charge of any premises which the Commissioner or any person authorised by the Commissioner is empowered to enter in terms of article 53(a) fails to allow access to the said premises to the Commissioner or authorised officer or fails to take such measures as may be reasonably required of him for the purpose of any such access or of any inspection of that premises or of any goods, assets, books, records or documents kept therein, shall be guilty of an offence and shall, on conviction, be liable to a fine (multa) of not less than five hundred euro (€500) and not more than two thousand and five hundred euro (€2,500), or to Obstruction of officials.
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Amended by:

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L.N. 426 of 2007;

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L.N. 105 of 2008;

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II. 2009.52.

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VA L U E A D D E D TA X imprisonment of not more than six months, or to both such fine and imprisonment.

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Offences relating to importations.

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Amended by:

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XIII. 2005.54;

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L.N. 426 of 2007;

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L.N. 105 of 2008;

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II. 2009.53;

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V. 2012.67;

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IX.2025.72.

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Art. 80

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80.(1) The provisions of articles 18, 60, 62 and 62A of the Customs Ordinance shall apply to this Act as if all references to duties contained in those articles were references to tax due under this Act, and any person who is in contravention of the provisions of the said articles construed as aforesaid in relation to any goods whose importation is subject to tax under this Act shall, without prejudice to any liability incurred under the said Ordinance, be guilty of an offence under this Act and shall on conviction, be liable to a fine (multa) equivalent to three times the tax payable or to a fine (multa) of three hundred and fifty euro (€350), whichever shall be the greater, so however that one third of the said amount shall be deemed as a civil debt due to the Commissioner, or to imprisonment for a term not exceeding two years or to both such fine and imprisonment and the offender may be either detained or proceeded against by summons, in the same manner and form, and subject to all other provisions laid down in the Criminal Code.
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(2)The provisions of article 77 of the Customs Ordinance shall apply in relation to goods whose importation is subject to tax under this Act as if any reference contained therein to the duty therein mentioned were also a reference to the tax chargeable under this Act.
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(3)The importation of goods subject to tax under this Act shall, for all purposes of any law, be deemed as a prohibited importation unless the said tax is duly paid or, where the payment of the tax has been postponed in accordance with any provisions of this Act, the conditions imposed in connection with such a postponement are duly observed.
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General offence.

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Amended by:

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L.N. 426 of 2007;

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L.N. 105 of 2008;

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II. 2009.54.

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Art. 81

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81.Any person who knowingly contravenes or fails to comply with any of the provisions of this Act or any regulations made under this Act shall be guilty of an offence and shall on conviction, unless the offence is subject to a greater punishment under any other provision of this Act or any other law, be liable to a fine (multa) of not less than two hundred and fifty euro (€250) but not exceeding one thousand and two hundred euro (€1,200), or to imprisonment for a term not exceeding three months, or to both such fine and imprisonment.
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Offences by principal officers of bodies of persons and by employers.

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Amended by:

\n

X. 2003.42.

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Art. 82

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82.(1) In addition and without prejudice to any liability of an employee or other person, where any thing is done or omitted to be done by a body of persons, the provisions of this Part shall apply as if such thing were done or omitted to be done by every director, manager or other principal officer of that body of persons: provided that a director, manager or other principal officer of a body of persons shall not be guilty of an offence in virtue of this sub-article if he proves that he was unaware and could not with reasonable dil igen ce be aware of such act or omission and that he did everything within his power to prevent that act or omission.
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(2)Where anything is done or omitted to be done by an employee in the course of his employment, or by any person acting VA L U E A D D E D TAX [ CAP. 406. 57 on behalf of the registered person, whether such other person is an employee or not, the provisions of this Part shall apply as if such thing were done or omitted to be done both by the said employee or other person and by the employer or registered person: provided that such an employer or registered person shall not be guilty of an offence in virtue of this sub-article if he proves that he was unaware and could not with reasonable diligence be aware of such an act or omission and that he did everything within his power to prevent that act or omission.
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Art. 83

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83.(1) Deleted by III of 2026.
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(2)Notwithstanding the provisions of the Criminal Code, the Attorney General shall have a right of appeal to the Court of Cri m in al App eal f ro m any j udg m ent g ive n b y th e Co urt of Magistrates in respect of criminal proceedings under this Part.
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(3)Prosecution.
\n

Amended by:

\n

VII.2019.63.

\n

III.2026.65.

\n

Deleted by VII of 2019

\n
(4)Article 21 of the Criminal Code and the Probation Act shall not apply with respect to any conviction under this Act.
\n
(5)In any criminal proceedings under this Part the Commissioner personally or any other officer designated by him may, notwithstanding the provisions of any other law, produce the evidence, plead and otherwise conduct the prosecution instead of or jointly with the police.
\n
(6)Should the evidence of the Commissioner or of the officer designated by him as aforesaid be required as part of the case for the prosecution, he shall be heard before assuming the duties of a prosecuting officer unless the necessity of his giving evidence arises at a later stage: provided that the Commissioner or other officer as aforesaid may state the facts constituting the offence before giving evidence.
\n

Art. 84

\n
84.(1) Notwithstanding any other provisions of this Act, the Commissioner may, in the case of an offence under this Act, enter into an agreement in writing with the offender whereby the said offender pays a sum equivalent to the fine (multa) that may be imposed by way of penalty in accordance with this Act on the conviction of that person for the said offence, sohowever that where a minimum and a maximum amount is provided for in respect of the fine (multa) that may be so imposed, the sum payable pursuant to the said agreement shall be a sum equivalent to the said minimum amount increased by one half of the difference between the said minimum and maximum amounts, and upon the signing of any such agreement by the Commissioner and the offender all criminal liability of the offender under this Act with regard to the offences in relation to which the agreement has been entered shall be extinguished.
\n
(2)The provisions of sub-article (1) shall apply also in any case where the offender has been charged before a court in relation to the offence but before final judgment has been given in the case:
\n

Compromise penalty.

\n

Amended by:

\n

X. 2003.43;

\n

XIII. 2005.55;

\n

L.N. 426 of 2007;

\n

L.N. 105 of 2008;

\n

II. 2009.55;

\n

V. 2012.68;

\n

XII. 2014.83;

\n

XV. 2016.76.

\n

VA L U E A D D E D TA X Provided that where proceedings before a court have not b e e n co m m e n c e d, t he s u m pa ya bl e i n a c c o r da nc e wi t h an y agreement as contemplated in sub-article (1) shall be reduced by ten per cent.

\n
(3)Notwithstanding the provisions of sub-articles (1) and (2), the Commissioner may, in the case of an offence by any person against the provisions of articles 76(b), 77(e), 77(f), and 77(o), enter into an agreement with the offender, whereby the said offender pays to the Commissioner within fifteen days from receipt of a notice to this effect by the Commissioner the following: (a) one hundred euro (€100) in the case of a first offence; (b) two hundred euro (€200) in the case of a second offence; (c) four hundred euro (€400) in the case of a third offence; and (d) five hundred euro (€500) in the case where the offender and, or any of his employees or any other person acting on his behalf is found in default on two separate occasions within a period of six months; and upon the payment of such fine (multa), all criminal liability under this Act with regard to the offences in relation to which the fine (multa) has been paid, shall be extinguished.
\n
(4)Any sum due in virtue of an agreement entered into in terms of sub-article (1) or sub-article (3) shall be due to the Government as a civil debt. The Commissioner shall not enter into an agreement as is referred to in sub-article (1) or sub-article (3) unless such agreement is accompanied b the payment of the sum due or a sufficient security for its payment.
\n
(5)The provisions of this article shall be without prejudice to any proceedings or forfeiture instituted or having effect in virtue of any other law.
\n

Special mechanism for out of court settlements.

\n

Added by:

\n

XXX.2025.11.

\n
(6)The said agreement and the payment of the fine (multa) so imposed shall be without prejudice to any tax, interest and administrative penalty due under this Act:
\n

Provided that the Commissioner, as head of the Department of Customs, may impose and collect penalties relating to tax on importation due under this Act, in the case of an agreement having been reached in accordance with the provisions of article 63 of the Customs Ordinance, and may also impose and collect penalties in the case of an agreement having been reached in accordance with the provisions of article 63A of the said Ordinance, so however that any reference to the duty in the fine (multa) referred to in article 63A shall be construed as if it were a reference to the tax due under this Act.

\n

Art. 84A

\n

Notwithstanding any other provision of this Act or of any other law, upon the conclusion of an agreement made in terms of this article between the Commissioner and any person obliged to make any payment under this Act, hereinafter in this article referred to as the \"debtor\" or the \"taxpayer\", providing for the payment of an additional VA L U E A D D E D TAX [ CAP. 406. 59 penalty together with any other penalties otherwise provided in this Act, all criminal liability of the debtor for any breach against this Act and for any connected breach in respect of the acts in relation to which the agreement has been entered, shall be extinguished:

\n

Provided that the additional penalty that such person shall be liable to pay in respect of such breach or breaches shall amount to a minimum of ten thousand euro (€10,000) and a maximum of one million euro (€1,000,000), and shall be imposed in terms of a Schedule to be prescribed by the Minister under this Act, and this in addition to any other amount provided for in this Act for the debtor’s default and quantified according to the final agreement:

\n

Provided further that the agreement to pay any fine or make any other payment under an agreement as provided for in this article shall not extinguish any civil liability to make any payment not covered by the agreement entered into in terms of this article.

\n
(2)(a) The provisions of this article shall apply where the Commissioner, acting upon the written request of the taxpayer and the notification of adjustment of previous declarations given by the taxpayer, accepts that the adjustments have been correctly made and shall give notice in writing to the taxpayer of a draft agreement in terms of this article to be signed within six (6) months from the date of the request of the taxpayer:
\n

Provided that the said period of six (6) months may be extended by the Commissioner if he is satisfied that a longer period is required to determine the extent of the proceeds of the breach. (b) The draft agreement shall include the following: (i) details of the breach or breaches which may include admissions made by the debtor; (ii) an obligation upon the debtor to pay and a quantification of an additional penalty and any other payment due in terms of this Act for the default; (iii) the period allowed for the payment of the amounts due under the agreement; (iv) the consequences of any failure to comply with any terms of the agreement including those provided in articles 187A, 187B and 187C of the Criminal Code; (v) any other terms and conditions imposed by the Commissioner:

\n

Provided that when a draft agreement is notified as aforesaid, an agreement in terms of this sub-article shall be signed and returned to VA L U E A D D E D TA X the Commissioner within one (1) month, and if the signed agreement is not received by the Commissioner within the said timeframe, which may be extended by the Commissioner upon reasonable cause being shown by the taxpayer, the provisions of this article shall have no effect:

\n

Provided further that the amount resulting from this agreement shall constitute an executive title within the meaning of and for the purposes of Title VII of Part I of Book Second of the Code of Organisation and Civil Procedure.

\n
(3)The period of prescription in respect of the breach and connected breaches shall be suspended during the times established in, or under sub-article (2) and no prosecution shall be instituted in respect of the breach and connected breaches during the time when those periods are running:
\n

Provided that no prosecution shall be annulled on the ground that it was instituted in violation of this sub-article.

\n
(4)The provisions of this article shall also apply upon the request of the debtor in any case where the debtor has been charged before a court in relation to the breach or breaches and connected breaches, but before final judgment has been given in the case.
\n
(5)Where proceedings are pending before the Court of Magistrates as a court of criminal inquiry and the existence of an agreement is brought to the Court’s notice, the Court shall, upon being satisfied that the breach or breaches mentioned in the charge are breaches to which this article applies or connected breaches, assume the function of a court of criminal judicature and declare the criminal action extinguished in respect of such charges. The Court shall likewise declare the criminal action extinguished if it is a court of criminal judicature whether at first instance or at appeal stage notwithstanding any previous judgment delivered in the cause which has not become final.
\n
(6)In this article: \"agreement\" means and includes a document evidencing an agreement reached between the Commissioner and the debtor in terms of this article and also includes a document or a declaration issued by the Commissioner after the coming into force of this article confirming that the debtor has before the coming into force of this article regularised his position with the Commissioner and has after the coming into force of this article satisfied the requirements thereof by accepting to pay the additional penalty; \"breach\" or \"breaches\" includes any act or acts which constitute a criminal offence;
\n

VA L U E A D D E D TAX [ CAP. 406. 61 \"Commissioner\" means the Commissioner for Tax and Customs; \"connected breach\" means any act which constitutes a criminal offence committed in pursuance of committing a breach against this Act and shall include: (i) a breach committed, even if at different times, in pursuance of a pre-concerted plan to commit a breach against this Act; (ii) a breach committed with the object of procuring the means for the commission of a breach against this Act; (iii) a breach committed with the object of facilitating the commission or completion of a breach against this Act, or of ensuring impunity for such a breach; (iv) a breach which in a single context violates more than one provision of law where at least one provision relates to a breach against this Act; (v) a breach committed through the apparently legitimate use of the proceeds of a breach against this Act:

\n

Provided that a connected breach shall not include any act included in Sub-title IV of Title III of Part II of Book First of the Criminal Code; \"this Act\" includes any subsidiary legislation issued thereunder.

\n

PART XI

\n

Transitory Provisions 85. * (1) The provisions of the Customs and Excise Tax Act† shall continue to apply fully with respect to any importation and any provision of services and supply of goods made before 1 January 1999 and with respect to anything required to be done or not to be done under that Act before that date subject to the provisions of the other articles of this Part.

\n
(2)The provisions of the Expenditure Levy Act and of the Value Added Tax Act, 1994, ‡ shall continue to apply to the extent that they were applicable immediately before the 1 January 1999. *The original sub-article (1) has been omitted under the Statute Law Revision Act, 1980. †Repealed by this Act. ‡Repealed by Act XII of 1997 (Cap.395).
\n

Saving.

\n

Amended by:

\n

X. 2003.44.

\n

Interpretations of certain contracts.

\n

Amended by:

\n

X. 2003.45, 46.

\n

Substituted by:

\n

II. 2004.67.

\n

Amended by:

\n

IV. 2011.77.

\n

VA L U E A D D E D TA X 86. (1) Where, in the execution of a contract made before the effective date, any goods or services are supplied on or after the effective date and that supply is a taxable supply, that contract shall, for all the purposes of any law be interpreted as if the parties to that contract had agreed to a change in the consideration stipulated therein to reflect the difference, if any, between the system under the Customs and Excise Tax Act and that applicable under this Act.

\n
(2)Where in the execution of a contract made before the date of coming into force of any change made in the rate of tax in terms of article 19, any goods or services are supplied on or after the date of coming into force of such change, and the supply is a taxable supply, that contract shall, for all the purposes of any law, be interpreted as if the parties to that contract had agreed to a change in the consideration stipulated therein to reflect the difference between the rate of tax applicable before the change and the rate of tax applicable after the change.
\n
(3)Sub-article (2), with the application where necessary also of sub-article (1) and of articles 85 and 88, shall apply in the interpretation of contracts made between the 1 st January 1995 and the 30 th June 1997 and between the 1 st July 1997 and the 31 st December 1998 where the supply is made on or after the 1 st January 2004.
\n
(4)Sub-articles (1), (2) and (3) shall not apply (a) where it results from all the relevant circumstances that the consideration determined in accordance with the contract had already made provision for the said adjustment or that the parties had excluded any adjustment to the consideration on account of such difference; (b) where or to the extent that the supply was, in terms of the said contract due to take place before the effective date or the date of coming into force of any change referred to in sub-article (2), as the case may be, and the delay was due to a fault on the part of the person who makes the supply. [ CAP. 406. 63 VA L U E A D D E D TAX FIRST SCHEDULE [Article 5(3)] Activities of Public Authorities Amended by:
\n

L.N. 198 of 1999;

\n

L.N. 387 of 2002.

\n

Substituted by:

\n

X. 2003.47.

\n

Amended by:

\n

L.N. 489 of 2004.

\n

The activities listed in the second column of the public authorities listed in the first column of this Schedule shall be deemed to be activities performed in the course or furtherance of an economic activity.

\n

First column Public authority Malta Drydocks Corporation Mediterranean Conference Centre Any public authority Second column Activities All activities All activities Sale of leaded petrol, unleaded petrol and diesel (gas) oil, kerosene, bottled gas and the supply of electricity and the supply of steam;

\n

The supply of water and gas;

\n

Production and sale of numismatic coins and medals;

\n

Telecommunications;

\n

The transport of goods;

\n

Port and airport services;

\n

Passenger transport;

\n

Supply of new goods manufactured for sale;

\n

The transactions of agricultural intervention agencies in respect of agricultural products carried out pursuant to Regulations on the common organisation of the market in these products;

\n

The running of trade fairs and exhibitions;

\n

Warehousing;

\n

The activities of commercial publicity bodies;

\n

The activities of travel agencies;

\n

The running of staff shops, co-operatives and industrial canteens and similar institutions;

\n

Transactions of a commercial nature of radio and television bodies;

\n

Private hire of patrol boat, helicopter and equipment;

\n

Inspection of ships’ hulls by divers;

\n

Security duties with banks and similar activities;

\n

Provision of meteorological services;

\n

Book binding;

\n

Sale of bread;

\n

Sale of impounded motor vehicles;

\n

VA L U E A D D E D TA X The provision of accommodation facilities to visiting youths, student groups and individuals;

\n

Sale of drugs and vaccines;

\n

Sale and cleaning of grave sites;

\n

Laboratory analysis;

\n

Te s t i n g f o r s t a n d a r d s a n d i s s u i n g o f certificates for exported goods;

\n

Giving technical advice in connection with technical problems to private industries;

\n

Printing services to government departments and parastatal entities;

\n

Sale of other publications;

\n

Quarantine services;

\n

Sale of milk powder, eggs and dairy produce;

\n

Sale of vegetables;

\n

Sale of livestock;

\n

Sale of decorative trees, fruit trees, vine rootings, fruit plants, shrubs and flowers;

\n

Sale of wheat, straw and manure;

\n

Sale of fish and fishing equipment;

\n

Bowser water services;

\n

Services of grafting, pruning and spraying;

\n

Rent and provision of cold storage facilities and sale of ice;

\n

Services of civil abattoir;

\n

Provision of telephonic communications;

\n

Acting as contractor for cleaning services;

\n

Sale of compost;

\n

Repairs to damage;

\n

Carpentry works;

\n

Hiring of plant and vehicles;

\n

Supply of metal trades goods;

\n

Repairs to plant and vehicles;

\n

Sale of prints;

\n

Sale of food prepared by students as part of their daily training.

\n

VA L U E A D D E D TAX [ CAP. 406. 65 SECOND SCHEDULE [Article 6] Supplies, Intra-Community Acquisitions and Importations Substituted by:

\n

X. 2003.47.

\n

Amended by:

\n

L.N. 426 of 2007;

\n

L.N. 443 of 2007;

\n

L.N. 105 of 2008;

\n

L.N. 34 of 2009;

\n

L.N. 532 of 2010;

\n

L.N. 61 of 2011;

\n

L.N. 418 of 2012;

\n

L.N. 251 of 2019;

\n

L.N. 219 of 2020;

\n

L.N. 140 of 2022;

\n

III.2026.66.

\n

Supplies: general rule 1.

\n

Except as otherwise provided in this Schedule (a) a supply of goods is the transfer of the right to dispose of tangible property as owner; (b) a supply of services means a supply that is not a supply of goods.

\n

Energy 2.

\n

The supply of electricity, gas, heat or cooling energy and other sources of energy shall be treated as a supply of goods.

\n

Rights over property 3. (1) The transfer of an asset which is immovable property by definition of the law shall be treated as a supply of goods: provided that an emphyteutical grant for a period not exceeding fifty years shall be treated as a supply of a service.

\n
(2)Subject to the other provisions of paragraph (1) of this item an assignment of any rights over property or of any intangible property whether or not it is the subject of a document establishing title is a supply of services.
\n

Delivery on deferred terms 4.

\n

The delivery of the possession of goods pursuant to an agreement for the sale of those goods on deferred terms shall be treated as a supply of those goods.

\n

Hire purchase 5.

\n

The delivery of the possession of goods pursuant to an agreement for the hire of those goods for a certain period where the agreement expressly contemplates that the ownership of those goods will be transferred at a time not later than the date on which an agreed price has been paid in full shall be treated as a supply of those goods.

\n

Transfer of goods under a contract for commission 6.

\n

The transfer of goods pursuant to a contract under which commission is payable on purchase or sale is a supply of those goods.

\n

Contract of works 7.

\n

The delivery of goods pursuant to a contract of works, including a construction contract, whether or not the materials have been provided in full or in part by the customer, shall be treated as a supply of services, except in special circumstances as the Minister may, otherwise, by regulations prescribe.

\n

VA L U E A D D E D TA X Obligation to refrain from an act or to tolerate an act 8.

\n

An obligation to refrain from an act or to tolerate an act or situation is a supply of services.

\n

Incidental supplies 9. (1) The provision by a person of goods for the purpose and in the course of maintenance or repair services supplied by that person shall be treated as part of the supply of those services.

\n
(2)Save as otherwise provided in the Act or any regulations made under the Act, where a supply includes the provision of both goods and services and the consideration for that supply does not distinguish between the consideration for the goods and the consideration for the services, the supply shall be treated as a supply of goods or as a supply of services according to the principal nature of that supply.
\n

Exchange 10. In a contract of exchange each of the parties shall be deemed to make a supply of any goods and any services he transfers or provides pursuant to that contract.

\n

Supplies by disclosed agents 11. When a supply is made through an intermediary who acts in the name and for the account of another person that supply shall be treated as a supply made by that other person.

\n

Supplies by undisclosed agents 12. When goods or services are supplied through an agent who acts in his own name they shall be deemed to be supplied to that agent and supplied by that agent.

\n

Facilitation of supplies of goods through an electronic interface 12A. (1) Where a taxable person facilitates, through the use of an electronic interface such as a marketplace, platform, portal or similar means, distance sales of goods imported from third territories or third countries in consignments of an intrinsic value not exceeding one-hundred and fifty euro (€150), that taxable person shall be deemed to have received and supplied those goods himself.(2) Where a taxable person facilitates, through the use of an electronic interface such as a marketplace, platform, portal or similar means, the supply of goods within the Community by a taxable person not established within the Community to a nontaxable person, the taxable person who facilitates the supply shall be deemed to have received and supplied those goods himself.

\n

Supply for consideration of goods forming part of an economic activity 13. The transfer or disposal by a taxable person of goods forming part of his economic activity for consideration including: (a) the sale by judicial auction pursuant to any proceedings exercised by a creditor or by creditors of that person; (b) the transfer of such goods by order made by or in the name of a public authority or in pursuance of the law against payment of compensation shall be treated as a supply of goods by that taxable person acting as such.

\n

Application of goods forming part of an economic activity VA L U E A D D E D TAX [ CAP. 406. 67 14. (1) Subject to paragraph (3), the application by a person registered under article 10 of goods forming part of his economic activity for his private use, or that of his staff, or the disposal thereof free of charge or, more generally, their application for purposes other than those of his economic activity, where the value added tax on the said goods or the component parts thereof was wholly or partly deducted shall be treated as a supply of goods for consideration by that taxable person acting as such.

\n
(2)Paragraph (1) also applies with respect to the goods forming part of the economic activity of a person at the time when his registration under article 10 is, for any reason, cancelled:
\n

Provided that the Commissioner may exempt that person from accounting for the supply when he has reason to believe that the taxable value is less than two hundred and fifty euro (€250).

\n
(3)This item does not apply to (a) a gift of goods made in the course or furtherance of that activity, otherwise than as one forming part of a series of gifts made to the same person, where the cost to the donor is not more than fifty euro (€50); (b) a gift of an industrial sample in a form not ordinarily available for sale to the public.
\n

Private use of goods forming part of an economic activity and services supplied free of charge.

\n

15.

\n
(1)The use of goods forming part of an economic activity for the private use of a taxable person or of his staff or, more generally, for purposes other than those of his economic activity, where the VAT on such goods or the component parts thereof was wholly or partly deductible, shall be treated as a supply of services for consideration made by that taxable person acting as such:
\n

Provided that this sub-item shall not apply where such supply of services would be subject to an exemption in accordance with Part One of the Fifth Schedule.

\n
(2)The supply of services carried out free of charge, other than a service which would be subject to an exemption in accordance with Part One of the Fifth Schedule, by a taxable person for his private use or for that of his staff, or more generally, for purposes other than those of his economic activity, where any goods or services on which VAT was wholly or partly deducted are used or applied to provide such free of charge services, shall be treated as a supply of services for consideration made by that taxable person acting as such:
\n

Provided that this shall not apply to services carried out free of charge made to non-profit making organisations as defined in item 5 of Part Five of the Fifth Schedule.

\n

Transfer of a going concern 16. (1) Notwithstanding the other provisions of this Schedule, the transfer by a person of assets of his economic activity shall be treated as neither a supply of goods nor a supply of services if: (a) the assets are transferred to a person registered under article 10 to whom he transfers his economic activity, or part of that economic activity which is capable of separate operation, as a going concern; and (b) the said assets are to be used by the transferee in carrying on the same VA L U E A D D E D TA X kind of activity, whether or not as part of an existing economic activity, as that carried on by the transferor; and (c) the said transfer is recorded in the records of the transferor indicating the registration number of the transferee.

\n
(2)Subject to approval by the Commissioner, the provisions of paragraph (1) shall also apply where the transferee is not registered under article 10, provided that the transferor did not qualify for a credit of the input tax attributable to the acquisition and the accumulation of the assets being transferred.
\n

Transfer of goods to another Member State 17. (1) The transfer by a taxable person of goods forming part of his economic activity to another Member State shall be treated as an intra-community supply of those goods for consideration.

\n
(2)Goods shall be deemed to be transferred by a taxable person to another Member state if they are transported by or on his behalf from Malta to another Member State (\"the second State\") for the purposes of his economic activity other than for the purposes of any one of the following transactions: (a) the installation or assembly of those goods, with or without a trial run, by or on behalf of the taxable person within the second State; (b) the supply of those goods under a transaction that constitutes a distance sale that takes place in the second State; (c) the supply of those goods by or on behalf of the taxable person on board ships, aircraft or trains during the transport of passengers where the point of departure of that transport is in the second State; (d) the supply of those goods by the taxable person in the second State under a transaction which would be treated as an exempt with credit supply in terms of the provisions of items 1 to 9 of Part One of the Fifth Schedule if made in Malta; (e) the supply of services to the taxable person involving valuations of, or work on, those goods physically carried out in the second State provided the said goods are returned to that person in Malta on the completion of the said work; (f) the temporary use of those goods in the second State for the purpose of the supply of services by the taxable person if that person is established in Malta; (g) the temporary use of those goods in the second State for a period not exceeding twenty-four months if the importation of those goods into that State for temporary use would qualify for a full exemption from import duties; (h) the supply of gas through a natural gas system situated within the territory of the Community or any network connected to such a system, the supply of electricity or the supply of heat or cooling energy through heating or cooling networks, in accordance with the conditions laid down in item 5 of Part One of the Third Schedule
\n
(3)Where a transport of goods satisfies the conditions of any subparagraph of paragraph (2) and, at a subsequent stage, those conditions are no longer met, the transport shall, at that subsequent stage, be treated as a transfer to which paragraph
\n
(1)applies.
\n

VA L U E A D D E D TAX [ CAP. 406. 69

\n
(4)The Minister may by regulations prescribe simplification measures for the application of this item and of item 18, in accordance with Article 395 of Council Directive 2006/112/EC or in virtue of any other article in substitution therefor.
\n

Call-off stock arrangements 17A. (1) The transfer by a taxable person of goods forming part of his business assets to another Member State under call-off stock arrangements shall not be treated as a supply of goods for consideration.

\n
(2)For the purposes of this item, call-off stock arrangements shall be deemed to exist where the following conditions are met: (a) goods are dispatched or transported by a taxable person, or by a third party on his behalf, to another Member State with a view to those goods being supplied there, at a later stage and after arrival, to another taxable person who is entitled to take ownership of those goods in accordance with an existing agreement between both taxable persons; (b) the taxable person dispatching or transporting the goods has not established his business nor has a fixed establishment in the Member State to which the goods are dispatched or transported; (c) the taxable person to whom the goods are intended to be supplied is identified for VAT purposes in the Member State to which the goods are dispatched or transported and both his identity and the VAT identification number assigned to him by that Member State are known to the taxable person referred to in paragraph (b) at the time when the dispatch or transport of goods begins; (d) the taxable person dispatching or transporting the goods records the transfer of the goods in the register provided for in paragraph (1)(k) of item 1 of the Eleventh Schedule and includes the identity of the taxable person acquiring the goods and the VAT identification number assigned to him by the Member State to which the goods are dispatched or transported in the recapitulative statement provided for in article 30(2).
\n
(3)Where the conditions laid down in sub-item (2) are met, the following rules shall apply at the time of the transfer of the right to dispose of the goods as owner to the taxable person referred to in paragraph (c) of sub-item (2), provided that the transfer occurs within the deadline referred to in sub-item (4): (a) a supply of goods in accordance with item 3(1) of Part One of the Fifth Schedule shall be deemed to be made by the taxable person that dispatched or transported the goods either by himself or by a third party on his behalf in the Member State from which the goods were dispatched or transported; (b) an intra-Community acquisition of goods shall be deemed to be made by the taxable person to whom those goods are supplied in the Member State to which the goods were dispatched or transported.
\n
(4)If, within twelve (12) months after the arrival of the goods in the Member State to which they where dispatched or transported, the goods have not been supplied to the taxable person for whom they were intended, referred to in paragraph (c) of sub-item (2) and sub-item (6), and none of the circumstances laid down in subitem (7) have occurred, a transfer within the meaning of item 17 shall be deemed to take place on the day following the expiry of the twelve (12) month period.
\n
(5)No transfer within the meaning of item 17 shall be deemed to take place VA L U E A D D E D TA X where the following conditions are met: (a) the right to dispose of the goods has not been transferred, and those goods are returned to the Member State from which they were dispatched or transported within the time limit referred to in sub-item (4); and (b) the taxable person who dispatched or transported the goods records their return in the register provided for in paragraph (1)(k) of item 1 of the Eleventh Schedule.
\n
(6)Where, within the period referred to in sub-item (4), the taxable person referred to in paragraph (c) of sub-item (2) is substituted by another taxable person, no transfer within the meaning of item 17 shall be deemed to take place at the time of the substitution, provided that: (a) all other applicable conditions in sub-item (2) are met; and (b) the substitution is recorded by the taxable person referred to in paragraph (b) of sub-item (2) in the register provided for in paragraph
\n
(1)(k) of item 1 of the Eleventh Schedule.
\n
(7)Where, within the time limit referred to in sub-item (4), any of the conditions set out in sub-items (2) and (6) ceases to be fulfilled, a transfer of goods according to item 17 shall be deemed to take place at the time that the relevant condition is no longer fulfilled.
\n

If the goods are supplied to a person other than the taxable person referred to in paragraph (c) of sub-item (2) or in sub-item (6), it shall be deemed that the conditions set out in sub-items (2) and (6) cease to be fulfilled immediately before such supply.

\n

If the goods are dispatched or transported to a country other than the Member State from which they were initially moved, it shall be deemed that the conditions set out in sub-items (2) and (6) cease to be fulfilled immediately before such dispatch or transport of goods starts.

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In the event of the destruction, loss or theft of the goods, it shall be deemed that the conditions set out in sub-items (2) and (6) cease to be fulfilled on the date that the goods were actually removed or destroyed, or, if it is impossible to determine that date, the date on which the goods were found to be destroyed or missing.

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Intra-community acquisitions 18. (1) An intra-community acquisition is: (a) the acquisition of the right to dispose as owner of goods which are transported by or on behalf of the supplier or the person acquiring them from a Member State to the person acquiring them in another Member State; or (b) the use in a Member State by a taxable person for the purpose of his economic activity of goods transported by him or on his behalf from another Member State within the territory of which those goods were produced, extracted, purchased, acquired or imported by him for the purpose of his economic activity, where the transport of those goods would, if made from Malta to another Member State, be treated as a transfer of goods to another Member State in accordance with item 17; (c) the acquisition by a non-taxable legal person of goods imported by that VA L U E A D D E D TAX [ CAP. 406. 71 person into the Community and transported to a Member State other than the State of importation. (d) The application by the armed forces of a Member State taking part in a defence effort carried out for the implementation of a European Union activity under the common security and defence policy, for their use or for the use of the civilian staff accompanying them, of goods which they have not purchased subject to the general rules governing taxation on the domestic market of an EU Member State shall be treated as an intraCommunity acquisition of goods for consideration, where the importation of those goods would not be eligible for the exemption provided for in paragraph (b) of item 9 of Part Four of the Fifth Schedule.

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(2)Any transaction which is treated under this Act as a supply of goods or a supply of goods for consideration shall also be treated as involving an acquisition of the right to dispose as owner of those goods or an acquisition of those goods for consideration.
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Importation 19.

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Importation means: (a) the entry into Malta before the accession date of goods transported from any other country; (b) the entry into the Community on or after the accession date of goods transported from a third territory excluding, however: (i) goods which fulfil the conditions laid down in Articles 9 and 10 of the Treaty establishing the European Economic Community; and (ii) goods covered by the Treaty establishing the European Coal and Steel Community that are in free circulation.

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Substituted by:

\n

THIRD SCHEDULE X. 2003.47. [Article 7] Amended by:

\n

L.N. 124 of 2007;

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Place of Supplies, Intra-Community Acquisitions L.N. 444 of 2007.

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Substituted by: and Importations Part One Place of supply of goods L.N. 133 of 2009.

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Amended by:

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L.N. 533 of 2010;

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L.N. 297 of 2018;

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L.N. 250 of 2019;

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L.N. 220 of 2020;

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L.N. 344 of 2024;

\n

IX.2025.73.

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Supply of goods: general rule 1.

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Except as otherwise provided in this Schedule (a) a supply of goods that are not transported takes place where the goods are at the time when they are placed at the disposal of the person acquiring those goods; (b) a supply of goods that are transported takes place where the goods are at the time when the transport of those goods begins:

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Provided that: (i) where the same goods are supplied successively and those goods are dispatched or transported from one (1) Member State to another VA L U E A D D E D TA X Member State directly from the first supplier to the last customer in the chain, the dispatch or transport shall be ascribed only to the supply made to the intermediary operator; (ii) by way of derogation from sub-paragraph (i), the dispatch or transport shall be ascribed only to the supply of goods by the intermediary operator when the intermediary operator has communicated to his supplier the VAT identification number issued to him by the Member State from which the goods are dispatched or transported; and (iii) for the purpose of this proviso, \"intermediary operator\" means a supplier within the chain other than the first supplier in the chain who dispatches or transports the goods either himself or through a third party acting on his behalf:

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Provided further that where a taxable person is deemed to have received and supplied goods in accordance with item 12A of the Second Schedule, the dispatch or transport of the goods shall be ascribed to the supply made by that taxable person; (c) when the transport of goods begins outside the Community and ends in a Member State the supply of those goods by the importer and any subsequent supply up to the acquisition of those goods takes place in the Member State where they are imported.

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Goods installed or assembled 2.

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A supply of goods that are installed or assembled, with or without a trial run, by or on behalf of the supplier takes place where the goods are installed or assembled.

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Goods supplied on board ships, aircraft or trains 3.

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A supply of goods on board ships, aircraft or trains during the part of a transport of passengers effected in the Community takes place at the point of departure of the transport of passengers and, for the purpose of this item (a) \"part of the transport of passengers effected in the Community\" means the part of the transport effected, without a stop in a third territory, between the point of departure and the point of arrival of the transport of passengers; (b) \"the point of departure of the transport of passengers\" means the first point of passenger embarkation foreseen within the Community, where relevant after a leg outside the Community; (c) \"the point of arrival of the transport of passengers\" means the last point of disembarkation of passengers foreseen within the Community of passengers who embarked in the Community, where relevant before a leg outside the Community; (d) a return trip shall be treated as a separate trip.

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Distance sales 4.

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(1)Intra-Community distance sales of goods \"means supplies of goods dispatched or transported by or on behalf of the supplier, including where the supplier intervenes indirectly in the transport or dispatch of the goods, from a Member State other than that in which dispatch or transport of the goods to the customer ends, where the following conditions are met: (a) the supply of goods is carried out for a taxable person, or a non-taxable VA L U E A D D E D TAX [ CAP. 406. 73 legal person, whose intra-Community acquisitions of goods are not subject to VAT pursuant to Article 3(1) of Council Directive 2006/112/ EC, or for any other non-taxable person; (b) the goods supplied are neither new means of transport nor goods supplied after assembly or installation, with or without a trial run, by or on behalf of the supplier.
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(2)\"Distance sales of goods imported from third territories or third countries\" means supplies of goods dispatched or transported by or on behalf of the supplier, including where the supplier intervenes indirectly in the transport or dispatch of the goods, from a third territory or third country, to a customer in a Member State, where the following conditions are met: (a) the supply of goods is carried out for a taxable person, or a non-taxable legal person, whose intra-Community acquisitions of goods are not subject to VAT pursuant to Article 3(1) of Council Directive 2006/112/ EC, or for any other non-taxable person; (b) the goods supplied are neither new means of transport nor goods supplied after assembly or installation, with or without a trial run, by or on behalf of the supplier.
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(3)(a) The place of supply of intra-Community distance sales of goods shall be deemed to be the place where the goods are located at the time when dispatch or transport of the goods to the customer ends. (b) The place of supply of distance sales of goods imported from third territories or third countries into a Member State other than that in which dispatch or transport of the goods to the customer ends, shall be deemed to be the place where the goods are located at the time when dispatch or transport of the goods to the customer ends. (c) The place of supply of distance sales of goods imported from third territories or third countries into the Member State in which dispatch or transport of the goods to the customer ends shall be deemed to be in that Member State, provided that VAT on those goods shall be declared under the special scheme in item 4 of Part Seven of the Fourteenth Schedule or the corresponding legislation of any another Member State.
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(4)Sub-item (3) shall not apply to supplies of second-hand goods, works of art, collectors’ items or antiques, as defined in item 1 of Part Two of the Fourteenth Schedule, nor to supplies of second-hand means of transport which do not qualify as new means of transport, subject to VAT in accordance with the relevant special arrangements.
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(5)Paragraph (a) of sub-item (3) shall not apply where the following conditions are met: (a) (i) the supplier is established or, in the absence of an establishment, has his permanent address or usually resides only in one (1) Member State; and (ii) the goods are dispatched or transported to any Member State other than the Member State referred to in sub-paragraph (i); and (iii) the total value, exclusive of VAT, of the supplies referred to in subparagraph (ii), together with the total value of the supplies of services referred to in paragraph (b) of sub-item (2) of item 10of Part Two of this Schedule does not in the current calendar year exceed ten-thousand euro (€10,000) nor did it do so in the course of the preceding calendar year.
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VA L U E A D D E D TA X (b) Where, during a calendar year, the threshold referred to in subparagraph (iii) of paragraph (a) is exceeded, paragraph (a) of sub-item

\n
(3)shall apply as of that time. (c) The Commissioner shall grant to those taxable persons providing supplies eligible under paragraph (a) the right to opt for the place of supply to be determined in accordance with paragraph (a) of sub-item
\n
(3), which shall in any event cover two (2) calendar years:
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Provided that, a valid election for this purpose shall be made by means of a notice in writing to the Commissioner on a form acceptable to the Commissioner specifying the date from which it shall apply, not being earlier than thirty (30) days from the date on which it is furnished.

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Supplies of gas through a natural gas system, of electricity and of heat or cooling energy through heating and cooling networks 5. (1) The place of supply to a taxable dealer of the supply of gas through a natural gas system situated within the territory of the Community or any network connected to such a system, the supply of electricity or the supply of heat or cooling energy through heating or cooling networks shall be deemed to be the place where that taxable dealer has established his business or has a fixed establishment for which the goods are supplied or, in the absence of such a place of business or fixed establishment, the place where he has his permanent address or usually resides.

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For the purposes of this paragraph, \"taxable dealer\" shall mean a taxable person whose principal activity in respect of purchases of gas, electricity, heat or cooling energy is reselling those products and whose own consumption of those products is negligible.

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(2)Where a supply of gas through a natural gas system situated within the territory of the Community or any network connected to such a system, the supply of electricity or the supply of heat or cooling energy through heating or cooling networks is not covered by paragraph (1), the place of supply shall be deemed to be the place where the customer effectively uses and consumes the goods:
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Provided that where all or part of the gas, electricity or heat or cooling energy is not effectively consumed by the customer, those non-consumed goods shall be deemed to have been used and consumed at the place where the customer has established his business or has a fixed establishment for which the goods are supplied. In the absence of such a place of business or fixed establishment, the customer shall be deemed to have used and consumed the goods at the place where he has his permanent address or usually resides.

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Part Two Place of supply of services Definitions 1.

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For the purpose of applying the rules concerning this Part: (a) a taxable person who also carries out activities or transactions that are not considered to be taxable supplies of goods or services in accordance with article 4 shall be regarded as a taxable person in respect of all services rendered to him; (b) a non-taxable legal person who is identified for VAT purposes shall be regarded as a taxable person.

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General rules VA L U E A D D E D TAX 2. [ CAP. 406. 75 Except as otherwise provided in this Schedule: (a) The place of supply of services to a taxable person acting as such shall be the place where that person has established his business. However, if those services are provided to a fixed establishment of the taxable person located in a place other than the place where he has established his business, the place of supply of those services shall be the place where that fixed establishment is located. In the absence of such place of establishment or fixed establishment, the place of supply of services shall be the place where the taxable person who receives such services has his permanent address or usually resides. (b) The place of supply of services to a non-taxable person shall be the place where the supplier has established his business. However, if those services are provided from a fixed establishment of the supplier located in a place other than the place where he has established his business, the place of supply of those services shall be the place where that fixed establishment is located. In the absence of such place of establishment or fixed establishment, the place of supply of services shall be the place where the supplier has his permanent address or usually resides.

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Supply of services by intermediaries 3.

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The place of supply of services rendered to a non-taxable person by an intermediary acting in the name and on behalf of another person shall be the place where the underlying transaction is supplied in accordance with this Act.

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Supply of services connected with immovable property 4.

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The place of supply of services connected with immovable property, including the services of experts and estate agents, the provision of accommodation in the hotel sector or in sectors with a similar function, such as holiday camps or sites developed for use as camping sites, the granting of rights to use immovable property and services for the preparation and coordination of construction work, such as the services of architects and of firms providing on-site supervision, shall be the place where the immovable property is located.

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Supply of transport 5. (1) The place of supply of passenger transport shall be the place where the transport takes place, proportionate to the distances covered.

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(2)The place of supply of the transport of goods, other than the intraCommunity transport of goods, to non-taxable persons shall be the place where the transport takes place, proportionate to the distances covered.
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(3)The place of supply of the intra-Community transport of goods to nontaxable persons shall be the place of departure.
\n

For the purpose of this paragraph: (a) \"Intra-Community transport of goods\" shall mean any transport of goods in respect of which the place of departure and the place of arrival are situated within the territories of two different Member States. (b) \"Place of departure\" shall mean the place where transport of the goods actually begins, irrespective of distances covered in order to reach the place where the goods are located and \"place of arrival\" shall mean the place where transport of the goods actually ends.

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Supply of cultural, artistic, sporting, scientific, educational, entertainment and VA L U E A D D E D TA X similar services, ancillary transport services and valuations of and work on movable property 6.

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(1)The place of supply of services in respect of admission to cultural, artistic, sporting, scientific, educational, entertainment or similar events, such as fairs and exhibitions, and of ancillary services related to the admission, supplied to a taxable person, shall be the place where those events actually take place:
\n

Provided that the provisions of this sub-item shall not apply to admission to the events referred to in this sub-item where the attendance is virtual.

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(2)(a) The place of supply of services and ancillary services, relating to cultural, artistic, sporting, scientific, educational, entertainment or similar activities, such as fairs and exhibitions, including the supply of services of the organisers of such activities, supplied to a non-taxable person shall be the place where those activities actually take place:
\n

Provided that where the services and ancillary services relate to activities which are streamed or otherwise made virtually available, the place of supply shall, however, be the place where the non-taxable person is established, has his permanent address or usually resides. (b) The place of supply of the following services to a non-taxable person shall be the place where the services are physically carried out: (i) ancillary transport activities such as loading, unloading, handling and similar activities; and (ii) valuations of and work on movable tangible property.

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Supply of restaurant and catering services 7.

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The place of supply of restaurant and catering services other than those physically carried out on board ships, aircraft or trains during the section of a passenger transport operation effected within the Community, shall be the place where the services are physically carried out.

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Hiring of means of transport 8. (1) The place of short-term hiring of a means of transport shall be the place where the means of transport is actually put at the disposal of the customer.

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(2)The place of hiring, other than short-term hiring, of a means of transport to a non-taxable person shall be the place where the customer is established, has his permanent address or usually resides.
\n

However, the place of hiring a pleasure boat to a non-taxable person, other than short-term hiring, shall be the place where the pleasure boat is actually put at the disposal of the customer, where this service is actually provided by the supplier from his place of business or a fixed establishment situated in that place.

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(3)For the purposes of paragraphs (1) and (2), \"short-term\" shall mean the continuous possession or use of the means of transport throughout a period of not more than thirty days and, in the case of vessels, not more than ninety days.
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Supply of restaurant and catering services for consumption on board ships, aircraft or trains VA L U E A D D E D TAX [ CAP. 406. 77 9. (1) The place of supply of restaurant and catering services which are physically carried out on board ships, aircraft or trains during the section of a passenger transport operation effected within the Community, shall be at the point of departure of the passenger transport operation.

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(2)For the purposes of paragraph (1), \"section of a passenger transport operation effected within the Community\" shall mean the section of the operation effected, without a stopover outside the Community, between the point of departure and the point of arrival of the passenger transport operation. \"Point of departure of a passenger transport operation\" shall mean the first scheduled point of passenger embarkation within the Community, where applicable after a stopover outside the Community. \"Point of arrival of a passenger transport operation\" shall mean the last scheduled point of disembarkation within the Community of passengers who embarked in the Community, where applicable before a stopover outside the Community.
\n

In the case of a return trip, the return leg shall be regarded as a separate transport operation.

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Supply of telecommunications, broadcasting and electronic services to nontaxable persons 10. (1) The place of supply of the following services to a non-taxable person shall be the place where that person is established, has his permanent address or usually resides: (a) telecommunications services; (b) radio and television broadcasting services; (c) electronically supplied services, in particular services relating to websites supply, web-hosting, distance maintenance of programmes and equipment, supply of software and updating thereof, supply of images, text and information, and making available of databases, supply of music, films and games, including games of chance and gambling games, and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events, and supply of distance teaching.

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Where the supplier of a service and the customer communicate via electronic mail, that shall not of itself mean that the service supplied is an electronically supplied service.

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(2)Sub-item (1) shall not apply where the following conditions are met: (a) the supplier is established or, in the absence of an establishment, has his permanent address or usually resides only in one (1) Member State; and (b) services are supplied to non-taxable persons who are established, or have their permanent address or usually reside in any Member State other than the Member State referred to in paragraph (a); and (c) the total value, exclusive of VAT, of the supplies referred to in paragraph (b), together with the total value of the supplies referred to sub-paragraph (ii) of paragraph (a) of sub-item (5) of item 4 of Part One of this Schedule does not in the current calendar year exceed tenthousand euro (€10,000) nor did it do so in the course of the preceding calendar year.
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(3)Where, during a calendar year, the threshold referred to in paragraph (c) of sub-item (2) is exceeded, sub-item (1) shall apply as of that time.
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VA L U E A D D E D TA X

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(4)The Commissioner shall grant to those taxable persons providing supplies eligible under sub-item (2) the right to opt for the place of supply to be determined in accordance with sub-item (1), which shall in any event cover two (2) calendar years:
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Provided that, a valid election for this purpose shall be made by means of a notice in writing to the Commissioner on a form acceptable to the Commissioner specifying the date from which it shall apply, not being earlier than thirty (30) days from the date on which it is furnished.

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Supply of services to non-taxable persons outside the Community 11. The place of supply of the following services to a non-taxable person who is established or has his permanent address or usually resides outside the Community, shall be the place where that person is established, has his permanent address or usually resides: (a) transfers and assignments of copyrights, patents, licences, trade marks and similar rights; (b) advertising services; (c) the services of consultants, engineers, consultancy firms, lawyers, accountants and other similar services, as well as data processing and the provision of information; (d) obligations to refrain from pursuing or exercising, in whole or in part, a business activity or a right referred to in this item; (e) banking, financial and insurance transactions including reinsurance, with the exception of the hire of safes; (f) the supply of staff; (g) the hiring out of movable tangible property, with the exception of all means of transport; (h) the provision of access to a natural gas system situated within the territory of the Community or to any network connected to such a system, to the electricity system or to heating or cooling networks, or the transmission or distribution through these systems or networks, and the provision of other services directly linked thereto.

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Prevention of double taxation or non-taxation 12. In order to prevent double taxation, non-taxation or distortion of competition, the Commissioner may, with regard to services the place of supply of which is governed by item 2, the proviso to item 6(2)(a), item 8, item 10 and item 11 of this Part: (a) consider the place of supply of any or all of those services, if situated within Malta, as being situated outside the Community if the effective use and enjoyment of the services takes place outside the Community; (b) consider the place of supply of any or all of those services, if situated outside the Community, as being situated within Malta if the effective use and enjoyment of the services takes place within Malta.

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Part Three Place of Intra-Community Acquisitions Intra-community acquisitions: general rule 1.

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An intra-community acquisition takes place where the goods are when the transport of the goods to the person acquiring them ends.

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VA L U E A D D E D TAX [ CAP. 406. 79 Place of intra-community acquisition under an identification number assigned under this Act 2. (1) Without prejudice to item 1, when a taxable person makes an intracommunity acquisition on which he is identified as registered under article 10 the acquisition shall be deemed to take place in Malta unless the person acquiring the goods establishes that the acquisition has been treated as taking place in another Member State and subject to value added tax in that State in terms of provisions in force under the law of that State corresponding to item 1.

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(2)For the purpose of paragraph (1) an intra-community acquisition of goods shall be deemed to have been subject to value added tax in a Member State in terms of provisions in force under the law of that State corresponding to item 1 if all the following conditions are fulfilled: (a) it is made for the purpose of a subsequent supply of those goods in that other Member State; (b) the subsequent supply is made to a taxable person or a non-taxable legal person identified for value added tax purposes in the Member State of destination; (c) the person to whom the subsequent supply is made is designated by the supplier as the person liable for the payment of the tax on that supply; (d) the taxable person registered under article 10 reports the subsequent supply in the recapitulative statement required in accordance with article 30(2).
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The Acquisitions Threshold 3.

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The Acquisitions Threshold is the equivalent of ten thousand euro (€10,000) using the latest conversion rate before 1st January of the year in respect of which that threshold is relevant, as published by the Central Bank of Malta if such year is the year 2008 or prior, and by the European Central Bank if such year is the year 2009 or subsequent.

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The value of intra-community acquisitions 4.

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For the purpose of determining whether the value of intra-community acquisitions in any particular case exceeds the Acquisitions Threshold or otherwise, the value of the intra-community acquisitions in question shall be taken to be the taxable value that would be determined in accordance with the relevant provisions of the Seventh Schedule if they were taxable intra-community acquisitions, provided that no account shall be taken of the value of: (a) intra-community acquisitions of new means of transport and of excise goods; and (b) value added tax paid or due in a Member State other than Malta on the intra-community supply of the goods in question.

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Part Four Place of Importations Importations 1.

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An importation of goods takes place where the goods are at the time when VA L U E A D D E D TA X the chargeable event takes place.

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Amended by:

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L.N. 17 of 1999;

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L.N. 28 of 1999;

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L.N. 89 of 1999;

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L.N. 116 of 1999;

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L.N. 142 of 1999;

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L.N. 199 of 1999;

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L.N. 11 of 2000;

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L.N. 274 of 2000;

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L.N. 23 of 2001;

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L.N. 171 of 2001;

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L.N. 233 of 2001;

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L.N. 180 of 2002;

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L.N. 205 of 2002;

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L.N. 39 of 2003.

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Substituted by:

\n

X. 2003.47.

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Amended by:

\n

L.N. 71 of 2010;

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L.N. 419 of 2012;

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L.N. 140 of 2013;

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L.N. 221 of 2020;

\n

III.2026.68.

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FOURTH SCHEDULE [Article 8] Date when a chargeable event takes place and when tax becomes chargeable Date of the chargeable event in the case of supplies of goods 1. (1) In the case of a supply of goods the chargeable event takes place on the date when the goods are delivered.

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(2)For the purpose of paragraph (1), when the delivery of goods, other than goods referred to in paragraph (3), gives rise to successive statements of account or payments the goods shall be treated as delivered, up to the value covered by those statements, on the last day of each period to which such statements of account or payments refer:
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Provided that, when a continuous supply of goods does not give rise to statements of account or payments during a year, it shall be regarded as being delivered at least at intervals of one year.

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(3)Paragraph (2) does not apply to the delivery of goods pursuant to a contract for the hire of goods for a certain period or for the sale of goods on deferred terms, which provides that in the normal course of events ownership shall pass at the latest upon payment of the final instalment.
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(4)Notwithstanding the provisions of paragraphs (2) and (3), continuous supplies of goods over a period of more than one calendar month which are dispatched or transported to a Member State other than Malta and which are supplied VAT exempt or which are transferred VAT exempt to another Member State by a taxable person for the purposes of his business, in accordance with the conditions laid down in item 3, Part One, Fifth Schedule, shall be regarded as being completed on expiry of each calendar month until such time as the supply comes to an end.
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Date of the chargeable event in the case of supplies of services VA L U E A D D E D TAX [ CAP. 406. 81 2. (1) In the case of a supply of services, the chargeable event takes place on the date when the services are performed.

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(2)For the purpose of paragraph (1), when the supply of services gives rise to successive statements of account or payments they shall be treated as performed, up to the value covered by those statements, on the last day of each period to which such statements of account or payments refer:
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Provided that, when a continuous supply of services does not give rise to statements of account or payments during a year, it shall be regarded as being completed at least at intervals of one year.

\n
(3)Notwithstanding the provisions of paragraph (2), when a supply of services for which VAT is payable pursuant to article 20(2)(b) of the Act is supplied continuously over a period of more than one year and it does not give rise to statements of account or payments during that period it shall be regarded as being completed on expiry of each calendar year until such time that the supply comes to an end.
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Date when tax on supplies becomes chargeable 3.

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The tax on a supply which takes place in Malta, other than a supply to which item 4 applies, becomes chargeable on the earlier of the following two dates: (a) the date when the chargeable event takes place; (b) the date when a payment is made for the supply to the extent covered by that payment:

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Provided that where a tax invoice is issued by the fifteenth day of the month following the date determined under the foregoing provisions of this subsection the tax becomes chargeable on the date of the invoice.

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Chargeable event and chargeability of VAT for the supply of goods facilitated through an electronic interface 3A. By way of derogation from items 1, 2 and 3, the chargeable event of the supply of goods by a taxable person who is deemed to have received and supplied the goods in accordance with item 12A of the Second Schedule and of the supply of goods to that taxable person shall occur and VAT shall become chargeable at the time when the payment has been accepted.

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Date when tax on exempt intra-Community supplies becomes chargeable.

\n

4.

\n

The tax on an intra-Community supply which is exempt in accordance with item 3 of Part One of the Fifth Schedule becomes chargeable on the earlier of the following two (2) dates: (a) the date on which a tax invoice is issued for such supply; and (b) the fifteenth (15) day of the month following the date when the chargeable event takes place in accordance with sub-item (1) or (4) of item 1, if no invoice has been issued by such date.

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Date of the chargeable event in the case of intra-community acquisitions 5.

\n

In the case of an intra-community acquisition of goods the chargeable event takes place on the date which would be the date of the chargeable event had those goods been supplied in the Member State where the acquisition is made.

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Date when tax on intra-community acquisitions becomes chargeable 6.

\n

The tax on an intra-community acquisition becomes chargeable on the VA L U E A D D E D TA X earlier of the following two dates (a) the fifteenth day of the month following the date of the acquisition; (b) the date on which a tax invoice is issued to the person making the acquisition for the supply of goods in question.

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Date of the chargeable event and when tax becomes chargeable in the case of importations 7. (1) When goods are, on importation, placed under a customs duty suspension regime the chargeable event takes place and the tax becomes chargeable on the date when they cease to remain subject to that regime.

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(2)When goods are, on importation, subject to customs duties, to agricultural levies or to charges having equivalent effect established under a common policy, the chargeable event takes place and tax becomes chargeable when the chargeable event for those Community duties takes place and those duties become chargeable.
\n
(3)In the case of an importation of goods that is not subject to the Community duties referred to in paragraph (2), the chargeable event takes place and tax becomes chargeable when, if the importation were subject to those duties, the chargeable event for those Community duties would take place and those duties would become chargeable.
\n
(4)\"Customs duty suspension regime\" means any of the following arrangements and procedures to the extent that they provide, under the customs legislation of a Member State, for the temporary exemption from duty chargeable on the entry of goods into that State while the conditions required under those arrangements and procedures are met: (a) the temporary storage of goods; (b) the placing of goods in a free zone or free warehouse; (c) customs warehousing or inward processing; (d) the admittance into territorial waters of goods on drilling and production platforms; (e) the temporary entry of goods into that State; (f) external transit procedures; (g) internal transit procedures.
\n

VA L U E A D D E D TAX [ CAP. 406. 83 .

\n

Amended by:

\n

L.N. 24 of 2001.

\n

Substituted by:

\n

X. 2003.47.

\n

Amended by:

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L.N. 250 of 2004;

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L.N. 520 of 2004;

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L.N. 334 of 2006;

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L.N. 121 of 2007;

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L.N. 445 of 2007;

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L.N. 234 of 2009;

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L.N. 286 of 2010;

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L.N. 425 of 2010;

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L.N. 534 of 2010;

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L.N. 379 of 2011;

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L.N. 499 of 2011;

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L.N. 38 of 2012;

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L.N. 345 of 2013;

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L.N. 422 of 2013;

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L.N. 480 of 2014;

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L.N. 227 of 2015;

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L.N. 247 of 2016;

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L.N. 383 of 2016;

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L.N.347 of 2017;

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L.N. 9 of 2018;

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L.N.155 of 2019;

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L.N.302 of 2019;

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L.N.253 of 2019;

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L.N.222 of 2020;

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L.N. 4 of 2021;

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L.N. 358 of 2021;

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VII.2022.70;

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L.N. 138 of 2022;

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L.N. 12 of 2024;

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L.N. 228 of 2024;

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L.N. 345 of 2024;

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L.N. 355 of 2024;

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L.N. 88 of 2025;

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III.2026.69;

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L.N. 75 of 2026.

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FIFTH SCHEDULE [Article 8] Exemptions Part One Exemptions with credit This Part applies to the supplies listed herein subject to the definitions contained in Part Five.

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Exports and like transactions 1. (1) The supply of goods dispatched or transported to a destination outside the Community by or on behalf of the seller.

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(2)The supply of goods transported to a destination outside the Community by or on behalf of a purchaser not established within Malta, with the exception of goods transported by the purchaser himself for the equipping, fuelling and provisioning of pleasure boats and private aircraft or any other means of transport for private use.
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(3)The supply of services other than those exempted by item 5, consisting of work on movable goods acquired or imported for the purpose of undergoing such work within Malta, and transported outside the Community by the performer of the services or by the customer if not established within Malta, or on behalf of either of them.
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International goods traffic 2. (1) The supply of goods intended to be placed or while they are placed under a customs duty suspension regime.

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VA L U E A D D E D TA X

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(2)The supply of services other than those exempted by item 6, consisting in work on movable goods that are intended to be placed or while they are placed under a customs duty suspension regime.
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Intra-community supplies 3. (1) The intra-community supply of goods to a person who is identified on the relative invoice as a person identified for value added tax purposes by a valid and active value added tax identification number in a Member State other than Malta, excluding: (a) a supply made by a person registered under articles 11 and 11B. (b) a supply that is subject to the special scheme of the profit margin in terms of Part Two of the Fourteenth Schedule:

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Provided that, the exemption provided for under this sub-item shall not apply where the supplier has not complied with the obligation to submit a recapitulative statement in terms of article 30(2) or the recapitulative statement submitted by him does not indicate the correct information concerning the supply as required in terms of the said article 30(2), unless the supplier can duly justify his shortcoming to the satisfaction of the Commissioner.

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(2)The intra-community supply of new means of transport to a person who is not identified for the purpose of that supply by a value added tax identification number.
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(3)The intra-community supply of excise goods to a person who is not identified for the purpose of that supply by a value added tax identification number where the transport of the goods is carried out in accordance with Article 7 (4) and
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(5), or Article 16 of Directive 92/12/EEC, excluding: (a) a supply made by a person registered under articles 11 and 11B. (b) a supply that is subject to the special scheme of the profit margin in terms of Part Two of the Fourteenth Schedule.
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(4)The intra-community supply of goods referred to in item 17(1) of the Second Schedule which would benefit from the exemption referred to in paragraph (1) of this item if it were made on behalf of another taxable person, excluding a supply that is subject to the special scheme of the profit margin in terms of Part Two of the Fourteenth Schedule.
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International transport and ancillary services 4. (1) The international transport of persons; the transport of luggage and motor vehicles accompanying passengers and the supply of services related to the international transport of passengers.

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(2)The transport of goods from a third territory and the supply of services ancillary thereto, where the value of these transport and ancillary services are included in the taxable value of the importation of those goods.
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(3)The transport of goods which is directly connected with the export of those goods outside the Community.
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(4)The transport of goods that are subject to a customs duty suspension regime.
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(5)The supply of services used for the purposes of transport referred to in paragraph (3) and (4) and relating to the loading, unloading, transhipment, handling, stowage, weighing, measuring, control, valuation, storage, supervision or delivery.
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VA L U E A D D E D TAX [ CAP. 406. 85

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(6)The supply of services relating to customs formalities on importation into or exportation outside the Community or on transit.
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(7)The intra-community transport of goods effected to or from the islands composing the autonomous regions of Azores or Madeira as well as ancillary services thereto.
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Brokers or other intermediaries 5.

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The supply of services of brokers and other intermediaries who act in the name and for the account of another person when these persons take part in operations exempted by items 1, 2, 6, 7, 8, 9 and 10 of this Part of the Schedule.

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Sea vessels 6.

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(1)The supply of vessels: (a) used for navigation on the high seas and carrying passengers for reward or used for the purpose of commercial, industrial or fishing activities; (b) used for rescue or assistance at sea or for coastal fishing; (c) of war.
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(2)The supply to constructors, owners or operators of the vessels referred to in
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(1)of equipment incorporated or used therein.
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(3)The supply of services consisting of the modification, maintenance, chartering and hiring of the vessels referred to (1) or equipment referred to in (2).
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(4)The supply to the owners or to the operators of vessels referred to in (1) of goods for the fuelling or provisioning thereof: provided that (a) with respect to vessels used for coastal fishing, this exemption is not applicable for board provisioning, and (b) with respect to war vessels, this exemption is limited to the fuelling and provisioning destined for vessels defined in subheading 89.01 of the Customs Tariff, leaving the country and bound for foreign ports or anchorages.
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(5)The supply of services other than those referred to in (3), carried out for the direct needs of vessels referred to in (1), with the exception of war vessels, and for the direct needs of their cargo such as towage, pilotage, mooring, rescue services, valuation, use of the ports, services provided to the ship-owners by the maritime agents acting as such, services necessary for the entrance, departure or stay of the vessels in ports, and assistance provided to the passengers or the crew for the account of the shipowners.
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Aircraft 7. (1) The supply of aircraft destined to be used by airline operators for reward chiefly for international transport of passengers and/or goods.

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(2)The supply to constructors, owners or operators of aircraft referred to in (1) of equipment incorporated or used therein.
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(3)The supply of services consisting of the modification, maintenance, chartering and hiring of aircraft referred to in (1) or equipment referred to in (2).
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(4)The supply to the owners or to the operators of aircraft referred to in (1) of goods for the fuelling or provisioning thereof.
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(5)The supply of services other than those referred to in (3), carried out for the VA L U E A D D E D TA X direct needs of aircraft referred to in (1) and for the direct needs of their cargo such as towage, pilotage, rescue services, valuation, use of the airports, services provided to aircraft operators by their agents acting as such, services necessary for the landing, take off or stay in airports, and assistance provided to the passengers or the crew for the account of the airline operators.
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Gold 8.

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(1)The supply of gold to the Central Bank of Malta.
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(2)The supply of investment gold, including investment gold represented by certificates for allocated or unallocated gold or traded on gold accounts and including, in particular, gold loans and swaps, involving a right of ownership or claim in respect of investment gold, as well as transactions concerning investment gold involving futures and forward contracts leading to a transfer of right of ownership or claim in respect of investment gold.
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(3)The supply of services of agents who act in the name and for the account of another when they intervene in the supply of investment gold for their principal.
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(4)The exemptions in paragraphs (2) and (3) shall be subject to the option for taxation in terms of Part Six of the Fourteenth Schedule.
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Food 9.

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The supply of food for human consumption, excluding food supplied in the course of catering.

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Pharmaceutical goods 10.

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The supply of pharmaceutical goods.

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10A. Until the 31 December 2022, services closely linked to COVID-19 vaccines falling under sub-heading 3002.20 of the Customs Tariff contained in the First Schedule to the Import Duties Act.

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Transport 11.

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The supply of: (a) transport by scheduled bus service consisting of trips on scheduled routes; (b) scheduled inter-island sea transport of passengers by authorised carriers and other services of scheduled sea transport of passengers recognised as such by the Commissioner; (c) special regular services consisting in the carriage of school pupils and students to and from an educational establishment recognised as such by the Commissioner; (d) special regular services consisting in the carriage of workers to and from their work; and (e) scheduled passenger transport services by means of public lift recognised as such by the Commissioner.

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Supplies of goods on board cruise liners 12. The supply of goods for consumption on board cruise liners where the place of taxation in terms of item 3 of the Third Schedule to the Act is deemed to be in Malta.

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Supplies of goods in accordance with sub-item (2) of item 12A of the Second VA L U E A D D E D TAX [ CAP. 406. 87 Schedule 13. The supply of goods to a taxable person who is deemed to have received and supplied those goods in accordance with sub-item (2) of item 12A of the Second Schedule.

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Certain transactions treated as exports 14.

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(1)The supply of goods or services to the European Commission or to an agency or a body established under European Union law where the European Commission or such an agency or body purchases those goods or services in the execution of the tasks conferred on it by European Union law in order to respond to the COVID-19 pandemic, except where the goods and services purchased are used, either immediately or at a later date, for the purposes of onward supplies for consideration by the European Commission or such an agency or body:
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Provided that, when the conditions for the exemption cease to apply, the European Commission or the agency or body concerned which received the exempt supply shall inform the Commissioner and the supply of those goods or services shall be subject to tax under the conditions applicable at that time.

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(2)The supply of goods or services within Malta, intended either for the armed forces of other Member States for the use of those forces, or of the civilian staff accompanying them, or for supplying their messes or canteens when such forces take part in a defence effort carried out for the implementation of a European Union activity under the common security and defence policy.
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(3)The supply of goods or services to another Member State, intended for the armed forces of any Member State other than the Member State of destination itself, for the use of those forces, or of the civilian staff accompanying them, or for supplying their messes or canteens when such forces take part in a defence effort carried out for the implementation of a European Union activity under the common security and defence policy.
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Supplies of certain devices and aids to non-profit making organisations 15. The supply to non-profit making organisations specifically recognised as such by the Commissioner for this purpose, of devices and aids, including related goods, which are essential to compensate or overcome disability in humans.

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Products used for female sanitary protection 16. The supply of products used for female sanitary protection.

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Medical items essential to compensate and overcome cancer in humans 17. The supply of: (a) mastectomy undergarments; (b) urinary incontinence management devices; (c) vacuum constriction devices;

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VA L U E A D D E D TA X (d) scalp cooling systems; (e) absorbent incontinence care products; and (f) supportive medical undergarments.

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Supplies for the benefit of disaster victims.

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18.The supply of goods for the benefit of disaster victims, and services related to such goods supplied or acquired including rental services, subject to the conditions and limitations established under Article 101a of Council Directive 2006/ 112/EC.
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Part Two Exemptions without credit This Part applies to the supplies listed herein subject to the definitions contained in Part Five. Items 2 and 3 are without prejudice to item 5 of Part One.

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Immovable property 1.

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(1)The letting of immovable property excluding - (a) the letting of or the provision of accommodation in any premises which for the purpose of the said letting or accommodation is required to be licensed in virtue of the Malta Travel and Tourism Services Act, or any Act which may be substituted therefor or in a holiday camp or camping site; (b) the letting of premises and sites for parking vehicles where such premises or sites have been designated by the Commissioner as parking areas or which fall to be treated as such in terms of such regulations as may be prescribed; (c) the letting of permanently installed equipment and machinery and the hire of safes; (d) the letting of property by a limited liability company to a person registered under article 10 for the purpose of the economic activity of that other person; (e) the letting of immovable property for not more than thirty days by a taxable person in the course of an economic activity, except for: (i) the letting referred to in sub-paragraphs (a), (b), (c) and (d); (ii) the letting of space for artistic and cultural activities; (iii) the letting for the purposes of habitation of any premises which for the purpose of the said letting, those premises are not required to be licensed in virtue of the Malta Travel and Tourism Services Act, or any other Act which my be substituted therefor; (iv) the letting of premises used or intended to be used as garages, stores or similar uses; (v) the letting to players of rooms or other spaces lawfully designated for the playing of poker.
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(2)The transfer of immovable property.
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Insurance services VA L U E A D D E D TAX [ CAP. 406. 89 2.

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The supply by persons licensed under the Insurance Business Act or the Insurance Distribution Act, of insurance and reinsurance transactions, including related services, in respect of which they are so licensed, where those services are specific to and essential for the provision of insurance or re-insurance transactions:

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Provided that road assistance services provided for a fixed subscription, by a taxable person who undertakes to provide such assistance should the risk of breakdown or accident covered by that person materialise, shall be considered as an exempt supply of insurance services.

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Credit, banking and other services 3. (1) The granting and the negotiation of credit and the management of credit by the person granting it.

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(2)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.
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(3)Transactions, including negotiation, concerning deposit and current accounts, payments, transfers, debts, cheques and other negotiable instruments, but excluding debt collection and factoring.
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(4)Transactions, including negotiation, concerning currency, bank notes and coins normally used as legal tender.
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(5)Transactions, including negotiation, excluding management and safekeeping, in shares, interest in companies or associations, debentures and other securities, excluding: (a) documents establishing title to goods; (b) certain interest in immovable property; (c) rights in rem giving the holder thereof a right of user over immovable property; (d) shares or interests equivalent to shares giving the holder thereof de jure or de facto rights of ownership or possession over immovable property or part thereof.
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(6)The supply of services consisting of the management of any investment scheme, provided that these services are limited to those activities that are specific to and essential for the core activity of the scheme:
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Provided further that investment schemes shall refer to: \"collective investment scheme\" as defined under the Investment Services Act; \"retirement scheme\" as defined under the Retirement Pensions Act; \"securitisation vehicle\" as defined under the Securitisation Act; and \"authorised reinsurance special purpose vehicle\" as defined in the ReInsurance Special Purpose Vehicle Regulations.

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Cultural and religious services 4.

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(1)Religious services.
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(2)The supply of such cultural services and goods closely linked thereto as may be approved by the Minister.
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Sports VA L U E A D D E D TA X 5.

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The supply by non-profit making organisations of such services related to sport or physical recreation and provided to persons taking part in sport or educational education as may be approved by the Minister.

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Services related to certain exempt services 6. (1) The supply of staff by religious and philosophical institutions recognised as such by the Commissioner for the purpose of providing services referred to in paragraph (2) or (4) of item 11 or in paragraph (1) or (2) of item 12 of this Part with a view to spiritual welfare.

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(2)The supply of goods and services by a non-profit making organisation in connection with events, organised exclusively for their own benefit, designed to raise funds which shall be used for the provision of goods and services which are exempt in terms of sub-items (2) or (4) of item 11 or of sub-items (1) or (2) of item 12 of this Part:
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Provided that the event is recognised by the Commissioner as being exclusively designed for the said purpose and provided that this exemption is not likely to cause distortion of competition.

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Services supplied by independent groups 7.

", "next": 239879}