IC supplies and IC acquisitions of goods IC transport of goods Ancillary services re' IC transport o

1
(IC) supplies and IC acquisitions of goods(IC)
transport of goodsAncillary services re. (IC)
transport of goodsIntermediary services re. (IC)
transport of goods and ancillary services related
thereto
2
(IC) SUPPLIES OF GOODS
3
Definitions

• Supply of goods
• Legal definition transfer of the right to
  dispose of tangible property as owner
• IC supply of goods
• No legal definition in the Sixth Directive
• Concept
• Supply of goods THAT ARE TRANSPORTED by or on
  behalf of the supplier or the person to whom the
  supply is made from a Member State to another
  Member State

Art. 6 VAT Act, item 1(a) Second Schedule
Part 1, Preliminary, Interpretation, 2(1), VAT Act
4
Basic questions 1 2 scope of VAT

• Supply of goods made for a consideration by a
  taxable person acting as such other than a supply
  made by a person registered under art.11
• In the scope of Maltese VAT if supply takes place
  in Malta

Art. 4(1)(a) VAT Act
5
Basic question 3 place of supply Transport
versus no transport

• Goods ARE NOT TRANSPORTED place is where the
  goods are at the time when they are placed at the
  disposal of the person acquiring those goods
• Goods ARE TRANSPORTED place is where the goods
  are at the time when the transport begins

Item 1(a) Third Schedule
Art. 7 VAT Act
Art. 7 VAT Act
Item 1(b) Third Schedule
6
Characteristics basic question 3Place of the IC
supply

• An intra-Community supply of goods ALWAYS takes
  place where transport begins

Art. 7 VAT Act
Item 1(b) Third Schedule
Part 1, Preliminary, Interpretation, 2(1), VAT Act
7
Characteristics basic question 4Exemption IC
supply

• YES if
• made to a person identified on the relative
  invoice by an EU VAT identification number
  excluding
• a supply made by a person registered under
  article 11
• a supply that is subject to the special scheme of
  the profit margin
• Implicitly goods are transported to another
  Member State

Art. 9(1)(a) VAT Act
Item 3(1) Part One Fifth Schedule
8
IC supply of goods exempt from VATProof of
exemption 2

• Transport to another Member State
• Contracts
• Order forms
• Proof of payment
• Transport documentation (attention when the
  transport is made by the recipient or on his
  behalf)
• Recipient is liable to pay VAT in the Member
  State of destination communication of a valid
  VAT identification number of another Member State
  (preceded by the ISO Code for this Member State)

9
Characteristics basic question 4Exemption export

• YES if
• made to any body excluding
• a supply made by a person registered under
  article 11
• a supply that is subject to the special scheme of
  the profit margin
• Goods are transported to a third territory

Art. 9(1)(a) VAT Act
Item 1(1)(2) Part One Fifth Schedule
10
Export of goods exempt from VATProof of
exemption

• Transport to a third territory (outside the EU
  VAT territory)
• Contracts
• Order forms
• Proof of payment
• Transport documentation (attention when the
  transport is made by the recipient or on his
  behalf)
• Export document at the name of the supplier

11
Characteristics basic question 5Person liable
to pay VAT

• If any VAT to pay ALWAYS the person who makes
  the supply
• A taxable person not established in Malta who,
  in terms of article 20 VAT Act, is liable for the
  payment of the tax on a supply, shall apply to
  register under article 10 VAT Act (EVEN IF THERE
  IS AN EXEMPTION FOR IC SUPPLY (formalities such
  as the intra-Community sales listing) OR FOR
  EXPORT )

Art. 20(1)(a) VAT Act
Art. 10(4) VAT Act
12
Other questions chargeable event and
chargeability IC supply

• The chargeable event takes place on the date
  when the goods are delivered
• The tax becomes chargeable on the earlier of the
  following dates
• The 15th day of the month following the date when
  the chargeable event takes place (compare with
  intra-Community acquisition)
• The date on which a tax invoice (for the whole
  price) is issued for that supply

Art. 8 VAT Act
Item 1(1) Fourth Schedule
Art. 8 VAT Act
Item 4 Fourth Schedule
13
IC supply of goods exempt from VATCompliance

• Report of the operation in the proper tax records
• Report of the operation in box 1 of the VAT
  return
• Tax invoice on which is reported the EU VAT
  identification number of the recipient in another
  Member State (ISO Code)
• Report of the operation in the recapitulative
  statement to be submitted for each calendar
  quarter during which exempt intra-Community
  supplies take place

Eleventh Schedule
Art. 27 VAT Act
Twelfth Schedule
Art. 30(3) VAT Act)
14
Supply by a private individual

• A Maltese private individual sells goods. Goods
  are transported to Malta, to another Member State
  or to a third territory
• Is the supply made by a taxable person? NO
• Is the supply in the scope of VAT? N/A
• Where is the place of the supply? N/A
• Is there any exemption? N/A
• Who is liable to pay VAT? N/A

ATTENTION SPECIAL REGIME FOR NEW MEANS OF
TRANSPORT IN IC TRANSACTIONS
15
Supply by a non-taxable legal person

• A Maltese non-taxable legal person sells goods.
  Goods are transported to Malta, to another Member
  State or to a third territory
• Supply made by a taxable person? NO (attention
  First Schedule)
• Supply in the scope of VAT? N/A
• Place of supply? N/A
• Is there any exemption? N/A
• Who is liable to pay VAT? N/A

ATTENTION SPECIAL REGIME FOR NEW MEANS OF
TRANSPORT IN IC TRANSACTIONS
16
Supply by a taxable person doing only operations
without credit

• A Maltese taxable person doing only operations
  without credit (even if registered under article
  12 VAT Act) sells goods. Goods are transported to
  Malta, to another Member State or to a third
  territory
• Supply made by a taxable person? YES
• Supply in the scope of VAT? YES
• Place of supply? In Malta (where transport
  begins)
• Is there any exemption? YES (but VAT Act,
  art.9(1)(a) and Fifth Schedule, Part Two, item
  13)
• Who is liable to pay VAT? N/A

ATTENTION SPECIAL REGIME FOR NEW MEANS OF
TRANSPORT IN IC TRANSACTIONS
17
Supply by a taxable person registered article 11

• A Maltese taxable person registered under
  article 11 (small undertaking exempt person)
  sells goods. Goods are transported to Malta, to
  another Member State or to a third territory
• Supply made by a taxable person? YES
• Supply in the scope of VAT? NO (VAT Act art.
  4(1)(a))
• Place of supply? N/A (in Malta where transport
  begins)
• Is there any exemption? N/A
• Who is liable to pay VAT? N/A

ATTENTION SPECIAL REGIME FOR NEW MEANS OF
TRANSPORT IN IC TRANSACTIONS
18
Supply of goods subject to the profit margin
scheme

• A Maltese taxable person registered under
  article 10 sells goods subject to the profit
  margin scheme. Goods are transported to another
  Member State
• Supply made by a taxable person? YES
• Supply in the scope of VAT? YES
• Place of supply? In Malta (where transport
  begins)
• Is there any exemption? NO (but Maltese VAT
  due on the profit margin)
• Who is liable to pay VAT? Maltese taxable
  person

ATTENTION SPECIAL REGIME FOR NEW MEANS OF
TRANSPORT
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IC supply of goods by a taxable person registered
under article 10

• A Maltese taxable person registered under
  article 10 sells goods. Goods are transported to
  another Member State.
• Supply made by a taxable person? YES
• Supply in the scope of VAT? YES
• Place of supply? In Malta (where transport
  begins)
• Is there any exemption? YES (if 2 conditions
  are fulfilled (1) transport and (2) VAT number
  of the acquirer in the other MS)
• Who is liable to pay VAT? N/A

Compliance recapitulative statement (Art.30(3)
VAT Act)
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IC supply of goods by a taxable person registered
under article 10

• A Maltese taxable person registered under
  article 10 sells goods. Goods are transported to
  another Member State.
• Supply made by a taxable person? YES
• Supply in the scope of VAT? YES
• Place of supply? In Malta (where transport
  begins)
• Is there any exemption? NO (if one of the 2
  conditions are not fulfilled (1) transport and
  (2) VAT number of the acquirer in the other MS)
• Who is liable to pay VAT? Maltese taxable
  person

21
Export of goods by a taxable person registered
under article 10

• A Maltese taxable person registered under
  article 10 sells goods. Goods are transported to
  a third territory
• Supply made by a taxable person? YES
• Supply in the scope of VAT? YES
• Place of supply? In Malta (where transport
  begins)
• Is there any exemption? YES (if goods are
  transported outside the EU VAT territory)
• Who is liable to pay VAT? N/A

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IC ACQUISITIONS OF GOODS
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Definition

• General
• An intra-Community acquisition is 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
• Compare with the definition of a supply of goods
  (mirror)

Art. 6 VAT Act
Item 18(1)(a) Second Schedule
24
Questions 1 and 2 intra-Community acquisition
subject to ( in the scope of) Maltese VAT

• Conditions in the Member State of origin
• Supply taking place outside Malta (in the other
  Member State where transport begins)
• Supply is made for consideration by a taxable
  person acting as such who is not eligible in the
  Member State of origin for an exemption under the
  special scheme for small undertakings

Art. 4(1)(b)(i) VAT Act
Attention special regime for new means of
transport and excise goods
25
Questions 1 and 2 intra-Community acquisition
subject to ( in the scope of) Maltese VAT

• Conditions in Malta
• Goods other than new means of transport or excise
  goods
• Acquisition made for consideration
• Acquisition made by a taxable person acting as
  such who is registered under article 10 or 12 or
  a non-taxable legal person registered under
  article 12

Art. 4(1)(b)(i) VAT Act
Attention special regime for new means of
transport and excise goods Attention threshold
for some taxable persons or non-taxable legal
persons
26
Question 3 place of intra-Community acquisitions

• In Malta if goods are in Malta when transport
  ends (compare with place of supply where
  transport begins)
• In Malta if the acquirer provides the supplier
  with a Maltese VAT number (under article 10
  compare with 6th Directive) unless this person
  proves that the acquisition (1) takes place in
  another Member State and (2) has been subject to
  VAT in that other Member State (security net)

Art. 7 VAT Act
Item 13 Third Schedule
Item 14(1) Third Schedule
Art. 7 VAT Act
27
Question 3 place of intra-Community
acquisitions (example)
Other EU MS
Malta
A
B
Sale of goods
Transport
Supply Place where transport begins
Intra-Community acquisition Place where
transport ends
28
Question 3 place of intra-Community
acquisitions (example)
France
Italy
A
B provides to A his Maltese VAT number
Sale of goods
Transport
Supply Place where transport begins
Intra-Community acquisition in Italy where
transport ends Security net intra-Community
acquisition in Malta (MS of VAT identification)
29
Question 4 exemptions on intra-Community
acquisitions (not exhaustive)

• ICA of goods whose supply or importation in Malta
  would be exempt from VAT
• ICA of goods where the tax would be fully
  refundable
• ICA of goods intended to be placed or while they
  are placed under a customs duty suspension regime
• ICA of goods supplied in the MS of origin under
  the special regime of the margin scheme on
  second-hand goods, works of art, collectors
  items and antiques
• ICA of goods in Malta made for the purposes of a
  subsequent supply (triangulation specific
  conditions)

30
Question 5 person liable to pay VAT on
intra-Community acquisitions

• The payment of the tax on an intra-Community
  acquisition shall always be the liability of the
  person who makes the acquisition
• Compliance reverse charge mechanism
• VAT reported as due in the VAT return (box 3 6)
• VAT reported as deductible in the same VAT return
  (according to the right to deduct VAT
  limitations and exclusions compliant invoice)
  (box 9 13 or box 10 14)

Art. 20(1)(b) VAT Act
31
Other question chargeable event and
chargeability

• The chargeable event takes place on the date
  which would be the date of the chargeable event
  had those goods been supplied in Malta where the
  acquisition is made
• The tax becomes chargeable on
• The 15th day of the month following the date of
  the acquisition (compare with exempt
  intra-Community supply)
• The date on which a tax invoice (for the whole
  price) is issued to the person making the
  acquisition for the supply of goods in question
  if this date is earlier than the date referred to
  in first bullet point

Art. 8 VAT Act
Item 5 Fourth Schedule
Art. 8 VAT Act
Item 6 Fourth Schedule
32
Other question chargeable event and
chargeability (example)

• Other EU MS Malta
• A B
• Intra-Community supply exempt from
  VAT Intra-Community acquisition subject to
  VAT and taxable
• Delivery date 29/07/2004 Date of the ICA
  29/07/2004
• Date of invoice 20/08/2004
• Chargeable event 29/07/2004 Chargeable event
  29/07/2004
• Date tax becomes chargeable 15/08/2004 Date
  tax becomes chargeable 15/08/2004

33
Other question chargeable event and
chargeability (example)

• Other EU MS Malta
• A B
• Intra-Community supply exempt from
  VAT Intra-Community acquisition subject to
  VAT and taxable
• Delivery date 29/07/2004 Date of the ICA
  29/07/2004
• Date of invoice 29/07/2004
• Chargeable event 29/07/2004 Chargeable event
  29/07/2004
• Date tax becomes chargeable 29/07/2004 Date
  tax becomes chargeable 29/07/2004

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(IC) TRANSPORT OF GOODS
35
Intra-Community transport of goods definition
and basic question 2

• DEFINITION
• An intra-Community transport of goods means a
  transport of goods where the place of departure
  and the place of arrival of the goods are
  situated within the territories of two different
  EU Member States
• The crossing of the territory of a non-EU country
  does as such not affect the qualification of the
  transport as an intra-Community transport of goods

Item 7 (6) (a) (i) Third Schedule
36
Deemed intra-Community transport of goods
definition and basic question 2

• A local transport of goods (i.e. a transport of
  goods whereby the place of departure and the
  place of arrival of the goods are situated within
  the same EU Member State) is deemed to be an
  intra-Community transport of goods when it is
  directly linked to an intra-Community transport
  of goods
• This deemed intra-Community transport of goods
  can a.o. precede or follow the intra-Community
  transport of goods to which it is directly linked

Item 7 (6) (a) (ii) Third Schedule
37
Transport services Basic question 3

• PLACE OF SUPPLY GENERAL RULE FOR TRANSPORT
• Where the transport takes place, having regard to
  the distances covered

Art. 7 VAT Act Item 7 (1) Third Schedule
38
IC transport of goods Basic question 3

• PLACE OF SUPPLY IC TRANSPORT OF GOODS
• Principle in the Member State of departure

Art. 7 VAT Act Item 7 (2) first sentence Third
Schedule
39
IC transport of goods Basic question 3

• PLACE OF SUPPLY IC TRANSPORT OF GOODS
• Exception where the service is rendered to a
  customer who communicates a VAT identification
  number (with prefix) of another EU Member State
  than the place of departure of the IC transport
  of goods, the service is deemed to take place in
  the Member State that granted the VAT
  identification number under which the service was
  rendered to the customer

Art. 7 VAT Act Item 7 (2) second sentence Third
Schedule
40
Transport of goods Basic question 4

• EXEMPTIONS WITH CREDIT (NOT EXHAUSTIVE)
• The transport of goods from a third territory,
  where the value of this transport is included in
  the taxable value of the importation of those
  goods
• The transport of goods which is directly
  connected with the export of those goods outside
  the Community
• The transport of goods that are subject to a
  customs duty suspension regime
• The intra-Community transport of goods effected
  to or from the islands composing the autonomous
  regions of Açores or Madera

Art. 9 VAT Act and item 4, Part One, Fifth
Schedule
41
Transport of goods Basic question 5

• PERSON LIABLE TO PAY MALTESE VAT
• Principle the supplier
• Exception the customer under the following
  conditions
• The supplier is not established in Malta AND not
  registered under art. 10 VAT Act and
• The customer is established in Malta AND
  registered under art. 10 VAT Act

Art. 20 (1) (a) VAT Act
Art. 20 (2) (c) VAT Act
Sixth Directive?
42
ANCILLARY SERVICES re. TRANSPORT OF GOODS
43
Services ancillary to a transport of goods
Basic questions 1 2

• DEFINITION AND EXAMPLES
• Services ancillary to a transport of goods are
  services consisting of e.g. loading, unloading,
  handling, weighing, sorting, storing,

44
Services ancillary to a transport of goods
Basic question 3

• PLACE OF SUPPLY
• Principle where the services are physically
  carried out

Art. 7 VAT Act Item 7 (3) first sentence Third
Schedule
45
Services ancillary to an intra-Community
transport of goods Basic question 3

• PLACE OF SUPPLY
• Exception where the service is rendered to a
  customer who communicates a VAT identification
  number (with prefix) of another EU Member State
  than the one where the services are physically
  carried out, the ancillary service is deemed to
  take place in the Member State that granted the
  VAT identification number under which the service
  was rendered to the customer

Art. 7 VAT Act Item 7 (3) second sentence Third
Schedule
46
Services ancillary to a transport of goods
Basic question 4

• EXEMPTIONS (WITH CREDIT)
• (1)The supply of services used for the transport
  of goods that are subject to a customs duty
  suspension regime and relating to the loading,
  unloading, transhipment, handling, stowage,
  weighing, measuring, control, valuation, storage,
  supervision or delivery
• (2) The ancillary services to an intra-Community
  transport of goods effected to or from the
  islands composing the autonomous regions of
  Açores or Madera

Art. 9 VAT Act and item 4, Part One, Fifth
Schedule
47
Services ancillary to a transport of goods
Basic question 4

• EXEMPTIONS (WITH CREDIT)
• Sea vessels services for the direct needs of
  these vessels or their cargo
• Aircraft services for the direct needs of these
  aircraft or their cargo

Art. 9 VAT Act and item 6 (5) and item 7 (5),
Part One, Fifth Schedule
48
Services ancillary to a transport of goods
Basic question 5

• PERSON LIABLE TO PAY MALTESE VAT
• Principle the supplier
• Exception the customer under the following
  conditions
• The supplier is not established in Malta AND not
  registered under art. 10 VAT Act and
• The customer is established in Malta AND
  registered under art. 10 VAT Act

Art. 20 (1) (a) VAT Act
Art. 20 (2) (c) VAT Act
Sixth Directive?
49
Intermediary services re. transport of goods or
ancillary services
50
Intermediary services re. transport of goods or
ancillary services Q 1 2
Item 11, Second Schedule

• DEFINITION
• Intermediary services mean services carried out
  by a disclosed agent. A disclosed agent (i.e. a
  broker or a mandatory not an independent agent)
  is an intermediary acting on behalf of and for
  the account of another person (i.e. the
  principal). The supplies for which the
  intermediary intervenes are deemed to be made by
  that other person. The service of the
  intermediation itself is a supply of services
  made by the intermediary to its principal.

51
Intermediary services re. transport other than IC
transport or ancillary services
52
Intermediary services re. transport of goods or
ancillary services Q 1 2

• EXAMPLE RE. TRANSPORT OF GOODS

B performs service (intermediary services re.
transport of goods)
Libya
Malta
C
B
C performs service (transport of goods)
A
Customer
Movement of goods
A performs service (transport of goods)
53
Intermediary services re. transport of goods or
ancillary services Q 1 2

• EXAMPLE RE. ANCILLARY SERVICES

B performs service (intermediary services re.
ancillary service)
Libya
Malta
C
B
C performs service (ancillary service)
Valletta
Movement of goods
A
Customer
A performs service (transport of goods)
54
Intermediary services re. transport of goods or
ancillary services Q 3

• PLACE OF SUPPLY RE. TRANSPORT OF GOODS
• Principle the intermediary services take place
  where the underlying transport of goods takes
  place

Art. 7 VAT Act Item 12 first sentence Third
Schedule
55
Intermediary services re. transport of goods or
ancillary services Q 3

• PLACE OF SUPPLY RE. TRANSPORT OF GOODS
• Exception where the intermediary service is
  rendered to a customer (i.e. the principal) who
  communicates a VAT identification number (with
  prefix) of another EU Member State than the one
  where the underlying transport of goods takes
  place, the intermediary service is deemed to take
  place in the Member State that granted the VAT
  identification number under which the service was
  rendered to the customer (i.e. the principal)

Art. 7 VAT Act Item 12 second sentence Third
Schedule
56
Intermediary services re. transport of goods or
ancillary services Q 3

• PLACE OF SUPPLY RE. ANCILLARY SERVICES
• Principle the intermediary services take place
  where the underlying ancillary services are
  physically carried out

Art. 7 VAT Act Item 12 first sentence Third
Schedule
57
Intermediary services re. transport of goods or
ancillary services Q 3

• PLACE OF SUPPLY RE. ANCILLARY SERVICES
• Exception where the intermediary service is
  rendered to a customer (i.e. the principal) who
  communicates a VAT identification number (with
  prefix) of another EU Member State than the one
  where the underlying ancillary services are
  physically carried out, the intermediary service
  is deemed to take place in the Member State that
  granted the VAT identification number under which
  the service was rendered to the customer (i.e.
  the principal)

Art. 7 VAT Act Item 12 second sentence Third
Schedule
58
Intermediary services re. IC transport of
goods or ancillary services
59
Intermediary services re. IC transport of goods
or ancillary services Q 1 2

• EXAMPLE RE. IC TRANSPORT OF GOODS

B performs service (intermediary services re. IC
transport of goods)
Italy
Malta
C
B
C performs service (IC transport of goods)
A
Customer
Movement of goods
A performs service (IC transport of goods)
60
Intermediary services re. IC transport of goods
or ancillary services Q 1 2

• EXAMPLE RE. ANCILLARY SERVICES

B performs service (intermediary services re.
ancillary service)
Italy
Malta
C
B
C performs service (ancillary service)
Valetta
Movement of goods
A
Customer
A performs service (IC transport of goods)
61
Intermediary services re. IC transport of goods
or ancillary services Q 3

• PLACE OF SUPPLY RE. IC TRANSPORT OF GOODS
• Principle the intermediary services take place
  in the Member State of departure of the
  underlying IC transport of goods

Art. 7 VAT Act Item 7 (4) first sentence Third
Schedule
62
Intermediary services re. IC transport of goods
or ancillary services Q 3

• PLACE OF SUPPLY RE. IC TRANSPORT OF GOODS
• Exception where the intermediary service is
  rendered to a customer (i.e. the principal) who
  communicates a VAT identification number (with
  prefix) of another EU Member State than the one
  where the underlying IC transport of goods
  starts, the intermediary service is deemed to
  take place in the Member State that granted the
  VAT identification number under which the service
  was rendered to the customer (i.e. the principal)

Art. 7 VAT Act Item 7 (4) second sentence Third
Schedule
63
Intermediary services re. IC transport of goods
or ancillary services Q 3

• PLACE OF SUPPLY RE. ANCILLARY SERVICES
• Principle the intermediary services take place
  where the underlying ancillary services are
  physically carried out

Art. 7 VAT Act Item 7 (5) first sentence Third
Schedule
64
Intermediary services re. IC transport of goods
or ancillary services Q 3

• PLACE OF SUPPLY RE. ANCILLARY SERVICES
• Exception where the intermediary service is
  rendered to a customer (i.e. the principal) who
  communicates a VAT identification number (with
  prefix) of another EU Member State than the one
  where the underlying ancillary services are
  physically carried out, the intermediary service
  is deemed to take place in the Member State that
  granted the VAT identification number under which
  the service was rendered to the customer (i.e.
  the principal)

Art. 7 VAT Act Item 7 (5) second sentence Third
Schedule
65
Intermediary services re. IC transport of goods
or ancillary services Q 4

• EXEMPTION (WITH CREDIT)
• Intermediary services related to the following
  services
• Sea vessels services for the direct needs of
  these vessels or their cargo
• Aircraft services for the direct needs of these
  aircraft or their cargo

Art. 9 VAT Act and item 5, Part One, Fifth
Schedule
66
Intermediary services re. IC transport of goods
or ancillary services Q 5

• PERSON LIABLE TO PAY MALTESE VAT
• Principle the supplier
• Exception the customer under the following
  conditions
• The supplier is not established in Malta AND not
  registered under art. 10 VAT Act and
• The customer is established in Malta AND
  registered under art. 10 VAT Act

Art. 20 (1) (a) VAT Act
Art. 20 (2) (c) VAT Act
Sixth Directive?
67
Questions?