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IC supplies and IC acquisitions of goods IC transport of goods Ancillary services re. IC transport of goods Intermediary

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IC supplies and IC acquisitions of goods IC transport of goods Ancillary services re. IC transport of goods Intermediary

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    1. (IC) supplies and IC acquisitions of goods (IC) transport of goods Ancillary services re. (IC) transport of goods Intermediary services re. (IC) transport of goods and ancillary services related thereto

    2. 2

    3. 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

    4. 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

    5. 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

    6. 6 Characteristics: basic question 3 Place of the IC supply An intra-Community supply of goods ALWAYS takes place where transport begins

    7. 7 Characteristics: basic question 4 Exemption 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

    8. 8 IC supply of goods exempt from VAT Proof 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. 9 Characteristics: basic question 4 Exemption 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

    10. 10 Export of goods exempt from VAT Proof 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. 11 Characteristics: basic question 5 Person 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 )

    12. 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

    13. 13 IC supply of goods exempt from VAT Compliance 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

    14. 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

    15. 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

    16. 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

    17. 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

    18. 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

    19. 19 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

    20. 20 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. 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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    23. 23 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)

    24. 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

    25. 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

    26. 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)

    27. 27 Question 3 : place of intra-Community acquisitions (example)

    28. 28 Question 3 : place of intra-Community acquisitions (example)

    29. 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. 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)

    31. 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

    32. 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. 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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    35. 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

    36. 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

    37. 37 Transport services – Basic question 3 PLACE OF SUPPLY: GENERAL RULE FOR TRANSPORT Where the transport takes place, having regard to the distances covered

    38. 38 IC transport of goods – Basic question 3 PLACE OF SUPPLY: IC TRANSPORT OF GOODS Principle: in the Member State of departure

    39. 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

    40. 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

    41. 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

    42. 42

    43. 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. 44 Services ancillary to a transport of goods – Basic question 3 PLACE OF SUPPLY Principle: where the services are physically carried out

    45. 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

    46. 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

    47. 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

    48. 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

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    50. 50 Intermediary services re. transport of goods or ancillary services – Q 1 & 2 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.

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    52. 52 Intermediary services re. transport of goods or ancillary services – Q 1 & 2 EXAMPLE RE. TRANSPORT OF GOODS

    53. 53 Intermediary services re. transport of goods or ancillary services – Q 1 & 2 EXAMPLE RE. ANCILLARY SERVICES

    54. 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

    55. 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)

    56. 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

    57. 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)

    58. 58

    59. 59 Intermediary services re. IC transport of goods or ancillary services – Q 1 & 2 EXAMPLE RE. IC TRANSPORT OF GOODS

    60. 60 Intermediary services re. IC transport of goods or ancillary services – Q 1 & 2 EXAMPLE RE. ANCILLARY SERVICES

    61. 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

    62. 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)

    63. 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

    64. 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)

    65. 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

    66. 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

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