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Deemed IC supplies and acquisitions Non-transfers Valuation of and work on movable tangible property

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Deemed IC supplies and acquisitions Non-transfers Valuation of and work on movable tangible property

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    1. Deemed IC supplies and acquisitions Non-transfers Valuation of and work on movable tangible property

    2. 2

    3. 3 Transfer 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 goods for consideration Goods shall be deemed to be transferred by a taxable person to another MS, if they are transported by or on his behalf from Malta to another MS for the purposes of his economic activity…

    4. 4 Transfer: characteristics Move from Malta to another Member State (without transaction) By a taxable person (article 10, article 11, person only doing exempt without credit operations) Of goods forming part of his economic activity = Intra-Community supply For consideration

    5. 5 Transfer: example MALTA Other EU MS

    6. 6

    7. 7 Non-transfer Goods shall not be deemed to be transferred if they are transported from Malta to another MS for the purposes of one of the following transactions: (1) A supply with installation or assembly in the other MS A supply of these goods, which constitutes a distance sale taxable in the other MS A supply of these goods by or on behalf of the taxable person on board ships, aircraft and trains that takes place in the other MS A supply of these goods that is treated as an intra-Community supply exempt from VAT, as a supply exempt from VAT for export… (see items 1 to 9 of the Fifth Schedule, Part One)

    8. 8 Non-transfer … : (2) the supply of services to the taxable person involving work on those goods physically carried out in the other MS provided the said goods are returned to that person in Malta on the completion of the said work the temporary use of those goods in the other MS for the purpose of the supply of services by the taxable person if that person is established in Malta the temporary use of those goods in the other MS 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

    9. 9 Non-transfer: temporary use with full exemption from import duties Examples: temporary use of those goods in the other MS 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 Goods sent in the frame of a trade fair, exhibition… Goods on trial (all goods): art. 16, §1er, b, Regulation EEC 3599/92 of 21/12/92 Goods on sight: precious stones, carpets and jewelleries, manufactured fur-skins (Art. 16, §1er, d, Regulation EEC 3599/92 of 21/12/92) Forms of transport

    10. 10 Non-transfer becomes a transfer If a move of goods satisfies the conditions to be a non-transfer and if afterwards these conditions are no longer met, this non-transfer becomes a transfer with all the consequences Simplification measures are possible (regulations)

    11. 11 Non-transfer: example MALTA Other EU MS

    12. 12 Non-transfer: example MALTA Other EU MS

    13. 13 Non-transfer: example MALTA Other EU MS

    14. 14 Non-transfer: example MALTA Other EU MS

    15. 15 Non-transfer: example MALTA Other EU MS

    16. 16 Non-transfer: example MALTA Other EU MS

    17. 17 (Non)-transfer: example MALTA Other EU MS

    18. 18 Non-transfer: example MALTA Other EU MS

    19. 19 Non-transfer: example MALTA Other EU MS

    20. 20 Non-transfer followed by a transfer: example MALTA Other EU MS

    21. 21 Non-transfer followed by a transfer: example (continued) – No simplification Operation 1 (no simplification in the other MS : transfer) (Deemed intra-Community) supply in Malta by a taxable person? YES (from the moment goods are acquired by B). VAT registration of A in the other MS Supply in the scope of VAT (e.g. for consideration)? YES Place of supply? In Malta (where transport begins) Is there an exemption? Yes (if 2 conditions are fulfilled: (1) transport and (2) VAT number of the acquirer (A’) in the other MS) Person liable to pay Maltese VAT? N/A

    22. 22 Non-transfer followed by a transfer: example (continued) – No simplification Operation 2 (no simplification in the other MS : supply of goods to B) Supply of goods by a taxable person? YES Supply in the scope of VAT? YES Place of supply? In the other MS (where goods are at the time they are put at the disposal of B) Is there an exemption? N/A Person liable to pay VAT? N/A

    23. 23 Non-transfer (followed by a transfer): example (continued) - Simplification Operation 1 and 2 (simplification in the other MS : movement of goods and supply of goods to B) (Deemed intra-Community) supply in Malta by a taxable person? NO (from the moment goods are acquired by B) Supply of goods by a taxable person? YES Supply in the scope of VAT? YES (IC supply from Malta) Place of supply? In Malta (where transport of the goods to B on trial began) Is there an exemption? Yes (if 2 conditions are fulfilled: (1) transport and (2) VAT number of the acquirer B in the other MS) Person liable to pay VAT? N/A

    24. 24

    25. 25 Deemed intra-Community acquisition: definition The use in Malta 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, shall be treated as an intra-Community acquisition for consideration

    26. 26 Deemed intra-Community acquisition: characteristics Move from another Member State to Malta (without transaction) By a taxable person Of goods forming part of his economic activity = Intra-Community acquisition For consideration

    27. 27 Deemed intra-Community acquisition: example Other EU MS Malta

    28. 28

    29. 29 No deemed intra-Community acquisition Goods shall not be deemed to be intra-Community acquired for consideration if they are transported from another MS to Malta for the purposes of one of the following transactions: (1) A supply with installation or assembly in Malta A supply of these goods, which constitutes a distance sale taxable in Malta A supply of these goods by or on behalf of the taxable person on board ships, aircraft that takes place in Malta A supply of these goods that is treated as an intra-Community supply exempt from VAT, as a supply exempt from VAT for export…

    30. 30 No deemed intra-Community acquisition … : (2) the supply of services to the taxable person involving work on those goods physically carried out in Malta provided the said goods are returned to that person in the Member State of departure on the completion of the said work the temporary use of those goods in Malta for the purpose of the supply of services by the taxable person if that person is established in the other Member State the temporary use of those goods in Malta for a period not exceeding twenty-four months if the importation of those goods into Malta for temporary use would qualify for a full exemption from import duties

    31. 31 The no deemed ICA becomes an ICA If a move of goods to Malta satisfies the conditions to be a non-transfer from Malta (and therefore a no deemed ICA in Malta ) and if afterwards these conditions are not longer met, this non transfer (no deemed ICA) becomes a transfer (and consequently an ICA) with all the consequences Simplification measures are possible (regulations)

    32. 32 No deemed intra-Community acquisition: example Other EU MS Malta

    33. 33 No deemed intra-Community acquisition: example Other EU MS Malta

    34. 34 No deemed intra-Community acquisition: example Other EU MS Malta

    35. 35 No deemed intra-Community acquisition: example Other EU MS Malta

    36. 36 No deemed intra-Community acquisition: example Other EU MS Malta

    37. 37 No deemed intra-Community acquisition: example Other EU MS Malta

    38. 38 (No) deemed intra-Community acquisition: example Other EU MS Malta

    39. 39 No deemed intra-Community acquisition: example Other EU MS Malta

    40. 40 No deemed intra-Community acquisition: example Other EU MS Malta

    41. 41 No deemed ICA followed by a deemed ICA: example Other EU MS Malta

    42. 42 No deemed ICA followed by a deemed ICA : example (continued) – No simplification Operation 1 (no simplification in Malta : ICA) (Deemed) ICA in Malta by a taxable person? YES (from the moment goods are acquired by B). VAT registration of A in Malta ICA in the scope of VAT (e.g. for consideration)? YES Place of ICA? In Malta (where transport ends) Is there an exemption? NO (assumption) Person liable to pay Maltese VAT? A (must register for VAT purposes in Malta)

    43. 43 No deemed ICA followed by a deemed ICA : example (continued) – No simplification Operation 2 (no simplification in Malta : supply of goods to B) Supply of goods by a taxable person? YES Supply in the scope of VAT? YES Place of supply? In Malta (where goods are at the time they are put at the disposal of B) Is there an exemption? NO (assumption) Person liable to pay VAT? B

    44. 44 No deemed ICA (followed by a deemed ICA): example (continued) - Simplification Operation 1 and 2 (simplification in the other MS : movement of goods and supply of goods to B) (Deemed) ICA in Malta by a taxable person? NO (from the moment goods are acquired by B) AND ICA in Malta by a taxable person? YES (B) ICA in the scope of VAT? YES Place of ICA? In Malta (where transport of the goods to B on trial ended) Is there an exemption? NO (assumption) Person liable to pay VAT? B

    45. 45

    46. 46 Valuation of and work on movable tangible property DEFINITION Work on movable tangible property: all human and mechanical operations made to a movable tangible good. It concerns services consisting in a treatment to or a processing of movable tangible property Valuation of movable tangible property: every act consisting in assessing the characteristics or appraising a movable tangible good

    47. 47 Valuation of and work on movable tangible property – Question 3 PLACE OF SUPPLY Principle: where the services are physically carried out

    48. 48 Valuation of and work on movable tangible property – Question 3 PLACE OF SUPPLY Exception: in the Member State that granted the VAT identification number for the purpose of those services, if the following conditions are met: The goods are transported out of the Member State where the services are physically carried out after having been processed; AND The services are provided to customers that communicate a VAT identification number (with prefix) of another Member State than the Member state where the services are physically carried out

    49. 49 Valuation of and work on movable tangible property – Question 4 EXEMPTION Work on movable goods acquired or imported for the purpose of undergoing such work within Malta, and transported outside the Community by or on behalf of either the supplier of the services or the customer (if the latter is not established within Malta) (Item 1 (3), Part One, Fifth Schedule) International goods traffic: work on movable goods to be placed or placed under a customs duty suspension regime (Item 2 (2), Part One, Fifth Schedule)

    50. 50 Valuation of and work on movable tangible property – Question 4 EXEMPTION Sea vessels: modification and maintenance (Item 6 (3), Part One, Fifth Schedule) and some other services for the direct needs of these vessels or their cargo (Item 6 (5), Part one, Fifth Schedule) Aircraft: modification and maintenance (Item 7 (3), Part One, Fifth Schedule) and some other services for the direct needs of these aircraft or their cargo (Item 7 (5), Part One, Fifth Schedule)

    51. 51 Valuation of and work on movable tangible property – 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

    52. 52 Record of received goods When a supplier receives goods in Malta coming from another EU Member State to carry out a valuation of or works on tangible movable property, he has to keep a special record

    53. 53 Record of received goods This record has to contain the following elements: A sequential number Date of receipt of the goods Name, address and VAT number of the customer (if any) Quantity and description of the goods received Date of dispatch to the customer of the processed goods Quantity and description of the dispatched goods Quantity and description of the goods that are not sent back to the client Date and reference to the documents issued related to the services supplied

    54. 54 Record of sent goods (Register of non-transfers) When the customer sends goods from Malta to another EU Member State to have a valuation of or works on tangible movable property carried out, he has to keep a special record.

    55. 55 Record of sent goods (Register of non-transfers) This record has to contain the following elements: a description of the goods; their quantity; their value; their movements; a description and the quantity of the goods not transported back; and the date and the reference to the documents issued, if any, relating to these operations

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