The New VAT Return

1
The New VAT Return

• Applicable for Persons Registered under Article
  10 as from
• 1st May 2004

VAT Department Malta
2

• As from May 1, 2004
• the words "imports" and "exports" refer only to
  acquisitions/supplies made from/to a country that
  is not a member of the European Union.
• In the case of goods acquired from/supplied to
  another member state of the European Union, these
  are called Intra-Community Acquisitions/Intra-Comm
  unity Supplies.

3
The New VAT Return has now been divided into
three main sections

• INTRA-COMMUNITY NON-E.U. TRADE
• DOMESTIC SUPPLIES EXPORTS
• DOMESTIC PURCHASES IMPORTS
• Sub-totals were moved to the right for ease of
  computation

4

• This section is to be completed by traders who
  make Intra-Community Supplies or Acquisitions, or
  provide/acquire services or goods that are
  taxable where the customer is established, being
  either an EU member state or a third country
  (i.e. country outside the EU). This does not
  include
• exportation or importation of goods to/from third
  countries and
• supplies of services or products supplied to any
  person outside Malta and on which VAT is charged
  at the Maltese rate.
• The activities in (a) and (b) above should be
  reported in the other sections for domestic
  transactions.

5

• Complete this part of the VAT return only if
• You make intra-Community Supplies or
  Acquisitions or
• You supply certain goods or services that are
  taxable in another country (EU or non-EU)
  excluding exports to third countries or
• You receive goods or services from another
  country (EU or non-EU) on which VAT is due in
  Malta, excluding imports from third countries
• ALL SUPPLIES TAXED IN MALTA SHOULD NOT BE
  REPORTED IN HERE

6

• In these two sections you will only report
• All local supplies and supplies made abroad where
  Maltese VAT was charged
• Purchases made in Malta on which Maltese VAT was
  incurred
• Exports and Imports to and from third countries

7
10,000

• If you are a supplier of goods to a person in
  another member state who has a valid VAT number
  and the goods are transported outside Malta you
  do not charge VAT
• In Box 1 you report the value of such
  intra-community supplies made to persons who have
  a valid VAT identification number
• You do not report in here supplies of goods that
  are taxable where your customer is established
  e.g. goods with installation or distance sales
  taxed in another member state

8
10,000

• You have to include also in Box 1 intra-community
  supplies of
• New means of transport to all persons
• Excise Goods to taxable persons and non-taxable
  legal persons
• Goods supplied under the Simplified procedures
  for Triangulation
• THE FIRST TWO CATEGORIES OF GOODS ABOVE SHOULD
  BE REPORTED IN THE RECAPITULATIVE STATEMENT IF
  PURCHASER HAS A VALID VAT NUMBER

9
12,000

• Use Box 2 if you are a supplier of
• Goods or Services that are taxable where your
  client is established (i.e. outside Malta be it
  either an EU or non-EU country
• E.g. Distance Sales that are taxed in another
  member state, goods with installation services
  of advertising, consultancy, accountancy etc.

10
5,000
900

• If you are a person registered under article 10
  and you have made exempt intra-community
  acquisitions from other member states
• You have to account for VAT in this return
• Use Box 3 to report the value of all your
  acquisitions (including those made for personal
  use) and Box 6 to report the corresponding
  Maltese VAT due on such acquisitions

11
5,000
900
4,000
720
1,000
180

• You need to report again the amounts by splitting
  them up in Goods for re-sale or Capital Goods
  (other goods not of a capital nature shall be
  reported with goods for re-sale)
• Use Box 9 to report the value of those
  acquisitions for re-sale etc on which you have
  right to deduct and in Box 13 insert the
  corresponding VAT due
• Use Box 10 to report the value of those
  acquisitions of Capital Goods on which you have
  right to deduct and in Box 14 insert the
  corresponding VAT due

12
5,000
900
900
5,000
4,000
720
1,000
180
900
5,000
0

• Add the sub-totals at Boxes 5, 8, 12 and 16
• Subtract Box 16 from Box 8 and insert the balance
  in Box 17
• If you have the right to deduct all the VAT on
  your intra-community acquisitions, a NIL VAT
  balance will result that has to be inserted in
  Box 17
• This mechanism is called Reverse Charge

13
1,000
180
180
1,000
1,000
180
180
1,000
0

• Reverse Charge may also be applied when you
  acquire supplies of Goods or Services from a
  supplier abroad and these Goods or Services are
  taxable in Malta
• Insert the value of such supplies in Box 4 and
  the corresponding Maltese VAT in Box 7
• If you have the right to deduct input VAT on such
  supplies then repeat the deductible values in
  Boxes 11 and 15 respectively
• If all your supplies are deductible, the value of
  sub-total in Box 8 minus the sub-total in Box 16
  will be NIL. This has to be inserted in Box 17.

14

• In Box 18 insert the value of all local supplies
  of Goods and Services that you made on which you
  charged VAT at 18. Supplies to persons abroad
  (EU and non-EU) on which you charged VAT at 18
  have to be reported in this box as a local
  supply.
• In Box 19 insert the value of all local supplies
  of Goods and Services that you made on which you
  charged VAT at 5. Supplies to persons abroad (EU
  and non-EU) on which you charged VAT at 5 have
  to be reported in this box as a local supply.
• Corresponding VAT on values at boxes 18 and 19
  should be reported in boxes 23 and 24 respectively

15

• In Box 20 insert the value of
• Local supplies of Goods and Services that are
  exempt with credit in terms of Part One of Fifth
  Schedule of the VAT Act
• All Exports that you made to third countries i.e.
  to countries outside the EU (do not include any
  exempt intra-community supplies as these should
  have been reported in the first section in Box 1)

16

• In Box 21 insert the value of Local supplies of
  Goods and Services that are exempt without credit
  in terms of Part Two of Fifth Schedule with the
  VAT Act
• In Box 22 insert the total of Boxes 18,19, 20 and
  21
• In Box 25 insert the total of Boxes 23 and 24
• In Box 26 insert the value of Boxes 17 and 25

17

• In Box 27 insert the value of all Purchases of
  Goods for re-sale on which VAT was paid at 18 in
  Malta. Include also all importations from third
  countries.
• In Box 28 insert the value of all Purchases of
  Goods for re-sale on which VAT was paid at 5 in
  Malta. Include also all importations from third
  countries.
• In Box 29 insert the value of all Exempt
  Purchases for re-sale.
• DO NOT INCLUDE GOODS ON WHICH FOREIGN VAT WAS
  PAID. VAT ON SUCH PURCHASES IS NOT DEDUCTIBLE AS
  INPUT VAT.

18

• In Box 30 insert the value of all Capital Goods
  purchased on which VAT was paid in Malta.
  Include also all importations from third
  countries.
• In Box 31 insert the value of deductible local
  Services and Overheads on which VAT was paid at
  18 in Malta. Do not include wages/salaries, SSC
  insurance.
• In Box 32 insert the value of deductible local
  Services and Overheads on which VAT was paid at
  5 in Malta. Do not include wages/salaries, SSC
  insurance.
• DO NOT INCLUDE GOODS OR SERVICES ON WHICH FOREIGN
  VAT WAS PAID. VAT ON SUCH PURCHASES IS NOT
  DEDUCTIBLE AS INPUT VAT.

19

• In Box 33 insert the total of all Boxes 27, 28,
  29, 30, 31 and 32.
• In Boxes 34, 35, 36, 37 and 38 insert the
  corresponding VAT incurred on the values at Boxes
  27, 28, 30, 31 and 32 respectively.
• In Box 39 insert the total value of Boxes 34,
  35, 36, 37 and 38.

20

• In Box 40 you are to include
• Any adjustment of input tax that has been over
  deducted and which you are obliged to pay back to
  the VAT Department in terms of the Regulations on
  Adjustment to Deductions on Capital
• Any adjustment in the partial attribution of
  input tax that you had previously over claimed as
  a deduction through a provisional ratio of
  apportionment

21

• In Box 41 you are to include
• Any adjustment of input tax that has been under
  deducted and which you have the right to claim
  back from the VAT Department in terms of the
  Regulations on Adjustment to Deductions on
  Capital
• Any adjustment in the partial attribution of
  input tax that you had previously under claimed
  as a deduction through a provisional ratio of
  apportionment

22
Deduct Box 26 from Box 39 and Box 40 from Box 41.
Add the resultant balances together. If the
result is greater than Zero then insert balance
of Excess Credit in Box 42. Example Box 26
Lm 600 Box 39 Lm 1000 Box 40 Lm300 Box
41 Lm200. Therefore (1000 600) (200
300) (400) (-100) 400 100
300 Excess Credit
600
1000
300
200
300
23
Deduct Box 39 from Box 26 and Box 41 from Box 40.
Add the resultant balances together. If the
result is greater than Zero then insert balance
of VAT due in Box 43. Example Box 26
Lm800 Box 39 Lm300 Box 40 Lm200 Box 41
Lm100. Therefore (800 300) (200 100)
(500) (100) 600 (in Box 43)
800
300
200
100
600
24
800

• If there is an Excess Credit brought forward from
  the previous tax period then insert such credit
  in Box 44
• Deduct amount in Box 44 from Box 43
• Insert the Balance of Tax Payable in Box 45

300
200
100
500
150
350
25

• Complete the Personal Details section on the Form
  and dont forget to sign the form
• Send the Return together with payment by not
  later than the Due Date shown at the top of the
  Return

JOSEPH SAMMUT
100000M
MANAGER
21000000
22 11 2004

• Return and payment may also be submitted through
  the commercial banks