Article 12 VAT Registration - Value Added Tax (VAT)
This article aims to indicate the nature of Article 12 of Value Added Tax in Malta.
Article 12 of VAT Act in Malta consider two situations where non - taxable person or taxable person not registered under the Article 10 in making intra – community acquisitions of goods and services.
It is important to notice that intra – community acquisitions of goods and services differ.
Goods:
When non – taxable legal person or taxable person not registered under the Article 10 in making or intending to make intra – community acquisitions of goods exceeding €10,000 in calendar year, then you are liable to register for VAT under Article 12 and self-charge VAT in Malta each time you make taxable intra – community acquisition.
Services:
If you are a taxable person established in Malta who is not registered for VAT purposes under Article 10, and you receive services for which you are liable to pay Maltese VAT according to the place of supply rules, you must apply for registration under Article 12. This application should be submitted no later than the date on which you receive such a service.
Unlike intra-community acquisitions of goods, there is no threshold for the acquisition of services.
For example, if a taxable Person 1 established in Malta makes a one-time service purchase valued at €100 from a supplier Person 2 outside Malta, where:
- The place of supply is Malta and the services are subject to Maltese VAT; and
- Person B is not established in Malta and is not registered under Article 10
then, unless Person 1 is already registered under Article 10, they are required to register for VAT purposes under Article 12 of the VAT Act. Additionally, they must self-charge VAT on the acquisition of such services.
It should be noted that there is no mechanism for VAT recovery for persons registered under Article 12.
Therefore, if Person 1 has the right to recover input VAT related to the self-charged VAT on this service acquisition, they should consider registering for VAT purposes under Article 10.
To register under Article 12 VAT Act in Malta please follow the link below:
https://mtca.gov.mt/business-tax/vat1/vat-compliance/other-pages/online-vat-registration2
If you wish your registration to be handled by us, get in touch!
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