Places of Supply Rules – Where to Tax2018-11-28T20:11:38+00:00

Places of Supply Rules – Where to TAX

The right to tax is determined by the Place of Supply rules, while the place of supply determines who charges VAT. It also depends whether a B2B or B2C good or service is being exchanged and on what type of products or services are being invoiced, for instance different types of products including goods, intra-community acquisitions, services and the importation of material.

There are various rules when transport hiring is necessary. Short-term hiring involves the place of supply – where the transport is actually put at the disposal of the customer. The place of hiring other than the short term to a non-taxable person shall be the place where the customer is established. If the hiring is of a pleasure boat then the place of supply is the place where the pleasure boat is actually put at the disposal of the customer, where this service is provided by the supplier from their place of business or a fixed establishment situated in that place.

The MOSS system is a mini one-stop-shop where VAT can be both collected and paid. The MOSS mechanism is operated through an electronic portal where registration completion, submission and payment can be done. Return and payment must be made within 20 days after the end of the quarter.

Immovable property is defined as:

a) Any specific part of the earth, on or below its surface, over which title and possession can be created.
b) Any building or construction fixed to or in the ground above or below sea level which cannot be easily dismantled or moved.
c) Any item that has been installed and makes up an integral part of a building or construction without which the building or construction is incomplete, such as doors windows, roofs, staircases, and lifts.
d) Any item, equipment or machine permanently installed in a building or construction which cannot be moved without destroying or altering the building or construction. For the full list of services connected with Immovable Property; contact us on info@nmgroup.com.mt
There are also a list of services that are connected to immovable property:
a) drawing up of plans for a building or parts of a building designated for a particular plot of land regardless of whether or not the building is erected;
b) the provision of onsite supervision;
c) the construction of a building on land, as well as construction and demolition work performed;
d) the construction of permanent structures on land, as well as construction and demolition work performed on permanent structures such as pipeline systems for gas, water, sewerage and the like;
e) work on land, including agricultural services such as tillage, sowing, watering, and fertilisation;
f) surveying and assessment of the risk and integrity of the immovable property;
g) the valuation of immovable property;
h) the leasing or letting of immovable property;
i) the provision of accommodation in the hotel sector;
j) the maintenance, renovation, and repair of a building;
k) the maintenance, renovation, and repair of permanent structures, such as pipeline systems for gas, water, and sewerage;
l) the installation or assembly of machines or equipment which, upon installation or assembly
m) the maintenance and repair, inspection and supervision of machines or equipment if those machines or equipment
n) property management other than portfolio management of investments
of) intermediation in the sale, leasing or letting
p) legal services relating to the transfer of a title to immovable property.