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How can I determine if services obtained from EU countries are taxable in Malta?

Services are taxable either where the customer is established or where the supplier is established. It depends on what service is being received. The first step to determine the place of supply is to identify what the service relates to:


Work on movable tangible property and valuation of movable tangible property

Ex: Maintenance, repairs, cleaning, packing and repacking.

The supply takes place where the service is physically carried out. When customer communicated his Vat number the supply takes place in the member state which granted the Vat number.


Intra-Community Transport of Goods

An intra-Community transport of goods is deemed to take place in the Member State of departure. The exemption is when the customer communicates a VAT identification number in another EU Member State than the place of departure of the intra-Community transport of goods, in which case the service is deemed to take place in the Member State that granted the VAT identification number.


Services ancillary to an intra-Community transport of goods

Services ancillary to an intra-Community transport of goods are deemed to take place where the services are physically carried out. The exemption is when the customer communicates a VAT identification number in another EU Member State than the place of departure of the intra-Community transport of goods, in which case the service is deemed to take place in the Member State that granted the VAT identification number.

 
Intangible services and intermediary services related to intangible services

The following services are referred to as “intangible services”:

  1. The transfer or assignment of a copyright, patent, trademark, trade name or licence and similar rights;
  2. Advertising services;
  3. Services of consultants, engineers, consultancy bureaux, advocates, legal procurators, accountants, auditors, financial advisers and other similar services, as well as data processing and the supply of information;
  4. Obligations to refrain from pursuing or exercising in whole or in part any economic activity, or a right mentioned in this list;
  5. Banking, financial, insurance and re-insurance transactions, excluding the letting of a place for the safe deposit of any goods or documents;
  6. The supply of staff;
  7. The letting of movable tangible property with the exception of all forms of transport.

The supply of intangible services and intermediary services related to these services takes place where the supplier is established.

Exception:

The supply of intangible services and intermediary services related to these services takes place where the customer is established if the following conditions are met:

  • the customer is established outside the Community; or
  • the customer is established within the Community, in another country than the supplier and he is a taxable person, acting in his capacity as taxable person. In this respect it is not important whether or not the taxable person is VAT registered nor under which scheme the taxable person is registered.


Telecommunication services and electronically supplied services

The supply of telecommunication services and electronically supplied services takes place where the supplier is established.

Exceptions:

The supply of telecommunication services and electronically supplied services takes place where the customer is established if the following conditions are met:

  • the customer is established outside the Community; or
  • the customer is established within the Community but in another country than the supplier and he is a taxable person acting in his capacity as taxable person. In this respect it is not important whether or not the taxable person is VAT registered nor under which scheme the taxable person is registered.

 

As from 1 January 2015 the place of supply for telecommunication services and electronic supplied services carried out with non-vat registered persons shall be where the customer is established.