EXCISE GOODS

2 DEFINITION

3 Definition in the (Excise) Directive 92/12/EEC –Mineral oils –Alcohol and alcoholic beverages –Manufactured tobacco EU Directive Excise Sixteenth Schedule Excise Duty Act

4 Others but special VAT regime not applicable –Mineral water in Belgium –Car in Malta –Coffee or tea in some countries... Others: regime not applicable

5 INTRA-COMMUNITY ACQUISITION IN MALTA

6 Maltese VAT is always due No threshold applicable Art. 4(1)(b)(iii) VAT Act Art. 12 VAT Act and Item 2(a) Part Two Sixth Schedule By a taxable person or a non-taxable legal person

7 Goods are transported by the private individual or on behalf of the private individual Goods are for the private needs of the private individual –The intra-Community acquisition is not subject to VAT –No threshold applicable (see however next slide) –Taxation in the Member State of origin Art. 4 VAT Act By a private individual

8 Limits applicable in excise regime (assumption related to the difference between private needs and commercial purposes) –cigarettes800alcoholic beverages10 liter –cigarillos400intermediary products20 liter –cigares200wine90 liter –tobacco to smoke1kgbeer 110 liter NOT APPLICABLE FOR VAT but TAXABLE PERSON IF FOR COMMERCIAL PURPOSES ICA subject to VAT Limits for private individuals

9 DISTANCE SALES TO MALTA

10 Goods are transported by or on behalf of the vendor –No threshold applicable –Place of supply by the vendor always in Malta –Maltese always due –VAT registration of the vendor in Malta = person liable to pay VAT Art. 7, 12 and 20(1)(a) VAT Act Item 4(2) Third Schedule and item 2 Part Three Sixth Schedule Supplies to private individuals

11 PAYMENT OF VAT

12 Payment of VAT on supplies by a foreign vendor in specific situations –Simplifications possible –Will be dealt with by customs and excise Payment of VAT on intra-Community acquisitions made by members of the «Group of 3» –Will be dealt with by customs and excise Distance sales to Malta Intra-Community acquisition

13 TAXABLE VALUE

14 The taxable person is either a « licensed warehouse keeper » or a « registered operator » or a « non registered operator » –In this case, the taxable person is authorised to « receive » excise goods in suspension of payment of foreign and Maltese excise duties –But, an intra-Community acquisition takes place for VAT purposes and must be declared –The taxable value of this intra-Community acquisition does not take into account Maltese excise duties to be paid at a later stage –From the moment Maltese excise duties are paid (release from the excise suspension regime), the taxable value of the intra-Community acquisition must be adjusted by adding excise duties to this value –VAT has to be paid on the value of the excise duties paid (no adjustment if the taxable person is entitled to deduct entirely VAT) Intra-Community acquisition: taxable value for taxable person art. 10

15 The taxable person is not authorised to « receive » excise goods in suspension of payment of foreign and Maltese excise duties –In this case, the taxable value of the intra-Community acquisition will include foreign and Maltese excise duties –From the moment foreign excise duties are refunded by the vendor, the taxable value of the intra-Community acquisition must be adjusted by deducting foreign excise duties refunded –VAT paid on the value of these excise duties at the origin must be refunded to the taxable person (no adjustment is made if the taxable person is entitled to deduct entirely VAT) Art. 18 VAT Act Item 10 (1)(3)(4) Seventh Schedule Intra-Community acquisition: taxable value for taxable person art. 10