  CUSTOMS AND EXCISE TAX  [ CAP. 395.  1
CHAPTER 395
CUSTOMS AND EXCISE TAX ACT *
To make provision for the imposition of an excise tax on imports, products and services in
place of the value added  tax  system.
17th June, 1997
1st July, 1997
ACT XII of 1997, as amended by: Act XVI of 1997; and Legal Notices 90, 91, 99, 124 and
203 of 1997, and 1 and 248 of 1998, and 37 of 2000.
ARRANGEMENT OF ACT
*Repealed by Act XXIII of 1998 (Cap. 406); but reproduced in view of its applicability for a transitory
period -  see  articles 85  et seq . of Chapter 406.
Articles
Part I. Preliminary 1-2
Part II. Administration 3-9
Part III. Excise Tax on Imports 10-11
Part IV. Excise Tax on Products 12-16
Part V. Excise Tax on Services 17-23
Part VI. Registration 24-27
Part VII. Returns and Payment of Tax 28-41
Part VIII. Assessment of Tax 42-45
Part IX. Appeals 46-47
Part X. Additional Tax and Enforcement 48-55
Part XI. Refunds and Relief from Tax 56-60
Part XII. Offences and Penalties 61-69
Part XIII. Miscellaneous 70-75
SCHEDULES
First Schedule-Exempt importations
Second Schedule - Non taxable products
Third Schedule - Exempt services
Fourth Schedule - Provision of food subject to excise tax on services
  2  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
PART I
PRELIMINARY
Short title. 1. The short title of this Act is Customs and Excise Tax Act.
Interpretation. 2. In this Act, unless the context otherwise requires -  
"body of persons" means any body or other association of
persons, whether corporate or unincorporate, and whether vested
with legal personality or not, including any fellowship or society;
"business activity" means any activity carried on as part of a
trade, profession, vocation or other business, other than the activity
of an employee acting as such, but including the exploitation of any
asset on a regular basis, and the provision by any entity of facilities
or advantages for payment to members of that entity;
"business sale" means a sale by a person as part of the business
activities of that person;
"certificate of exemption" in relation to ETP means a certificate
issued under article 16;
"Director" means the Director of Customs and Excise Tax
appointed under article 3;
"employee" means any individual bound to an employer by a
contract of employment or by other legal ties creating the
relationship of employer and employee as regards working
conditions, remuneration and the employee’s liability and shall also
include the directors of a company;
"ETI" means the excise tax on imports levied under article 10;
"ETP" means the excise tax on products levied under article 12;
"ETS" means the excise tax on services levied under article 17;
Cap. 382.
"excise goods" means goods subject to excise duty under the
Excise Duty Act;
"goods" means any tangible movable property;
Cap.   197. "hotel" has the meaning assigned to it by the Hotels and Catering
Establishments Act;
"Malta" has the meaning assigned to it by the Constitution and
includes the continental shelf;
"Minister" means the Minister responsible for finance;
"person" includes a body of persons, a public authority, a trust,
and any entity capable of, or carrying on, a business activity;
"prescribed" means prescribed by regulation, order or notice
under this Act;
"price" includes any consideration;
"product" includes goods and intangible movable property;
Cap. 363.
"public authority" means the Government, a local council set up
in accordance with the Local Councils Act, an authority vested with
distinct personality established by an Act of Parliament or a
corporation constituted by an Act of Parliament;
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  3
"records" includes machine readable information;
"registered person" means a person who has been registered in
accordance with article 24 and whose registration has not been
cancelled in accordance with article 25;
"registration certificate" means a certificate required to be issued
by the Director in terms of article 24;
"related service", in relation to the sale of a product to which the
service is related, means any of the following services for which no
separate agreement is made:
( a ) services of whatever nature ancillary or incidental to
the sale of any product to the person to whom the
product is sold;
( b ) packaging, delivery, carriage, postage or insurance of
that product incurred or provided before the product is
delivered;
( c ) adjustments, assembling, modifications, repairs,
alterations or improvements made to that product or
related to the interaction of that product with another
product as part of, or associated with, the sale;
"resident in Malta", when applied to an individual, means an
individual who resides in Malta except for such temporary absences
as to the Director may seem reasonable and not inconsistent with
the claim of such individual to be resident in Malta; when applied
to a body of persons, means any body of persons incorporated in
Malta, or when the control and management of the business of a
body of persons incorporated outside Malta are exercised in Malta;
"retailer" means a person whose business consists wholly or
mainly in the sale of products by retail;
"sale" includes the transfer of any goods or products under any
title;
"stocks" includes trading stocks and capital assets;
"supply" includes a sale;
"tax" includes additional tax;
"tax invoice" means an invoice required to be provided in terms
of article 39;
"tax period" has the meaning assigned to it by article 30;
"tax return" means the return required to be furnished in terms of
article 31;
"taxable importation" has the meaning assigned to it by article
10;
"taxable product" has the meaning assigned to it by article 13;
"taxable service" has the meaning assigned to it by article 18;
"taxable value", in respect of a taxable importation, taxable
product or taxable service, means the value thereof established in
accordance with the provisions of this Act;
  4  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
"Tribunal" means the Excise Tax Tribunal established by article
47;
"trustee" includes an executor or administrator.
PART II
ADMINISTRATION
Administration of 
the Act.
3. (1) The administration of this Act is vested in the Director
of Customs and Excise Tax, who shall be a public officer appointed
as such by the Prime Minister.
(2) Save as otherwise specifically provided for under any other
provision of this Act, the Director may delegate to any public
officer any of the rights, duties, powers and other functions vested
in him, conferred on him or imposed upon him by this Act.
Official secrecy.
Amended by;
XVI. 1997.8.
4. (1) Except as may be necessary for the purposes of this
Act, or where the Prime Minister otherwise directs, every person
having any official duty or being employed in the administration of
this Act shall regard and deal with all records, returns, assessments
or other documents and information relating to this Act as secret
and confidential.
(2) No person appointed under or employed in carrying out the
provisions of this Act shall be required to produce in any court,
tribunal, board or committee of inquiry any document or to divulge
any matter coming under his notice in the performance of his duties
under this Act except as may be necessary for the purpose of
carrying into effect the provisions of this Act, or for the purpose or
in the course of any appeal made in accordance with this Act or a
prosecution for any offence against any of the provisions of this
Act.
(3) Notwithstanding the other provisions of this article, the
Director shall permit the Auditor General or any officer authorised
by the Auditor General to have access to any records or documents
as may be necessary for the performance of his official duties and
for this purpose the Auditor General and any such authorised
officer shall be deemed to be a person employed in the administra-
tion of this Act.
Disclosure of 
information.
5. (1) No obligation as to secrecy or other restriction upon
the disclosure of information imposed by article 4 or by   any other
enactment or otherwise shall prevent the Director or any officer
authorised by him in that behalf to furnish to the Commissioner of
Inland Revenue and the Comptroller of Customs such information
obtained for revenue gathering purposes and which is required to
be disclosed by the Director or any officer as aforesaid to give
effect to any of the provisions of this Act.
(2) Information obtained pursuant to subarticle (1) shall not be
disclosed except:
( a ) to the officers mentioned in that subarticle; or
( b ) for the purposes of any proceedings connected with a
matter in relation to which those officers so authorised
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  5
perform their duties.
Obligation on 
Director to carry 
out examinations 
and right to 
demand additional 
information.
6. (1) Without prejudice to the provisions of this Act, the
Director shall carry out each year a separate professional audit
including as necessary a physical audit, of the returns submitted by
a sample of registered persons chosen during the month of April of
each year by a scientific randomisation programme, ensuring that
the sample is of a reasonable size and is representative of all
classes of registered persons.
(2) If for any purpose under this Act, the Director requires any
information or additional information or the submission of a return
from any person who has not made a return or a complete return, he
may, by registered letter or by personal service of a notice in
writing, demand from such person such information, additional
information or return as may be indicated in the notice.
(3) Such person shall deliver to the Director such information,
additional information or return within the period of time, being not
less than two working days, stipulated by the Director in such
notice.
(4) For the purpose of any proceedings taken under this Act,
the facts necessary to establish compliance on the part of the
Director with the provisions of subarticle (2) as well as default
under subarticle (3) shall in the absence of proof to the contrary be
sufficiently proved in any court of law by the affidavit of the
Director or any other responsible officer of the Customs and Excise
Tax Department. Such affidavit shall have attached thereto as an
exhibit a copy or duplicate of the said letter or notice.
(5) Subject to the provisions of article 9, the Director may
require and demand the production by any person or his agent or
officer of any letter, accounts, invoice, statement, book or other
document or record held by such person, agent, or officer and to
request the attendance of any such person at the office of the
Director for the purpose of confirming on oath the authenticity of
the document and of determining the tax payable by such person
and the same shall be produced within the time, being not less than
two working days from the date of the receipt of the notice as may
be determined in such demand.
Right of access and 
inspection.
7. (1) The Director or any person authorised by him in
writing in that behalf shall, upon the production of his written
authority and at all reasonable times, have the right to enter upon
any land, building or place for the purposes of inspecting any
stocks, books, records or documents, whether in the custody or
under control of a public officer or any other person whatsoever, if
the Director or the officer considers that such inspection will
enable the ascertainment of the tax payable under this Act by any
person or the collection or recovery of tax and may inspect any
such stocks, books, records or documents and may without fee or
reward make extracts or copies of any such books, records or
documents.
(2) If access is required in virtue of subarticle (1) to any
premises occupied in whole or in part for the purpose of habitation,
  6  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
such access shall require the prior warrant issued by a magistrate
sitting in the Court of Magistrates in its civil jurisdiction and shall
not take place between seven o’clock in the evening and seven
o’clock in the morning.
(3) The Director or any person authorised by him may, for the
purpose of any inspection under this subarticle, require the
production of any book, records or document by any person in
whose custody or control such book, records or document may be
and may require any such person to give reasonable assistance in
the inspection and to answer all questions relating thereto.
Power to take 
samples.
8. (1) The Director or any person authorised by him in
writing upon the production of his written authority, if it appears
necessary for the protection of the revenue against mistake or
fraud, may at any time take, from the possession of any person who
supplies goods or products, such samples as the Director or the said
person may require so as to establish how the goods or products or
the materials of which the goods or products are made ought to be
or to have been treated for the purposes of tax.
(2) Any sample taken under this article from the goods in a
person’s possession shall be returned to him within a reasonable
time and in good condition.
Information held 
by  certain licensed 
p ersons.
9. (1) Without prejudice to the provisions relating to the duty
of professional secrecy, no information shall be requested by the
Director by virtue of this Act from any person to whom subarticle
(2) refers except solely for the purpose of determining the tax
payable by and the deductions allowable to such person under this
Act or of ensuring compliance by such person with the provisions
of this Act.
(2) This subarticle refers to:
Cap. 371. ( a ) a bank licensed under the Banking Act;
Cap. 290.
( b ) an insurance company in respect of life assurance
business which is carried on pursuant to a licence
granted under the Insurance Business Act * ;
Cap. 370.
( c ) any person licensed to carry on investment business
under the Investment Services Act;
Cap. 370.
( d ) a collective investment scheme licensed under the
Investment Services Act;
Cap. 345. ( e ) a stockbroker licensed under the Malta Stock
Exchange Act.
PART III
EXCISE TAX ON IMPORTS
Imposition of 
excise tax on 
imports.
10. (1) Subject to the provisions of this Act, an excise tax on
goods imported into Malta shall be levied and collected in
accordance with the provisions of this Act at the rate of fifteen
*Repealed by Act XVII of 1998 (Cap. 403).
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  7
percent on the taxable value of the goods so imported and shall be
payable to the Comptroller of Customs on behalf of the Director
before the goods are released for use or consumption in Malta.
Cap. 337.
(2) For the purposes of subarticle (1), the taxable value of any
imported goods shall be the value of the said goods at the time
when the tax on the said importation is payable in terms of
subarticle (1). Such value shall be established in the same manner
provided in the Import Duties Act for the determination of the
value on which duty  ad valorem  is chargeable under that Act, and
all the relevant provisions of that Act shall apply  mutatis mutandis ;
and for the purposes of this subarticle the references in the said
provisions to the Comptroller of Customs shall be construed as
references to the Comptroller of Customs acting on behalf of the
Director.
(3) Where the said goods are sold in Malta before the date on
which the tax on their importation becomes payable in terms of
subarticle (1) the taxable value thereof shall be the value of the
consideration paid or payable for the said transfer or the value
established in virtue of the other provisions of this Act, whichever
is the higher.
(4) No goods imported into Malta shall be released by the
Comptroller of Customs unless -
( a ) the excise tax on imports has been paid in accordance
with this Act; or
( b ) the importation thereof is an exempt importation; or
( c ) such release is authorised by the Director.
(5) An authorisation for the purpose of subarticle (4)( c ) may be
given under such conditions and against the granting of such
security as the Director may establish.
Exemptions on 
imports.
11. (1) Subject to the provisions of subarticle (2), the
importation of goods to which the First Schedule to this   Act applies
shall be exempt importations.
(2) The exemptions referred to in subarticle (1) shall be subject
to the provisions contained in the Schedule referred to in that
subarticle and to such conditions which the Minister may prescribe
for the purpose of ensuring the correct and straight-forward
application of the said exemptions and of preventing any possible
evasion, avoidance, abuse of tax or distortion of competition.
Cap. 337.
Act or under any other law, shall be deemed to be also an
exemption from the payment of excise tax under this Act on
imported goods and the provisions of the Import Duties Act or any
other such law relating to any such exemption shall also apply to
the exemption from tax granted under this subarticle.
PART IV
  8  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
EXCISE TAX ON PRODUCTS
Imp osition of 
excise tax on 
products.
12. (1) Subject to the provisions of this Act, an excise tax on
products shall be levied and collected by the Director on any
business sale in Malta of a taxable product made to a retailer or to
any other person unless such other person holds a valid certificate
of exemption applicable to that product or is a person to whom the
sale is made by a retailer.
(2) ETP shall be charged by the seller at the rate of five per
cent of the taxable value of the product.
(3) Where any person, other than a retailer who has paid ETP,
makes a business sale of a taxable product direct to the general
public, ETP shall be charged on eighty-two per cent of the taxable
value.
(4) In case of a business sale of a taxable product on which
ETP has already been paid by the seller, ETP shall be charged on
the taxable value of the product exclusive of the amount of ETP
already paid on the product.
(5) Any amount of tax excluded under subarticle (4) shall be
refundable by the Director if it is shown to his satisfaction that ETP
has been paid and subarticle (4) has been complied with:
Provided that the Director may determine the said amount
by such percentage or percentages of the taxable value of the
product as may be prescribed.
(6) ETP shall not be chargeable if the business sale is made by
a person whose total business sales have not, in the twelve months
ending with the last day of the immediately preceding taxable
period, exceeded twelve thousand liri or such higher amount as
may be prescribed:
Provided that in respect of the first twelve months after the
coming into force of this Act, this subarticle shall apply in such
manner and under such conditions as the Director may deem
appropriate.
Taxable product.  13. Any product shall be deemed to be a taxable product for
the purposes of this Act unless such product falls within a category
of non-taxable products listed in the Second Schedule to this Act.
Tax value and 
price.
14. (1) The taxable value of a product, including any   related
service, shall be the price of the product, and of any related service,
exclusive of the amount of ETP, and any other deductible amount
as may be prescribed.
Cap. 382.
(2) Where a product is an excise good, ETP shall be charged on
the total resulting from the addition of the value of the excise good
established in accordance with the provisions of the Excise Duty
Act, the amount of excise duty payable thereon and the value of any
related service.
Pl ace of business 
sales.
15. A business sale takes place in Malta if the product sold is
in Malta at the time when the sale takes place.
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  9
Certificate  of 
exemption from 
ETP.
16. (1) A certificate of exemption from ETP may be issued by
the Director to any registered person who shows to the satisfaction
of the Director that for the due and proper functioning of this Act,
or otherwise as may be prescribed, such person is not to be charged
with ETP on products sold to such person.
(2) The person to whom a certificate of exemption is issued is
to inform the Director forthwith of any material change in his
circumstances.
(3) The Director may in any case of change in the circum-
stances of a person to whom a certificate is given, at any time
withdraw such exemption.
(4) A certificate of exemption may be issued subject to such
limitations and conditions as may be prescribed or as may be
established by the Director in the absence of applicable regulations
and the certificate shall be valid only if the limitations and
conditions to which it is subject are observed and complied with.
(5) The Minister shall not later than the second week of each
month publish in the Gazette a list of the persons who were granted
an exemption in accordance with this article in the preceding
month.
PART V
EXCISE TAX ON SERVICES
Charg e to excise 
tax on services.
17. Subject to the provisions of this Act, an excise tax on
services shall be levied and collected by the Director on all taxable
services provided in Malta by a service provider at the rate of five
per cent of the total taxable value of the taxable services provided
during a tax period:
Provided that where the total value of the services of a
service provider has not, in the twelve months ending with the last
day of the immediately preceding tax period, exceeded six
thousand liri or such other higher amount as may be prescribed,
ETS shall not be chargeable on such person in respect of that
period:
Provided further that in respect of the first twelve months
after the coming into force of this Act, the immediately preceding
proviso shall apply in such manner and under such conditions as
the Director may deem appropriate.
Taxable service. 
consideration and it is not an exempt service.
(2) Services are provided for a consideration if the person
providing the services receives payment therefor in cash or in kind.
Provision of a 
service.
19. (1) For the purposes of this Act, the provision of a service
means the provision of any service and without prejudice to the
generality of the foregoing includes -
( a ) the provision of any kind of advice or assistance;
( b ) the provision of any data, knowledge or information of
  10  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
any kind or the provision of use or access to data,
knowledge or information;
( c ) the provision of human resources;
( d ) the provision of the use of any taxable product;
( e ) the provision of food listed in the Fourth Schedule to
this Act;
( f ) the provision of a document entitling a person to a
service;
( g ) such other provision as may be prescribed.
(2) For the purpose of this article and of the Fourth Schedule to
this Act, food includes beverages.
Exempt services. 20. A   service is an exempt service if it is -
( a ) a related service; or
( b ) a service listed in the Third Schedule to this Act.
Taxable value. 21. (1) The taxable value of a taxable service shall be the
consideration paid for the provision of that service.
(2) To the extent that the consideration for the provision of a
service is not paid in money, the open market value of that
consideration shall be that as may be prescribed or as may be
established by the Director in the absence of applicable regulations.
Place of provision 
of services.
22. (1) The provision of a service takes place in Malta if:
( a ) the service provider is resident in Malta at the time the
service is provided; or
( b ) the service is physically performed in Malta by a
person who is present in Malta at the time the service
is provided; or
( c ) the service is provided to a person who is resident in
Malta.
(2) Where the service is provided to a person who is resident in
Malta and the service provider is not resident in Malta and is not
registered for the purpose of this Act, the said person who is
resident in Malta shall be deemed to have himself provided those
services in the course or furtherance of his business activity and the
provisions of this Act, including the obligation to apply for
registration and to account for and to pay the tax, shall apply
accordingly.
Fees regulated by 
law.
23. Where a fee or other consideration payable in respect of a
service is regulated by law and ETS is payable by the person
providing that service, it shall be lawful to increase such fee or
consideration by five per cent.
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  11
PART VI
REGISTRATION
Persons carrying 
on business 
activities to be 
registered.
24. (1) Subject to the provisions of this Act, every person   who
carries on any other business activity in Malta and is not registered
becomes liable to be registered. 
(2) Every person who on the thirtieth June, 1997, is registered
under the Value Added Tax Act, 1994 *  shall be registered by the
Director under this Act on the commencement thereof.
(3) Every person who, by virtue of subarticle (1), becomes
liable to be registered after the coming into force of this Act shall
apply to the Director on the prescribed registration form, or on a
form approved by the Director, within thirty one days of becoming
so liable.
(4) Any person who is not a registered person and who intends
to carry on a business activity may apply to be registered under this
Act.
(5) Where any person -
( a ) applies to be registered pursuant to subarticle (3) or
(4), and the Director is satisfied that that person is
liable to be registered under this Act, that person shall
be a registered person for the purposes of this Act with
effect from such date as the Director may determine;
( b ) has not made application for registration pursuant to
subarticle (3), and the Director is satisfied that that
person is liable to be registered under this Act, that
person shall be a registered person for the purposes of
this Act with effect from the date on which that person
first became liable to be registered under this Act:
Provided that the Director may, having regard to the
circumstances of the case, determine that such person shall be a
registered person from such later date as the Director considers
equitable.
(6) The Director shall allocate a registration number and shall
determine the first tax period for every person registered under this
Act and shall deliver to that person a registration certificate.
(7) An application for registration under this Act purporting to
be made by or on behalf of any person shall for all purposes be
deemed to have been made by that person or by that person’s
authority, as the case may be, unless the contrary is proved.
Cancellation of 
registration.
25. (1) Subject to the provisions of this Act, every registered
person who carries on any business activity shall cease to be liable
to be registered if that person has ceased to carry on any business
activity.
(2) Every person who, by virtue of subarticle (1), ceases to be
liable to be registered may request the Director in writing to cancel
*Repealed by this Act.
  12  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
that registration, and if the Director is at any time satisfied,
whether upon such request or otherwise, that that person does not
carry on or has ceased to carry on a business activity, the Director
shall cancel that person’s registration with effect from the last day
of the tax period during which such person ceased to be liable to be
registered, or from such other date as may be determined by the
Director, and shall notify that person of the date on which the
cancellation of registration takes effect.
(3) Every registered person who ceases to carry on all business
activities shall notify the Director of that fact within fifteen days of
the date of cessation and the Director shall cancel the registration
of any such person with effect from the last day of the tax period
during which all such business activities ceased, or such other date
as may be determined by the Director:
Provided that the Director shall not cancel the registration
of any such registered person if there are reasonable grounds for
believing that the registered person will carry on any business
activity at any time within twelve months from that date of
cessation.
(4) Any notification by a registered person pursuant to
subarticle (3) shall be made in writing to the Director and shall
state the date upon which that person ceased to carry on all such
business activities and whether or not that person intends to carry
on any such business activity within twelve months from that date.
(5) Any date determined by the Director for the cancellation of
registration under subarticle (3) may be retrospective to a date not
earlier than -
( a ) the last day of the tax period during which all such
business activities carried on by that person ceased; or
( b ) the date on which the person was registered under this
Act, if the Director is satisfied that the person did not,
from that date, carry on any business activity.
Registered person 
to notify Director 
of c hange of status.
26. Subject to the provisions of this Act, every registered
person   shall within thirty one days of the occurrence notify the
Director in writing of -
( a ) any changes in the name, address, constitution or
nature of the principal business activity or activities of
that registered person;
( b ) any change of address from which, or of the name in
which, any business activity is carried on by that
registered person.
Liabilities not 
affected by ceasing 
to be registered 
person.
27. The obligations and liabilities under this Act of any person
in respect of anything done, or omitted to be done, by that person
while that person is a registered person shall not be affected by the
fact that that person ceases to be a registered person.
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  13
PART VII
RETURNS AND PAYMENT OF TAX
Applicability   of 
this Part.
28. The provisions of this Part of this Act shall apply only to
business activities consisting in the sale of products and the
provision of services.
Time of business 
activity.
29. (1) Subject to the other provisions in this article -
( a ) the sale of a product shall be deemed to take place at
the time when the product is delivered or otherwise
made available to the person buying the product;
( b ) the provision of a service shall be deemed to take place
on the date when the service is performed.
(2) Subject to the provisions of subarticle (3) when payment is
received by the person carrying on a business activity before the
time determined in accordance with subarticle (1), the sale or
provision aforesaid shall, to the extent of the payment so made, be
deemed to take place at such earlier time.
(3) When a tax invoice is issued before the time determined in
accordance with the provisions of subarticle (1) or before the
expiration of thirty-one days following the time determined as
aforesaid, the sale or provision aforesaid shall, in respect of the
value of that invoice, be deemed to take place at the time when the
invoice is issued.
(4) When services are performed over a period for a conside-
ration the whole or part of which is determined or payable
periodically or from time to time, they shall be treated as separately
and successively performed at the earlier of the following times:
( a ) to the extent that a payment for such provision of
services is received, the period covered by that
payment;
( b ) to the extent that a tax invoice is issued in respect of
such provision of services, the period covered by that
invoice,
or as may be prescribed.
Tax period.
in one of the following categories for the purposes of determining
that person’s tax periods for the purposes of this Act:
( a ) category A, with tax periods of three months ending on
the last day of any month in any year as may be
determined by the Director;
( b ) category B, with tax periods of twelve months ending
on the last day of any month in any year as may be
determined by the Director.
(2) Every registered person who is not placed in category B
pursuant to subarticle (3), shall be placed by the Director in
category A.
(3) The Director may, whether on his own initiative or on
written application by a registered person, place that person in
  14  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
category B if the total value of that person’s business activities -
( a ) has not in the twelve months ending with the last day
of the immediately preceding tax period, exceeded
twelve thousand liri in respect of the sale of products
or six thousand liri in respect of the provision of
services or such other amounts as may, from time to
time, be prescribed; or
( b ) is not likely to exceed those amounts in the period of
twelve months beginning on the first day of any tax
period; or
( c ) such person is a retailer.
(4) For the purposes of subarticle (3), the total value of a
registered person’s business activities shall be deemed not to have
exceeded any amount specified in or under that subarticle where
the total value exceeds any such amount solely as a consequence of
any cessation of, or any substantial and permanent reduction in the
size or scale of any business activity carried on by the registered
person.
(5) The Director may from time to time direct that a registered
person change from category A to category B or, as the case may
be, from category B to category A -
( a ) on written application by the registered person; or
( b ) following the notification by the registered person
under article 26 of a change in status; or
( c ) where the Director is otherwise satisfied, that the
registered person has ceased to satisfy the conditions
of subarticle (3):
Provided that a registered person may only make a written
application to the Director to change the category that determines
the registered person’s tax periods after the expiry of twelve
months from the date on which the last written application was
made.
(6) Where the Director directs that a registered person changes
from one category to the other, such person shall be deemed to have
been placed in the new category with effect from the day following
the end of the tax period during which the direction was made by
the Director.
(7) The first tax period for any registered person shall
commence on such dates as may be determined by the Director in
accordance with article 24(5).
(8) The last tax period for a person whose registration has been
cancelled shall be the tax period during which the date of the said
cancellation falls and shall end on the said date.
(9) The Director may by means of a notice served on a
registered person in any particular case vary any tax period for that
period in such manner as may be specified in that notice.
Tax returns. 31. (1) Every registered person shall, on or before the
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  15
fifteenth day of the second month following the last day of every
tax period of that person, without notice or demand, furnish to the
Director a tax return, in such form as may be prescribed or as may
be approved by the Director.
(2) Any registered person who ceases to be registered shall, not
later than one month after so ceasing, furnish to the Director a final
tax return, in such form as may be approved by the Director, in
respect of that part of the last tax period during which that
registered person was registered.
(3) The Director may require any person, whether a registered
person or not, to furnish, whether on that person’s own behalf or as
an agent or trustee, such further or other returns to the Director in
the prescribed form as and when the Director requires for the
purposes of this Act.
Exemption from 
obligation to 
furnish return.
32. (1) The Director may, by notice in writing, exempt any
person from the provisions of article 31(1) for such time and
subject to such conditions and limitations as may be specified in
the said notice and may, by notice in writing, vary or revoke any
exemption so granted.
(2) Notwithstanding an exemption granted in terms of
subarticle (1), a registered person shall furnish the Director with a
tax return in respect of any tax period during which he carries on
any business activity.
Accounting basis.
person shall account for tax payable on an invoice basis.
(2) The Director may, on application in writing by a registered
person or on the Director’s own initiative, direct that the registered
person account for the tax payable on a payment basis.
(3) Where the Director has, pursuant to subarticle (2), directed
that a registered person shall account for tax payable on a payment
basis -
( a ) if that registered person has ceased to satisfy the
conditions under which any such direction has been
given, and -
(i) that registered person has notified the Director
under article 26 of a change in status; or
(ii) the Director is otherwise satisfied that the
registered person has ceased to satisfy the
conditions aforesaid; or
( b ) if that registered person has made an application in
writing to the Director to account for tax payable on an
invoice basis,
the Director may direct that that registered person shall account for
the tax payable on an invoice basis.
(4) Where the Director gives a direction in respect of a
registered person’s accounting basis under subarticle (2) or
subarticle (3), the registered person shall account for the tax
  16  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
payable on the accounting basis directed by the Director with effect
from -
( a ) the commencement of the tax period immediately
following the tax period during which the direction is
given by the Director, in any case to which paragraph
( b ) of this subarticle does not apply; or
( b ) the person’s registration under this Act, where the
direction is given by the Director before the end of the
first tax period of the person that follows that
registration.
Particulars to be 
furnished and 
prepared where 
change in 
accounting basis 
takes place.
34. (1) Where the Director directs a change in a registered
person’s accounting basis in accordance with article 33, the
registered person shall furnish to the Director in the prescribed
form, particulars to enable the calculation of tax payable in
consequence of the change in the basis of accounting.
(2) The particulars required to be furnished under subarticle (1)
shall be furnished to the Director not later than the last day for
furnishing a return pursuant to article 31(1) of the Act for the tax
period preceding that in which the direction of the Director takes
effect.
(3) Where the Director directs a change in a registered person’s
accounting basis under article 33, the registered person shall
prepare -
( a ) a list of his creditors in relation to that person’s
business activity, showing the amounts due by him as
at the last day of the tax period preceding that in which
the direction takes effect; and
( b ) a list of his debtors in relation to that person’s business
activity, showing the amount due to him as at the last
day of the business activity in which the direction
takes effect.
Tax payable where 
accounting basis 
tak e s place.
35. Every registered person whose accounting basis is changed
pursuant to article 33 shall, not later than the   last day allowed under
article 34(2) for furnishing particulars in respect of the change, pay
to the Director the tax payable, if any, as determined pursuant to
article 36.
Calculation of tax  
payable.
36. (1) In respect of each tax period every registered person
shall calculate the amount of tax payable by him in accordance   with
the provisions of this Act.
(2) Subject to the following provisions, in calculating the
amount of tax payable in respect of each tax period, there shall be
deducted from the amount of tax so payable and attributable to the
tax period -
( a ) any amount calculated in accordance with article 41;
and
( b ) where a credit note has been issued in that tax period
pursuant to article 40(2) and that registered person is
the supplier in relation to that credit note, the amount
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  17
of the tax credit.
(3) For the purposes of subarticle (2), the amount of tax
payable in relation to a business activity carried on by a registered
person attributable to a tax period is, -
( a ) the total tax calculated on the tax value of all business
activities carried on or deemed to be carried on during
that period; and
( b ) where a debit note has been issued in that period
pursuant to article 40(2) and that registered person is
the supplier in relation to that debit note, the amount
of the tax debit.
(4) If, in relation to any tax period, the total amount that may
be deducted by a registered person under subarticle (2) exceeds the
amount of tax due by him to the Director and attributable to that tax
period, the amount of excess shall, subject to the provisions of this
Act, be refunded to that registered person by the Director.
Payment of tax. 
person shall for each tax period, and not later than the last day
allowed under this Act for furnishing a return for that tax period,
pay to the Director the tax payable for that period:
Provided that, where a later due date has been fixed
pursuant to article 32, the tax payable shall be paid to the Director
on or before that later date.
(2) Subject to the provisions of Part VIII and Part IX of this
Act, the amount shown as tax payable on any tax return furnished
by a registered person shall conclusively be deemed and taken to be
correct for the purposes of this Act.
(3) A return purporting to be made by or on behalf of any
person shall for all purposes be deemed to have been made by that
person or by that person’s authority, as the case may be, unless the
contrary is proved.
Refund may be set 
off against tax due.
38. (1) Where a registered person who furnishes a tax return
in respect of a tax period, is entitled to a refund in terms of the
provisions of this Act, such refund may be set off against the tax
due for that period.
(2) Any refund, or part thereof, due to a registered person for a
tax period which is not set off against the tax due for that same
period in accordance with the provisions of subarticle (1) hereof,
shall be paid within the time-limit specified in article 57.
Tax invoice.
sells any product or provides any service to another person shall
provide to that other person a tax invoice, or a receipt, containing
such particulars as may be prescribed within thirty-one days from
the date referred to in article 29(1).
(2) A registered person who is a retailer and who sells any
product to the general public shall provide the purchaser, at the
time of the sale, with a receipt containing such particulars and
  18  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
issued in such form and manner as may be prescribed:
Provided that where a sale is made on credit, the receipt
shall be issued when the price is paid.
(3) A registered person who is a retailer and who sells a
product to any other registered person shall, at the request of that
other person, provide him with a tax invoice within thirty-one days
from the date on which the activity is deemed to have taken place in
accordance with the provisions of article 29.
(4) Where a registered person provides a document to himself
which purports to be a tax invoice in respect of a business activity
carried on in his regard by another person, that document may, with
the approval of the Director, be treated as the tax invoice required
to be provided by the other person in terms of this article.
Credit and debit 
notes.
40. (1) This article shall apply where a registered person has
issued a tax invoice in respect of a business activity and - 
( a ) that activity has been cancelled; or
( b ) the previously agreed consideration for the activity has
been altered whether due to an offer of discount, not
being a discount for prompt payment which is clearly
stated on the face of the tax invoice, or otherwise; or
( c ) the products and services or part of the products and
services supplied have been returned to the person
carrying out the business activity.
(2) Where this article applies, the registered person carrying on
the business activity shall issue to the other person paying for that
business activity a credit note or, as the case may be, a debit note
containing such particulars as may be prescribed, to adjust the
amount shown on the tax invoice to the amount that would have
been so shown if -
( a ) the cancellation or alteration referred to in subarticle
(1)( a ) and ( b ) had taken place before the tax invoice
was issued;
( b ) the goods and services returned had not been supplied
or provided, as the case may be.
Bad debts. 41. (1) Where -  
( a ) a registered person has carried on a business activity
for consideration in money; and
( b ) that registered person has furnished a return in relation
to the tax period during which the business activity
was carried on and has properly accounted for tax on
that business activity under this Act; and
( c ) the registered person has written off as a bad debt the
whole or part of the consideration not paid to him; and
( d ) the registered person has taken all reasonable steps to
recover the bad debt; and
( e ) the registered person satisfies the Director that there is
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  19
no reasonable or probable expectation that the bad
debt will ever be recovered,
then the Director may allow the registered person to make a
deduction under article 36(2) of that portion of the amount of tax
chargeable in relation to that business activity as the amount
written off as a bad debt bears to the total consideration for the
activity. The deduction shall be made from the tax due at the time it
is allowed and may be carried forward.
(2) Where any amount in respect of which a deduction has been
made in accordance with subarticle (1) is at any time wholly or
partly recovered by the registered person, that portion of the
amount of the deduction allowable under subarticle (1) as the
amount of the bad debt recovered bears to the bad debt written off
shall be deemed to be the tax charged in relation to a business
activity carried on during the tax period in which the bad debt is
wholly or partly recovered.
PART VIII
ASSESSMENT OF TAX
Assessment of tax. 
( a ) any person, whether registered or not, who is liable to
pay tax fails to furnish a tax return as required by this
Act; or
( b ) the Director is not satisfied with the return made by
any registered person,
the Director shall make an assessment of the amount which, in his
opinion, is the tax payable pursuant to this Act and that person
shall, subject to the provisions of this Act, be liable to pay the tax
so assessed.
(2) The Director may, at any time, make all such adjustments in
or additions to an assessment or an amended assessment made
under this article as he thinks necessary to ensure the correctness
thereof, notwithstanding that tax or further tax may have been paid.
(3) The Director shall cause notice of the assessment or
amended assessment to be sent to the person liable to pay the tax or
further tax and the amount so due shall be payable within thirty one
days from the service thereof.
As sessment  
deemed correct 
except in 
proceedings on 
appeal.
43. Except in proceedings on appeal from an assessment under
article 46, no assessment made by the Director shall be   disputed in
any proceedings on any ground; and except as aforesaid and subject
to the provisions of article 45, every such assessment and all the
particulars thereof shall conclusively be deemed and taken to be
correct and the liability of the person so assessed shall be
determined accordingly.
Evidence of returns 
and assessments.
44. The production of any document by or on behalf of the
Director purporting to be a copy or an extract of an original
document shall in the Tribunal and in all other proceedings be
sufficient evidence of the original and the production of the
  20  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
original shall not be required.
Limitation of time  
for issue of an 
assessment or an 
amendment of 
assessment.
45. (1) Where any registered person has made, or is to make, a
return in respect of any tax period, it shall not be lawful for the
Director to issue an assessment after the expiration of six years
from the end of the tax period in respect of which the return was or
should   have been furnished.
(2) Where an assessment is made by the Director under article
42(1)( a ), it shall not be lawful for him to reopen that assessment
after the lapse of six years from the date it was made.
PART IX
APPEALS
App eals against an 
assessment.
46. (1) Any person dissatisfied with a decision of the Director
consisting in an assessment of tax or relating to the registration of a
person under this Act or to the liability to ETI, may, either
personally or by his agent, lodge an appeal from such decision to
the Tribunal within thirty days of the date upon which the notice of
assessment has been served upon him or the date upon which he has
been served by the Director with a notice of the said decision or
from the determination by the Comptroller of Customs, acting on
behalf of the Director, of the ETI due.
Cap. 337.
(2) The appeal under this article may be made on the ground of
any relevant point of fact or of law other than on the classification
of any goods under the Customs Tariff set out in the First Schedule
to the Import Duties Act which shall be determined in accordance
with the provisions of the said Act as if the question related to duty
chargeable under that Act:
Provided that any appeal under this article shall be made in
such form and manner as may prescribed.
(3) Any of the parties to an appeal to the Tribunal who feels
aggrieved by a decision of that Tribunal on a point of law may
appeal against that decision to the Court of Appeal by means of an
application to be filed within thirty days from the date on which the
decision appealed from is notified to him.
(4) Where it results from a decision given on an appeal made in
accordance with this Act that any amount of tax paid by a person
was not due, the Director shall refund such amount to that person
within thirty days from the date such decision becomes  res
judicata.
Establishment of 
the Excise Tax 
Tribunal.
47. (1) There is hereby established a Tribunal to be called the
Excise Tax Tribunal for the purpose of hearing and determining
appeals made under article 46.
(2) The Tribunal shall be composed of a chairman and two
members who shall be appointed by the Minister for a period of
three years and may not be removed from office except in the
circumstances and manner in which a judge may be removed:
Provided that the Minister may appoint several chairmen
and members to sit on the Tribunal, but only one chairman and two
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  21
members shall sit on any one case.
(3) The chairman shall be a person qualified to be appointed as
a magistrate and at least one of the other members shall be a
certified public accountant and auditor.
(4) There shall be a Registrar of the Tribunal who shall be
responsible to ensure the efficient functioning of the Tribunal.
(5) The Registrar shall be appointed by the Minister.
(6) The Minister shall have the power to make rules of the
Tribunal generally for regulating the Tribunal’s power and
authority as well as to regulate any matter relating to the practice
and procedure of the said Tribunal and the fees to be charged and
the costs of proceedings to be paid. On any matter in respect of
which no rule has been made under this subarticle this Tribunal
may establish its own practice or procedure.
PART X
ADDITIONAL TAX AND ENFORCEMENT
Additional tax and 
in t erest.
48. (1) Any person who, being required to apply for
registration   under this Act, makes such an application after the
expiration of the time laid down in article 24, shall be liable to
additional tax in an amount equivalent to the higher of -
( a ) two per cent of the tax due, if any, for the first tax
period following registration; and
( b ) twenty liri
for every month or part thereof that elapses from the date on which
the application should have been made in terms of the said article
and the earlier of the date on which the registration is furnished to
the Director and the date when that person is registered by the
Director.
(2) Any person who, being required to furnish a tax return for a
tax period, furnishes that return after the expiration of the time laid
down in article 31, shall be liable to additional tax in an amount
equivalent to the higher of -
( a ) two per cent of the tax due, if any;
( b ) twenty liri
for every month or part thereof that elapses from the date on which
the tax return should have been furnished in accordance with this
Act and the date when it is furnished to the Director.
(3) Where an assessment is made for a tax period in the
circumstances referred to in article 42, additional tax shall be due
for that period in an amount equivalent to twenty per cent of the
under-declared tax.
(4) Where a tax return furnished to the Director by a registered
person for a tax period contains an understatement of the tax due
and that person makes a disclosure of such an understatement
before he is served with an assessment for that period, he shall be
liable to additional tax in an amount equivalent to ten per cent of
  22  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
the underdeclared tax.
(5) Interest shall be due on any tax (but excluding additional
tax) which is not paid by the date on which it becomes payable in
accordance with this Act, at the rate of one per cent for each month
or part thereof during which the said tax remains unpaid or at such
other rate as may be prescribed.
Suit by the 
Director.
49. (1) Tax and additional tax due under this Act may be
recovered by the Director as a civil debt due to the Government.
(2) Subject to the provisions of subarticle (3), action for the
payment of tax, additional tax and interest may be taken by the
Director at any time within six years from the date on which such
tax, additional tax and interest becomes payable.
(3) The running of the period referred to in subarticle (2) shall
be interrupted by any judicial act filed before the expiration of such
period by the Director demanding the payment of the tax and
additional tax due.
Executive title.
Cap. 12.
50. (1) Any notice issued by the Director showing any amount
of tax and additional tax due by a person shall, unless the contrary
is proved, be sufficient evidence that that amount is due to the
Director by that person and shall constitute an executive title within
the meaning and for the purposes of Title VII of Part I of Book
Second of the Code of Organization and Civil Procedure.
(2) The Director may request the payment of any tax,
additional tax and interest payable by any person under this Act by
means of a demand note and if the payment is not made within
thirty days from the date when the said demand note is served on
that person, the Director may proceed to enforce payment in virtue
of the executive title referred to in subarticle (1) after two days
from the service on that person of an intimation for payment made
by means of a judicial act.
(3) No opposition shall stay the issue or execution of any
executive act issued on the strength of an executive title mentioned
in this article or the sale by auction in pursuance thereof or the
paying out of the proceeds of such sale and no opposition or
reservation in the schedule of deposit shall stay the paying of any
sum deposited in court following any such executive act as
aforesaid.
Powers  relating to 
im ported  goods.
51. (1) For the purposes of ascertaining, collecting and
protecting on behalf of the Director the tax chargeable under this
Act on taxable importations, the Comptroller of Customs shall have
the same powers and shall follow the same procedures as are in
accordance with any other law exercisable and followed by him for
the purpose of ascertaining, collecting and protecting import duties.
Cap. 37.
Cap. 337.
(2) Any provisions in the Customs Ordinance or in the Import
Duties Act or in any regulations made thereunder relating to the
application of the proceeds from a sale of imported goods towards
the payment of import duties due on those goods shall be construed
as providing for the application of the said proceeds towards the
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  23
payment of import duties and of any tax due under this Act on the
importation of those goods.
Special  privilege.
Cap. 16.
52. The Director shall have a special privilege over the assets
forming part of the taxable activity of a person in respect of any tax
due by that person under this Act and the said tax shall,
notwithstanding anything contained in any other law, be paid in
preference to a debt having any other privilege, excepting a debt
having a general privilege and a debt mentioned in article 2009( a )
or ( b ) of the Civil Code.
S ecurity for tax 
due.
53. (1) If, in any particular case, the Director has reason to
believe that tax collected by a registered person might not be
recoverable by the Director at the time when that tax becomes
payable to him in terms of this Act, he may by a notice served on
that person, demand the payment of the tax within such time as may
be specified in that notice and the tax shall thereupon become
payable within that time notwithstanding any other provision of
this Act.
(2) When a payment has been demanded from a person in
accordance with subarticle (1) that person may, instead of making
the said payment, furnish such security for the tax payable as may
be acceptable to the Director.
S horter period for 
t he delivery of a 
return.
54. If, in any particular case, the Director has reason to believe
that the tax due by a registered person could otherwise be
prejudiced, he may, by means of a notice in writing, require that
person to furnish a tax return for a taxable period before the time
allowed in terms of article 31, and in respect of that tax return any
reference in this Act to the time allowed in terms of the said article
shall thereupon be construed as a reference to the period specified
in the said notice.
Appropriation of 
payment.
55. (1) Where any interest is due by a person in terms of this
Act any payment made by that person to the Director shall,
notwithstanding any declaration made by that person, be
appropriated to that interest before it is appropriated to any tax.
(2) Subject to the provisions of subarticle (1), where any
additional tax is due by a person in terms of this Act, any payment
made by that person to the Director shall, notwithstanding any
declaration of that person to the contrary, be appropriated to such
additional tax before it is appropriated to any other tax.
PART XI
REFUNDS AND RELIEF FROM TAX
Refund of tax.
the Director is satisfied that the tax paid by a registered person is in
excess of the amount payable for any taxable period, he shall
refund the amount paid in excess:
Provided that no refund shall be made under this subarticle
after the expiration of the period of six years immediately after the
end of the taxable period, unless written application for the refund
is made by or on behalf of the registered person before the
  24  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
expiration of the said period.
(2) When a registered person buys a product on which ETI and
ETP has been paid, and such a product would have been exempt
from ETI had it been imported by the said registered person for the
purposes set out in the First Schedule to this Act, other than an
exemption listed under item 26 of the First Schedule, such person
shall be entitled to a refund at the rate of sixteen per cent of the
price of the product purchased or such other percentage as may be
prescribed:
Provided that in respect of hotels, the refund aforesaid shall
be at the rate of twelve per cent or such other percentage as may be
prescribed.
Refund to be made 
within a time-limit.
57. (1) Subject to the provisions of this Act, where the
Director   is required to refund any amount to any registered person
pursuant to any of the provisions of this Act, the Director shall
refund to that registered person the amount required to be refunded
not later than the end of the fourth month following the date on
which the return of that registered person was due to be made or
was received by the Director, whichever is later.
(2) Where any registered person has in respect of a tax period,
failed to pay to the Director, in whole or in part, any tax payable on
the due date, the Director may set off, against the said tax, any
amount or any part of any amount otherwise refundable to that
registered person under the provisions of this Act and where any
tax as aforesaid is in dispute, the Director may delay any refund
due up to the amount of the disputed tax.
(3) Where, in respect of a taxable period, any registered person
has failed to submit a return for any taxable period as required by
this Act, the Director may withhold payment of any amount
refundable in accordance with subarticle (1), until the registered
person has complied with that requirement and paid the amount of
tax payable.
(4) Where, in relation to the return furnished or to be furnished
by any registered person, subarticle (2) or subarticle (3) applies, the
Director shall give notice in writing to the registered person
accordingly within the period specified in subarticle (1).
(5) A refund due in accordance with any provision of this Act
shall be payable without any further appropriation other than this
Act by warrant under the hand of the Minister.
Interest on late 
refunds.
58. Where the Director is required by this Act to refund any
amount to a registered person and the Director does not refund that
amount within the specified period, there shall, subject to the
provisions of article 55, be paid by the Director to the registered
person interest at the rate of one percent for each month or part
thereof for the period running from the last day when the refund is
due and ending on the date when the refund is paid by the Director,
on so much of the amount as is required to be refunded by the
Director.
Relief from tax. 59. The Director may in his discretion mitigate or remit any
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  25
additional tax, other than additional tax imposed under article
48(1), which may be assessed or imposed under this Act.
International 
arrangements.
60. (1) If the Minister by order published in the Gazette
declares that arrangements have been made with the Government of
any territory outside Malta with a view to affording relief from
double taxation in relation to tax payable under this Act and a
similar tax payable under the laws of that territory, and that it is
expedient that those arrangements should have effect, those
arrangements shall have effect notwithstanding anything in this
Act.
(2) If the Minister by order published in the Gazette declares
that arrangements have been made with the Government of any
territory outside Malta with a view to granting a refund, on a
reciprocal basis, of any tax paid under this Act to persons
established outside Malta and that it is expedient that those
arrangements should have effect, those arrangements shall have
effect notwithstanding anything in this Act.
(3) The Minister may make regulations for the carrying out of
the provisions of any arrangements having effect under this article.
(4) Where it results that any tax has been paid on the
importation of goods which are exempt from the tax so paid by
virtue of any enactment, the Director shall, upon a request made
within such time and in such manner as may be prescribed, and on
the production of such evidence as he may deem necessary, refund
the tax so paid.
PART XII
OFFENCES AND PENALTIES
Failure to apply for 
registration or to 
keep or deliver 
records and 
returns. 
61. Any person who - 
( a ) fails to apply for registration at the time and in the
manner required by this Act; or
( b ) fails to keep or to store records, documents and
accounts for the time and in the manner required by
this Act or any regulations made under this Act; or
( c ) fails to furnish a tax return or any additional return,
statement or information or to produce any books,
records, documents and accounts when required to do
so in virtue of this Act or of any regulation made
thereunder;
shall be guilty of an offence, and shall, on conviction, be liable to a
fine ( multa ) of not less than one hundred liri and not exceeding
three hundred liri, and the court shall order the offender to comply
with the law within a time sufficient for the purpose, but in any
case not exceeding three months, and in default the offender shall
be liable to the payment of a further fine ( multa ) of not less than
two liri and not exceeding ten liri for every day that the default
continues after the lapse of the time fixed by the court.
  26  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
Irregularities in 
records, returns, 
invoices and 
transactions.
62. Any person who -
( a ) knowingly fails to account for any taxable activity
carried on by him in the records, documents and
accounts required by this Act and any regulations
made thereunder; or
( b ) gives any return, statement or information required for
any of the purposes of this Act which he knows to be
incorrect or misleading in any material respect; or
( c ) falsifies any records, documents, or accounts required
to be kept under this Act or prepares or draws up or
helps in the preparation or drawing up, or makes use
of, any false records, documents or accounts; or
( d ) with the intent of concealing any evidence which he
knows or is reasonably expected to know to be
relevant for any purpose of this Act, destroys, erases,
damages or conceals any stored information or any
records, documents or accounts; or
( e ) fails to provide or produce a tax or other invoice or
document or fiscal receipt as and when required by
this Act, or provides any such tax or other invoice or
document or fiscal receipt which he knows to be or is
reasonably expected to know to be incorrect or
misleading in any material respect; or
( f ) provides an invoice or other document or fiscal receipt
in respect of a taxable activity showing tax to be
chargeable on that taxable activity in a case where no
tax is chargeable or where the tax is less than that
shown, or otherwise adds to or includes in a price for a
taxable activity any amount purporting to represent tax
which is not due or which is higher than the tax due; or
( g ) having added to or included in a price for products
sold or services provided by him to another person any
amount purporting to represent tax chargeable under
this Act, fails to account for that amount in his records
or to pay that amount to the Director; or
( h ) acquires possession of or deals in products, or accepts
the provision of any services having reason to believe
that the tax on the sale of the said goods or provision
of services has been or will be evaded; or
( i ) enters into a taxable activity or offers to enter into a
taxable activity with another person in respect of
products or services the acquisition or dealing with
which or the acceptance of which would render that
other person guilty of an offence in virtue of paragraph
( h ),
shall be guilty of an offence and shall, on conviction, be liable to a
fine ( multa )   of not less than one hundred and fifty liri and not
exceeding one thousand liri and to a further fine ( multa )   equal to
ten times the endangered tax, or to imprisonment of not more than
six months or to both such fines and imprisonment.
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  27
Regular 
convictions.
63. (1) Where a person has been convicted of an offence under
either article 61 or article 62 and is again convicted of an offence
under either of the said articles committed within six months from
the commission of the previous offence, the fine ( multa )   shall in no
case be less than three hundred liri.
(2) Where a person is convicted of four offences committed
under either of the articles aforesaid in a period of twenty-four
months, the Court shall order the suspension for a determinate time
of not less than one week and not more than one month of any
licence, permit, warrant or other authorisation granted by the Police
or any other authority to trade or carry on the business to which the
offence is related.
Obstruction of 
officials.
64. Any person who -
( a ) obstructs, hinders, impedes or does anything which is
calculated to obstruct, hinder or impede, or molests or
assaults the Director or any person duly engaged in the
exercise of any power or duty conferred or imposed on
him by or under this Act; or
( b ) being a person in charge of any premises which the
Director or an officer authorised by the Director is
empowered to enter in terms of this Act, fails to allow
access to the said premises to the Director or
authorised officer or fails to take such measures as
may be reasonably required of him for the purpose of
any such access or of any inspection of those premises
or of any goods, assets, books, records or documents
kept therein,
shall be guilty of an offence and shall, on conviction, be liable to a
fine ( multa )   of not less than two hundred liri and not more than one
thousand liri or to imprisonment of not more than six months or to
both such fine and imprisonment.
General offence.
the provisions of this Act or of any regulations made thereunder,
shall be guilty of an offence and shall, on conviction, unless the
offence is subject to a greater punishment under any other
provision of this Act or any other law, be liable to a fine ( multa )   of
not less than one hundred liri but not exceeding five hundred liri or
to imprisonment for a term not exceeding three months or to both
such fine and imprisonment.
Offences by 
officers of bodies 
of persons and by 
employers and 
directors.
66. (1) Where anything is done or omitted to be done by a
body of persons, the provisions of this Part shall apply as if such
thing were done or omitted to be done by every director, manager
or other officer of that body of persons: provided that a director,
manager or other officer of a body of persons shall not be guilty of
an offence in virtue of this subarticle if he proves that he was
unaware and could not with reasonable diligence be aware of such
an act or omission or that he did everything within his power to
prevent that act or omission.
(2) Where anything is done or omitted to be done by an
employee in the course of his employment, or by any other person
  28  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
acting on behalf of the registered person, whether such other person
is an employee or not, the provisions of this Part shall apply as if
such thing was done or omitted to be done both by the said
employee or other person and by the employer or registered person;
provided that such an employer or registered person shall not be
guilty of an offence in virtue of this subarticle if he proves that he
was unaware and could not with reasonable diligence be aware of
such an act or omission or that he did everything within his powers
to prevent that act or omission.
Prosecution. 67. (1) No proceedings under this Part shall be taken except at
the instance or with the sanction of the Director.
Cap. 9. (2) Notwithstanding the provisions of the Criminal Code the
Attorney General shall have a right of appeal to the Court of
Criminal Appeal from any judgment given by the Court of
Magistrates in respect of criminal proceedings under this Part.
(3) The institution of proceedings or the imposition of a
penalty for any offence under this Part shall not relieve any person
from prosecution under any other law or from liability under this
Act, and the institution of proceedings or the imposition of a
penalty for any offence under any other law or the payment of any
tax under this Act shall not relieve any person from any prosecution
or penalty under this Part.
Cap. 9.
Cap. 446.
(4) Where a pecuniary punishment may be imposed in respect
of an offence under this Part such pecuniary punishment shall
always be imposed and the provisions of article 21 of the Criminal
Code and of the Probation Act shall not apply.
(5) In any criminal proceedings under this Part or under any
regulations made under this Act, the Director personally or any
other officer designated by him may, notwithstanding the
provisions of any other law, produce the evidence, plead and
otherwise conduct the prosecution instead of or jointly with the
Police.
(6) Should the evidence of the Director or of the officer
designated under subarticle (5) be required as part of the case for
the prosecution, he shall be heard before assuming the duties of
prosecuting officer, unless the necessity of his giving evidence
arises at a later stage:
Provided that the Director or other officer as aforesaid may
state the facts constituting the offence before giving evidence.
Compromise 
penalty.
68. (1) Notwithstanding any other provisions of this Act, the
Director may, in the case of any offence under this Act, enter into
an agreement in writing with the offender whereby the said
offender pays a sum equivalent to the fine ( multa ) that may be
imposed by way of penalty in accordance with this Act on the
conviction of that person for the said offence, so however that
where a minimum and a maximum amount is provided for in
respect of the fine ( multa ) that may be so imposed, the sum payable
pursuant to the said agreement shall be a sum equivalent to the said
minimum amount increased by one half of the difference between
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  29
the said minimum and maximum amounts and upon the signing of
any such agreement by the Director and the offender, all criminal
liability of the offender under this Act with regard to the offences
in relation to which the agreement has been entered shall be
extinguished.
(2) The provisions of subarticle (1) shall apply also in any case
where the offender has been charged before a court in relation to
the offence but before final judgment has been given in the case:
Provided that where proceedings before a court have not
been commenced, the sum payable in accordance with any
agreement as contemplated in subarticle (1) shall be reduced by ten
per cent.
(3) Any sum due in virtue of an agreement entered into in terms
of subarticle (1) shall be due to the Government as a civil debt. The
Director shall not enter into an agreement as is referred to in
subarticle (1) unless such agreement is accompanied by the
payment of the sum due or a sufficient security for its payment.
(4) The provisions of this article shall be without prejudice to
any proceedings or forfeiture instituted or having effect in virtue of
any other law.
Offences relating 
to taxable 
importations. 
Cap. 37.
Cap. 9.
69. (1) The provisions of articles 18 and 62 of the   Customs
Ordinance shall apply to this Act as if all references to   duties
contained in those articles were references to tax due under this
Act, and any person who is in contravention of the provisions of the
said articles construed as aforesaid in relation to any goods whose
importation is subject to tax under this Act shall, without prejudice
to any liability incurred under the said Ordinance, be guilty of an
offence under this Act and shall for each such offence be liable to a
fine ( multa )   equivalent to the aggregate of tax payable on the goods
and double the value of the goods, or to a fine ( multa )   of twenty-
five liri, whichever shall be the greater, or to imprisonment for a
term not exceeding two years or to both such fine and imprison-
ment and the offender may be either detained or proceeded against
by summons, in the same manner and form, and subject to all other
provisions laid down in the Criminal Code.
Cap. 37.
apply in relation to goods whose importation is subject to tax under
this Act as if any reference contained therein to the duty therein
mentioned were also a reference to the tax chargeable under this
Act.
(3) The importation of goods subject to tax under this Act
shall, for all purposes of any law, be deemed as a prohibited
importation unless the said tax is duly paid, or, where the payment
of the tax has been postponed in accordance with any provisions of
this Act, the conditions imposed in connection with such a
postponement are duly observed.
PART XIII
MISCELLANEOUS
  30  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
Keeping of 
records. 
70. (1) Every registered person shall keep proper and
sufficient records of all transactions of his business activities to
enable the date, the value and the nature of such transactions, the
tax, if any, chargeable thereon and the deductions allowable in
respect thereof, and any such other information as may be
prescribed, to be readily ascertained.
(2) The records referred to in subarticle (1) shall be kept and
stored in such manner, contain such details and be supported by
such documents and accounts as may be prescribed and shall be
retained for a period of at least three years from the end of the
calendar year to which they relate.
Anti-avoidance 
provision.
71. For the purposes of article 12(6) and the proviso to article
17, the Director may treat as one person two or more persons
carrying on a business activity if he is satisfied that the separation
of such business activities has for its main purpose the avoidance of
tax.
Delivery and 
service of notices, 
etc.
72. (1) Any notice, warrant or other proceeding purporting to
be made in accordance with the provisions of this Act shall not be
deemed to be void or voidable for want of form or be affected by
the reason of a mistake, defect or omission therein, if the same is in
substance and effect in conformity with or according to the intent
and meaning of this Act.
(2) In the case of a body of persons it shall be sufficient if only
the name of the body of persons appears on any notice, warrant or
proceeding, including any proceeding in the Court of Appeal,
issued or made under or for purposes of this Act.
(3) Every notice to be given by the Director under this Act
shall be signed by the Director or by some person or persons
authorised by the Director and every such notice shall be valid if
the signature is printed, stamped or written thereon.
(4) Any notice may be served on a person either personally or
by being sent by post and shall in the latter case be deemed to have
been served, unless the contrary is proved, in the case of an address
in Malta not later than the third day following the day when it was
posted, and in the case of an address outside Malta the day
succeeding that on which the notice would have been received in
the ordinary course by post and it shall be sufficient to prove that
the notice was properly addressed and posted.
(5) For the purposes of subarticle (4) a notice shall be deemed
to have been properly addressed if it has been addressed to a
person’s business or private address, and an address furnished by a
person to the Director shall be deemed to be an address of that
person unless and until a notice of a change of address is given by
that person to the Director.
Cap. 252.
(6) When the date on which any return, notice or other
document is to be furnished, delivered or served or deemed to be
served or on which a payment is to be made in terms of any
provision of this Act falls, were it not for the provisions of this
subarticle, on a Saturday or a Sunday, or on a national day or a
public holiday as established in the National Day and Other Public
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  31
Holidays Act, that date shall be deemed to fall on the first working
day, other than a Saturday, following the said Saturday, Sunday,
national day or public holiday.
Representatives.
principal officer of an entity or of a body of persons, any heir and
any testamentary executor and any curator of a vacant inheritance
of a deceased person, and any person who is a tutor, curator,
administrator or trustee of any other person or of any trust, fund or
other entity shall, for the purposes of this Act, be a representative
of that body of persons, deceased person, other person, trust, fund
or other entity, as the case may be.
(2) Where a taxable activity is carried on in Malta by a person
who is not established in Malta, any person resident in Malta to
whom the said activity is directed or any person resident in Malta
who is an agent of the said person shall, if so designated by the
Director by means of a notice in writing, be a representative of the
said person in respect of any obligation of the person under this Act
relating to that taxable activity.
(3) ( a ) Subject to the provisions of subarticle (5) a
representative of a person shall be liable in the same
manner and to the same extent as the person of whom
he is representative for all the obligations imposed by
or under this Act.
( b ) Anything done or omitted to be done by a
representative acting as such shall for the purposes of
this Act be deemed to have been done or omitted to be
done by the person of whom he is a representative.
( c ) Any notice served on or any refund paid to a
representative in his capacity as such under any of the
provisions of this Act shall be deemed to have been
served upon or to have been made to the person of
whom he is a representative.
( d ) The existence of or the designation of a person as a
representative of another person shall not relieve the
latter person from any obligation or liability under this
Act.
(4) A representative who has under his management or control
any funds or property belonging to or due to the person of whom he
is a representative shall not dispose of such funds or property
unless he has made adequate provision for any tax due under this
Act.
(5) A representative shall be jointly and severally liable with
the person of whom he is a representative for the tax due by that
person:
Provided that where the representative has acted in good faith
and is not knowingly in breach of subarticle (4) or of any other
obligation under this Act, his liability under this subarticle shall be
limited to the funds or to the value of any property under his
management or control which belongs or is due to the person of
  32  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
whom he is a representative.
Interest. 
Cap. 123. 
Cap. 372.
74.  For the purposes of the Income Tax Act and the Income   Tax
Management Act -
( a ) interest paid or payable under this Act by the Director
to any person shall not be treated as income of that
person;
( b ) interest and additional tax paid or payable under this
Act by any person to the Director shall not be treated
as expenses incurred in the production of the income
of that person.
Power to exempt 
and make 
regulations.
75. (1) The Minister may by regulations -
( a ) amend, cancel or substitute any of the Schedules to
this Act;
( b ) prescribe any matter which may in any particular case
be deemed necessary for the purpose of avoiding
significant distortions in competition which might
otherwise result from the application of any of the
provisions of this Act;
( c ) make provision for the rounding up or down of any
amount in any computation made for any of the
purposes of this Act, or for disregarding any small
amounts in any such computation;
( d ) prescribe any conditions and determination that may,
in accordance with this Act, be imposed or made by
the Director;
( e ) prescribe any other matter for securing the payment of
the tax and generally for giving effect to the provisions
of this Act;
( f ) make provisions for the registration of a number of
persons as one person or for a person to be registered
separately in respect of different branches or
departments of his business activity in such circum-
stances and in respect of such provisions as may be
specified in the said regulations;
( g ) prescribe any matter that may or is to be prescribed
under any of the provisions of this Act:
Provided that any such matter as aforesaid may, in
the discretion of the Minister, be prescribed by Order
or Notice in the Gazette.
(2) Without prejudice to the provisions of subarticle (1) the
Minister may by regulations also make special provisions with
respect to activities to which subarticle (3) refers, and may, by such
regulations, make provision:
( a ) for a taxable activity to be treated as two or more
separate taxable activities or for a number of taxable
activities to be treated as a single taxable activity;
( b ) for determining the time and place at which taxable
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  33
activities shall be treated to take place;
( c ) for the calculation of tax payable to be determined by
such method or one of such methods as may be
established by the Director;
( d ) for the determination of the deductions and refunds
applicable;
( e ) for additional records and documents that must be kept
and produced in respect of the said business activities;
( f ) requiring the means and the machines whereby
registered persons are to store, process and produce
documents and other information.
(3) The Minister may by Notice in the Gazette exempt any
person or class of persons with or without retrospective effect from
all or any of the provisions of this Act or make different provisions
on any ground which to him may seem sufficient. Any such
exemption or different provision may be made subject to such
conditions or the payment of such other rate or rates of tax, not
being a rate or rates higher than those stipulated by this Act, or to
both such conditions and payment, as the Minister may deem
appropriate.
SCHEDULES
Amended by: 
L.N. 90 of 1997.
First Schedule
(Article 11)
EXEMPT IMPORTATIONS
1. The re-importation of -
( a ) goods which are re-imported unaltered;
( b ) samples which had been temporarily exported.
2. The importation of articles which are shown to the
satisfaction of the Comptroller of Customs to have been awarded
abroad to any person for distinction in art, literature, science or
sport, or for public service, or otherwise as a record of meritorious
achievement or conduct, and imported by or on behalf of that
person.
3. The importation of articles and materials by Malta
Drydocks for the equipping and the maintenance of the Dockyard,
or which are required in connection with the services rendered by
that corporation, other than articles and materials used in -
( a ) goods produced by that corporation and intended to be
disposed of in Malta, or
( b ) locally registered ships other than ships used in
international transport.
4. (1) The importation of artificial limbs and other surgical
appliances of a similar nature, including spare parts and accessories
  34  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
for the relief of permanent bodily disablement, provided that, in the
case of spare parts and accessories, the Comptroller of Customs is
satisfied that they are imported for the purpose of making locally
artificial limbs or such other appliances, and invalid chairs which
the Comptroller of Customs is satisfied are for the exclusive use of
a person suffering from some permanent physical defect or
disability.
(2) The importation of goods which are specifically designed
for the education, employment or social advancement of a person
suffering from some permanent physical or mental disability,
provided that the Comptroller of Customs is satisfied that the said
goods are imported for the exclusive use of such person.
5. The importation of bird rings for use by qualified bird
ringers for the study of the migratory habits of birds.
6. The importation of  bona fide  gifts of a non-commercial
nature received occasionally by a person from another person
residing abroad and being intended for the personal use of the
consignee and his family, provided the gift is neither alcohol nor
alcoholic beverage nor tobacco or tobacco products and the total
CIF value of the gifts on every single occasion does not exceed
fifty liri.
7. The importation of braille and any other article for the use
of the blind imported through a recognised institute, if the
Comptroller of Customs is satisfied that such articles are imported
for the exclusive use of a blind person.
8. The importation of chalices, ciboriums, pyxes,
monstrances, thuribles, incense boats, crosses, candlesticks,
crucifixes, holy statues ( vari ), holy oil vessels, sanctuary lamps,
Stations of the Cross, altar cards, cruets, reliquaries, processional
lanterns, tabernacles and doors of tabernacles, exposition thrones
and organs, intended for divine worship and imported to be used
exclusively in connection with such divine worship in churches,
chapels or other localities intended solely for such worship, and of
church canopies used in procession and church bells.
9. The importation of hearing-aid apparatus designed for the
use of the deaf and identifiable parts thereof.
10. The importation of household and personal effects,
furniture and other domestic articles (excluding firearms and
weapons of all kinds) which in the opinion of the Comptroller of
Customs have been in use within that household by the importing
person or his family, and which are imported by such person on
removing his household from another country to Malta provided
that such articles are imported within six months from the date of
arrival in Malta of the person importing them to take up residence
in Malta, or within such other period which the Comptroller of
Customs may allow.
11. The importation of one private motor vehicle imported by a
Maltese migrant (husband and wife counting as one person for the
purposes hereof) who return to reside in Malta, subject to such
migrant satisfying the Comptroller of Customs that -
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  35
(i) he has been residing outside Malta for an
aggregate of ten years during the period of
fifteen years immediately preceding his arrival
to take up residence in Malta; and
(ii) the motor vehicle has been in his ownership for a
continuous period of at least six months
immediately before his arrival to take up
residence in Malta, provided that customs
charges and/or fiscal charges to which such
vehicle is normally liable have been paid either
in the country of origin or in the country of
departure and subject to the motor vehicle being
imported within six months of such migrant’s
arrival to take up residence in Malta:
Provided that, where any such motor vehicle which is
imported tax free and it is sold or disposed of by such person for
use in Malta, such motor vehicle shall be deemed to be taken out of
bond at the time of such sale or disposal and excise tax on imports
and products shall be payable thereon by the person who becomes
the owner thereof.
12. The importation of one private motor vehicle imported by a
person (husband and wife counting as one person for the purposes
hereof) who transfers his residence to Malta, subject to such person
satisfying the Comptroller of Customs that -
Cap. 217.
(i) he is in possession of a permit of residence
issued to him by the Government in terms of
article 7(1) of the Immigration Act; and
(ii) the motor vehicle has been in his ownership for a
continuous period of at least six months
immediately before the issue of the said permit,
provided that customs charges and/or fiscal
charges to which such vehicle is normally liable
have been paid either in the country of origin or
in the country of departure and subject to the
motor vehicle being imported within six months
of the date of the said permit or of such person’s
arrival in Malta to take up residence, whichever
date is the later:
Provided that, where any such motor vehicle is imported as
tax free and it is sold or disposed of by such person for use in
Malta, such motor vehicle shall be deemed to be taken out of bond
at the time of such sale or disposal and excise tax on imports and
products shall be payable thereon by the person who becomes the
owner thereof.
13. The importation of -
( a ) passengers’ baggage, including wearing apparel and
personal effects, used, which the Comptroller of
Customs is satisfied are intended for the passengers’
personal use, but excluding firearms and weapons of
all kinds;
  36  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
( b ) such tobacco products, wines, spirits, toilet waters and
perfumes as may be allowed in accordance with the
Convention concerning Customs Facilities for Touring
made at New York on the 4th June, 1954;
( c ) such goods bought for the passenger’s own use or as
bona   fide  gifts, other than the goods mentioned in sub-
paragraphs (i) and (ii) hereof up to a value of Lm50, so
however that where the total value of such goods
exceeds Lm50, this provision shall not apply and the
tax chargeable on such goods shall be deducted by
Lm7.50.
14. The importation of samples of no commercial value.
15. The importation of scientific instruments or apparatus,
intended exclusively for educational purposes of pure scientific
research, provided -
( a ) that such scientific instruments or apparatus are
consigned to a public or private scientific or
educational institution approved by the Minister
responsible for education for the purpose of this
provision and are used under the control and
responsibility of such institution; and
( b ) that instruments or apparatus of equivalent scientific
value are not being manufactured in Malta.
16. The importation of sound and video recording -
( a ) of an educational, scientific or cultural character
produced by the United Nations or any of its
specialised agencies;
Cap. 327.
( b ) of an educational nature imported by a government
school or institution, by the University of Malta or by
a school or institution registered under the Education
Act provided that the Director of Education certifies
that the materials are solely of an educational
character and are to be used solely and entirely for
educational purposes by such school;
( c ) of language courses.
17. Statues and artistic decorations cast abroad from originals
made by local artists, provided permission is obtained from the
Comptroller of Customs before the original is forwarded abroad for
casting.
18. The importation of goods the supply of which by any
person would, in all cases, be exempt in terms of the Second
Schedule to this Act.
19. The importation of food as defined in the Second Schedule
to this Act.
20. The importation of gold by the Central Bank of Malta.
21. The importation of goods where the Director is satisfied
that the said goods were imported for temporary use only, and
subject to such conditions and to the provision of such security as
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  37
the Director may impose or require.
22. The importation of goods which are re-exported without
being released or immediately upon being released from a customs
bond.
23. The importation of goods which are destroyed by the
owner before they are released or immediately upon being released
from a customs bond under such supervision and subject to such
conditions as the Director may impose or require.
Cap. 334.
24. The importation of goods into a freeport as defined in the
Malta Freeports Act: provided that this exemption shall apply only
to the extent that the said importation is exempt from customs duty
pursuant to the said Act, and shall be subject to all the conditions
and limitations as are applicable under that Act to the said
exemption from customs duty.
25. The importation of goods which is exempt from tax in
virtue of an exemption granted under article 1(3)1 of this Act.
Cap. 336.
26. The importation of goods which are subject to a levy under
the Local Manufactures (Promotion) Act. 
27. The importation of industrial capital equipment and
material as defined in Part Two of the Second Schedule to this Act.
28. The importation of goods solely for agricultural or fishing
use as defined in Part Two of the Second Schedule to this Act or
when certified and approved as such by the Minister responsible for
agriculture or the Minister responsible for fisheries, as the case
may be.
29. The importation of goods by a non-profit making
institution or a non-profit making organisation as defined in Part
Two of the Second Schedule to this Act.
  38  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
Amended by:
L.N. 91 of 1997.
Second Schedule
(Article 13)
NON-TAXABLE PRODUCTS
PART ONE
1. Exports
(1) Products which are exported.
(2) Products supplied to a taxable person established in
Malta who carries on the business of arranging or
financing the export of products, for the purpose of the
export of those products by that person without the
actual delivery of those products to that person,
provided the products are actually exported without
any processing or alterations, and subject to such
conditions, evidence or security as may be imposed or
required by the Director.
2. Products in bond, supplies by duty free shops and Freeport
activities
Cap. 37.
(1) Products sold whilst they are in a customs bond and
which sale is entered by the Comptroller of Customs
pursuant to article 36 of the Customs Ordinance or any
provision amending or replacing the said article.
(2) Products supplied to an operator of a duty free shop
pursuant to and in accordance with a licence issued
under the Duty Free Shop Regulations, 1991 or any
other provisions amending or replacing the said
regulations.
Cap. 334.
(3) Products supplied by or to a company within a freeport
zone as defined in the Malta Freeports Act where the
said supply constitutes an activity which the said
company is licensed to carry on in terms of the said
Act.
3. Provisioning and fuelling of ships and aircraft
(1) Products supplied for the fuelling and provisioning of
vessels used for navigation on the high seas for the
purpose of commercial, industrial or fishing activities,
of vessels used for rescue or assistance at sea, and of
aircraft used by airlines operating for reward in
international traffic.
(2) Fuel supplied to vessels for the purpose of inshore
fishing.
4. Food
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  39
Cap. 337.
Any food as defined in Part Two of this Schedule, but
without prejudice to ETS chargeable in respect of the
provision of food listed in the Second Schedule to the
Import Duties Act.
5. Pharmaceutical products
Pharmaceutical products as defined in Part Two of this
Schedule.
6. Health and Welfare
(1) Human organs, human blood and human milk.
(2) Products supplied in connection with and essential for
the provision of services referred to in paragraphs (2)
and (3) of item 7 (Health and Welfare) of the Third
Schedule by the hospital, institution or home, as the
case may be, providing the said services.
7. Gold
Gold supplied to or by the Central Bank of Malta.
8. Printed matter and other articles
(1) Books, newspapers, other printed matter and other
articles falling within the definition of "Printed matter
and other articles" contained in Part Two of this
Schedule.
(2) Electronic, magnetic, optic or any other machine
readable media and any information which, in printed
form, would have the characteristics of books,
newspapers and any other printed matter falling within
the definition of "Printed matter and other articles"
contained in Part Two of this Schedule.
9. Essential products
Water, fuel and electricity supplied by a public authority.
10. Products mentioned in items 4, 8, 25, 27, 28 and 29 of the
First Schedule.
11. Repossessed products
(i) under the term of a finance agreement, or
(ii) by an insurer in the settlement of a claim under
an insurance policy, or
(iii) by the mortgagee in terms of his right under a
mortgage over a ship or aircraft,
when sold by the person who repossessed them in the same
condition as they were in at the time they were repossessed.
PART TWO
DEFINITIONS
For the purposes of this Act, the terms described in this
  40  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
Part of the Schedule shall have the meaning assigned to them in this
Part.
Cap. 337.
( a ) "Food" means the goods specified in the Customs
Tariff contained in the First Schedule of the Import
Duties Act under paragraphs (i) to (xii) of this item:
but shall not include milkshake, tea, coffee and
chocolate supplied in liquid form.
(i) Chapter 1, but excluding items falling under
subheadings 0101.11.00.00; 0101.19.90.10;
0105.11.11.10; 0105.11.19.10; 0105.11.91.10;
0105.11.99.10; 0105.12.00.10; 0105.19.20.10;
0105.19.90.10; 0105.92.00.10; 0105.93.00.10;
0105.99.10.10; 0105.99.20.10; 0105.99.30.10;
0105.99.50.10;  0106.00.20.90; 0106.00.90.00.
(ii) Chapters 2 to 4 inclusive, but excluding items
falling under subheadings 0301.10.10.00 and
0301.10.90.00 in Chapter 3.
(iii) Items 
0505.90.00.10; 0506.90.00.10; 0508.00.00.10;
0510.00.10.00; 0511.10.00.00; 0511.91.10.00;
0511.91.90.10; 0511.99.50.00; 0511.99.80.00
in Chapter 5.
(iv) Items falling under subheadings 0601.20.10.00;
0602.10.10.00; 0602.20.10.00; 0602.20.90.00;
0602.90.10.00; 0602.90.20.00; 0602.90.30.00
in Chapter 6.
(v) Chapters 7 to 12 inclusive, but excluding items
falling under subheadings 1209.30.00.00;
1209.99.91.00; 1209.99.99.00 in Chapter 12.
(vi) Chapter 13, but excluding items falling under
subheading 1301.10.00.00.
(vii) Chapters 15 to 20 inclusive, but excluding items
falling under subheadings 1501.00.11.00;
1502.00.10.00; 1503.00.11.00; 1503.00.30.00;
1505.10.00.00; 1505.90.00.00; 1507.10.10.00;
1507.90.10.00; 1508.10.10.00; 1508.90.10.00;
1511.10.10.00; 1511.90.91.00; 1512.11.10.00;
1512.19.10.00; 1512.21.10.00; 1512.29.10.00;
1513.11.10.00; 1513.19.30.00; 1513.21.11.00;
1513.21.19.00; 1513.29.30.00; 1514.10.10.00;
1514.90.10.00; 1515.11.00.00; 1515.19.10.00;
1515.21.10.00; 1515.29.10.00; 1515.30.10.00;
1515.30.90.00; 1515.40.00.00; 1515.50.11.00;
1515.50.91.00; 1515.60.10.00; 1515.60.90.00;
1515.90.10.00; 1515.90.21.00; 1515.90.31.00;
1515.90.40.00; 1515.90.60.00; 1516.20.10.00;
1518.00.10.00; 1518.00.31.00; 1518.00.39.00;
1518.00.91.00; 1518.00.95.00; 1518.00.99.00;
1521.10.10.00; 1521.10.90.00; 1521.90.10.00;
1522.00.31.00; 1522.00.39.00; 1522.00.91.00;
1522.00.99.00 in Chapter 15.
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  41
(viii) Chapter 21, butexcluding items  fallingunder
subheadings 2106.90.20.42; 2106.90.20.44;
2106.90.20.46;2106.90.20.48; 2106.90.20.49;
2106.90.20.92;2106.90.20.95; 2106.90.20.98;
2106.90.98.42; 2106.90.98.46;2106.90.98.49.
(ix) Subheadings 2202.90.10.11; 2202.90.10.31;
2202.90.10.39; 2202.90.91.11; 2202.90.95.11;
2202.90.99.11; 2202.90.99.40; 2209.00.11.00;
2209.00.19.00; 2209.00.91.00; 2209.00.99.00
in Chapter 22.
(x) Chapter 23
(xi) Subheadings 2501.00.10.00 and 2501.00.91.00
in Chapter 25.
(xii) Subheadings 3301.90.21.00; 3301.90.29.00;
3301.90.39.00; 3302.10.21.00; 3302.10.29.91;
3302.10.29.93; 3302.10.40.00;3302.10.90.00
in Chapter 33.
( b ) "Pharmaceutical products" means the goods specified
in the Tariff referred to in item ( a ) of this Part of this
Schedule under -
(i) Subheading 2905.45.00.00 in Chapter 29.
(ii) Chapter 30.
(iii) Subheadings 3301.90.31.00; 3306.10.00.00;
3306.20.00.00; 3306.90.00.00; 3307.90.00.10 
in Chapter 33.
(iv) Subheading 3407.00.00.10 in Chapter 34.
(v) Subheading 3507.10.00.00 in Chapter 35.
(vi) Subheadings 3822.00.00.10 and 3824.90.60.00
in Chapter 38.
(vii) Subheadings 4818.40.91.00 and 4818.40.99.00
in Chapter 48.
(viii) Subheadings 5601.10.10.90 and 5601.10.90.90
in Chapter 56.
(ix) Subheading 7015.10.00.00 in Chapter 70.
(x) Subheadings 9001.30.00.00; 9001.40.41.00;
9001.40.49.00; 9001.40.80.00; 9001.50.41.00;
9001.50.49.00; 9001.50.80.00; 
and 9004.90.90.10; headings 9018, 9019, 9020,
9021, 9022 and 9023; and subheading
9025.11.91.00, in Chapter 90.
(xi) Subheading 9402.10.00.10 in Chapter 94.
( c ) "Printed matter and other articles" means the goods
specified in the Tariff referred to in item ( a ) of this
Part of this Schedule under -
(i)  Subheading 4820.20.00.00 in Chapter 48.
(ii) Chapter 49 but excluding items falling under
subheadings 4906.00.00.00; 4907.00.91.00;
  42  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
4907.00.99.00; 4908.10.00.00; 4908.90.00.00;
4909.00.10.00; 4909.00.90.00; 4910.00.00.90;
and 4911.99.00.10.
(iii) Subheading 7118.90.00.00 in Chapter 71.
(iv) Chapter 98 but excluding items falling under
subheading 9803.00.00.00.
Cap. 337.
( d ) "Industrial capital equipment and materials" means the
goods specified in the Customs Tariff contained in the
First Schedule of the Import Duties Act falling under
the following headings:
1401.20.00.00 in Chapter 14;
1501.00.11.00; 1502.00.10.00; 1503.00.11.00;
1503.00.30.00; 1507.10.10.00; 1507.90.10.00;
1508.10.10.00; 1508.90.10.00; 1511.10.10.00;
1511.90.91.00; 1512.11.10.00; 1512.19.10.00;
1512.21.10.00; 1512.29.10.00; 1513.11.10.00;
1513.19.30.00; 1513.21.11.00; 1513.21.19.00;
1513.29.30.00; 1514.10.10.00; 1514.90.10.00;
1515.19.10.00; 1515.21.10.00; 1515.29.10.00;
1515.50.11.00; 1515.50.91.00; 1515.90.21.00;
1515.90.31.00; 1515.90.40.00; 1515.90.60.00;
1518.00.31.00;  1518.00.39.00 in Chapter 15;
2106.90.20.42 in Chapter 21;
2207.20.00.20 in Chapter 22;
2501.00.31.00; 2515.11.00.00; 2515.12.20.00;
2515.12.50.00; 2515.12.90.00; 2516.12.10.00;
2516.12.90.00; 2517.41.00.00; in Chapter 25;
2708.10.00.00 in Chapter 27;
2801.10.00.00; 2807.00.10.00; 2809.20.10.00;
2811.21.00.00; 2811.22.00.00; 2815.11.00.00;
2817.00.00.00; 2819.90.00.00; 2827.20.00.00;
2823.00.00.00; 2827.33.00.00; 2828.90.00.10;
2828.90.00.90; 2832.10.00.00; 2833.11.00.00;
2833.19.00.00; 2835.22.00.00; 2835.31.00.00;
2836.20.00.00; 2836.40.00.00; 2836.50.00.00;
2839.11.00.00;  2839.19.00.00 in Chapter 28;
2903.12.00.00; 2904.10.00.00; 2905.12.00.00;
2909.11.00.00; 2912.11.00.00; 2914.11.00.00;
2914.12.00.00; 2915.21.00.00; 2915.31.00.00;
2915.33.00.00; 2915.34.00.00; 2915.39.90.00;
2915.50.00.00; 2915.60.10.00; 2915.70.25.00;
2916.19.90.00; 2917.11.00.00; 2918.12.00.00;
2918.13.00.00; 2918.14.00.00; 2918.15.00.00;
2923.90.00.00;  2934.90.40.00 in Chapter 29;
3207.40.90.00; 3212.90.39.00; 3215.11.00.00;
3215.19.00.00 in Chapter 32;
3302.10.10.10; 3302.90.10.00 in Chapter 33;
3401.20.10.10 in Chapter 34;
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  43
3701.30.00.00; 3702.43.00.00; 3702.44.00.00; in
Chapter 37;
38.23 in Chapter 38;
39.01 to 39.15 in Chapter 39;
4005.20.00.00 in Chapter 40;
Chapter 41;
44.01 to 44.06; 4407.10.71.00; 4407.10.79.00;
4407.10.91.00; 4407.10.93.00; 4407.10.99.00;
4407.24.90.00; 4407.25.60.00; 4407.25.80.00;
4407.26.70.00; 4407.26.80.00; 4407.29.61.00;
4407.29.69.00; 4407.29.99.00; 4407.91.90.00;
4407.92.90.00; 4407.99.91.00; 4407.99.93.00;
4407.99.98.00 in Chapter 44;
Chapter 47;
48.01 to 48.05 and 4809.20.10.00;
Heading 48.01 but excluding items falling under
subheading 4810.99.90.10;
4811.21.00.00; 4811.29.00.00; 4811.31.00.00;
4811.39.00.00;  4811.90.90.00 in Chapter 48;
50.01 to 50.05 in Chapter 50;
51.01 to 51.08 in Chapter 51;
52.01; 52.02; 52.03; 5204.11.00.00; 5204.19.00.00;
52.05 and 52.06 in Chapter 52;
5401.10.11.00; 5401.10.19.00; 5401.20.10.00; 54.02
and 54.04 in Chapter 54;
55.01 to 55.07; 5508.10.11.00; 5508.10.19.00;
5508.20.10.00; 55.09; 55.10 in Chapter 55;
5605.00.00.00 in Chapter 56;
6406.20.10.00; 6406.20.90.00; 6406.99.60.00 in
Chapter 64;
7019.31.00.00 in Chapter 70;
7205.10.00.00; 7210; 72.13 to 7216 in Chapter 72 but
excluding items falling under subheadings
7216.32.11.00; 7296.32.19.00; 7216.32.91.00;
7216.32.99.00;7216.33.10.00; 7216.33.90.00;
7408.19.10.00; 7408.19.90.00; 7413.00.91.00 in
Chapter 74;
76.01; 7604.10.90.00; 7604.21.00.00; 7604.29.90.00
in Chapter 76;
8401; 8402; 8405; 8406; 8410; 8411; 8416; 8417;
8419.20.00.00; 8420; 8421.11.00.00; 8422.20.00.00;
8423.20.00.00; 8423.30.00.00; 8423.82.10.00;
8423.82.90.00; 8423.89.10.00; 8423.89.90.00;
8425.20.00.00; 8425.31.10.00; 8425.31.90.00;
8425.39.10.00; 8425.39.91.00; 8425.39.99.00; 8426;
8427; 8428.20.10.00; 8428.20.30.00; 8428.20.91.00;
  44  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
8428.20.99.00; 8429; 8430; 8432; 8433; 8434; 8435;
8436; 8437; 8438; 8439; 8440; 8441; 8442;
8443.11.00.00; 8443.12.00.00; 8443.19.10.00;
8443.19.31.00; 8443.19.35.00; 8443.19.39.00;
8443.19.90.00; 8443.21.00.00; 8443.29.00.00;
8443.30.00.00; 8443.40.00.00; 8443.59.20.00;
8443.59.80.00; 8443.60.00.00; 8443.90.10.00;
8443.90.90.00; 8444; 8445; 8446; 8447; 8449;
8452.21.00.00; 8452.29.00.00; 8453; 8454; 8455;
8456; 8457; 8462; 8463; 8464; 8474; 8475; 8477;
8478; 8479.10.00.00; 8479.20.00.00; 8479.30.10.00;
8479.30.90.00; 8479.40.00.00; 8479.50.00.00;
8479.89.30.00; 8479.89.65.00; 8479.89.70.00;
8479.89.75,00; 8480 in Chapter 84;
90.03 in Chapter 90.
Cap. 337.
( e ) "Goods solely for agricultural or fishing use" means
the goods specified in the Customs Tariff contained in
the First Schedule of the Import Duties Act falling
under the following headings:
2703 in Chapter 27; Chapter 31; 3808.20.10.00;
3808.20.15.00; 3808.20.30.00; 3808.20.40.00;
3808.20.50.00; 3808.20.60.00; 3808.20.80.00;
3808.30.11.00; 3808.30.13.00; 3808.30.15.00;
3808.30.17.00; 3808.30.21.00; 3808.30.23.00;
3808.30.27.00;3808.30.30.00;3808.30.90.00
in Chapter38; 3917.10.10.00; 3917.10.90.00;
3917.32.91.00 in Chapter 39; 5608.11.11.00;
5608.11.19.00; 5608.11.91.00; 5608.11.99.00 in
Chapter 56; 8208.40.00.00 in Chapter 82;
8424.81.10.00; 8424.81.31.00; 8424.81.39.00;
8424.81.91.00; 8424.81.99.00; 8432; 8433; 8434;
8436; 8437.10.00.00 in Chapter 84; 8701.90.11.00;
8701.90.15.00; 8701.90.21.00; 8701.90.25.00;
8701.90.31.00; 8701.90.35.00; 8701.90.39.00;
8701.90.50.00 in Chapter 87; 8902 in Chapter 89.
( f ) "Non-profit making institution" or "non-profit making
organisation" means an institution or organisation:
(i) whose objects are clearly defined in its statute;
(ii) whose objects expressly exclude profit making;
(iii) whose statute provides that no part of its income
or property is available directly or indirectly to
any member, proprietor or shareholder;
(iv) which, in the opinion of the Director, is managed
and administered in accordance with the
provisions of its statute and for the purpose of its
stated objects;
(v) which does not systematically aim to make a
profit.
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  45
Amended by: 
L.N. 99 of 1997;
L.N. 124 of 1997;
L.N. 203 of 1997;
L.N. 1 of 1998;
L.N. 248 of 1998;
L.N. 37 of 2000.
Third Schedule
(Article 20)
EXEMPT SERVICES
1. Services connected with exports and importations
(1) The provision of services which in the opinion of the
Director form an integral part of the process of the production of
food or pharmaceuticals or of a product or service intended for
export or the sale of products or provisions of services outside
Malta.
(2) The provision of services to a person established
outside Malta consisting of work on tangible movable property
imported for the purpose of undergoing such work in Malta and
exported out of Malta by the person who provided those services or
by his customer.
(3) The provision of services to a person established
outside Malta in procuring the importation of goods into Malta.
2. Services to customers abroad
 The provision of any of the services listed in this paragraph
when the person to whom they are provided is not resident in
Malta:
( a ) advertising services;
( b ) services of consultants, engineers, consultancy
bureaux, advocates, legal procurators, notaries public,
accountants, auditors, financial advisors, data
processing and the provision of information;
( c ) obligations to refrain from pursuing or exercising in
whole or in part any business activity;
( d ) banking, financial, insurance and re-insurance
transactions, excluding the letting of a place for the
safe deposit of any goods or documents;
( e ) the provision of human resources;
( f ) the services of an agent who acts in the name and for
the account of another, when he procures for his
principal any of the services referred to in this item.
3. Port and Freeport services
Cap. 352.
  (1) The provision of any services by the Malta Maritime
Authority, including the granting of licences and certificates, in
connection with all matters relating to ports and yachting centres in
terms of the Malta Maritime Authority Act, and of any regulations
made under that Act, or in terms of any special agreement entered
into by the said Authority in respect of any matter referred to in the
  46  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
said regulations and providing for charges in place of any rates
leviable under the said regulations.
Cap. 171.
(2) The provision of any services by the Malta Maritime
Authority, including the granting of licences and certificates, in
connection with all matters relating to port work in terms of the
Port Workers Ordinance and of any regulations made under that
Ordinance or in terms of any special agreement entered into by the
said Authority in respect of any matter referred to in the said
regulations and providing for charges in place of any rates leviable
under the said regulations.
Cap. 234.
(3) The supply of any service by the Malta Maritime
Authority, including the granting of certificates and registration, in
connection with the registration of ship in terms of the Merchant
Shipping Act and of any regulations made under that Act.
Cap. 334.
(4) Services provided by or to a company within a freeport
zone as defined in the Malta Freeports Act where the said provision
constitutes an activity which the said company is licensed to carry
on in terms of the said Act.
Cap. 334.
(5) Services provided by any contractor within a Freeport
zone as established by the Malta Freeports Act, to the Corporation
established under that Act, or to any of its subsidiaries in
connection with the construction of Terminal II.
4. International transport
  The provision of services consisting in international
transport of goods and passengers.
5. Supplies, repairs, etc., of ships and aircraft
(1) The provisioning, repair, modification, chartering and
hiring of vessels or aircraft referred to in paragraph (1) of item 3 of
the Second Schedule to this Act, and the provisioning, hiring,
repair and maintenance of equipment, including fishing equipment,
incorporated or used therein.
(2) The provision of services, other than those referred to
in paragraph (1) of this item, to meet the direct needs of the vessels
and aircraft referred to in the said paragraph or of their cargoes.
6. Food
The provision of any food, as defined in Part Two of the
Second Schedule to this Act excluding any provision of food which
is subject to tax in terms of article 18.
7. Health and Welfare
Cap. 31.
(1) The provisions of services by a person in the exercise
of any profession regulated by the Medical and Kindred Profes-
sions Ordinance.
(2) The provision of care or medical or surgical treatment
in any Government hospital or institution or in any other hospital or
institution approved by the Minister for the purposes of this
paragraph.
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  47
(3) The provision of welfare services, including services
provided by homes for the elderly and homes for persons suffering
from some permanent physical or mental disability, and services
for the protection and care of children, young people and persons
suffering from some permanent physical or mental disability,
provided by any government institution or by any institution or
organisation recognised by the Director as a non-profit making
institution or approved by the Minister for the purpose of this
paragraph as an institution whose activities fall within the social
and welfare policy of the government.
(4) The provision of transport services for sick, injured or
disabled persons in vehicles specially equipped for that purpose.
8. Education
Cap. 327.
(1) The provision of education or educational research,
including distance learning, by a government school or institution,
by the University of Malta, by a school or institution registered
under the Education Act or by any educational establishment
recognised as such by the Director.
(2) The provision of education or educational research,
including distance learning, of a kind provided by a school or
university, or of religious instruction, by a non-profit making
institution recognised as such by the Director.
(3) Tuition given privately by teachers acting in an
independent capacity in subjects which are normally taught in the
course of education provided by a school or university but
excluding tuition in recreational, physical or sporting activities or
disciplines.
9. Transport
The provision of -
( a ) transport provided by the scheduled bus service
consisting of scheduled trips on scheduled routes;
( b ) scheduled inter-island sea trips supplied by authorised
carriers, and other scheduled sea transport services
recognised as such by the Director;
( c ) school transport provided by an educational
establishment recognised as such by the Director or
supplied to any such establishment for the purpose of
being provided by it as school transport;
( d ) transport supplied or organised by an employer or by a
central office to transport the employees to and from
their place of work and recognised as such by the
Director;
( e ) transport provided for the carriage of goods between
factory and port or airport in such cases or in respect
of such goods or classes of goods as the Director may
  48  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
deem appropriate and to certify for the purpose of
encouraging exports or the substitution of imports;
( f ) for the purpose of these provisions, "central office"
shall have the meaning assigned to it by Legal Notice
No. 144 of 1991.
10. Investments Services
Cap. 370.
(1) The provision of any of the services specified in the
First Schedule to the Investment Services Act.
Cap. 364.
Cap. 330.
Cap. 331.
(2) The provision of any services by the persons referred to
in article 47(3) and (4) of the Duty on Documents and Transfers
Act as evidenced by appropriate documentation as the Director may
require and companies and trusts registered in virtue of the Malta
Financial Services Authority Act, and the Trusts Act, respectively.
11. Immovable property
(1) The letting of immovable property excluding -
Cap. 197.
Cap. 240.
( a ) the letting of or the provision of accommodation in
any premises which for the purpose of the said letting
or accommodation is required to be licensed in virtue
of the Hotels and Catering Establishments Act or of
the Guest Houses and Holiday Furnished Premises Act
or in a holiday camp or camping site, but excluding the
provision of accommodation to foreigners enjoying
diplomatic privileges in Malta;
( b ) the letting of premises and sites for parking vehicles
where such premises or sites have been designated by
the Director as parking areas or which fall to be treated
as such in terms of such regulations as may be
prescribed;
( c ) the letting of permanently installed equipment and
machinery.
Cap. 16.
(2) The transfer of immovable property, including any
right referred to in article 310( a ), ( b ) and ( c ) of the Civil Code and
any emphyteutical grant, but excluding an emphyteutical grant for
less than fifty years in respect of any property referred to in sub-
paragraphs ( a ), ( b ) and ( c ) of paragraph (1) of this item.
(3) Financial leasing by a commercial bank of equipment,
plant and machinery used in the production of goods or in the
provision of services.
12. Insurance services
The provision of insurance and reinsurance services,
including related services performed by insurance brokers and
insurance agents.
13. Credit, banking and other services
  The provision of credit, banking and other services
specifically in relation to: 
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  49
(1) interest charged on the making of any advance or the
granting of credit;
(2) interest charged on the granting of, or any dealing in,
credit guarantees or other security for money;
(3) transactions, including negotiation, concerning
currency, bank notes and coins normally used as legal tender:
  Provided that nothing in this item shall be construed as
affecting the provisions of item 10 of this Schedule.
14. Postal services
 The provision of services by the public postal services and
of goods incidental thereto.
15. Cultural and religious services
(i) Religious services
(ii) The provision of such cultural services as may be
approved by the Minister.
16. Services by band clubs
The supply of services consisting in public performances
by a philharmonic society which the Director is satisfied
constitutes a  bona fide  band club.
17. Sports
Supplies of services by non-profit making organisations as
may be approved by the Minister.
18. Provisions related to certain exempt services
(1) The provision of human resources by a non-profit
making institution which is recognised as such by the Director for
the purpose of providing services referred to in paragraph (2) or (3)
of item 7 or in paragraph (1) or (2) of item 8 of this Schedule.
(2) The provision of services by a non-profit making
organisation in the course of an activity designed to raise funds to
be used for the provision of services which are exempt in terms of
paragraph (2) or (3) of item 7 or of paragraph (1) or (2) of item 8
provided the activity is recognised by the Director as being
exclusively designed for the said purpose.
 19. Services by non-profit making organisations to their
members
The provision of services for the benefit of their members
in return for a subscription fixed in accordance with their rules by
non-profit making organisations with aims of a political, trade
union, patriotic, philosophical, philanthropic or civic nature or
whose main purpose is to represent and promote the common
business or professionals interests of their members: provided that
in any case where, in the opinion of the Minister, this exemption is
likely to cause distortion of competition, this exemption shall be
subject to such exceptions or limitations as the Minister may by
  50  CAP. 395. ]   CUSTOMS AND EXCISE TAX 
order in writing determine.
20. Services by government departments and any other public
authority
(1) The provision of any service by any government
department and any other public authority but excluding the
provision of any service where the exemption is likely to cause
significant distortions of competition.
(2) The provision of agency services related to lotto and
lotteries, and such other provisions related to gambling as may be
approved by the Minister.
21. Inter Group Services
Cap. 364.
The provision of any service by one company to another
when both companies are members of the same group of companies
unless the Director is satisfied that the creation of a company or
companies within the group has for its main purpose the avoidance
of tax; and for this purpose "a group of companies" shall have the
same meaning assigned to the phrase by article 42 of the Duty on
Documents and Transfers Act.
22. Foreign related services
Any services referred to in article 22(2) of the Act which is
a service -
( a ) physically performed outside Malta; or
( b ) which consists in the provision of the use of a taxable
product.
23. Services by Government controlled organisations
The provision of services by Government controlled
organisations which carry out telecommunication activities, but
excluding the provision of any services where the exemption is
likely to cause significant distortions in competition. 
  CUSTOMS AND EXCISE TAX  [ CAP. 395.  51
Fourth Schedule
(Article 19 ( e ))
Provision of Food Subject to Excise Tax on Services
1. (1) The provision of food which is suitable for immediate
consumption, whether such food is consumed at the place where it
is provided or not, consisting of:
( a ) meals or snacks;
( b ) ice-cream or products containing ice-cream except in
family packs, and ice lollies;
but excluding:
 (i) the provision of food in a club exclusively
provided to members and their guests;
(ii) the provision of food by a canteen situated in a
work or study area exclusively provided to
workers or students therein.
(2) For the purposes of paragraph (1) of this item -
( a ) "meals or snacks" means and includes:
(i) hot and cold dishes including antipasto and
dessert;
 (ii) sandwiches, toast, potato chips, sausage rolls,
pizza,  pastizzi ,  qassatat  and   similar snacks;
(iii) biscuits, cakes, confectionery and similar items,
but excluding those sealed in a package by the
manufacturer and supplied in that original sealed
package and those items which individually
weigh 500 grammes or more;
( b ) "family packs" means ice-creams of not less than 500
millilitres in volume;
( c ) "members" means persons who are members of a club
and who have paid their subscription in advance for a
period of not less than one year and whose names
appear on the club’s books or registers;
( d ) "guests" means persons who are accompanied by a
member while inside the club.
 2. The provision of catering services including outside
catering but excluding the provision of catering services at a
wedding reception.
