Malta: Changes in supply of TBES.

Changes in relation to place supply & reporting of telecommunications, broadcasting and electronic services in Malta.

Malta Tax Update

Following changes at EU level, Malta has announced it's own changes in relation to the place of supply and reporting of TBES (telecommunication, broadcasting and electronic services) to non-taxable persons. Taking effect from 1 January 2019 the provision of TBES to non-taxable persons will apply according to the general place of supply rule, which states that the POS (place of supply) is where the supplier is established. This is going to be applicable in cases where:

  • The supplier of the services is established in Malta or has its permanent address or usual residence in the country;
  • The non-taxable persons (customers) are not residents of Malta, nor they have a permanent establishment there;
  • The price amount of the supplies does not exceed 10,000 EUR and will not cap that amount in the preceding year;

If the threshold is breached during the calendar year, the supplier has the option to apply for Mini One Stop Shop (MOSS).

Additionally, suppliers who fall within the scope of the above-mentioned provision can apply in front of the Commissioner for Revenue and they have to specifically indicate the date from which it is applicable. Once the supplier exercises this option, it covers two calendar years.

As of 1 January 2019, the rules for suppliers using MOSS should follow the invoicing rules of the member state where the supplier is identified for MOSS. In Malta, the persons supplying TBES under the MOSS scheme are exempt from the obligation to issue VAT fiscal receipts.

In addition, as of 1 January 2019, the definition for “taxable person not established within the Community" will be changed to “a taxable person who has not established his business in the territory of the Community and who has no fixed establishment there”. The condition under article 10 of the Malta VAT Act states that such persons are also not required to be registered for VAT in Malta will be removed.

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