VAT Malta Article 12 registration is the focus of this article, which delves into who needs to register, the conditions under which VAT Malta registration is mandatory or optional, and the process for cancellation.
Intra-Community Acquisition of Goods
Mandatory Registration
A person must register for VAT Malta under Article 12 if they:
- Are a taxable person or a non-taxable legal person not registered under Article 10.
- Intend to make intra-community acquisitions of goods in Malta with a value exceeding €10,000 in a calendar year.
These individuals are required to register and pay VAT Malta by the date of each acquisition.
Optional Registration
A person may choose to register for VAT Malta under Article 12 if they:
- Are a taxable person not registered or liable to be registered under Article 10 because they provide exempt without credit supplies.
- Are a small undertaking falling below the established turnover threshold and registered under Article 11.
- Are a non-taxable legal person.
Services Received from EU and Non-EU Suppliers
Mandatory Registration
A taxable person established in Malta, other than those registered under Article 10, must register for VAT Malta under Article 12 if they receive services for which they are liable to pay VAT due to the reverse charge mechanism. Unlike intra-community acquisitions of goods, there is no threshold for intra-community services, making VAT Malta registration necessary upon receipt of the service.
Cancellation of Registration
Intra-Community Acquisition
- Mandatory Registration: A person can apply for cancellation of their VAT Malta registration after the first full calendar year following the year of registration, provided their intra-community acquisitions do not exceed €10,000 in the current or preceding year.
- Optional Registration: A person can apply for cancellation after two consecutive calendar years following the year of registration, under the same acquisition value conditions.
Reverse Charge
A person registered under VAT Malta Article 12 due to the reverse charge mechanism can apply for cancellation if they no longer receive services for which they are liable to pay VAT under this mechanism.
Article 10 and Article 11 Interactions
A person registered under Article 10 is not obligated to register under Article 12, even if they make intra-community acquisitions. A person registered under Article 11 who intends to make intra-community acquisitions and pay VAT Malta must also register under Article 12 to obtain a valid VAT identification number for these transactions. This means they can be registered under both Article 11 and Article 12 simultaneously.
Compliance
Upon registration under Article 12, the person will be assigned a valid EU VAT registration number with the prefix “MT”, indicating it is a Maltese VAT identification number.
FAQs
Q1: Who needs to register for VAT under Article 12 for intra-community acquisitions of goods? A1: Taxable persons or non-taxable legal persons not registered under Article 10, intending to make intra-community acquisitions exceeding €10,000 in a calendar year, must register.
Q2: Can I voluntarily register under Article 12? A2: Yes, if you are a taxable person providing exempt without credit supplies, a small undertaking registered under Article 11, or a non-taxable legal person, you may choose to register.
Q3: When must I register for VAT under Article 12 for services received? A3: If you are a taxable person established in Malta (other than those registered under Article 10) and receive services liable to VAT under the reverse charge, you must register by the date of receipt.
Q4: How can I cancel my Article 12 registration for intra-community acquisitions? A4: If mandatorily registered, you can apply for cancellation after one full calendar year, provided acquisitions do not exceed €10,000. For optional registration, you can apply after two consecutive years under the same conditions.
Q5: Can I be registered under both Article 11 and Article 12? A5: Yes, if you are registered under Article 11 and need to make intra-community acquisitions, you must also register under Article 12 to get a valid VAT identification number.
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