VALUE ADDED TAX – MALTA
This amendment is an addition to the previous provisions relating to the transfer of a going concern, wherein the transfer of assets forming part of a person’s economic activity would not be considered a transfer of goods or services if all of three conditions are satisfied.
First of all the person acquiring the assets must be duly registered under Article 10 (general VAT registration in Malta) and must have acquired all or part of the economic activity from another person. Should only part of the economic activity have been acquired this must be capable of operating separately as a going concern.
Secondly, the assets are to be used in carrying out the same kind of activity irrespective of whether are used in the existing economic activity as that of the previous owner, and thirdly, the transfer must be registered in the books of the previous owner indicating the registration number of the acquirer.
In this way due to the continuity of the business no VAT is chargeable on the transfer should the above conditions be satisfied.