This is the second article in a series of two technical articles produced by the Advanced Taxation Malta examining team to aid candidates in their understanding of the value added tax VAT place of supply rules. This article will examine the place of supply of services rules, while the first article explained the place of supply of goods rules see 'Related links'. Candidates are reminded that the articles are meant to provide a guide on the level of detail and extent to which the topics will be examined but are not a substitute for the legislation.
Both articles are based on the legislation as at 30 September General rule The general place of supply rule for supplies of services depends on whether the recipient of the service is a taxable person or not. For the purposes of the place of supply of services rules 1 , a taxable person who also carries out activities or transactions that are not considered to be taxable supplies of goods or services is regarded as a taxable person in respect of all services rendered to him.
Therefore, if the recipient of the services carries out both taxable supplies and exempt supplies, he would be deemed to be a taxable person for the application of the place of supply rules. In addition, a non-taxable legal person who is identified for VAT purposes is also considered to be a taxable person.
General rule for supplies of services to taxable persons B2B general rule The place of supply of services to a taxable person acting as such, is the place where that person has established his business. However, if those services are provided to a fixed establishment of the taxable person located in a place other than the place where he has established his business, the place of supply of those services shall be the place where that fixed establishment is located.
In the absence of such place of establishment or fixed establishment, the place of supply of services shall be the place where the taxable person who receives such services has his permanent address or usually resides.
