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All businesses should be aware of the new rules with regards to invoicing as these will automatically affect their day to day compliance requirements.
These changes seek to simplify, improve and achieve higher levels of harmonisation in the way invoices are prepared across the EU. The following points aim to offer an overview of the most salient changes.
Where the amount does not exceed €100 (inclusive of VAT), a simplified version of an invoice may be issued, as long as this is not in relation to cross-border supplies or exempt intra-community supplies.Nonetheless, there are still some minimum requirements for details which still need to feature in a simplified invoice:
All supplies made to the same person with respect to whom VAT becomes chargeable during the same calendar month are now allowed to be reported in a single summary invoice.
Issuance of VAT Invoice
A VAT invoice must be issued by not later than the 15th day of the month following that in which the chargeable event takes place. This change seeks to improve the declarability in the recapulative statements across different EU member states.
Contents of a VAT Invoice
Greater emphasis is now being put on the use of certain terminology in the VAT invoices. Most notably the following references should start being made:
The Maltese VAT Act is now allowing the issue of self-invoices by a customer to himself. Nonetheless, this is only possible as long as the following conditions are satisfied:
The Cash Accounting Approach
The cash accounting approach as permitted under the VAT Act has now been severally limited. The option enabling the applicability of such approach is clearly constricted to professional services providers and retailers, civil, mechanical and electrical engineering contractors whose annual turnover does not exceed €2,000,000 (excluding VAT). Notwithstanding these conditions, VAT could not be accounted for on a cash basis in respect of exempt intra-community supplies or supplies requiring the application of the reverse-charge by the client.
The cash accounting approach is based on a like-with-like basis, meaning that:
Translation of Invoices
In some cases, the VAT Department may require translated versions (in Maltese or in English) of invoices in respect of goods and services supplied in Malta or invoices received by Maltese taxable persons.
For any queries about the aforementioned issue or other matters, kindly contact Mr Joseph Gauci (Managing Partner) at: firstname.lastname@example.org or Mr Benjamin Griscti (Senior Advisor) at: email@example.com