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Where Taxpayers and Advisers Meet

VAT - MALTA

LEE1981
Posts:9
Joined:Wed Aug 06, 2008 4:05 pm
VAT - MALTA

Postby LEE1981 » Wed Apr 21, 2021 11:53 am

Hi

I work for a company who has a customer in Malta who requires some doors to be constructed for a client of theirs.

1. We will issue a proforma invoice to the Customer in Malta, (zero rated), for the doors.
2. Upon receipt of payment we will issue a zero-rated receipted invoice.
3. We will consult with a UK joinery company to construct the doors and they shall dispatch to the customer in Malta.
4. The joinery company will invoice us for manufacturing costs etc.

Am I correct in that this transaction will be zero rated and are there any other implications in the details above which I haven't thought of?
As the manufacturer is shipping the goods to Malta I presume they will deal with the export paperwork etc.

Thanks in advance

robbob
Posts:3152
Joined:Wed Aug 06, 2008 4:01 pm

Re: VAT - MALTA

Postby robbob » Wed Apr 21, 2021 1:04 pm

Seems fine in principle.

The main thing you need on your file is the evidence the goods have left the country , so ensure if you leave export to third party that you get that evidence. There are documented timescales in that regard- ie you can zero rate in advance but that starts the clock ticking ref getting the evidence to confirm zero rating is correct.


ref presuming manufacturer is dealing with export paperwork - i wouldnt presume anything in that regard.

LEE1981
Posts:9
Joined:Wed Aug 06, 2008 4:05 pm

Re: VAT - MALTA

Postby LEE1981 » Wed Apr 21, 2021 1:42 pm

Thanks for the reply.

You are correct, should never presume!

I have asked the question and will issue a zero rated invoice initially. I believe the timeframe for obtaining evidence is 3-6 months but either way the lead time on the door construction is 6-8 weeks so should have ample time.


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