Definition of ‘Electronically Supplied Services’
VAT 2015 Newsletter #9 - 4 February 2015
Changes to the VAT rules – Telecommunications, Broadcasting and Electronic Services
VAT Department Guidance
In terms of Item 10 of Part 2 of the Third Schedule to the VAT Act, with effect from 1 January 2015, the place of supply of ‘Electronically Supplied Services’ to a non-taxable person shall be the place where that person is established, has his permanent address or usually resides.
The Malta VAT Department has published guidance on the definition and scope of ‘Electronically Supplied Services’ in the context of the above provision.
The guidance provides a non-exhaustive list of those services which shall not be regarded as “electronically supplied services” for the purposes of the application of the Malta VAT Act. The list includes the following:
- The offering of a facility for the placing of bets on the internet or via an electronic network in connection with live horse races and other live sporting events.
- The offering of a facility for internet gambling pursuant to the streaming of a live casino event.
Pursuant to this interpretation, Item 10 of Part 2 of the Third Schedule to the VAT Act will not apply to supplies of the above services by a service provider established outside Malta to a Maltese consumer.