On 29 December 2021, the Office of the Commissioner for Revenue (‘CfR’) issued a notice reminding taxpayers of the requirement to file Intrastat Declarations and requesting defaulting taxpayers to regularise their position.
When is an Intrastat Declaration required to be filed?
An Intrastat Declaration is required to be filed by all persons who trade in Community goods when the said goods are transported between Malta and other EU Member States. The requirement to file an Intrastat Declaration applies even if, in moving between Malta and other EU Member States, the goods cross the external frontier of the Community or enter the territory of non-EU jurisdictions. An exemption from the filing of Intrastat Declarations applies in case of taxable persons and non-taxable legal persons who acquire and/or supply goods transported from Malta to another EU Member State and/or from another EU Member State to Malta, where the value of such goods does not exceed €700 in a calendar year.
What are the penalties for failure to file Intrastat Declarations?
Through this notice the CfR is reminding subject persons that failure to file Intrastat Declarations in a timely manner could lead to criminal prosecution. On conviction of a criminal offense pursuant to such prosecution, subject persons are liable to a fine of between €700 and €3,500.
In light of this communication it is important that businesses engaged in the Intra-Community Acquisition of goods transported from other EU Member States to Malta and/or the supply of goods transported from Malta to other EU Member States re-assess whether they are required to file Intrastat Declarations and, if so, ensure that all past Intrastat Declarations have been duly filed. This requirement also applies to businesses engaged in such transactions on a one-time basis. Furthermore, businesses that are required to file Intrastat Declarations should ensure that processes and procedures are in place to ensure timely and correct submission of supplementary declarations.
Should you have queries on whether your business is required to file Intrastat Declarations, or should you require our assistance with the regularisation of your position, feel free to get in touch with us.
Associate Director, Tax Services
KPMG in Malta