Euro information

Melvyn Mangion from the National Euro Changeover Committee (NECC) answers your questions on the euro. Last week, I featured some questions and answers on trade related issues, which I received from Mr Mangion. However we did not have enough space to feature them all. This week we are featuring additional questions and answers:

Do I have to fill in any form to benefit from the one lump sum deduction of 200 per cent of my expenditure on cash registers and weighing scales?

In the case of the purchase of cash registers, yes. The Commissioner of VAT will be shortly providing an application form in which retailers will be able to inform him of their desire to make use of this scheme.

Does this 200 per cent deduction apply to the full cost inclusive of VAT?

No, VAT is excluded. So, the cost incurred excluding the VAT component is to be factored into the tax deduction.

Who is entitled to benefit from the 200 per cent deduction?

Any person who carries out a trade or a business in Malta, Gozo or Comino and is registered under the VAT Act is entitled to this deduction.

Does this mean I am now obliged to change my cash register?

No. You are still free to keep your old cash register, but with this benefit, you may consider it's the right time to update to a new cash register, or point-of-sale.

If my overall euro-related costs that qualify for this scheme exceed the tax deduction threshold of Lm1,000, which costs should I include in the scheme?

List those costs that represent the purchases of new equipment in the scheme. You can then register the modifications to existing equipment straight away as 100 per cent deductions on your profit/loss (as usual). If you were to do it the other way around, your purchases of new equipment, if not included in this scheme, would need to go through the usual periods of depreciation to get the full 100 per cent tax deduction.