I refer to Tonio Bugeja's letter (July 26), wherein he complained about a customer who refused to accept a fiscal receipt on grounds that he intended to claim back the input VAT incurred.

VAT legislation stipulates that VAT paid on business-related purchases may be claimed back by a VAT registered person only if supported by a valid tax invoice. Therefore, for a supply made by a person registered under article 10 of the VAT Act to a person who is identified by means of a valid VAT number, the supplier has to issue a valid tax invoice. In this case, if Mr Bugeja is registered for VAT under article 10 and his customer has identified himself by means of a valid VAT number, Mr Bugeja is required to issue a tax invoice to his customer. Information regarding the details to be included in such tax invoice are found in the Twelfth Schedule to the VAT Act.

The fiscal receipts made available by the VAT Department for use by VAT registered businesses are only intended for sales made to consumers who are not registered for VAT, and who cannot claim back any VAT in the course of their business activities.

The VAT Act may be found on the department's website: www.vat.gov.mt. Any further information may be obtained directly from the VAT Department.