I refer to Caroline Muscat's report 'Getting a car from the UK? You may pay VAT twice' (The Sunday Times, March 1).

VAT on new means of transport is paid in the place of destination (where the car is registered). If a person incurs VAT in the UK and then decides to transfer and register the car in Malta while it is still considered as a new means of transport, the person will incur VAT in Malta but can claim back the VAT incurred in the UK under conditions established by Directive 2006/112/EC. In such a case an application is to be made to the UK tax authorities who are responsible for this refund.

On the other hand, one who incurs VAT in Malta on a car which is transferred to and registered in another member state while still considered a new means of transport incurs VAT in the other member state.

However, one may claim a refund of the Maltese VAT under the conditions of the above-mentioned directive.

May I point out that information regarding VAT on new means of transport may be found in a leaflet published by the VAT Department in 2004 entitled 'New Means of Transport and Excise goods' which may be obtained either from the VAT Department, Birkirkara, or downloaded from the VAT Department's website at: http://vat.gov.mt/docs/ica_of_new_means_of_transport_and_excise_goods.pdf