Car Tax exemption for imported cars

welcome to malta

"because there seems to be a new rule stating that you can apply for tax exemption within the first 30 days of car arrival!!!"

"The fact is that the moment you let any hint about residency, your car is considered imported and the 30 days count down starts counting."

which statement is correct, or are you saying there are two countdowns, one for the car arrival, and another after the owner takes residency ?

emphasis being on "resident"

georgeingozo wrote:

"because there seems to be a new rule stating that you can apply for tax exemption within the first 30 days of car arrival!!!"

"The fact is that the moment you let any hint about residency, your car is considered imported and the 30 days count down starts counting."

which statement is correct, or are you saying there are two countdowns, one for the car arrival, and another after the owner takes residency ?

Without claiming any special knowledge other than limited experience there are essentially 4 count downs:

1. Arrive as a tourist in Malta and never hint anything about residence (invisibility). Then you can drive your car for 6 months with foreign plates or so they say and then get the hell out of there or pay the tax!
2. Arrive in Malta planning to stay here and you are about to apply for the tax exemption. This application must be made within 30 days of the car arrival. By singing you declare for the Transportation Ministry that you have changed your Residence to Malta effective from the day the car has arrived on the island. Thus you are no longer tourist for them and the car is considered imported. If application's date - arrival > 30 days then you have no luck.
3. If you make the mistake and issue a Maltese ID then you can only drive the car for 15 days. Any additional day is penalised by 30 euros I think per day.
4. Some strange one year allowance to drive with foreign plates but that depends on the office you ask I am still investigating this

The fact is that if you drive as a Tourist for more than 30 days then you loose the right to ask for tax exemption unless if you go in and out of the country BUT the trick can only work if you are a genuine tourist. If for example you have a house rent contract, they ask for it when you apply, and the date of the contract is more than 30 days from the date of application, then obviously you have changed residency for more than 30 days so... no exemption.

I hope this is clearer..
Yiannis

I was aware of 1 and 3, and 4 might be about temporary work contract, if so I was aware of that. Its 2 thats new to me, especially the "By singing you declare for the Transportation Ministry that you have changed your Residence to Malta effective from the day the car has arrived on the island. "bit - that appears to be a very harsh approach

"The fact is that if you drive as a Tourist for more than 30 days then you loose the right to ask for tax exemption unless if you go in and out of the country BUT the trick can only work if you are a genuine tourist. If for example you have a house rent contract, they ask for it when you apply, and the date of the contract is more than 30 days from the date of application, then obviously you have changed residency for more than 30 days so... no exemption" - that doesn't sound right - just because you have a house rent contract doesn't mean you are resident - I know loads of foreigners who rent a place for years on end, but only use it for the odd month here and there, and are clearly tourists

georgeingozo wrote:

..that doesn't sound right - just because you have a house rent contract doesn't mean you are resident - I know loads of foreigners who rent a place for years on end, but only use it for the odd month here and there, and are clearly tourists

My feeling is that they are doing their best to prove that you are in Malta for more than 30 days. And since you apply for tax exemption these all are considered evidence of residence. Let me put it differently. That you rent a flat in Malta does not make you resident. That you apply for tax exemption makes you... and the date is the date that suits them most to turn the application down.

Thats sounds a very harsh assessment, and one I'd talk to a lawyer about whether an appeal is worth it.

I think it needs a layer for the following reasons:

1. Read the application form: VEH 07
The short guidelines state: A vehicle is to be declared for exemption not earlier than two months before the date on which applicant becomes normally
resident in Malta and not later then twelve months following that date. To me that seems to imply that I can apply within a year after I become resident.

2. However the actual LAW: POL 02 states that: "In line with the current regulations, every new or used Motor Vehicle must be registered
with the Authority. Individuals importing a used vehicle must make an appointment for
the vehicle to be inspected and the whole registration process must be completed
within 20 days from date of importation to Malta. Where a person, who is not an
authorised dealer, fails for unjustified reasons, to comply with the 20 day period he may
be liable to an administrative fine of €30 for each day that the vehicle remains not
registered – refer to Legal Notice 198 of 2009 MVR Cap 368 Article 6(3). The 20 day
period is not applicable during the registration of undocumented vehicles."

According to this law not only I am not supposed to receive tax exemption but also, I am in the penalty zone.... But I am not (or they forgot?). My feeling is that the law refers to those who have a Maltese ID while the Tax Exemption to Expats. If this is correct then they got confused....

The tax exemption has nothing to do with nationality, but the fact you and the vehicle were outside of Malta for 24 months - Maltese can also use this, if they fulfll the criteria

"Individuals importing a used vehicle must make an appointment.... " - tourists are not included in this

The big issue here is when you became resident - you are claiming you were first a tourist, and then became a resident (without leaving). They are claiming you had the intention of being a resident ever since you arrived, and so were never a tourist.

VEH07 only talks about timing with respect to the person, not the vehicle - you have up to a year following taking up residency, but it doesn't say how long after bringing in the vehicle (as the vehicle doesnt have to arrive at the same time as you)

georgeingozo wrote:

The big issue here is when you became resident - you are claiming you were first a tourist, and then became a resident (without leaving). They are claiming you had the intention of being a resident ever since you arrived, and so were never a tourist.

So in that scenario, not only I am not eligible any-more but I must pay the penalty as well. Correct?

under their interpretation yes, but I'd say its a very harsh interpretation, and worth considering an appeal.

There are loads of people who have done the same (or similar) as you, and yet not heard anyone else getting a ruling like this

georgeingozo wrote:

under their interpretation yes, but I'd say its a very harsh interpretation, and worth considering an appeal.

There are loads of people who have done the same (or similar) as you, and yet not heard anyone else getting a ruling like this

When you mean "ruling" do you mean the "denial of the exemption" or the "penalty as well". You see I am afraid that if I go for an appeal I may end up with the penalty as well....

We went through this process when we moved from France, lots of paperwork bank statements etc. Is it worth it, NO, you finish up with a car that you eventualy will have to pay the import duty on anyway. You can't sell it , transfer it, give it away, scrap it or export it without paying the original import tax. Its far easier to pay it now.

Terry

tearnet wrote:

We went through this process when we moved from France, lots of paperwork bank statements etc. Is it worth it, NO, you finish up with a car that you eventualy will have to pay the import duty on anyway. You can't sell it , transfer it, give it away, scrap it or export it without paying the original import tax. Its far easier to pay it now.

Terry

I though you could after a certain number of years.... Isn't it?

No, there is no time limit. You will have to pay eventually.

Terry

I thought you could export it, and that was the only way to avoid the tax

Exporting it may be the way to go but my guess is that it would only work if you left Malta. If you sold it in europe whoever brought it would have to register it in their country of residence, Malta (transport Malta) would be notified and if you still lived in Malta they would send you the bill for the registration tax. Again is it worth the effort or cost of exporting it back to the UK?

Terry

I think there is an important point to be answered also. What exactly is my status in Malta? The question may seem silly but, providing that my probation period at work is 9 months and after this my contract will last for another 15 months, isn't fair to assume that paying tax for a car that may not be here after 2 years is an exaggeration to say the least? I may be bubbling now but I guess that the spirit of the law regarding the residency is this i.e. spend enough time in Malta after which you cannot claim that you changed your mind. At present I cannot even get an electricity bill under my name because of "not being resident", how on earth did I became one just for Malta Transport is a mystery.

"my probation period at work " - ah - only residents are allowed to work in Malta

"At present I cannot even get an electricity bill under my name because of "not being resident" - do you have a residency certificate ?

georgeingozo wrote:

"At present I cannot even get an electricity bill under my name because of "not being resident" - do you have a residency certificate ?

No I don't. What is this?

georgeingozo wrote:

"my probation period at work " - ah - only residents are allowed to work in Malta

So this makes me automatically a resident I guess? Because according to this [moderated: link removed as requested]I need six months to become.

janagn wrote:

georgeingozo wrote:

"At present I cannot even get an electricity bill under my name because of "not being resident" - do you have a residency certificate ?

No I don't. What is this?

all non-Maltese EU citizens residing in Malta have to, by law, register their residency, for which Malta issues a residency certificate

this is the form
http://www.mfa.gov.mt/Library/Citizensh … ionals.pdf

janagn wrote:

georgeingozo wrote:

"my probation period at work " - ah - only residents are allowed to work in Malta

So this makes me automatically a resident I guess?

by definition

georgeingozo wrote:

janagn wrote:

georgeingozo wrote:

"my probation period at work " - ah - only residents are allowed to work in Malta

So this makes me automatically a resident I guess?

by definition

Not sure if iterpret the text correctly but acdording to this [moderated: link removed as requested] I need six months to get an ordinary residence. Also the pdf for the certificate is to be completed after 3 months of residence.

only residents can work in Malta (unless you have a special licence)

residence has to be applied for after 3 months, can can be applied for immediately if you intend to be here for at least 3 months

that website has got several things wrong

from that site
"Any EU/EEA or third country national who resides in Malta for more than three months requires a permit from the immigration authorities, which is granted on specific grounds, "

EU/EEA citizen requires a certificate, not a permit (the difference being a permit can be refused without reason, a certificate is more like a receipt), but they are right about the 3 months (sort of - a 3rd country national can extend a visa rather than get a permit)

georgeingozo wrote:

that website has got several things wrong

OK, so let me then understand the sequence in order to recap:

1. The moment you start working here you become resident
2. The moment you become resident you cannot drive a car with foreign plates for more than 20 days.
2a. If you apply for number plates within these 20 days you get them for free (conditions apply)
2b. If you go over 20 days you get no exemption and possibly a penalty.
3. If you don't want to tax the car in Malta you must not be a resident thus not to have a work and only for 6 months. After this you become an Ordinary resident thus you have to pay or go.

Last question. What happens with those who are temporary here for one year or more? Contractors, oil workers etc? Do they still have to pay the tax and then go?

Thanks again
Yiannis

A simple yes/no is always tricky, but in general terms

1. The moment you start working here you become resident - yes
2. The moment you become resident you cannot drive a car with foreign plates for more than 20 days. - a resident cannot drive a foreign plated car without exemption
2a. If you apply for number plates within these 20 days you get them for free (conditions apply) -the conditions are onerous
2b. If you go over 20 days you get no exemption and possibly a penalty. - not necesarily
3. If you don't want to tax the car in Malta you must not be a resident thus not to have a work and only for 6 months. After this you become an Ordinary resident thus you have to pay or go. -  3 months you have to become resident - you have 3 months, the car has 6

"What happens with those who are temporary here for one year or more? Contractors, oil workers etc? Do they still have to pay the tax and then go?" - they get one year
http://www.britishexpat.com/expatforum/ … 0006#50006

oil workers are unlikely to be working in Malta

georgeingozo wrote:

A simple yes/no is always tricky, but in general terms

2b. If you go over 20 days you get no exemption and possibly a penalty. - not necesarily

You confuse me again... Not necessarily "The Penalty" or "the Exemption?"

the exemption

edit and the penalty - it depends whether you are a tourist or a resident etc etc

very little of this can be answered with a simple yes/no, its a "yes, but" or "no,but"