S.L. 406.21 Art. 3Single taxable person.     Cap. 372.      Cap. 123.

(1) Two or more persons established in Malta may apply to the Commissioner to be registered as a single taxable person for the purposes of the Act if the following conditions are satisfied:

(a) at least one of the applicants is a taxable person who is licensed or recognised in terms of the legislation listed in the Schedule;

(b) each of the applicants is bound to each of the others by financial links, organisational links and economic links; and

(c) at the time of application, all the applicants have submitted all returns and notices due under articles 27 and 30

of the Act, and all returns of income due in terms of the Income

Tax Management Act, and have settled in full any and all amounts due by way of tax declared in the aforementioned returns and notices, as well as any interest and administrative penalties due pursuant to the Act and the Income Tax Act and

Income Tax Management Act:

Provided that, when a valid objection or appeal has been made against an assessment issued to any of the said applicants, any tax and, or administrative penalty assessed which is in dispute and which is kept in abeyance as a result of the said objection or appeal, as well as any interest accruing thereon, shall be disregarded for the purposes of this paragraph.

(2) A person established in Malta may apply to the Commissioner to be admitted as a member of an existing VAT Group, provided that the conditions set out in sub-regulation (1)(b) and (c) are satisfied.

(3) For the purposes of this regulation:

(a) the required financial links shall be deemed to exist where any two or more of the following are, directly or indirectly, held as to more than 90% by the same person or persons (whether a legal person or an individual):

(i) the voting rights or equivalent interests;

(ii) the entitlement to profits available for distribution; or

(iii) the entitlement to surplus assets available for distribution on a winding up or equivalent event;

(b) "organisational links" shall be deemed to exist where the applicants have a shared management structure, whether in whole or in part;

(c) the required economic links shall be deemed to exist where the activity of each of the applicants is of the same nature or within the same industry, or where the activities of the applicants are interdependent or complementary, or where one member of the group carries out activities which are wholly or substantially to the benefit of any one or more of the other members:

Provided that, for the purposes of determining whether the required economic links exist, the Commissioner may request such additional information and documentation as may be required to evidence such links, and the decision of the Commissioner shall be final and conclusive.

(4) No person may be a member of more than one VAT Group at the same time.

(5) Persons bound to each other by financial links, organisational links and economic links may only form part of the same VAT Group.

(6) In order for a group of persons to be treated as a VAT Group, or to be admitted to a VAT Group, an application shall be made in the manner specified in regulation 8.