Author: SME Chamber

A Brexit deal has been agreed between UK and EU negotiating teams before a meeting of European leaders in Brussels.

Prime Minister Boris Johnson tweeted: “We’ve got a great new deal that takes back control.”

The two sides have been working on the legal text of a deal, but it will still need the approval of both the UK and European parliaments.

The DUP has cast doubt on its sign off, saying they still cannot support it.

The Northern Irish party earlier released a statement saying they could not back proposals “as things stand”, and – after the PM’s announcement – said their statement “still stands”.

Source: BBC

Budget 2020: Positive, next steps should be for SMEs – GRTU

GRTU – Malta Chamber of SMEs saw plenty of positives in Budget 2020.

Paul Abela, President of the General Retailers and Traders Union, said that the GRTU had reacted to this budget positively, which in is words, “could not be otherwise.”

Among other proposals, Mr Abela referred to the proposed reduction of stamp duty on the transfer of a family business, and the tax reduction on the first 100 hours of overtime, as well as increasing the cost of living.

The government had also taken up the GRTU’s proposals to ensure adequate connectivity between Malta and Gozo.

 

The Government future step should be to enact another GRTU proposal – that of capping tax rates for SMEs to a maximum of 20%.

Budget 2020: What’s in it for you

Business

• Overtime will be taxed at 15%, This measure will apply on the first 100 hours of overtime in a year, for those with a basic salary of not more than €20,000, this measure will not apply to management positions

• The reduction of 1.5% stamp duty on the transfer of a family business will continue

Self-employed

• Grant of up to €200,000 for contractors to scrap old machinery and buy new, less polluting models

• Extension of start-up schemes

Workers

• COLA increase of €3.49 per week

• Pensioners will receive an increase of €7 per week, inclusive of COLA

• One day will be added to leave

• A Tax rebate cheque for those earning under €60,000

Property

• New scheme will see people under 40 who cannot cover the 10% deposit to buy a house, eligible for a government interest-free loan up to maximum of €17,000, paid back over 15 years

• First time buyers scheme will apply on property value of €175,000, an increase from €150,000, and the maximum benefit will increase to €6,500 from €5,000

• Schemes for property purchases in Gozo, urban conservation areas, second time buyers and equity sharing will be retained

• Scheme to restore facades of old houses Irrestawra Darek extended for a further year

Environment

• Next year, the bottle return scheme will start

• Single-use plastic will be banned in phases starting from a ban on importation in 2021 and distribution in 2022

• Grant to help shops set up green corners where they can sell products by weight

• Schemes covering PV panels and water pumps will continue

• Those who introduced PV panels some years ago and whose pay back rate is running out will benefit from a €1,000 grant to buy their own battery to store electricity

• Lighting systems in all squares will be changed to renewable self-sufficient systems

• Malta Stock Exchange will open up for green bonds

Education

• VAT will be removed on educational and vocational services, including distance learning

Pensioners

Government will issue 62+ bonds targeting 6,500 pensioners

Gozo

• Gozo tunnel – The pre-qualification questionnaire will be issued in the coming weeks

Others

• Malta Enterprise will invest in open areas in industrial estates to make them greener and adequate meeting areas for employees

• Cash transactions in real estate, car, yacht, precious metals and art, purchases will be limited to €10,000

All Economic Operators are being informed that in accordance with the Transit Manual Working Document (TAXUD/A2/TRA/003/2016-EN), the proof of status is required at the final Union port of destination (discharge), issued and authenticated by the competent authority (T2L).

It is recommended that in these cases the proof of status accompanies the goods from the start of the transport operation. Proof of the customs status of Union goods through the invoice or transport document in lieu of the presentation of a T2L.

 

The invoice or transport document shall include at least the following information:

• •                 the full name and address of the consignor, or of the person concerned where that person is not the consignor;
• •                 the number and kind, marks and reference numbers of the packages;
• •                 a description of the goods;
• •                 the gross mass in kilograms;
• •                 the value of the goods;
• •                 the container numbers, if appropriate;
• •                 the symbol T2L or T2LF, as appropriate;
• •                 the hand-written signature of the person concerned

Note: the invoice or transport document must relate only to Union goods.

At the request of the person concerned, the invoice or transport document duly completed and signed by him shall be endorsed, by the competent office.

In the Union only: where the total value of the Union goods covered by the invoice or transport document does not exceed EUR 15000, no endorsement by the competent office is required. However, the name and address of the competent office shall be shown on the invoice or document, in addition to the above details.

In addition, the Department would like to remind you that ONLY original T2L/T2LF supported by an original copy 4 of the Single Administrative Document (SAD) and original invoices/transport documents are accepted.

This procedure also applies to Maltese Economic Operators who are sending community goods to another Member State.

For further information and clarification, you may wish to contact the Department’s Customs Economic Procedures Unit (CEPU) on Tel: 25685141/2 or by send an email to 

Notice to Economic Operators: Economic Operators Registration and Identification number (EORI)

Anyone importing commercial goods from outside the EU (or exporting in the opposite direction) needs an EORI number. The number is also used bycustoms authorities when exchanging information between themselves and government departments and agencies.  In accordance with the VAT Act, an Economic Operator is not required to apply with the VAT Department for importation purposes however the same EO needs to be VAT registered when declaring goods for export.

In this context, an EORI number may be issued irrespective of whether the Economic Operator is VAT registered or not.  If not VAT registered, the Economic Operator cannot access our National Export System (NES).

For additional information, you may wish to contact the Customer Services Unit (Tel: 25685123) or by sending an email to: 

Notice to Economic Operators: Obligations of the holder of the Union Transit Procedure and of the Carrier and Recipient of goods moving under the Union Transit Procedure

Malta, along with all other parties to the Common Transit Convention, has been investigating the high number of undischarged movements in NCTS. It has become clear that a major reason for non-discharge is that goods and/or the TAD are not being presented to Customs at the Office of Destination. In some cases, customs declarations are being made without reference to transit while in others no customs declarations are being made at all.

Some Consignees are not recognising the TAD as an official document and are not aware of their responsibilities according to the law.

This notice draws attention to the legal responsibilities of importers and carriers and explains what Customs are doing to promote compliance.

Article 233 of Regulation (EU) No 952/2013 (the Union Customs Code) provides that the principal is responsible for producing goods intact, within prescribed time limits, at the Customs Office of Destination. The Article goes on to provide that a carrier or recipient of goods who accepts goods knowing that they are moving under Community Transit is also responsible for meeting these obligations. The provisions are replicated in the Common Transit Convention.

Principals, carriers and consignees should ensure that they know when goods are moving under transit and make the necessary arrangements to comply with procedures. They should also ensure that both they and their employees are able to recognize a TAD as an official document. In a transit movement under the NCTS ‘Normal Procedure’, the TAD accompanies the goods and both it and the goods must be presented to Customs at the nominated Office of Destination. Customs retain the TAD and send an NCTS arrival message. If a TAD is included with paperwork received by the consignee there is a strong presumption that the transit movement has not been completed. In such circumstances the consignee should contact Customs immediately.

It is important to note that failure to fulfil these obligations may constitute offences in terms of the Union Customs Code (Reg (EU) No 952/2013) and/or of the Customs Ordinance (Chap. 37) and, consequently, subject to penalties/criminal offences.

Excerpt from the Union Customs Code

Article 233

Obligations of the holder of the Union transit procedure and of the carrier and recipient of goods moving under the Union transit procedure

1. The holder of the Union transit procedure shall be responsible for all of the following:

(a) presentation of the goods intact and the required information at the customs office of destination within the prescribed time-limit and in compliance with the measures taken by the customs authorities to ensure their identification;

(b) observance of the customs provisions relating to the procedure; and

(c) unless otherwise provided for in the customs legislation, provision of a guarantee in order to ensure payment of the amount of import or export duty corresponding to any customs debt or other charges, as provided for under other relevant provisions in force, which may be incurred in respect of the goods.

2. The obligation of the holder of the procedure shall be met and the transit procedure shall end when the goods placed under the procedure and the required information are available at the customsoffice of destination in accordance with the customslegislation.

3. A carrier or recipient of goods who accepts goods knowing that they are moving under the Union transit procedure shall also be responsible for presentation of the goods intact at the customsoffice of destination within the prescribed.

The scheme announced this morning by Bank of Valletta with the support of the Malta Development Bank is very good news for Maltese Businesses. Businesses will be able to apply for financing of their projects up to a maximum of Eur 750,000, at a 3.5% interest rate and lower collateral requirements.

GRTU welcomes this announcement as the first positive tangible step made by the Malta Development Bank. The development bank was the mover behind this scheme but GRTU thanks all the parties involved, both foreign and local, that came together to make this possible.

GRTU had campaigned for the establishment of a Development Bank for Malta for many years and what we are experiencing today was specifically the reason. Many businesses, especially SMEs, experience difficulties in accessing finance because of the high interest rates and collateral requirements, making access to finance very expensive.

This scheme puts businesses at par with many other EU countries when accessing finance. On average businesses will now pay the same for an investment as their counterparts would do in a number of Member States, not twice or three times as much.

The scheme is currently accessible through Bank of Valletta and GRTU encourages businesses to make the most out of this invaluable opportunity.

Business interested can contact GRTU for further information.