Guides

GUIDE No. 01

Customs Duty and VAT at Importation

Guide to Reliefs available for the import from non-EU countries of:

- Consignments of Negligible Value, and

- Gift Consignments

1. INTRODUCTION

When goods are imported into, or received in, Malta from a country outside the
European Union (E.U.) they are liable to import charges (Customs Duty, Anti-
Dumping, Countervailing and Excise Duties where applicable and VAT) at the point of
importation. However, in the case of:

- consignments of negligible value which are imported by a person resident in Malta;

and

- gift consignments which are received by a person resident in Malta

a certain amount of relief is available from these charges. This Guide outlines the
relief available, how it may be obtained and the procedures which apply in order to
obtain it.

It is important to note that there are separate reliefs available for travellers who
wish to import goods with them on return from abroad and these differ from those
described below.

2. Consignments of Negligible Value

Consignments not exceeding a total value of €22 may be imported without payment
of Customs Duty and VAT. However, there is no relief for importations of tobacco,
tobacco products, alcoholic products, perfumes or toilet waters irrespective of their
value.

3. Gift Consignments

Relief from payment of Customs Duty and VAT is allowed on gift consignments from
outside of the E.U. where the following conditions are met:

1. The value of the gift does not exceed €45.

2. The gift is correctly declared (see paragraph 7).
3. It has been sent from a private person abroad to another person within the
E.U.
 4. The gift is for the personal or family use of a private individual in Malta.
5. There is no commercial or trade element i.e. the goods have not been paid
for.
6. Alcohol, Tobacco products, perfumes or toilet waters are within the
allowances set out in paragraph 4. Anything over those allowances is liable to
charges.
7. The gift is of an occasional nature only, such as a birthday or anniversary.

4. GIFT CONSIGNMENTS OF TOBACCO PRODUCTS, ALCOHOL, PERFUME AND

TOILET WATERS

Relief from Customs Duty is allowed on gift consignments of Alcohol, Tobacco

products, perfume and toilet waters. However, to qualify for relief, such
consignments must comply with the conditions set out in paragraph 3 and be within
the following allowances:

Type of Goods Allowances

Tobacco • 50 cigarettes; or
Products • 25 cigarillos (cigars with a
maximum individual weight of 3
gms); or
• 10 cigars; or
• 50 gms of tobacco; or
• a proportional assortment of the
different products.

Alcohol • 1 litre of distilled beverages and

spirits over 22% volume; or
• 1 litre of fortified or sparkling wine,
and some liqueurs of 22% volume
or less; and
• 2 litres of still wines.

Perfume and • 50 gms of perfume; or

toilet waters • 0.25 litres of toilet water.

It is important to be aware that there is no relief from VAT or Excise duty on

the above products, irrespective of their value.

5. HOW VARIOUS TYPES OF DUTY, CHARGEABLE AT IMPORTATION, ARE

CALCULATED

The rate and type of duty charged will depend on the type of goods being imported
and will include one or more of the following:
Type of
Description
Duty
Customs This is normally charged as a percentage of the value. The
Duty percentage varies depending on the type of goods and their
country of origin. Duty is charged on the price paid for the
goods including any local sales taxes plus postage, packing
and insurance costs. Further information on rates of duty
can be obtained from
http://ec.europa.eu/taxation_customs/dds/en/tarhome.htm

Excise This is charged on alcohol and tobacco products and is in

Duty addition to Customs Duty. The Excise Duty on wines and
spirits depends on the volume of alcohol and whether wine
is still or sparkling. Excise Duty on cigarettes is based on a
percentage of the recommended retail price combined with
a quantity charge whilst that on other tobacco products is
based on the net weight. Information on the current rates
of Excise Duty are available in the Excise Duty Act (CAP
382).

Value VAT at the point of importation is charged at the same rate

Added that applies to similar goods sold in this country. The value
Tax of the goods for the purpose of calculating the amount of
VAT payable at import is their value for customs purposes,
described above, increased by the amount of any duty or
other tax (but not including VAT) payable.

6. Rate of Customs Duty Applicable

Where a consignment consists of two or more items of an aggregate value exceeding

€45, relief will still be given for those items the total value of which does not exceed
this amount. However, it is important to understand that the value of an individual
item cannot be split up.

Where the value of a gift consignment containing more than one item falls between
€45 and €350, a flat rate of 3.5% customs duty may be applied. The importer may,
however, opt to have the goods charged at the relevant tariff rate(s) applicable. The
table below provides a number of illustrative examples:
No. And Value of
Duties payable on importation
Items
One item valued at
Relief granted on total amount.
€45
One item valued at Customs Duty (normal rate or 3.5%
€55 flat rate) and VAT payable on total
amount.
Four items relieved in full. One item
Five items valued at subject to Customs Duty (normal rate
€10 each or 3.5% flat rate) and VAT on its full
value (in this case, €10).
One item valued at Customs Duty and VAT payable on full
€400 amount at the normal rate of duty.

This provision does not apply to tobacco products, alcohol or perfume and toilet
waters. In such cases, VAT and Excise duty will be assessed in the normal manner.

7. Procedure at Importation

The Customs Declaration Form on the relative parcel, if sent by post, should be
marked “Gift” in addition to giving the details normally required. If imported
otherwise than by post, the goods should be declared as a gift at importation on the
Customs Entry (SAD).

8. Further Information

Further information may be obtained from:

Customs Front Office,

or

E-mail: malta.customs @gov.mt

Guide No. 1

THIS IS NOT A LEGAL DOCUMENT