Cap. 406 Art. 86Interpretations of certain contracts.

(1) Where, in the execution of a contract made before the effective date, any goods or services are supplied on or after the effective date and that supply is a taxable supply, that contract shall, for all the purposes of any law be interpreted as if the parties to that contract had agreed to a change in the consideration stipulated therein to reflect the difference, if any, between the system under the Customs and Excise Tax Act and that applicable under this Act.

(2) Where in the execution of a contract made before the date of coming into force of any change made in the rate of tax in terms of article 19, any goods or services are supplied on or after the date of coming into force of such change, and the supply is a taxable supply, that contract shall, for all the purposes of any law, be interpreted as if the parties to that contract had agreed to a change in the consideration stipulated therein to reflect the difference between the rate of tax applicable before the change and the rate of tax applicable after the change.

(3) Sub-article (2), with the application where necessary also of sub-article (1) and of articles 85 and 88, shall apply in the st interpretation of contracts made between the 1 January 1995 and the 30th June 1997 and between the 1st July 1997 and the 31st st December 1998 where the supply is made on or after the 1 January 2004.

(4) Sub-articles (1), (2) and (3) shall not apply -

(a) where it results from all the relevant circumstances that the consideration determined in accordance with the contract had already made provision for the said adjustment or that the parties had excluded any adjustment to the consideration on account of such difference;

(b) where or to the extent that the supply was, in terms of the said contract due to take place before the effective date or the date of coming into force of any change referred to in sub-article (2), as the case may be, and

*The original sub-article (1) has been omitted under the Statute Law Revision Act, 1980. †Repealed by this Act. ‡Repealed by Act XII of 1997 (Cap.395). the delay was due to a fault on the part of the person who makes the supply. FIRST SCHEDULE Amended L.N. [Article 5(3)] L.N. Activities of Public Authorities Substituted X. Amended L.N. The activities listed in the second column of the public authorities first column of this Schedule shall be deemed to be activities performed or furtherance of an economic activity.

First column Second column Public authority Activities Malta Drydocks Corporation All activities Mediterranean Conference Centre All activities Any public authority Sale of leaded petrol, unleaded diesel (gas) oil, kerosene, bottled supply of electricity and the supply The supply of water and gas; Production and sale of numismatic medals; Telecommunications; The transport of goods; Port and airport services; Passenger transport; Supply of new goods manufactured The transactions of agricultural agencies in respect of agricultural carried out pursuant to Regulations common organisation of the market products; The running of trade fairs and exhibitions; Warehousing; The activities of commercial publicity The activities of travel agencies; The running of staff shops, co-operatives industrial canteens and similar institutions; Transactions of a commercial nature and television bodies; Private hire of patrol boat, helicopter equipment; Inspection of ships’ hulls by divers; Security duties with banks activities; Provision of meteorological services; Book binding; Sale of bread; Sale of impounded motor vehicles; The provision of accommodation facilities to visiting youths, student groups and individuals; Sale of drugs and vaccines; Sale and cleaning of grave sites; Laboratory analysis; Testi ng for standards and issuin g of certificates for exported goods; Giving technical advice in connection with technical problems to private industries; Printing services to government departments and parastatal entities; Sale of other publications; Quarantine services; Sale of milk powder, eggs and dairy produce; Sale of vegetables; Sale of livestock; Sale of decorative trees, fruit trees, vine rootings, fruit plants, shrubs and flowers; Sale of wheat, straw and manure; Sale of fish and fishing equipment; Bowser water services; Services of grafting, pruning and spraying; Rent and provision of cold storage facilities and sale of ice; Services of civil abattoir; Provision of telephonic communications; Acting as contractor for cleaning services; Sale of compost; Repairs to damage; Carpentry works; Hiring of plant and vehicles; Supply of metal trades goods; Repairs to plant and vehicles; Sale of prints; Sale of food prepared by students as part of their daily training. SECOND SCHEDULE

[Article 6]

Supplies, Intra-Community Acquisitions and

Importations

Supplies: general rule