Browse our latest VAT publications
Understanding the VAT implications on the sale and letting of immovable property in Malta is essential for property owners, tenants and professionals. While such transactions are generally exempt from VAT, several key exceptions apply; such as licensed accommodation, sporting facilities, short-term lettings and certain...
The VAT in the Digital Age (ViDA) package, adopted on 11 March 2025, aims to modernise and digitalise the Value Added Tax (VAT) system within the European Union. The initiative focuses on enhancing tax collection, reducing fraud, and simplifying VAT compliance through technology. Key components include digital...
Recent amendments to the Value Added Tax Act, effective from 1 January 2025, primarily impact small undertakings by altering the criteria for eligibility. The changes include the inclusion of certain exempt supplies related to immovable property, financial transactions, and insurance transactions in the turnover...
Delve into the detailed changes to the SME scheme effective from 1 January 2025, in line with updates to the EU Council Directive 2006/112/EC. The new special scheme for small enterprises allows taxable persons established in an EU Member State to exempt their cross-border supplies from VAT. The amendments to the Value...
Local VAT legislation has been updated effective from 1 January 2025, incorporating Council Directive (EU) 2020/285. Small enterprises with an annual turnover of up to €100,000 in the EU are eligible for VAT exemption. Amendments to Articles 10 and 11 of the Maltese VAT Act update registration provisions and...
At the Economic and Financial Affairs Council (ECOFIN) meeting on 5 November 2024, an agreement was reached for the adoption of the VAT in the Digital Age (ViDA) Directive. Key dates include the voluntary implementation of the platform economy and single VAT registration by 1 July 2028, mandatory adoption of deemed...
The CBAM phased implementation keeps progressing and starting Q3 2024, default values may only be used for up to 20% of emissions regarding complex goods, while non-complex goods must report actual values. The Q3 report deadline is 31 October 2024, with modifications allowed until 30 November. From 2025, only...
The 8th Directive allows businesses to reclaim VAT incurred in EU Member States where they aren’t established. Maltese businesses must be VAT-registered, not have an EU presence, and apply by 30 September 2024. Applications are submitted via the MTCA portal, with appeals handled by the Member State of refund.
"Quick Fixes" are EU VAT rules effective from 1 January 2020, addressing call-off stock arrangements, chain transactions, and intra-community supply exemptions. Businesses engaged in cross-border EU trade must comply with these rules to reduce administrative burdens and ensure accurate reporting. Council Implementing...
The Customs Centralised Clearance Procedure (CCCP) allows Authorised Economic Operators (AEOs) to electronically declare goods at a single customs office, regardless of the goods' EU entry point. AEOs benefit from streamlined customs processes and fewer controls. Under the Union Customs Code, CCCP enhances efficiency...
New VAT guidelines clarify the reduced 12% rate on specific supplies from 1 January 2024. It applies to credit management by third parties, short-term hiring of pleasure boats in Malta, and certain human body care services. Exemptions and standard rates remain for other cases. CfTC issued detailed instructions.
Malta has published Legal Notice 272 of 2023 which transposes the EU CESOP Directive introducing mandatory reporting requirements for payment service providers into the Maltese Value Added Tax Act with effect from 1 January 2024.
The Commissioner for Tax and Customs (‘CfTC’) has published new guidelines for the VAT treatment of Health Care services which are based on the provisions of the EU VAT Directive 2006/112/EC and jurisprudence of the Court of Justice of the European Union. These guidelines include a number of interpretations and provide...
City cards, used primarily for accessing tourist attractions or transportation within a specific area, were discussed by the VAT Committee in light of a CJEU decision. They examined two types of city cards, considering whether they qualify as vouchers for VAT purposes and if they are single- or multi-purpose vouchers....
The article discusses the VAT implications of extended warranties on certain goods. The case before the European Court of Justice involved a company offering extended warranties through an insurance partnership. The question was whether commissions received from the insurer fell under the financial services VAT...
Input tax that is directly attributable to supplies which give the right to deduct VAT, is available as a credit in full. Contrary to this, input tax directly incurred in connection with supplies which do not give the right to deduction may not be allowed as a deduction.
Pursuant to the 2018 Government Budget Speech, Legal Notice 162 of 2018 has introduced the possibility of VAT grouping in Malta. Indeed, the Legal Notice establishes the Value Added Tax (Registration as a Single Taxable Person) Regulations, 2018, as subsidiary legislation to the Maltese Value Added Tax (VAT) Act,...
An Authorised Economic Operator (AEO) is a designation which may be granted by customs authorities to economic operators established in the customs territory of the European Union, who are part of the international supply chain, involved in customs-related operations and who have met certain standards of security and...
Taxable persons registered under article 10 of the Value Added Tax Act, have various reporting obligations including ‘recapitulative statements’.
Maltese VAT legislation contains specific and separate provisions dealing with tax invoices and fiscal receipts. The obligations concerning tax invoices are regulated at a European level by the European VAT Directive (2006/112/EC) - with the respective provisions being also transposed into the Maltese Value Added Tax...
Identifying the place of establishment of the parties to a transaction can be crucial in determining the jurisdiction where VAT is due on a supply, as well as the person who is obliged to account and pay such VAT. In some cases determining the place of establishment may not be a straightforward matter, since this does...
A new Council Directive will, with effect from 1 January 2024, require Payment Service Providers (PSPs) to collect and report data regarding cross-border payments. New provisions within the VAT Directive will oblige PSPs to keep record of cross-border payments in connection with e-commerce.This measure is being...
The rules on rates of value added tax (VAT) as currently set out in Council Directive 2006/112/EC (the VAT Directive) aim to preserve the functioning of the internal market and avoid distortions of competition. The rules were designed over two decades ago based on the origin principle. They generally provide for a...
The Office of the Commissioner for Revenue (‘CfR’) together with the National Statistics Office, is reminding taxpayers of their obligations to file Supplementary Information Declarations - commonly referred to as Intrastat Declarations. Moreover, defaulting taxpayers are being requested to submit missing Intrastat...
The transfer of immovable property that is situated in Malta is considered to be a supply which is exempt from Maltese VAT. However, the Maltese VAT Act (‘VATA’) also provides that in specific circumstances, “the transfer by a person of assets of his economic activity shall be treated as neither a supply of goods nor...
The characterisation of a transaction as a supply of a good or service has various implications including whether the transaction falls within the scope of VAT, the determination of the place where the particular transaction is deemed to take place for VAT purposes and the date when VAT on the transaction would become...
During March 2021, the Court of Justice of the European Union (“CJEU”) published the eagerly awaited "Danske Bank" ruling (Case C-812/19) which dealt with the question as to whether or not a Swedish branch of a principal establishment that is established in a different EU Member State (Denmark in this case) should be...
