Topic
VAT & indirect tax
VAT rules, guidelines and deadlines, excise and other indirect taxes.
36 news items and articles, newest first
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Reduced rate of tax for income from artistic activities
The Commissioner for Tax and Customs has announced the publication of guidance on the 7.5% rate of tax applicable to income from certain artistic activities pursuant to article 56(26A) of the Income Tax Act (CAP 123).…
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Extension of VAT Return Deadline for August 2023
The Malta Tax and Customs Administration notifies that the deadline for the filing of VAT returns that are due by 15th August 2023 has been extended to 31st August 2023. The due date of the relative payment is being…
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Alignment of VAT Return and Recapitulative Statement periods
The Office of the Commissioner for Revenue has embarked on an exercise to align VAT periods with the Recapitulative Statement reporting periods, with VAT periods being changed to calendar quarters. Qualifying VAT…
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Assignment of a lease agreement of immovable property – Income tax, stamp duty and VAT implications
Businesses operating an establishment in Malta, held by a title of lease may assign their lease agreement to a third party for consideration. What are the income tax, stamp duty and VAR implications contemplated by the…
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Compromise Arrangements in VAT
The Government has on the 17th December 2021 published a set of guidelines for the application of compromise arrangements (in lieu of criminal prosecution) in terms of article 84 of the VAT Act.
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Budget 2022 – VAT refunds on qualifying properties
Minister Clyde Caruana has on the 11th October 2021 presented the Government’s budget for the year 2022. With effect from 12 October 2021, persons who will own or who already own qualifying properties, may benefit from…
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EXPLANATORY NOTES PUBLISHED BY THE EU COMMISSION ON THE NEW VAT E-COMMERCE RULES
On the 30th of September 2020, the European Commission has published explanatory notes on the new VAT e-commerce rules. The notes are intended to provide an explanation of the amendments to the legislation which will be…
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Deferral of Excise Duty Payments – Legal Notice Published
The Government of Malta has issued Legal Notice 147 of 2020 which provides for a two-month deferral for the payment of excise duties falling due in April or May. The LN provides that excise duty on excise goods and…
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Waiver of customs duties and VAT on the importation of medical items into the EU
On 3 April 2020, the EU Commission decided to approve requests from all Member States and the UK to temporarily waive customs duties and VAT on the importation from outside the EU of masks, testing kits, ventilators,…
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New VAT Rules for SMEs Agreed
The Council of the EU has reached an agreement on the amendments to the VAT Directive in relation to SMEs. The objective of the amendments is to reduce the administrative burden and compliance costs for SMES, and in…
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VAT: reduction of rate of interest
The Malta Government has on the 19th November 2019, published Legal Notice 303 of 2019 which with effect from the 1st January 2020 will reduce the rate of monthly interest on unpaid vat payable in terms of Article 21(4)…
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Increase of Threshold for Small Traders
As announced in the Budget for 2018 and by means of LN 163 of 2018, the turnover threshold under which service providers remain eligible for registration under article 11 has been increased from €14,000 to €20,000 in a…
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ACT becomes a member of the International VAT Association (IVA)
We are pleased to announce that ACT has become a member of IVA. IVA is a leading independent body on international VAT issues, representing the interests of businesses and advisers involved in VAT or equivalent turnover…
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Amended guidelines regarding VAT treatment of yacht and aircraft leasing
The Commissioner for Revenue has published an amended version of the guidelines regarding the VAT treatment of yacht and aircraft leasing. In terms of the amended guidelines, the manner in which the period that the…
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Letting of rooms to play poker are now exempt from VAT
By virtue of Legal Notice 9 of 2018, the Maltese Government has exempted the letting of rooms or other spaces which are lawfully designated for the playing for poker from the payment of VAT. This legal notice has…
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Amendment to the 5th Schedule of the VAT Act
By virtue of LN 347 of 2017, item 2 of paragraph (2) of Part 5 of the 5th Schedule has been amended so that food which is served for consumption by any person in the same establishment, shall now be considered as food…
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VAT Treatment of Vouchers
On 27 June 2016, the Council of the EU announced that it has adopted a Directive (EU 2016/1065) on the VAT treatment of vouchers. The Directive is aimed at clarifying and harmonizing the EU rules on the VAT treatment of…
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New guidelines issued by the VAT Department on sporting facilities
The VAT Department has on the 28th November 2017, issued new guidelines with respect to the reduced rate of 7% on the use of sporting facilities. The guidelines stipulate that as from the 1st January 2018, the reduced…
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New guidelines issued by the VAT Department to determine the taxable value of gambling and betting services
The VAT Department has on the 21st November 2017, issued new guidelines, on the determination of the taxable value of gambling and betting services, that fall within the scope of article 4 of the VAT Act and which are…
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New Guidelines issued by the VAT Department on supplies relating to Gambling
The VAT Department has on the 21st November 2017 issued new guidelines with respect to supplies related to gambling which with effect from 1 January 2018 shall be exempt without credit supplies for Maltese vat purposes.…
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VAT Grouping in Malta
In the budget speech for 2018, the Minister of Finance has announced that for the first time, Malta will introduce rules which will permit two or more persons to be treated as a single person for VAT purposes. Such…
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VAT reform towards a single EU VAT area
The European Commission has on the 4th October 2017 published a communication to the European Parliament, the Council and the European Economic and Social Committee on the “Follow-up to the Action Plan on VAT towards a…
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VAT Compliance Obligations – How can we help you?
Managing one’s vat obligations can be challenging sometimes. Legislation changes frequently and there are a number of matters which need to be considered as one’s business continues to grow and expand. Thus it is vital…
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VAT on E-Books
The European Court of Justice (ECJ) has once again confirmed that a reduced rate of VAT on e-books is not allowed and that Member States must continue applying the full VAT rate on the sale of e-books. The case against…
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Extension of the Malta VAT exemption
In terms of Legal Notice No. 383 of 2016, the VAT exemption of investment scheme management services as provided by item 3(6), Part Two of the Fifth Schedule to the Malta VAT Act was amended. As a result of this…
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New VAT rules for cross border E-commerce
On the 1st December 2016, the European Commission (EC) published its legislative proposal to change the VAT rules for online sales of goods and services in Europe, over the 2018-2021 period. The main aims of the…
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New VAT Rules for Cross Border E-Commerce
On the 1st December 2016, the European Commission (EC) published its legislative proposal to change the VAT rules for online sales of goods and services in Europe, over the 2018-2021 period. The main aims of the…
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EU VAT Action Plan supported by Malta
The Maltese Minister of Finance, the Hon Prof Edward Scicluna, has in a recent VAT and EU Conference organised by the Malta Institute of Management stated that Malta will be supporting the VAT Action Plan adopted by the…
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EU adopts Directive on VAT treatment of vouchers
On 27 June 2016, the Council of the EU announced that it has adopted a Directive on the VAT treatment of vouchers. The Directive is aimed at clarifying and harmonizing the EU rules on the VAT treatment of vouchers. The…
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New guidelines by the VAT department – correction of errors
On the 25th April, the VAT Department issued a guideline that explains the changes in the way corrections of vat returns can be made by persons registered in terms of Article 10 of the VAT Act. As from the 1st May 2016,…