2 0 0 3
VALUE ADDED TAX
Status of EU Negotiations
Negotiations with European Commission still in
progress re. exemption of VAT on food, medicines, printed matter.
VAT Payment at Import Stage
Aim: VAT payments on importation of goods
from EU MSs is incompatible with the internal market.
Measure: Removal of VAT on taxable products
imported in Malta from MSs presently payable on importation (on membership)
(No change to procedure in case of goods imported
from third countries)
Aim: Importers from EU MSs - Reduction in
form-filling burdens and removal of need for Customs to examine imported goods
coming from EU MSs; improved cash flow; reduced compliance costs.
Measure: VAT collected from taxable products
sold will be passed to the VAT Department in tax period of sale.
VAT in the Tourism Sector
No change (5% on accommodation)
VAT Payment on Electricity Consumption
Measure: Electricity consumption currently
exempt without credit now subject to:
5% VAT absorbed by Enemalta.
VAT on Cylinder Gas
Aim: To solve current problems for gas
Measure: 15% VAT wholly absorbed by Enemalta.
(no VAT refunds will be made to retailers)
VAT on Cultural Teaching
Aim: To encourage the spread of culture
among the general public.
Measure: Tax exemption on VAT on teaching of
ballet & music (exempt without credit)
Budget 2003 Index