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 distributing agents.
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)