Malta Value Added Tax VAT

Malta Budget Report 2003
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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)

VAT Collection

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)

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