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  • amendments to VAT Act in Budget Measures Implementation Act 2016
  • where a correction to a tax return is made, the statutory six-year period during which the Commissioner may raise an assessment in terms of Article 32 of the VATA commences from the date he receives the request for correction
  • where a correction has been requested the statutory six-year period imposed for the keeping of records shall commence from the date the Commissioner receives the request for correction
  • where a return has been filed ‘late’, i.e., after its due date, the statutory six-year period imposed for the keeping of records shall commence from the date when the Commissioner receives that ‘late’ return
  • further fine which the Criminal Court may impose where a person is found guilty of an offence under Article 77 of the VATA is reduced from ten to two times the ‘endangered tax’, with a minimum fine threshold of €1,000
  • revision of compromise fine structure provided for in Article 84 of VATA
  • LN 128 of 2016 – introduction of a prescribed form for correction of VAT returns
  • LN 247 of 2016 – empowers the Commissioner to recognise an organisation that has similar objectives to those of an ‘educational’ organisation for the purposes of exemption from VAT
  • LN 383 of 2016 – securitisation vehicle and authorised reinsurance special purpose vehicle classified as investment schemes for the purposes of the applicability of the exemption to the management of investment schemes
  • Amendment in Malta Travel and Tourism Services Act – new definition of ‘tourist’ has a direct impact on the treatment of provision of accommodation in terms of Item 1(1)(a) of Part Two of Fifth Schedule in VATA

VAT Department Guidelines

  • Revised Aviation Leasing Guidelines
  • Guidelines for the Correction of Tax returns by persons registered under Article 10 of the VATA
  • Guidelines on the VAT Treatment of Educational Services
  • Guidelines on Electronic Communications with the Revenue Departments

EU matters

  • Publication of Action Plan for VAT – reform of the VAT system
  • New VAT rules for treatment of Vouchers approved by Council
  • Proposal for new VAT rules to support e-commerce and on-line businesses in the EU
  • Proposal for the temporary application of a generalised reverse charge mechanism in relation to supplies of goods and services above a certain threshold
  • Updated version of VAT Committee guidelines
  • Launch of three public consultations on:
    • The reform of VAT rates in the EU
    • The definitive system for B2B intra-EU transactions of goods
    • The special scheme for small enterprises under the VAT DirectiveFor further information please contact Matthew Zampa or Charles Vella who may assist you accordingly.

Matthew Zampa – Partner mz@zampadebattista.com
Charles Vella – Senior Manager cv@zampadebattista.com