Maltese court makes VAT ruling
Tuesday May 12, 2009
High interest rates should not be charged on VAT amounts that are being contested in court, a Maltese judge has ruled.
Mr Justice Giannino Caruana Demajo has claimed that unpaid tax claims that are placed before the VAT Board of Appeal should not face increased charges.
According to the Times of Malta, the decision was made after considering a constitutional application from a communications firm.
The company claimed the decision to introduce an interest rate of one per cent a month on unpaid VAT was "intimidatory" and the judge stated the business was not contesting the imposition of the tax, but the wait until the case would be brought to court.
Details of the case have come after the European Union confirmed that Malta can continue to offer a zero per cent rate of VAT on food and pharmaceuticals.