Tuesday July 7, 2009
No plans are in place to reduce the rate of VAT charged on catering services in Malta, the country’s prime minister has announced.
Speaking to the rest of the government, Lawrence Gonzi said in response to a question from opposition leader Joseph Muscat on the issue that such a move is not currently in the pipeline.
However, he added that proposals could still get a go-ahead in the future, as ministers are planning to have some discussions on the issue.
Mr Gonzi added that any such decision would be influenced by the country’s performance in the current financial climate.
France recently announced that the decision to cut the rate of VAT charged on the country’s restaurants and eateries could potentially boost its tourism industry.
The reduction in the tax to 5.5 per cent came into force last week.
Monday June 8, 2009
The Maltese VAT department is believed to have been run fraudulently for a number of years, according to reports.
It has been suggested by an insider talking to the country’s Sunday Times that workers in the department had suspected such problems long before recent arrests over alleged irregularities.
At least 25 people are believed to be facing trial over the problems, including businessmen and a criminal gang.
One employee told the newspaper: "Some employees would be seen picking up a VAT return form from businessmen round the corner from the department building and then filing it in on their behalf.
"It’s no conclusive proof of any wrongdoing but we knew there was something dodgy about it."
MaltaToday recently confirmed it is in discussions with European officials over plans to make some medicine exempt from VAT.
Tuesday June 2, 2009
Malta’s government has confirmed it is talking to the European Commission (EC) about plans to make some medicines exempt from VAT.
According to MaltaToday, a rate of five per cent is currently charged on some vaccines but efforts are being made under a recent European ruling to make them completely free of the tax.
The country has previously called for the approval of such plans but failed to muster support from the EC.
However, in a statement, the commission said the area "has the right, even in the case of vaccinations, not to apply any VAT, to apply a reduced VAT rate and even to apply the normal VAT rate, that is, 18 per cent".
Malta’s Labour Party recently confirmed it is taking the country’s government to court over VAT paid on vehicle registration.
Friday May 22, 2009
Malta’s government is to be taken to court over VAT paid on vehicle registration tax, it has been revealed.
The country’s Labour Party has claimed that it is planning to represent up to 18,000 people over the issue by calling for refunds on the rate.
According to reports, the party’s leader Dr Joseph Muscat claimed in a press conference outside court that it would take the issue to European authorities if it failed to win the case in Malta.
He added that the government has not responded to the filing of the case, claiming to the Times of Malta: "The prime minister ignored the 18,000 people and chose not to reply."
The Times of Malta recently reported that the country’s leader, Lawrence Gonzi, has given firms struggling to meet VAT contributions more time to pay them.
Friday May 15, 2009
Maltese firms that are struggling to make VAT contributions are to be given more time to pay them, it has been revealed.
The country’s prime minister, Lawrence Gonzi, has announced that it is to remove deadlines on the issue indefinitely in order to prevent the loss of jobs across the region.
According to the Times of Malta, finance minister Tonio Fenech made similar claims earlier this year.
Mr Gonzi said: "We understand that there are companies which genuinely have cash flow problems and, as a result, fall behind in their payment of contributions.
"We will give them more time to pay their dues with the final aim of continuing to safeguard jobs."
Earlier this week, the Times of Malta revealed a court in the country has ruled that high interest rates should charged on VAT amounts that are being contested in court.
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.
Wednesday May 6, 2009
The European Union (EU) has confirmed its adoption of a legal text which will allow Malta to continue to offer a zero per cent VAT rate on food.
At a meeting in Brussels yesterday, the Economic and Financial Affairs Council revealed that the legislation follows on from an agreement made around two months ago.
Under the plans, pharmaceuticals sold in the country are also set to receive a zero per cent rate.
EU finance minister Tonio Fenech welcome the move to cut VAT on such products in Malta.
He added that the decision would mean that consumers will not face any increases in the price of items that are often essential to the public.
It was also recently confirmed that the European Union is cutting VAT rates on some labour-intensive services such as restaurants and clothing retailers to around five per cent.
Tuesday May 5, 2009
Expectations have fallen over the potential outcome of a probe into VAT issues in Malta, it has been revealed.
An investigation that has been taking place into Marsaskala council’s failure to issue VAT receipts for advertising placed in its magazines is set to not be completed because certain departments are refusing to publish details on the issue.
MaltaToday reports that both the VAT department and the Local Councils Department are not complying with the probe.
However, a spokesperson for junior minister Chris Said claimed the investigation was still continuing.
The source added: "If it is found that there was a violation of the law, the matter will be taken to the competent authority."
It was recently reported in the Times of Malta that millions of euros have been lost in recent years due to fraudulent actions by the country’s VAT department staff.
Wednesday April 29, 2009
It has been revealed that the government of Malta is charging a VAT rate on medical vaccines, despite being given previous exemption.
The five per cent VAT rate is charged as vaccines are classed differently to other medicines, reports Malta Today.
Malta was granted a VAT exemption on medicine before its acceptance into the European Union, however vaccines go under a different classification, meaning they are subject to a five per cent VAT rate, according to the government.
A spokesperson for the finance ministry told the newspaper: "The imposition of VAT on vaccines results from pre-accession negotiations when Malta was requested to align itself with similar exemptions granted to other member states."
The newspaper contacted the European Commission and was told that Malta has "a derogation to apply zero rates on pharmaceuticals".
It was recently claimed the millions of euros have been lost over a period of years due to fraudulent actions by VAT department staff in Malta, the Times of Malta reported.
Monday April 6, 2009
Millions of euros have been lost over a period of years due to fraudulent actions by VAT department staff in Malta, according to reports.
Fraudulent practices by VAT department staff in Malta are thought to be responsible for the loss of millions of euros over a period of years, according to reports.
The Times of Malta states that at least eight department staff have been arrested following a three-month investigation.
A number of businessmen are also being investigated, according to a source.
It is thought the incident could become one of the biggest cases of fraud involving a government body, with the figures owed in VAT likely to rise in the coming weeks.
A statement released by the government on Friday (April 3rd) says: "The government will not tolerate any abuse and for this reason expects that every allegation is investigated and all the necessary action taken according to law."
The nation’s prime minister Lawrence Gonzi told the newspaper that there would be no resignations in the VAT department before the police investigation is concluded.
Last month, the Leicester Mercury reported that eight people in the Midlands have been jailed for their roles in a VAT fraud scam which saw them rake in millions of pounds.
