VAT Grouping in Malta – important update

Posted on 11th February 2019

On line registration for VAT as a single taxable person has recently been enabled on the Commissioner for Revenue web portal. VAT Group registration was formally introduced in Malta as from 1st June 2018 following the publication of Legal Notice 162 of 2018. It allows for two or more legal persons that are established for VAT purposes in Malta and that are bound together by financial, organisational and economic links to apply for registration as a Single Taxable Person.

In order for the VAT grouping registration to apply, at least one of the group members has to be licensed or recognised in terms of Banking, Financial and Insurance and Gaming Acts and at the time of application none of them has any outstanding compliance issues as regards the Income Tax Act, Income Tax Management Act and VAT Act.

The VAT group will be allocated a single VAT registration number under which all transactions by and to the VAT group will be conducted. Transactions between the VAT group members shall be disregarded for VAT purposes.

Given that VAT Group registration is predominantly applicable to businesses carrying out supplies which do not give a right of deduction, VAT Group registration can be an excellent opportunity to mitigate these costs.

For further information, advice or assistance to apply for registration as a Single Taxable Person, kindly contact Matthew Zampa mz@zampadebattista.com , or Charles Vella cv@zampadebattista.com , or Brandon Gatt bg@zampadebattista.com

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