Value Added Tax - Malta 2025

Tuesday 06 May 2025

09:00 - Introduction

Louise Grima.

09:15 - VAT Changes Effective from 1st January 2025

Saviour Bezzina

During this session we shall be discussing the main Maltese VAT Changes which came into effect on 1 January 2025 including:

• The transposition of the provisions of Council Directive (EU) 2020/285 (SME Directive) relating to the Article 11 VAT Registration (Small undertakings/enterprises) and how this type of registration changed with effect from 2025 including the introduction of the new sub articles 11A ("Special scheme for small enterprises for supplies made within other Member States) and 11 B (Special scheme for small enterprises for persons not established in Malta).
• The transposition of the provisions of Council Directive (EU) 2022/542 of 5 April 2022 (the Reduced VAT Rates Directive) relating to the VAT treatment of interactive/live-streamed virtual events
• The implementation of the Budget measure relating to the VAT exemption on Products used for female sanitary protection and Medical items essential to compensate and overcome cancer in humans
• Other amendments to various other sections to the Maltese VAT Act including; Article 2 (Definitions), Article 4 (Scope of VAT), Articles 10, 12 and 13 (VAT Registrations), Article 17 (Tax periods) and various Schedules to the Maltese VAT

10:15 - Other Domestic VAT Changes Proposed/Introduced in 2024

Louise Grima

Louise will be discussing domestic VAT changes that came into effect during 2024 and VAT changes which were proposed during 2024. The session will cover, inter alia, changes introduced as result of the Budget Measures Implementation Act for 2024 and changes proposed in the Bill for the Budget Measures Implementation Act for Financial Year 2025.

11:15 - Break

11:30 - Customs Updates

Kenneth Cremona

The EU is introducing significant customs and trade policy changes in 2025, requiring businesses to adapt swiftly. From 1 January, updates to the Combined Nomenclature (CN) will introduce new commodity codes, making accurate reporting essential to avoid tax discrepancies and export restrictions. CBAM reporting must fully comply with EU standards, eliminating the use of default values, alongside a new portal for emissions data sharing. In the Pan-Euro-Med zone, modernised Rules of Origin (ROO) will provide greater flexibility and simplification. Import Control System 2 (ICS2) will expand to rail and road carriers from April, with full enforcement by September. Finally, the EU Deforestation Regulation (EUDR) will require medium and large operators to implement due diligence systems from 30 December, ensuring compliance with sustainability regulations. These changes highlight the increasing complexity of EU trade regulations, making proactive adaptation essential for businesses.

12:30 - End of First Session

Friday 09 May 2025

09:00 - Introduction

Louise Grima

09:15 - VIDA: Where do things stand?

Vanessa Micallef

The VAT in the Digital Age (ViDA) package has been adopted on 11 March 2025 following re-consultation of the European Parliament and will be rolled out progressively until January 2035. During the one-hour session, the three main pillars of ViDA—real-time digital reporting, updated rules for the platform economy, and single VAT registration—will be discussed, along with the necessary changes that need to be implemented.

10:15 - VAT Essentials in the Yachting Industry

Jonathan Pace

This brief session will cover the key VAT aspects of yacht acquisitions, including importations, as well as the VAT implications of chartering and leasing transactions. Additionally, it will also touch upon the VAT treatment of acquisitions of goods by yacht operators and highlight the VAT considerations that may arise when selling or disposing of a yacht in respect of which VAT was previously claimed. Throughout the session, reference will be made to, among other things, the relevant provisions of the Malta VAT Act (including guidelines issued by the local tax authority) and conclusions of the Court of Justice of the European Union (CJEU) on the subject.

11:15 - Break

11:30 - Maltese VAT Cases decided in 2024

Dr. Robert Attard

The webinar will discuss recent judgments of the ECtHR, CJEU and the local courts which could potentially impact on the Maltese Vat system.

12:30 - End of Second Session

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The Speakers

Saviour Bezzina is the manager responsible for indirect tax matters at the EY Malta office and forms part of EY’s Global Indirect Tax Network as a local knowledge contact. He joined EY in July 2006 after obtaining the Bachelor of Accountancy (Hons.) from the University of Malta. He is a member of the Malta Institute of Accountants, holds a Diploma in VAT compliance and lectures regularly on VAT and indirect tax matters. Saviour was awarded the 2007 MIA prize as the best student who graduated in the Bachelor of Accountancy (Hons) Degree Course Group 2004/2006.

Louise Grima is a Manager at KPMG Malta. She joined KPMG in 2015 after graduating with a Master in Accountancy from the University of Malta and has since worked in direct and indirect tax compliance and advisory projects servicing clients in a number of industries including financial services, insurance, gambling and international trade. Louise was awarded the 2015 MIA Best Student of the Year prize for Master in Accountancy Group 2013/2015, holds a Diploma in VAT compliance. Louise has also successfully completed the Advanced Diploma in International Taxation with an overall distinction. Louise is a member of the Malta Institute of Accountants (MIA), is an ACCA lecturer at KPMG Academy, and regularly delivers courses and seminars relating to VAT. Louise is a member of the MIA Indirect Tax committee.

Kenneth Cremona graduated with a Master in Accountancy from the University of Malta in 2015. Kenneth joined RSM Malta in 2016, initially working on Income Tax Compliance dealing with clients established in multiple industries including Gaming, Immovable Property, Investments, Pharmaceuticals and Retail. During 2019, he specialised in VAT advisory and was promoted to a Supervisory role within the firm, and as an Assistant Manager in 2021. Kenneth is also a CPA warrant holder and received the Professional Certificate in Taxation issued by the Malta Institute of Taxation in 2017.

Vanessa Micallef joined the Deloitte Malta’s tax team in 2006 after graduating with Honours in Bachelor of Accountancy from University of Malta. In 2008, she obtained a Diploma in Taxation from the Malta Institute of Taxation. Vanessa works on both direct tax and indirect tax projects for local and multinational groups. Since 2011, Vanessa has specialised in VAT whose role primarily entails providing indirect tax advice to entities carrying out business in Malta, particulary on immovable property and gaming. She is also involved in VAT compliance projects for both local and international firms and assists companies undergoing VAT investigations. In addition, Vanessa is currently working on various due diligence engagements and M&A transactions.

Jonathan Pace is a Manager within Deloitte Malta’s Indirect Tax service line, focusing on the provision of indirect tax advisory and compliance services to domestic and international clients.

Jonathan has been active in the local tax and financial services industry since 2014 and is currently a Manager within Deloitte Malta’s Indirect Tax service line, focusing on the provision of indirect tax advisory and compliance services to domestic and international clients. He also has experience working overseas, having been seconded to the Luxembourg office for a period of seven months between 2016 and 2017.

Having attained the ACCA qualification in 2016, Jonathan is an accountant by profession and a member of the Malta Institute of Accountants. In 2022, Jonathan also obtained the Professional Award in Taxation offered by the Malta Institute of Taxation.

Jonathan has extensive experience in VAT, spanning various industries and sectors, in particular iGaming and yachting. Currently, he also forms part of the Young Members focus group within the Malta Institute of Accountants and occasionally delivers specialised VAT training for various educational institutes in Malta.

Dr Robert Attard is Partner and Tax Policy Leader, EY, Central & South East Europe, a tenured senior lecturer at the University of Malta, a fellow of GREIT and member of the European Association of Tax Law Professors. In the IBFD’s 2015-2017 General Report on the Protection of Taxpayers’ Rights he was described as a well-known authority broadly experienced in the practical protection of taxpayers’ rights and a prominent member of the legal practice. Having served as a panellist at the 2015 IFA Congress he forms part of a study group of the International Law Association on the “Protection of Taxpayers’ Rights” (co-chaired by Advocate General Juliane Kokott and Pasquale Pistone) and is also a member of the Supervisory Council of the IBFD/IFA’s “Observatory on the Protection of Taxpayers’ Rights”. He has served as Visiting Professor at the University of Ferrara paying lecturing/speaking visits at Queen Mary (University of London), CTL (University of Cambridge), Salerno (with Wirtshaftsuniversitat Wien and Naples II) and the University of Palermo. The Maltese Court of Appeal has described him as a leading commentator on tax law referring to his publications in its judgements. Robert developed a detailed knowledge of tax aspects of the European Convention on Human Rights drafting submissions in cases filed against France, the Netherlands, Bulgaria and Malta. Robert is a published author on tax law publishing articles in European Taxation, EC Tax Review and the British Tax Review. He has contributed to several publications including a book published by Hart Publishing, 3 books published by the IBFD and several books published by the MIM. Robert's most recent tax publication is Principles of Maltese Income Tax Law 2013. Robert’s books have anticipated important changes to our tax policy system. Philip Sciberras (ex-Court of Appeal) describes Principles of Maltese Income Tax Law as ‘a must-read' describing Robert as ‘an expert in his field, ... without doubt one of Malta’s finest scholars on tax law’. Giovanni Bonello (ex-ECtHR) says that the book is ‘not just an arid explanation of the intricate and sometimes opaque provisions of taxation law, but an attempt – and a very successful one – to place fiscal law in the context of superior principles of governance ... Attard’s systematic vademecum has the makings of a textbook destined to become a classic, crucial for tax consultants, practitioners and, not least, for the victims of aggressive fiscal policies’. Philip Baker remarks that ‘Single-handedly, Robert is generating the literature which explains the structure and nuances of the system in Malta. One wishes other countries had similar authors who could write similarly enticing books to explain their tax codes.” Robert has argued most of Malta's leading tax cases including landmark judgments John Geranzi v. PM (right to justice within a reasonable time), Zahra v. PM (non bis in idem), Farrugia v. PM (taxation as a violation of the right to property) and Case 160 of 2012 (tax transparency).