VAT Changes effective 1 January 2025 (Small Enterprises, Virtual Events, Budget Measures, and other Changes)

On 17 December 2024, 12 Legal Notices (LNs 344 – 355) and Act 37 of 2024 were published bringing into force several amendments to the Maltese VAT Act with effect from 1 January 2025. The main changes relate to:

• 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 will be changing 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 implementation of Regulation (EU) No 904/2010 as regards the administrative cooperation and exchange of information for the purpose of monitoring the correct application of the special scheme for small enterprises.
• 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 sanitary Items
• 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 Act

This session will discuss these changes and their respective implications; both with respect to the vat treatment to be applied as well as the impact on the VAT compliance obligations to be fulfilled. As usual, participants will have the opportunity to ask questions relating to the said changes.

The Speaker

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.