- Draft legislation (Bill No. 72 of 2023) in Malta is expected to be enacted in the first quarter of 2024.
- The legislation would implement certain value added tax (VAT) measures included in the 2024 budget.
- The bill would introduce a general anti-abuse provision (GAAR) that codifies VAT anti-abuse principles established by the Court of Justice of the European Union (CJEU).
- The GAAR would disallow deduction of input VAT if it represents tax chargeable on goods or services involved in VAT fraud.
- The bill would delete Article 74 of the VAT Act, affecting the income tax deductibility of interests levied.
- Proposed amendments to Article 53 of the VAT Act would give the Commissioner power to inspect and require electronic access to books, records, and documents.
- The bill would widen the Commissioner’s power to request information on taxpayers from third parties.
- All taxable persons, including those not required to register for VAT, would need to keep full and proper records of transactions.
- The bill would clarify rules regarding correction forms and require Commissioner’s approval for filing after an assessment has been made.
- Changes to Article 47 of the VAT Act would affect the time period for appealing decisions of the tribunal.
- A transitional period is expected to apply until June 30, 2024, for appeals that have not yet been served and have exceeded the 183-day period.
Source: kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
