Malta Provides Clarity on 12% VAT for Credit-Related Financial Services

• Malta’s tax agency has issued guidance on the application of a 12-percent VAT rate on credit-related financial services.
• The rate applies to supplies where the tax becomes chargeable on or after January 1, 2024.
• The reduced rate does not affect exempt supplies listed in the Value-Added Tax Act.
• Credit management services and credit guarantees granted by the same entity remain exempt from VAT.
• The definition of “credit and credit guarantees” remains the same for VAT exemption purposes.

Source: answerconnect.cch.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.

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