Malta’s Guidelines: 12% VAT Rate on Securities Management – Effective January 1, 2024

• Malta has provided new guidelines on the application of a 12% VAT rate on the supply of management of securities
• The guidelines were issued in response to the adoption of the VAT Rates Directive
• The purpose of the guidelines is to provide clarity on the application of the reduced VAT rate on such supplies
• The reduced rate of 12% applies to securities portfolio management services
• The guidelines specify that the reduced rate does not apply to services such as advice on capital structure or mergers
• The reduced VAT rate of 12% on management of securities does not affect any exemptions outlined in the Fifth Schedule of the VAT Act.

Source: cfr.gov.mt

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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