Guidelines for Applying 12% VAT Rate on Custody of Securities in Malta

• Guidelines on the application of the 12% VAT rate on the supply of custody of securities
• Malta adopted Legal Notice 231 of 2023 to amend the Eighth Schedule to the VAT Act
• Purpose is to provide guidance on the application of the 12% reduced VAT rate on such supplies
• Definitions of “securities” and “custody” for the application of the reduced rate
• Reduced VAT rate of 12% applies to custody of securities from January 1, 2024
• Exemptions relevant to the custody of securities still apply
• The reduced VAT rate applies without prejudice to any exemptions in 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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