- Article 74 of the Value Added Tax Act has been repealed by the Budget Implementation Act XIII
- The repeal takes effect on January 1, 2024
- Interest under the VAT Act will now be treated similarly to interest under the Income Tax Acts
- Interest on an income tax refund is not taxable, and interest expense is not deductible for computing chargeable income
- Administrative penalties paid under the VAT Act are not considered incurred in the production of income
- Taxpayers must pro-rate any VAT interest income or expense not chargeable or deductible for tax returns in 2024 and 2025.
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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