- Malta’s MTCA issued guidance on transitional VAT treatment when a supply changes from exempt without credit to taxable, under Article 75(2) of the VAT Act, for relevant VAT-registered taxable persons.
- The guidance explains how to split supplies, contracts, and expenses that straddle the effective date of the VAT change, including continuous services and long-term contracts.
- It clarifies how businesses should determine output VAT on sales and recover input VAT on related purchases across the transition period.
- The rules are based on the transitional principles in Article 95 of the EU VAT Directive and apply only to specific legislative changes, not to any general VAT rate increase.
Source: fiscal-requirements.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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