• Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/7/2013

Malta - New VAT penalty provisions 

October 7:  New administrative penalties introduced into Malta’s value added tax (VAT) law became effective in June 2013, by virtue of Legal Notice 259 of 2013.

Persons registered under the VAT law now are subject to an administrative penalty if the VAT amount due (as declared in a VAT return or in a VAT Form 004) is not paid by a specific date.

The administrative penalty is the greater of:

  • 1% of the difference between the amount declared to be payable in the VAT return (or VAT Form 004) and the amount paid, or
  • €20

The VAT penalties apply for every month (or part thereof) from the due date for payment of the VAT up to the date when full payment of VAT is made, subject to a maximum of €250 per return.

Read a September 2013 report prepared by the KPMG member firm in Malta: New VAT penalties come into force

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