• Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 4/10/2014

Malta - Interest rate on late payments, refunds of VAT 

April 10: New regulations in Malta implement rules relating to the rate of interest on late payments of value added tax (VAT).

The new regulations established that:

  • Beginning 1 January 2014, the rate of interest on a late payment of VAT is reduced from 0.75% to 0.54% per month (or part thereof) for the period in which the VAT remains unpaid—reducing the annual rate to just under 6.5%.
  • New rate of interest applies on VAT refunds that are not issued by the tax authorities by a date that is within a five-month period measured from (1) the VAT return’s due date, or (2) the date when the VAT return is actually filed (whichever is later). No interest applies on claims for VAT refunds when the VAT-registrant is in default on its income tax return requirements.

Read an April 2014 report prepared by the KPMG member firm in Malta: VAT Alert 01/2014 - Reduction in the rate of interest for the late payment of VAT

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