April VAT Update: Malta

Recently Maltese authorities have published guidelines describing which services should be treated as digital.

Maltese authorities published guidelines regarding definition of electronic services

It is crucial to determine whether new B2C VAT regime should apply to certain services (meaning change of place of supply) or transaction should be ruled by ‘standard’ rules.

According to these guidelines, as digital services taxpayers should treat:

  • Services delivered over the Internet or through an electronic network.
  • Services where no (or very limited) manual intervention is required.
  • Services which are impossible to be rendered without the access to IT.

Maltese authorities also published examples of services, which shall not be deemed as digital services. That list includes ia.

  • Online purchase of tickets to physically attend the event.
  • The supply of books, newspapers, newsletters etc. disseminated electronically on tangible media (CDs, DVDs, USB sticks etc.).
  • Professional services (like legal advice or advice provided by financial consultant) delivered by e-mail.
  • Online betting.

Aforementioned list is not exhaustive. For a full list of exemptions click here.

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