Amendment to the 5th Schedule of the VAT Act

By virtue of LN 347 of 2017, item 2 of paragraph (2) of Part 5 of the 5th Schedule has been amended so that food which is served for consumption by any person in the same establishment, shall now be considered as food supplied in the course of catering.   The supply of food for human consumption […]

Written By ACT Team

On December 11, 2017
"

Read more

By virtue of LN 347 of 2017, item 2 of paragraph (2) of Part 5 of the 5th Schedule has been amended so that food which is served for consumption by any person in the same establishment, shall now be considered as food supplied in the course of catering.  

The supply of food for human consumption is an exempt with credit supply in terms of item 9 of part 1 of the 5th Schedule of the VAT Act, with the exclusion of food supplied in the course of catering.   With immediate effect, food which is served for consumption in the same establishment is considered to be food supplied in the course of catering and is therefore not an exempt supply.  VAT at 18% is charged on such supplies. 

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected].