Amendments to the Eco Contribution Act

As from 1st June 2016, eco-contribution is chargeable with respect to accommodation, whether provided for a consideration or otherwise, in any premises which, for the purpose of providing the said accommodation, requires to be licensed in virtue of the Malta Travel and Tourism Services Act (MTTSA). Eco contribution is chargeable at the rate of €0.50 […]

Written By ACT Team

On June 6, 2016
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As from 1st June 2016, eco-contribution is chargeable with respect to accommodation, whether provided for a consideration or otherwise, in any premises which, for the purpose of providing the said accommodation, requires to be licensed in virtue of the Malta Travel and Tourism Services Act (MTTSA). Eco contribution is chargeable at the rate of €0.50 per person (18 years or above) per night at the start of the visit, subject to a maximum contribution of €5 per person per visit. This eco-contribution is also chargeable by host families providing accommodation services amongst others to students studying English in Malta as a foreign language, however such host families may delegate the role to collect the contribution to language schools.   Persons providing such services might have already agreed prices without taking into account the new eco-tax.  In recognition of this fact, a 15% credit will be provided against amounts due for the first 5 months.

How we can assist?

Our vat specialists forming part of our tax team can advise taxpayers on the following:

  1. Advice on whether the new eco-tax is applicable;
  2. Assistance in the preparation and submission of the pertinent application to be registered for ECO tax purposes;
  3. Assistance in the preparation and submission of quarterly returns for both VAT and ECO contribution purposes and to calculate the vat/eco tax accordingly.
  4. Assistance in maintaining the appropriate records for ECO tax purposes;
  5. Assistance in answering requests for information made by the ECO Unit, if and when requested.

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].