The Maltese Minister of Finance, the Hon Prof Edward Scicluna, has in a recent VAT and EU Conference organised by the Malta Institute of Management stated that Malta will be supporting the VAT Action Plan adopted by the EU on VAT.
Earlier this year, the European Commission adopted its Action Plan on VAT, which is intended to move towards a more coordinated single European Union (EU) VAT area. The plan sets out the immediate and urgent actions the EU intends to take to:
- Tackle the VAT Gap (estimated at around €170b, equating to 15.2% of revenue loss).
- Adapt the VAT system to the digital economy and the needs of small and medium enterprises (SMEs).
- Provide clear “orientations” towards a single European VAT area that implements the definitive “destination principle” for cross border supplies.
- Propose options for a modernized policy on EU rules governing VAT rates.