On 22 July 2020 the Council of the European Union formally agreed to postpone by 6 months the scheduled entry into force of the VAT e-commerce package – as of 1 July 2021 instead of 1 January 2021. Such followed the preliminary agreement reached on 24 June 2020 to postpone same and is a measure taken in response to the implementation delays encountered by tax authorities and businesses as a result of the COVID-19 crisis.

While the Netherlands and Germany have requested the European Commission to consider a further extension beyond 1 July 2021, Malta, Austria, Bulgaria and France expressed a preference that no further extensions be adopted.

In Malta, on 2 June, a set of 8 legal notices were published which introduce the necessary amendments to the Maltese VAT Act to implement such package. The legal notices will enter into force on a date to be announced in the Government Gazette.

The 6-month extension gives Member States and businesses more time to get their data, systems and processes ready for these major changes.

Should you have any queries or wish to discuss further, please send an email to covid@kpmg.com.mt.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.