Malta: One-time concession on administrative penalties for failure to file recapitulative statements for VAT
A one-time concession on imposition of administrative penalties with respect to recapitulative statements for VAT
One-time concession on administrative penalties for failure to file
The tax authority is allowing a one-time concession on the imposition of administrative penalties with respect to recapitulative statements for value added tax (VAT) due to be filed by or before 15 September 2023 that are filed by that date.
Background
A taxable person is required to file a recapitulative statement when engaging in VAT-exempt intra-community supplies and when supplying services that take place in the territory of another EU member state for which VAT is payable solely by the recipient (except for services which are VAT exempt in the member state where the transaction takes place). A statement must be filed not later than the 15th day of the month following the end of each calendar quarter, unless the taxable person engages in VAT-exempt intra-community supplies that exceed €50,000 per year, in which case a statement needs to be filed monthly.
Failure to file a recapitulative statement historically was subject to an administrative penalty of €10 for every month or part thereof that elapses from the date the statement was due, capped at €120 per statement. That penalty was increased effective 4 April 2023 to €50 for every month or part thereof that elapses from the date the statement was due, capped at €600 per statement.
With a view to encouraging voluntary compliance with the provisions of the VAT Act, the tax authority is now offering a one-time concession on the appliable penalties.
Read a May 2023 report prepared by the KPMG member firm in Malta
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. 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 endeavor 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. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.