{"id":143,"date":"2022-07-15T13:51:41","date_gmt":"2022-07-15T13:51:41","guid":{"rendered":"http:\/\/localhost\/wv\/?p=143"},"modified":"2022-07-20T11:55:53","modified_gmt":"2022-07-20T11:55:53","slug":"vat-grouping-introduced-in-malta","status":"publish","type":"post","link":"https:\/\/w-v.co.uk\/?p=143&lang=en","title":{"rendered":"VAT Grouping introduced in Malta"},"content":{"rendered":"\n<p>On the 22<sup>nd<\/sup>&nbsp;May 2018, the Government of Malta published LN 162 of 2018, a new Legal Notice entitled \u2018Value Added Tax (Regulation as a Single Taxable Person) Regulations, 2018.&nbsp; This LN will allow separate persons, which are connected together by specific criteria to be grouped together as a single taxable person for VAT purposes.&nbsp; These regulations came into force on 1st June 2018.&nbsp; VAT grouping is for now limited to persons which are operating in the financial services and gaming industries.&nbsp; It is hoped that vat grouping will provide an opportunity for tax optimization to persons engaged in the gaming and financial services industries.<\/p>\n\n\n\n<p>Two or more legal persons established in Malta will be allowed to register as a single taxable person under the VAT Grouping mechanism provided the following conditions are satisfied:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>&nbsp;at least one of the applicants must be a taxable person licensed or recognized by the MFSA or the MGA as prescribed;<\/li><li>&nbsp;each of the applicants must be bound to each of the other by financial links, organizational links and economic links:<\/li><\/ol>\n\n\n\n<p>A&nbsp;<strong>financial link<\/strong>&nbsp;is deemed to exist where the same legal\/physical persons, hold directly or indirectly more than 90% of at least two of the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>\u2013 voting rights or equivalent interests;<\/li><li>\u2013 entitlement to profits available for distribution; or<\/li><li>\u2013 entitlement to surplus assets available for distribution on a winding up or equivalent event.<\/li><\/ul>\n\n\n\n<p>An&nbsp;<strong>organizational link<\/strong>&nbsp;is deemed to exist where the applicants have a shared management structure, whether in whole or in part.<\/p>\n\n\n\n<p>An&nbsp;<strong>economic link<\/strong>&nbsp;is deemed to exist where<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>the activity of each of the applicants is of the same nature or within the same industry, or where<\/li><li>the activities of the applicants are interdependent or complementary, or where<\/li><li>one member of the group carries out activities which are wholly or substantially to the benefit of any one or more of the other members.<\/li><\/ul>\n\n\n\n<p>iii.&nbsp; one member of the group carries out activities which are wholly or substantially to the benefit of any one or more of the other members.<\/p>\n\n\n\n<p>Applicants cannot be members of more than one VAT Group at the same time.&nbsp; The VAT Group will be allocated one VAT identification number.&nbsp; The VAT identification number of the members of the VAT Group, will be cancelled from the date of registration as a VAT Group or from the date of joining an existing VAT Group.<\/p>\n\n\n\n<p>The members of the VAT Group must nominate one member of the group as a Group Reporting Entity to exercise all the rights and discharge all obligations of the VAT Group. Any intra-group supplies would fall out of the scope of VAT since a taxable person cannot charge tax to itself.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On the 22nd&nbsp;May 2018, the Government of Malta published LN 162 of 2018, a new Legal Notice entitled \u2018Value Added Tax (Regulation as a Single Taxable Person) Regulations, 2018.&nbsp; This LN will allow separate persons, which are connected together by specific criteria to be grouped together as a single taxable person for VAT purposes.&nbsp; These [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-143","post","type-post","status-publish","format-standard","hentry","category-articles"],"_links":{"self":[{"href":"https:\/\/w-v.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/w-v.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/w-v.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/w-v.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/w-v.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=143"}],"version-history":[{"count":0,"href":"https:\/\/w-v.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/143\/revisions"}],"wp:attachment":[{"href":"https:\/\/w-v.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/w-v.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/w-v.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}