DConsulta

VAT chargeable on Directors’ Fees

Value Added Tax is a field which is continually evolving, especially following decisions taken by the European Courts of Justice (CJEU). As a result of the decision taken by the CJEU in the case C-94/19 (San Domenico Vetraria SpA vs Agenzia delle Entrate), the local practice to consider the fees paid to companies who refer Directors to their clients, fall outside the scope of VAT in Malta, is no longer tenable. Previously the practice was to consider such fees, even if charged by a company service provider, to be exempt from VAT on the basis that such fees are deemed to constitute a remuneration for holding an office and hence out of scope for VAT. However, taxpayers are now advised to look into this practice deeply, analyse the situation properly and take corrective action where necessary so as to ensure that their practices do not run foul of such developments in the field.

For more information and advice kindly contact us on [email protected]

VAT Implications on Secondment of Staff:

The decision taken by the Court of Justice of the EU (CJEU) in March 2020 in the case C-94/19 (San Domenico Vetraria SpA vs Agenzia delle Entrate), is of interest to companies which engage in the practice of lending or secondment of staff, within the same group of companies or in other scenarios. The CJEU held that such lending or secondment is not deemed to be an activity that falls outside of scope for VAT purposes. Thus, such supply of labour shall give rise to the charging of VAT, and this reasoning applies independently of whether the consideration or fee charged is equal to, greater than or less than the costs incurred by the employer.

This decision is interesting as the till now, many professionals in the field of VAT and accountants, have argued that staff is seconded at cost incurred by the actual employer, there is no value added involved and hence no VAT is to be charged on such a transaction.

For more information and advice kindly contact us on [email protected]

Economic Stimulus via Infrastructural Projects – Malta Budget 2021 Highlights

In his Malta Budget 2021 speech the Minister of Finance clearly indicated the strategy of the government to stimulate the Maltese economy afflicted with the effects of the Covid-19 pandemic, by spending big on infrastructural projects.
Big infrastructural projects are indispensable for the economic regeneration of the country. The major investments mentioned in the 2021 Budget relate to:
 €450m investment over 7 years in industrial infrastructure and office space, in a new Life Sciences Park, Kordin Business Centre, office space for SMEs and logistical hub in Marsa
An investment of €11m in sports facilities over a three-year period
Furthermore, the government will also undertake various infrastructural interventions related to aviation maintenance, maritime sector, modernisation of health centres, new blood bank, new sports complex at the University of Malta and parking facilities at Mater Dei Hospital.
For further information visit our Budget 2021 blogposts on

Malta-based boutique accountancy and EU funding consultancy firm our work is underlined by our ability and patience to handle bureaucratic compliance requirements efficiently and effectively

Operational Assistance Scheme for Voluntary Organisations – Closes Soon

The Malta Council for the Voluntary Sector (MCVS) has issued applications for an Operational Assistance Scheme for Voluntary Organisations (VOs) to assist those VOs whose operations were badly affected by this pandemic.

A budget of €3m has been allocated for these applications to MCVS. These applications, whose deadline is the 31st July, aim to support up to 50% of the expenses to a maximum of €1,000 for fuel expenses, telephone and internet bills, Gozo mobilities and fixtures and equipment directly relate to Health & Safety issues – all related to COVID-19.

A wage supplement for staff costs for full-time and part-time employees engaged directly with the Voluntary Organisation and registered with Jobs Plus is also available. Finally, the Scheme covers utility bills with an aid intensity of 80% with a maximum of €250 for a three-month period.

If your organization requires assistance with the application for this scheme, which closes on the 31st July 2020, do contact DConsulta on 79444990 or by email on [email protected]. We would be glad to assist.

Utility Bills
1. The Scheme shall support up to 80% of the VO Utility Bills to a maximum of
€250 euros/3months.
2. VOs employing more than twenty-five (25) employees shall be eligible for up
to €1,000 euros/3months.
3. Utility bills need to be addressed on the VO’s name or the VO needs to have a
leasing agreement of the premises for which the utility bill is addressed.
4. Any reimbursement of Utility Bills, will be reimbursed for bills covering the
period March till September 2020 period.