Local businesses operating within the regulated financial and gaming industries have an option to apply for VAT grouping in Malta. Subject to the satisfaction of certain conditions, a group of companies closely bound to one another by financial, economic and organisational links may be registered as a single taxpayer for VAT purposes, namely, a VAT group.
It is possible to include within the VAT group companies which carry out exempt without credit supplies and improve the overall VAT recovery. Transactions made between the group members fall outside the scope of VAT and as such are disregarded for VAT purposes. In the right circumstances, VAT grouping can therefore provide businesses with VAT recovery optimization, cash flow advantages as well as a reduction in administrative costs.
Our team at E&S Group can assist clients in navigating through this relatively new VAT regime. Our services include:
- Cost/Benefit analysis to identify whether VAT grouping represents an optimal solution for your business structure;
- Liaison with the VAT authorities for the request of a VAT group;
- Compliance services for the preparation and submission of the group’s consolidated VAT returns.