It was reported on 18 December 2013 that the Maltese budget for 2014 has been approved by Parliament. It includes a small number of changes to the VAT penalties and compliance regime, including:
- There will be no penalties for late filings of returns without the matching payment – although late penalty interest may at present be expected for the missing payment.
- Payments made by VAT enlisted organizations that are under examination will never again be automatically assigned against the disputed tax.
- Payments made with VAT returns will not be initially matched to any past outstanding balances.
Maltese VAT returns are generally filed on a monthly or quarterly basis. The returns are due 45 days from the end of the reporting period. Penalties start from a minimum of €250, and include a 0.75% fine of the overdue VAT per month. The current VAT rate in Malta is 18%.
