Maltese Government imposes VAT at a rate of 7% on accommodation and 18% on all other services, however, among the beneficiaries entitled for VAT refunds are foreign traders who organize ‘business-related’ conferences, seminars, conventions, forum, meetings or sales events.
The following is a brief summary of the elements the Maltese Government is ready to consider refunds on VAT to companies holding their events in Malta:
• Transfers airport/hotel/airport and hotel/conference venue/hotel
• Food and drink in hotels which form part of an accommodation package
• Food and drink during a conference such as coffee breaks, mineral water and lunches.
• Alcoholic beverages are only allowed in exceptional circumstances at the discretion of the Commissioner of VAT.
• Hire of meeting/syndicate rooms
• Hire of audio-visual or technical equipment related to the conference element of the program.
• Security services in hotel/ conference venue.
• Telephone and internet services
• Electricity supply provided it is connected with the lighting of the conference venue.
• Gifts and room drops with a value not exceeding € 45.00 per delegate for the duration of the event at the discretion of the Commissioner of VAT.
• Day delegate packages – if integrated in one package consisting of items mentioned above but excluding non-refundable items such as dinners.
• Expenditure consisting of entertainment, receptions, hospitality, food and beverage relating to hotel banqueting, outside catering, dinners, Gala evenings, activities, tours, guides etc is considered as ineligible for VAT refund.
NB. Incentive programs are not considered to be ‘business expenses’ and are viewed more as ‘entertainment’. Therefore potentially eligible items referred to above (such as Accommodation) would not receive a refund
How can one apply?
A recipient of an invoice who has paid the amount in full, qualifying for any of the above-mentioned refund may apply with the VAT Department for that refund on Form 008/2004. The form and guidance notes are available on the Department’s internet. An application may be made via email (firstname.lastname@example.org).
It should be noted that prior to any refund issued, the VAT Department would request to inspect the invoice and may request any supporting documents relating to the event in question. Other VAT documentation in respect of any sub-contractors used may also be requested. Any irregularities in the documentation that is presented may render the refund ineligible. The VAT Department may only affect refunds once it is satisfied that such VAT has been incurred, recorded and collected.
Further information may also be obtained from the booklet entitled “Special Refund Scheme” which may be obtained from the VAT Department, or an electronic copy of which may also be found in this website.