31 March 2014
The tax office in Malta has advised that it is to reduce the fines for late VAT payers and improve communications with taxable persons looking to bring their non-compliant affairs up-to-date. The Customs and VAT departments will also be merged to simplify communications, as well as to improve audit co-operation between the departments.
The charges for fines are as follows:
- The daily penalty for late returns and payments of €15 will be scrapped.
- The late penalty interest will be reduced from 9% to 6.5%.
- There will also be a maximum fine limit to prevent disproportionate fines building up.
- Any repayments of VAT will now initially be set off against outstanding tax and then fines rather than against fines first. This should prevent compounding of fines.
Find out more about VAT in Malta