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Malta - Zero-rated VAT on food and medicine until 2010

At a meeting of EU finance minister (ECONFIN) in Brussels, Malta has been given a concession on the retention of zero rating of VAT on medicine and food until 2010.

The derogations applied to food and medicines were to expire at the end of next year.



 

Next year, the European Commission will present proposal on VAT harmonisation by the EU member states.

Malta has requested to retain zero rating for medicine and food on the premise that both the UK and Ireland have similar arrangements on children’s clothes and shoes.

It was also agreed that VAT should be charged in the country where a service is rendered and not where the supplier is based. However these changes does not apply for yachting in Malta.

was also agreed that VAT should be charged in the country where a service is availed of and not where the supplier is based. A proposal by Malta for such changes not to apply for yachting was accepted.

Source : di-ve.com - Malta, dated 04/12/2007

 

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