While delivering a speech at the Malta Institute of Management’s ‘VAT and EU Conference’, Minister for Finance, Prof. Edward Scicluna stated that the VAT system can be improved on account of its shortcomings in three particular areas.
Minister Scicluna retained that today, VAT is not responsive enough to the shifting landscape posed by e-commerce. Furthermore, as a system, VAT puts an undue burden on small entrepreneurs who have to put up with high administrative costs. Minister Scicluna also indicated that EU Member States should be able to overcome restrictions on the imposition of particular rates of VAT on certain goods and services so as to introduce an element of flexibility to address the needs of certain sectors. During its Presidency of the Council of the EU, Minister Scicluna said that Malta would welcome progress with regards to the implementation of the EU VAT Action Plan.
The Minister for Finance also referred to the newly set up Joint Enforcement Task Force which will use sophisticated intelligence in order to rein in tax evasion, especially in a fast growing economy.