VAT changes delayed

Wednesday, December 30, 2015 - 20:00

The Ministry of Finance has confirmed that changes to the VAT regime will be effective from February 1st 2016.

In the 2015/16 Budget speech, Minister of Finance, Colm Imbert, promised that the changes to the tax structure, including the 2.5% decrease, will be implemented on January 1st 2016.

However, in a media release sent last night, the Ministry stated that the delay was a consequence of the necessary changes required to the overarching legislation.

The government intends to introduce the proposed amendments to the Finance Act 2016 on January 8th.
The Ministry will also publish the new list of exempt and non-exempt consumer products on the same day.

However, the Ministry is reminding the public that all other measures such as the increase in personal allowance for individual tax payers, the increase in the green fund, business levy and the implementation of property tax will be effective January 1st 2016.

These taxes are paid on a quarterly or annual basis as opposed to VAT.