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Showing posts from August, 2011

VAT on Malta accommodation to foreigners - Renting property to foreigners.

Wednesday, August 17, 2011
by Simon Busuttil MEP

Renting property to foreigners
Carmel Farrugia writes:

A foreign resident who is a citizen of an EU country and is living and working in Malta as his principal place of residence is still considered as a tourist for the purposes of renting property in Malta. As such, he is required to pay VAT on accommodation.
I feel that he should not and cannot be considered a tourist particularly if he is a citizen of an EU country. There is a one-year limit but this should not come into the equation at all because it does not apply in the case of a Maltese citizen.

Am I right or wrong in this context? Why should he be treated differently from a Maltese citizen and be made to pay VAT?

The reader is referring to the imposition of value added tax (VAT) on the lease of property by EU citizens who are not Maltese.
The VAT law in Malta makes it clear that the letting of or the provision of accommodation in any premises that is required to be licensed in…