GO plc - VAT Dispute in favour of Maltacom plc

It was announced today that the VAT Appeal’s Board has supported Maltacom’s appeal regarding the charging of VAT on international incoming interconnection traffic.

The VAT Department has lodged an appeal to the Court of Appeal from this decision.

In 2003, Maltacom had incurred an exceptional charge relating to VAT on international incoming interconnection traffic. This was paid under protest pending the appeal raised with the VAT Appeals Board.

The VAT department had raised provisional assessments in respect of VAT on international incoming interconnection traffic. Maltacom had objected to these provisional assessments on several basis, including the fact that Malta is a signatory to an international agreement that excludes the imposition of VAT on such traffic.

Maltacom had paid the VAT claim in 2003 because it was being charged interest and penalties on the outstanding VAT claim. Therefore, the Company had reached an agreement with the Government that the claim was being paid under protest. If the Appeals Board and Court case favour Maltacom plc, the VAT department would refund the amount.

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