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March 11, 2009

MALTA: EU OKs 0% VAT on food

Malta has been given indefinite permission by the EU Council of Ministers to continue levying zero-percent VAT on food products.

Malta has been given indefinite permission by the EU Council of Ministers to continue levying zero-percent VAT on food products.


This exemption from standard EU VAT law expires December 2010, when Malta should levy reduced rate VAT of 5%.


However, EU ministers have listened to Maltese pleas and backed an “extension of that [zero-rate] provision.”

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