Malta To Refund VAT On Supplies For Disabled Persons

Malta's Minister for Finance, Edward Scicluna, recently announced the start of a refund scheme for VAT paid on the purchase of equipment used by disabled persons.

From September, 1, 2017, more than 7,000 people with some form of disability who require special equipment will be able to benefit from the VAT refund scheme. The refund scheme covers a wide range of equipment and aids, including walking sticks, chairlifts, wheelchairs, special beds, and guide dogs.

The scheme will refund VAT incurred by disabled persons, their close relatives, and voluntary organizations registered with the Commission for the Rights of Persons with Disabilities. The maximum VAT refund claim is capped at EUR600 (USD714), with scheme assistance varying according to the level of disability. This means those entitled to the maximum VAT refund amount will get back all the VAT on purchases up to EUR12,000 (USD145,269), based on a VAT rate of five percent.

VAT refund applications should be lodged with the island's VAT Department within three months of purchase of equipment. A list of devices, together with a form for making a VAT refund application, will be made available on the Ministry of Finance's website in the coming days.