An Introduction to VAT in Financial Services
- Part 1: 19 January & Part 2: 26 January 2021
- 17:00–19:00 CET
This short course will consider, from a technical and practical perspective, the VAT treatment of services supplied / procured by operators in the financial services sector and will, in particular, examine the various exemptions, which may be applicable to such operators.
During the sessions, we shall make reference to a number of landmark cases adjudicated by the Court of Justice of the European Union which are relevant to financial services operators and which, in the absence of legislative definitions, shed light on the scope and remit of the VAT exemptions provided in the European VAT Directive (as transposed into national legislation via the Malta VAT Act).
The course shall also explore the possible restrictions on input tax recovery relevant to operators in the financial services sector and will also delve into the applicability of the partial attribution methodology for the recovery of input VAT, in the case of operators carrying out mixed supplies (i.e. supplies which confer a right of input VAT recovery as well as supplies which do not confer such a right).
In addition, the course will provide an introduction to the Malta VAT grouping option, which is a tool available to entities licensed by the Malta Financial Services Authority (amongst others), through which separate legal entities are regarded as a single taxable person for Malta VAT purposes.
This course shall cover the following key areas:
- A brief introduction to VAT
- Determining the place of supply of services
- Analysing the VAT treatment of:
- insurance and insurance related services;
- banking related activity, including activity carried out by credit institutions;
- activity concerning asset management; and
- other exempt financial service transactions, including services related thereto.
- Input tax recovery and the partial attribution mechanism
- Malta VAT registration
- Introduction to Malta VAT Grouping
The objectives of this short course are to provide the participants with an overview of the general principles of VAT as well as an in-depth understanding of the various provisions in the Malta VAT Act and European VAT Directive concerning transactions typically carried out by operators in the financial services sector.
This course is ideal for tax advisors, lawyers, accountants, and other persons who already have a basic knowledge of VAT and want a more in-depth understanding of some of the more relevant and commonly applied VAT provisions relating to supplies of financial services.
Ms Sarah Casolani & Mr Jonathan Pace
Trainer bios & experience
Ms Sarah Casolani
Sarah has been active in the local tax and financial services industry since 2009 and has specialised in VAT matters since 2014. On a day-to-day basis, Sarah provides indirect tax guidance and technical support to a varied portfolio of clients, with a primary focus on the gaming and financial services industries, and also delivers lectures on the subject. Sarah joined the Malta tax practice of Deloitte in 2018 and is a Senior Manager within the Indirect Tax team. Sarah obtained a Master of Arts in Financial Services from the University of Malta as well as a Diploma in Taxation from the Malta Institute of Taxation and is a member of the Malta Institute of Taxation’s indirect tax technical committee.
Mr Jonathan Pace
Jonathan has been active in the local tax and financial services industry since 2014 and is currently a Supervisor within the Deloitte Malta Indirect Tax practice focusing on the provision of indirect tax advisory services to a wide range of both domestic and international clients. Having attained the ACCA qualification in 2016, Jonathan is an accountant by profession and a member of the Malta Institute of Accountants. Jonathan also forms part of the young members focus group within the Malta Institute of Accountants and also delivers specialized indirect tax training on a number of topics, mainly to operators of the financial services and remote gaming industries.