Transactions within the Exclusive Economic Zone within the scope of Malta VAT

Act XXXV of 2023 has amended the definition of ‘Malta’ for the purposes of the VAT Act (CAP 406) to include the ‘Exclusive Economic Zone’ and now reads: “the Island of Malta, the Island of Gozo and the other islands of the Maltese Archipelago, including the territorial waters thereof, the continental shelf and subject to the provisions of sub-article (4), also includes any exclusive economic zone area”.

According to a new sub-article 4, for the purpose of sub-article (1), an exclusive economic zone area shall be deemed to form part of Malta only to the extent of activities undertaken pursuant to, or which are directly related to, an authorization or licence granted in accordance with the Exclusive Economic Zone Act.”