In terms of article 22 of the VAT Act (CAP 406), input tax is deductible in so far as it is incurred in connection with purchases which have been or are intended to be wholly used in the course or furtherance of an economic activity. Specifically, the input tax credit of a person registered under article 10 is that input tax which is attributable to supplies listed in article 22(4).

In August 2021 the MIT published an information paper which focuses on article 22(4)(c), specifically, the interpretation of “supplies taxed outside Malta which if made in Malta would have been treated as exempt without credit”.

The paper has been updated to incorporate additional information concerning the evidentiary requirements supporting a claim for input tax pursuant to article 22(4)(c).