VAT exemption for Management of Investment Schemes
Legal Notice 425 of 2010 published on 10 September 2010 introduced an amendment to the provision exempting fund management services (Item 3(6) of Part II of the Fifth Schedule to the VAT Act) which now exempts (without credit):
“the supply of services consisting of the management of any investment scheme provided that these services are limited to those activities that are specific to and essential for the core activity of the scheme.
Provided further that investment schemes shall refer to ‘collective investment schemes‘ as defined under the Investment Services Act and ‘retirement schemes‘ as defined under the Special Funds (Regulation) Act.”
The amendment clarifies that the VAT exemption applies to management services when provided to investment schemes as defined, irrespective of the status or location of the service provider (the provision previously linked the exemption to the Malta licensing status of the service provider).
The amendment also extends the exemption to the management of pension funds.