Environmental Contribution on Accommodation

Environmental Contribution on Accommodation


The 'Tourist Environmental Contribution' Budget 2016 measure, has finally been introduced and is effective as of 20 June 2016. In this respect, two Legal Notices, 174 and 175 of 2016 were published on 20th May 2016.


Which accommodation is subject to the Eco Contribution?


Accommodation, whether provided for a consideration or otherwise, provided in any premises which for the purpose of the provision of such a service requires a licence in virtue of the Malta Travel and Tourism Services Act (MTTSA).


What is the applicable Eco Contribution rate?


Fifty cents (€0.50) per night per person who is eighteen years of age or older at the start of the visit. In any case the rate is subject to a maximum of five euro (€5) per person per visit.


What is meant by 'visit'?


For the purpose Eco-contribution purposes, a visit means an uninterrupted stay in one or more premises which require an MTTSA licence.


Which entity is responsible for the administration of the Eco Contribution Act?


Presently the VAT Department is the competent authority designated for the administration of the Eco Contribution Act. However, by virtue of the amendments in L.N. 175 of 2016, it is noted that the competent authority may delegate the pertinent responsibility to another competent authority for the purposes of acting as such. As a result, it would be reasonable to assume that the VAT Department may in future delegate its function to another authority to administer the Eco Contribution Act.


What are the obligations for persons making supplies of accommodation in the scope of the Eco Contribution Act?


First and foremost, persons who make supplies of accommodation which are subject to eco-contribution are to be registered with the competent authority (VAT Department), unless already registered. Furthermore, they are required to: 







For further information please contact:

Marica Bonello


Tel: +356 21423059