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:
- submit a return on a quarterly basis containing the following info:
- the total number of nights provided per person;
- the total number of nights provided per person under the age of eighteen years;
- the total number of nights per person provided by another person which impacts or is relevant in establishing the eco-contribution rate;
- the total number of nights on which eco-contribution is due and the amount of eco-contribution due;
- such other information as may be required by the competent authority in such format as shall be established in any guidelines issued by the authority or as otherwise specifically requested by it.
- maintain accurate accounts and records including:
- details on product movements;
- details of services provided per period covered in each return;
- documentary evidence to the satisfaction of the competent authority confirming that accommodation, if any, was provided to persons who had not reached the age of eighteen years;
- details of all amounts reported or reportable in an eco-contribution return;
- Furthermore, a producer shall be required to:
- to comply with all requests to monitor, check and produce for inspection any accounts and records in respect of the property and amenities used in the provision of accommodation;
- to ensure compliance with all the requirements of the Eco Contribution Act and any regulations made thereunder and with such other requests made by the competent authority;
- to keep records for a period of six years from the end of the period to which the return relates;
- to issue a receipt in the form supplied or approved by the competent authority for the eco-contribution paid to him for the particular service, and such fiscal receipt shall be issued and delivered to the person to whom the service is provided by not later than the time when payment is effected, to the extent covered by that payment.
Contacts
For further information please contact:
Marica Bonello
Tel: +356 21423059
