WasteServ denies VAT charge

WasteServ yesterday insisted it had always paid its VAT dues and acted in good faith.

The company issued a statement after the release of a report by the National Audit Office following the investigation of alleged irregularities regarding the contract issued over the Sant' Antnin waste plant in Marsascala.

WasteServ's statement was echoed by the Rural Affairs Ministry, which insisted the process leading to the plant's modernisation through European and Maltese funds was transparent and according to law.

The report by the NAO accused the company of failing to pay €36,000 in VAT on a contract it awarded to the international consulting firm, SLR Consulting Ltd.

WasteServ pointed out that in the report it was listed as a company under Article 11 of the VAT Act, which would have required it to declare and pay the tax locally on foreign consultancy services.

WasteServ, however, had been under Article 10 of the VAT Act since Malta's EU accession, which meant it could avail itself of the right to adopt the Reverse Charge Mechanism as allowed by the periodical VAT returns being submitted.

Wasteserv said according to the schedule of rates included in the original call for tenders, bidders were required to submit their rates inclusive of VAT. Since SLR was a foreign company based in another EU member state, it was not required to charge VAT on its services and as such the amount quoted in its bid was assumed to be charged at zero per cent VAT.

Although SLR had requested payment for the amount quoted in the original offer, WasteServ queried the request and SLR issued a credit note for the amount in question.