Wasteserv insisted this afternoon that all its VAT dues were regularly settled with the VAT Department as per provisions of relevant act.

Referring to a report by the National Audit Office accusing the company of failing to pay €36,000 in value added tax on a contract it awarded the international consulting firm SLR Consulting Ltd, Wasteserv said that in this case it availed itself of the right to adopt the Reverse Charge Mechanism as allowed by the periodical VAT returns being submitted.

The company acted in good faith and its position with the VAT Department was correct according to law.

Wasteserv said that according to the schedule of rates included in the original tender, tenderers were required to submit their rates inclusive of VAT. Given that SLR, being a foreign company based in another EU member state, were not required to charge VAT on their services, the amount quoted in their bid was assumed to be charged at zero percent VAT. WasteServ issued a Letter of Acceptance to this effect.

It acknowledged that a report concerning the ‘marine environment’ was not conducted but said that this was in line with the revised terms of reference for the project issued by Mepa.

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.

WasteServ said it did not agree with the Audit Office conclusion that the ‘contamination’ report was not produced. The Environment Planning Statement prepared by SLR Consulting had addressed items related to ‘contamination’ in various parts of the report, which was in fact accepted and certified by MEPA.

In another statement, the Rural Affairs Ministry insisted that the process leading to the modernisation of the Sant’Antnin plant by European and Maltese funds was transparent and according to law.