Those who paid undue VAT on car registration between 2004 and 2008, or their heirs, have to apply for a refund until April.

The six-year refund scheme for vehicles registered between May 1, 2004 and December 31, 2008 will come to an end this year, Finance Minister Edward Scicluna said on Thursday.

In 2009, the European Commission had declared that it was illegal to include registration tax in the taxable amount of VAT levied on car sales.

So in 2014, the government launched a refund scheme through which a total of 29,000 people would receive €23.6 million between them.

Around €4.9 million will be distributed this year to 6,300 people who registered their car in 2008. They are being urged to file a refund application between next week and April 26 and will receive the refund in May.

Transport Minister Ian Borg said the government was sharing its success with the public and will be concluding a chapter of past injustices.

The government did all it could to collect every due cent, however, whatever was collected unjustly needed to be returned to the people, he said.

Prof. Scicluna meanwhile noted that this tax should never have been collected and when Malta joined the EU, the Labour party, then in Opposition, had flagged the issue with the PN government.

He said the government could only refund people because of the steady economic growth that was now averaging 7.1% a year. This was a huge leap compared to the average 2.1% economic growth between 2007 and 2012.

How to get your refund

The government will this year refund the amount equivalent to the extra tax paid by vehicle owners who registered their vehicle between January 1 and December 31 of 2008.

The total they will receive will exclude the €110 (vehicles) and €55 (motorcycles) that was already paid back to everyone in 2014 with the launch of the scheme.

Transport Malta will be notifying eligible applicants in writing about the scheme and whoever receives this notification should verify their personal details, sign and send the application to Grant Scheme, Transport Malta, A3 Towers, Triq l-Arkata, Paola or Għotja ta’ Darba, Ministeru ghal Għawdex, Pjazza San Franġisk, Victoria.

Those who registered their vehicle between 2004 and 2007 but did not apply for a refund can still submit an application form that can be obtained from TM until April 26.

More information on 8007 2373 or grantscheme.tm@transport.gov.mt