M26104 – Open Market value, in conjunction with recharges (Online)
Registration Time: 13:15
Sessions Time: 13:30 – 16:45 including a 15-minute break
Speakers: Mr Mirko Gulic & Mr Kenneth Cremona
Venue: Online Webinar
Participation Fees
MIA Members: €40.00
Non-MIA Members: €75.00
Retired Members: €20.00
Students: €30.00
*Group bookings for 3 or more participants available.
Background Information
Malta has recently introduced new provisions in the VAT Act (through the Budget Measures Implementation Act, in force from March 2026) requiring that, in certain circumstances, supplies of goods or services between related parties be valued at open market value rather than the consideration actually charged. This applies primarily where the agreed price deviates from market value and either the supplier or the recipient has a restricted right to deduct input VAT. This session will examine these new rules and their practical application in the context of intra-group recharges.
Specific topics to be covered during the session
- The new open market value provisions under the Maltese VAT Act and their alignment with Article 80 of the EU VAT Directive.
- When open market value must be applied, and the definition of “related persons”.
- How open market value is determined, and its interaction with the recharge of costs between related parties.
- Practical considerations for groups with restricted input VAT recovery, together with documentation and benchmarking requirements.
- The interplay between VAT and transfer pricing, and recent developments and case law in this area.
Why is the session of relevance to our members?
The introduction of the open market value rules represents a significant change for Maltese businesses, particularly those operating in group structures or with restricted VAT recovery. Attendees will gain practical insight into how the new provisions apply to recharges, the risk areas to be aware of, and the steps needed to ensure compliance and avoid unexpected VAT exposures. Both members and non-members will benefit from this timely, practically focused session delivered by experienced VAT practitioners.
Target Audience
Tax advisors, accountants, VAT practitioners, in-house finance and tax teams, and professionals dealing with intra-group transactions and cost allocations
Speakers’ Profiles
Kenneth Cremona graduated with a Master in Accountancy from the University of Malta in 2015. Kenneth joined RSM Malta in 2016, initially working on Income Tax Compliance dealing with clients established in multiple industries including Gaming, Immovable Property, Investments, Pharmaceuticals and Retail. In 2019, he specialised in VAT advisory and was promoted to a Manager in 2022. Kenneth is also a CPA warrant holder and received the Professional Certificate in Taxation issued by the Malta Institute of Taxation in 2017.
Mirko Gulic is a Fellow member of the Malta Institute of Accounts where he serves as Vice Chairperson of the Indirect Taxation Committee. Has broad experience in indirect taxation and is involved in various tax advisory services relating to this area. Joined PwC in 2005 after reading for the Bachelor of Accountancy (Hons.) and worked for five years in the Assurance service line. In 2010 joined the Tax service line and in 2012 was awarded a diploma in taxation by the Malta Institute of Taxation. Lectures VAT at PwC Academy both in Malta and abroad and is also involved in a number of VAT health checks and reviews. Also held a number of training sessions in Dubai upon the implementation of VAT in the United Arab Emirates. Mirko is also part of the PwC EMEA FS VAT network team.
Event CPE Competencies
3 Core