Author: Mel Chamber

The Facts: Under Item 14 of Part Two to the Fifth Schedule of the Malta VAT Act (Chapter 406 of the Laws of Malta), the supply of water services is exempt (without credit) only when such supply is made by a public authority.

This exemption applies, for example, when Malta’s Water Services Authority supplies water directly to end-users, whether households or businesses. However, the exemption is narrowly framed and does not extend to recharges or onward supplies of water by private entities.

In practice, this distinction becomes particularly relevant in scenarios such as the rental industry. Where a landlord receives a VAT exempt water bill from a public authority and subsequently recharges that same cost to a tenant, the landlord is not supplying water as a public authority. As a result, the recharge:

• does not fall within the scope of the exemption, and
• is subject to VAT at the standard rate of 18%.

This position reflects the settled principle in VAT law that exemptions are to be interpreted strictly, and that a recharge does not inherit the VAT treatment of the original supply where the conditions of the exemption are no longer met.

Conclusion: Water services are only exempt (without credit) when supplied by a public authority, otherwise VAT at the standard rate of 18% applies.

Verdict: False

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Authors: Brandon Gatt, Partner, Zampa Partners & Valentina Bruno, VAT Associate, Zampa Partners

As the world came together to mark Earth Day 2025 on the 22^nd April, Bank of Valletta reaffirms its commitment to sustainability – not just as a business priority, but as a shared responsibility embedded in its culture and day-to-day operations.

This year’s Earth Day theme, Our Planet, Our Power, places the spotlight on the collective responsibility to protect natural resources – a responsibility that BOV has embraced, not just in principle, but in practice. In fact, the Bank is not only investing in sustainable operations and products, but also in educating and empowering its people to make greener choices – both at work and beyond.

“Sustainability is not something we talk about on Earth Day. It’s a mindset that drives how we work, think and lead,” said Ernest Agius, Chief Operations Officer at Bank of Valletta. “We’ve built our green strategy around long-term value, not just for the Bank, but also for the communities we serve, and the environment we all share. Our role as a founding member of the Malta ESG Alliance also reflects our commitment to real, measurable change — both in reducing our own footprint and in supporting customers and partners on their green journey.”

The Bank has introduced numerous eco-efficiency projects aligned with international ESG standards, including efforts to reduce Scope 1, 2, and 3 emissions. In recent years, BOV has significantly cut its energy and paper use, such as digital signatures and streamlined printing that continue to significantly cut down resource consumption. It has also modernised its workspaces with energy-efficient infrastructure, and developed financing solutions that support clean technologies and sustainable investments.

The Bank is also focusing on raising awareness, engaging employees, and driving education around environmental responsibility in practice. Through internal campaigns, and team initiatives, employees are encouraged to think green and act responsibility. Every member of staff is also given a day of paid volunteering leave annually, empowering them to contribute to environmental and community-focused projects.

Earlier this year, the Bank also supported Earth Hour on the 22^nd March, continuing its efforts to align with global campaigns that highlight the importance of environmental action.

“We are proud of the progress we’ve made – but more importantly, we are excited about what lies ahead,” added Mr Agius. “We are committed to leading by example, learning as we go, and encouraging others to join us on this journey.”

With a clear roadmap, measurable goals, and a culture that prioritises sustainable growth, the Bank is determined to drive meaningful change – for its people, the planet, and future generations.

10 students were inducted into the Dean’s List within the Faculty of Arts at the University of Malta. This is the 29^th consecutive year that eligible students have been inducted into this prestigious list, which has enjoyed Bank of Valletta’s support since its inception.

Eligibility for the Dean’s list is very stringent where students must complete a minimum of 120 ECTS in their first two years of studies. Students must obtain a minimum 80 ECTS with a grade ‘A’ or better, 20 ECTS with a Grade B+ and 20 Passes with no fails.

The 10 eligible students were invited to celebrate their achievement at the Faculty of Arts Library with the Dean of the Faculty of Arts Prof Dominic Fenech and Charles Azzopardi, Head CSR at Bank of Valletta. All inductees were presented with a commemorative certificate as well as a monetary donation by the Bank.

“This is the sixth consecutive year that the number of students inducted in the Dean’s list is in double figures, testament to the dedication and hard work of both these exceptional students as well as to the academic staff at the Faculty,” said Prof Fenech. “When considering that 10 students, from a faculty boasting around 300 graduates a year, made it into the Dean’s list, we must really appreciate the magnitude of their achievement. Still, the number attests to the improving quality of the Faculty’s undergraduates, when one considers the lower numbers of past years.  Joining the Dean’s List, besides bringing personal satisfaction in itself, opens doors for excellent career opportunities as it demonstrates a strong work ethic and commitment.”

“This long-term partnership between Bank of Valletta and the University of Malta underscores the Bank’s commitment to fostering educational excellence and supporting the next generation of leaders in their respective fields”, said Charles Azzopardi. The success of these students is an inspiration to all, and we take this opportunity to congratulate them on their fantastic work and we are sure they will continue to strive for greatness in all their endeavours.

The 2025 inductees into the Dean’s List are:

• Abela Marlena (B.A. Psychology/Sociology)
• Amin Omran Fatima (B.A. Hons Anthropology with Psychology)
• Borg Aimee (B.A. European Global History/Knowledge and Information Management)
• Brincat Francesca (B.A. French/German)
• Cachia Bradley (B.A. Hons Maltese with Communications)
• Camilleri Tyler Luke (B.A. Hons German with International Relations)
• Ellul Luca (B.A. Hons Linguistics with Maltese)
• Polidano Jonathan (B.A. Hons Geography with Arabic)
• Porter Nicole (B.A. French/Spanish)
• Spiteri Nathania (B.A. Hons Sociology with Philosophy)

BOV Asset Management made a meaningful gesture to Puttinu Cares through a philanthropic donation made on behalf of their institutional clients. The donation was presented during a client appreciation event held at the Bank’s Premium Centre in Santa Venera.

This initiative, now in its second edition, forms part of Bank of Valletta Group’s broader ESG and social impact goals and highlights the Bank’s commitment to support causes that enrich the lives of the vulnerable and the wider community. It is an innovative way of replacing corporate gifts normally associated with events such as Christmas with charitable donations, thereby giving clients the opportunity to be part of a wider purpose in supporting families in need.

Speaking at the event, Peter Paul Cilia, the newly appointed Head of BOV Asset Management, remarked, “This initiative goes beyond simple gestures; it is a practical way of making a real difference, supporting Puttinu Cares and helping families during difficult moments in their lives. Our clients’ support in this makes it all the more meaningful.”

Kenneth Farrugia, the Bank’s CEO added, “Puttinu Cares represents the very best that local community organisations offer – compassion, strength and unwavering support for the vulnerable. We are proud to stand by them and help ease the burden for those families going through unimaginable challenges. This donation reflects not just our values as a company, but also those of our clients, who continue to embrace and support this initiative”.

The donation was presented to Angele Cuschieri, President, Rennie Zerafa, CEO, and Malcolm Custo, vice-President of the Puttinu Cares Foundation. On accepting the donation, Angele Cuschieri expressed heartfelt thanks on behalf of the foundation and stated that “We are incredibly grateful for the continued support from Bank of Valletta. Donations like these allow us to keep offering hope to patients and their families. As we look ahead to our annual Good Friday Night Walkathon, this gesture strengthens our mission and reminds us that we are never alone in this journey.”

This year’s Good Friday Night Walk marks its 20^th edition. This popular activity remains one of Puttinu Cares’ most significant fundraising events, seeing thousand of people walking from Mellieħa to Floriana during the night between Maudy Thursday and Good Friday. In support of this cause, the Bank’s Sports and Social Club will be organising a group of employees and friends to take part in the night walk, with several employees already signed up to participate.

As part of the celebrations for Global Money Week 2025, themed “Protect your money, secure your future”, the HSBC Malta Foundation and JA Malta teamed up once again to deliver an energetic, hands-on financial literacy experience for local students.

The Economics of Life Hackathon, hosted at St Clare’s College Pembroke, brought together 22 teams of young teens aged 12 to 14 who were eager to test their skills in budgeting, planning, and real-life money decisions. With creativity and energy buzzing in the room, students were challenged to work through a “Teen Life Planner” scenario—balancing a budget, making smart choices, and staying focused on a future goal.

It wasn’t just about numbers. The hackathon pushed students to think on their feet, work as a team, and present their strategies with confidence. Throughout the event, Duncan Triganza from HSBC Malta and Petra Ellul Mercer from JA Malta maintained high energy levels, fostering a dynamic and competitive atmosphere.

By the end of the event, it was clear that these young minds are more than capable of making savvy financial decisions when given the chance. Big congratulations go to Newark School, St Augustine School, and St Benedict School, who claimed the top three spots with their smart, strategic, and creative solutions.

Reflecting on the initiative, Matthew Caruana, CEO JA Malta commented, “Financial Capability is more than just understanding money—it’s about building a mindset that helps young people protect their future. This hackathon provides a practical and engaging platform for students to apply economic concepts in real-world scenarios which they are accustomed to.”

Glenn Bugeja at HSBC Malta Foundation added: “At HSBC Malta, we believe that financial literacy should be nurtured from an early age, giving young people the tools they need to make informed and responsible financial decisions. The enthusiasm and ingenuity displayed by the students during this hackathon are a testament to the importance of such initiatives in shaping future generations.”

This hackathon aligns with the broader efforts of HSBC Malta Foundation and JA Malta to prepare today’s youth for tomorrow’s financial realities. With the talent and energy displayed during this event, the future looks promising and financially secure. By investing in knowledge and fostering critical thinking, HSBC Malta continues to play a key role in preparing students for the financial challenges and opportunities ahead.

Bank of Valletta is reinforcing its commitment to sustainable business growth through the BOV SME Grow Green Loan, a financing solution designed to help small and medium-sized enterprises (SMEs) transition to greener operations. This initiative was highlighted by Mark Scicluna Bartoli, Head of Product Development at BOV, during the MHRA BOV Deloitte Q4 2024 Hospitality Performance and European Hospitality Industry and Investment Survey presented a few weeks ago.

BOV recognises that for SMEs, accessing financing for sustainable projects can be a challenge. The BOV SME Grow Green Loan is specifically designed to ease this financial burden, ensuring that businesses investing in environmentally friendly initiatives benefit from better lending conditions. By offering a lower interest rate, this product encourages SMEs to take decisive steps toward reducing their carbon footprint and environmental impact.

A key advantage of this loan is its ability to make green investments more affordable. SMEs can benefit from a 1% reduction in interest rates, making it a more cost-effective solution for energy-efficient systems, renewable energy projects, or other carbon-reducing initiatives. This initiative aligns with BOV’s wider Environmental, Social, and Governance (ESG) strategy to contribute to Malta’s sustainability goals.

Speaking at the event, Mark Scicluna Bartoli emphasised the importance of integrating sustainability into business strategies, highlighting how the BOV SME Grow Green Loan can help SMEs thrive in a changing economic landscape.

The Bank works closely with businesses to understand their transition plans, helping them explore options that may include a combination of bank financing and government incentives. By taking this proactive approach, BOV ensures that businesses receive the necessary expertise and resources to make informed investment decisions.

As businesses face increasing pressure to adopt greener practices, BOV is providing the financial support and advisory services needed to make this transition feasible.

Businesses interested in learning more about this financing solution can visit www.bov.com or contact  BOV Business Development Unit on 2275 7111 or via email on businessdevelopment@bov.com.

The HSBC Malta Foundation has provided financial support for the construction of a new cabin for Dr Klown at Mater Dei Hospital, reinforcing its long-standing commitment to the organisation, which it has been supporting for over a decade.

The new space serves as a dedicated area for Dr Klown volunteers, allowing them to prepare for their visits and store their attire and props. The project embodies Dr Klown’s ethos of bringing joy and laughter to children undergoing medical treatment. The cabin’s design features playful elements and vibrant colours that reflect the spirit of the organisation and its mission to provide comfort through humour.

Dr Klown is a non-profit organisation that has been active in Malta since 2010, offering professional clown doctor visits to children in hospital. Through their work, the volunteers help alleviate anxiety and create a positive environment for young patients and their families.

Eric Muscat, speaking on behalf of Dr Klown, said: “This new cabin is an essential addition to our work at Mater Dei, giving our volunteers a much-needed space to prepare before engaging with children. We are deeply grateful to the HSBC Malta Foundation for their unwavering support over the years and for helping to make this project possible.”

Glenn Bugeja, speaking on behalf of the HSBC Malta Foundation, said: “Dr Klown has been making a meaningful impact on children’s hospital experiences for many years. The HSBC Malta Foundation is proud to have supported this initiative and to continue our decade-long partnership with Dr Klown, ensuring that young patients receive moments of joy even in difficult times.”

The Facts: When analysing whether a taxable person has a Fixed Establishment (“FE”) in a Member State, reference should be made in particular to Article 11 of Council Implementing Regulation (EU) No. 282/2011 (“Implementing Regulation”). However, it is equally important to consider the extensive case law of the Court of Justice of the European Union (“CJEU”) on this subject, as the notion of a fixed establishment remains a complex and evolving concept, with various aspects still subject to interpretation and clarification through CJEU decisions.

According to Article 11(1) and (2) of the Implementing Regulation, a fixed establishment is defined by the cumulative presence of the following three elements:

A sufficient degree of permanence in that Member State.

The presence of a suitable structure in terms of human and technical resources.

These same human and technical resources must enable the establishment to receive and use services for its own needs.

Article 11 explicitly states that VAT registration alone is not sufficient to consider that a taxable person has a fixed establishment. In fact, Article 11(3) of the Implementing Regulation clarifies that:

“The fact of having a VAT identification number shall not in itself be sufficient to consider that a taxable person has a fixed establishment.”

In essence, VAT registration is an administrative obligation and should not be confused with the concept of a fixed establishment for VAT purposes.

 
Conclusion: Holding a VAT number in a Member State does not automatically create a fixed establishment.

Verdict: Statement is false.

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Authors: Brandon Gatt, Partner, Zampa Partners & Valentina Bruno, VAT Associate, Zampa Partners