- Malta’s cab industry owes millions in unpaid VAT.
- Two companies, WT Global and TXGO, evaded over €3 million in taxes.
- Authorities evaluated fleet sizes and information from ride-hailing platforms.
- WT Global’s revenue increased by almost 500% in one year.
- WT Global’s director was summoned by tax authorities.
- WT Global’s operating license was revoked due to false declarations.
- TXGO’s operating license was also revoked.
- Both companies appealed the revocation and are allowed to operate pending the appeal.
- Neither company responded to questions about undeclared taxes.
- Tax rules for the cab sector will change in the coming years.
- The platform economy is part of an EU initiative to reform VAT collection.
- The current VAT system is outdated and unable to keep up with the gig economy.
- The VAT gap was estimated at €93 billion in 2020.
- The Commission’s proposal aims to update VAT rules for the platform economy.
Source: maltatoday.com.mt
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
