Mutual assistance for the recovery of claims relating to taxes, duties and other measures

Overview

By virtue of Legal Notice 237 of 2025 (the ‘Legal Notice’) published on the 14 October 2025, the Prime Minister has introduced complementary provisions to the Subsidiary Legislation 460.08 (the ‘Subsidiary Legislation’) transposing the Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures (the ‘Recovery Assistance Directive’ or the ‘RAD’).

The RAD established a framework for EU Member States to cooperate in recovering cross-border tax claims, covering VAT, income tax, customs, excise duties, amongst others. Shortly after the adoption of the RAD,  the Commission implementing Regulation (EU) No 1189/2011 of 18 November 2011 laying down detailed rules in relation to certain provisions of the RAD (the ‘Regulation’) introduced a Uniform Notification Form (the ‘UNF’) that ensures harmonisation and legal certainty by standardising the information to be included in notifications, such as details of the applicant authority, the nature and amount of the claim, deadlines for payment or contestation, and the rights of the notified person.

The Subsidiary Legislation originally established the general framework for mutual assistance in recovery and notification but previously left some procedural details, such as the exact form of notification and handling of non-service cases, less explicitly defined.

The Legal Notice clarifies the Subsidiary Legislation by introducing standardised notification forms, specifying acceptable methods of service (including electronic means), and providing a clear procedure for deemed service through public notices if the person cannot be located. It also strengthens communication obligations by requiring the requested authority to report back on the notification process outcomes to the applicant authority. It also ensures greater procedural uniformity and efficiency in cross-border notifications within the framework of the RAD.

Subsidiary Legislation 460.08

In Malta, the RAD was transposed through the Subsidiary Legislation, effective from 1 January 2012, establishing the legal framework for mutual assistance in recovering tax related claims. It defines key terms such as ‘applicant authority’ and, ‘requested authority’, and covers claims including customs duties, VAT, excise duties, income tax, inheritance and gift taxes, and other national or local taxes.

In addition, Rule 12 of the Subsidiary Legislation provides a rebuttal mechanism, allowing taxpayers to seek judicial remedies against the claim, enforcement instrument or notifications in either Member State in specific and exceptional cases.

Substantive disputes are handled by the applicant Member State, while Maltese courts have a procedural role in enforcement. They are responsible for registering the enforcement instrument, confirming compliance, and issuing the executive title for enforcement in Malta, without adjudicating the claim’s validity.

Upon receiving an enforcement instrument the requested authority may apply to register it with the courts, to make it an executive title directly enforceable. The requested authority may allow payment extensions or instalments. It must keep the applicant authority informed of actions taken and remit recovered amounts, including interest. Recovery costs incurred are borne by the debtor and retained by the requested authority.

Budget Measures Implementation Act 2025

The Budget Measures Implementation Act 2025 introduced a new paragraph (j) to Article 253 of the Code of Organisation and Civil Procedure (the ‘COCP’), which recognises the uniform instrument permitting direct enforcement and collection of taxes pursuant to Article 12 of the RAD as a specific executive title. This change effectively meant no preliminary court proceedings are necessary to enforce the uniform instrument requesting recovery

Legal Notice 237 of 2025

In this respect, the Legal Notice clarifies the purpose and framework of notifications to be made by the applicant authority to the requested authority. This Legal Notice amends Rule 8 of the Subsidiary Legislation specifying that all requests for notification must be submitted using prescribed standard forms and must be accompanied by the UNF. The requested authority must serve these documents to the person required to be notified, either personally, by mail, or electronically. If the person cannot be found, a notice is published in the Government Gazette and newspapers, and the documents are deemed served.

In line with Rule 9 of the Subsidiary Legislation, the requested authority also has discretion, where permitted by Maltese law, to grant the debtor additional time to settle the debt or to pay by instalments, subject to the imposition of interest. Throughout the process, the requested authority must keep the applicant authority informed of all actions taken and the outcome of the notification service.

The requested authority must inform the applicant authority of any actions taken and the outcome of the service process. Requests for notification may only be submitted if the applicant authority is unable to notify the documents according to its own Member State’s rules or if such notification would cause disproportionate difficulties.

The UNF prescribed by the Regulation aligns with the standard forms mandated by the Legal Notice, reinforcing the procedural framework in Malta and ensuring consistency with EU-wide practices. It also confirms acceptable methods of service (i.e., personal delivery, registered mail, or electronic means) and supports the concept of deemed service through publication when the debtor cannot be located.

Deloitte’s view

Together, these measures establish a clearer, harmonised, and effective system for cross-border tax recovery in Malta and across the EU, ensuring both enforcement and taxpayers’ rights protection.

Before the introduction of the Legal Notice, enforcement of the uniform instrument under the Subsidiary Legislation required registration and a declaration by Maltese courts, making enforcement dependent on court involvement. However, following the amendment to Article 253 of the COCP through the Budget Act 2025 and the Legal Notice, the uniform instrument now qualifies as a specific executive title. This change allows enforcement to proceed without prior court registration or proceedings in Malta.

The relationship between the Subsidiary Legislation and the Legal Notice reflects the dynamic between the Directive and the Regulation, with each pair working together to create an effective legal framework