Zampa Partners conference hears calls for product-first analysis as differing EU interpretations continue to drive uncertainty
Although the financial services industry has evolved over the years, it is still subject to a “decades-old” VAT regime and operators must be aware of their obligations, local and international experts agreed at a conference on Wednesday, April 1.
Leading advisory firm Zampa Partners hosted the specialised VAT conference, bringing together senior decision-makers and technical specialists, including a European Court of Justice expert to unpack the fast-evolving intersection between financial innovation and VAT.
Held at Villa Arrigo, the fully accredited event, entitled “From Funds to FinTech: The VAT Implications of Evolving Financial Services Models,” drew strong attendance from across the funds, fintech, and professional services communities, which Zampa Partners said underscores the growing urgency for clarity on how VAT rules apply to emerging financial services sectors.
Opening the event, Matthew Zampa, Managing Partner at Zampa Partners, framed the afternoon around a central challenge facing the industry: aligning real-world commercial structures with VAT rules that were largely designed for more traditional financial services.
“When it comes to VAT in the financial services sector, we are still applying a legislative framework that was drafted decades ago, actually dating back to the 1970s, and does not fully reflect today’s realities. As new products and service models emerge, this creates room for differing interpretations across Member States and, in some cases, ultimately leading to structuring opportunities and risks arising from that divergence” he said.
“A recurring challenge we see is that VAT analysis often starts too late, without first fully understanding the financial product itself. We need to take a step back, understand how each product works and what it is intended to achieve, and only then assess the VAT implications.”
Mark Caruana Scicluna, Senior Associate at Ganado Advocates, and Anabel Mifsud, Managing Director at Fexserv Funds, offered a clear, practitioner-led overview of how contemporary fintech and fund arrangements operate in practice, highlighting the operational flows, roles, and revenue mechanics that often determine VAT outcomes. Their joint contribution resonated with attendees navigating cross-functional conversations between legal, compliance, operations, and tax teams.
A lively panel discussion, “New models, old rules: rethinking VAT exemptions in financial services,” followed and became a central moment of the conference.
Moderated by Brandon Gatt, Partner at Zampa Partners, who contributed insights from advisory practice, the panel also featured Nico Sciberras, Director for Indirect Tax at MTCA, who addressed regulatory and interpretive considerations; Alexis Tsielepis, Managing Director at Chelco VAT, who focused on risk areas and the practicalities of exemption analysis; Dr. Sarah Cassar Torregiani, Chief Technical Officer at MIT, who explored how market infrastructure and innovation can challenge established VAT classifications and Matthew Zampa who explained the intricacies behind the application of the exemption applicable to operators in the payment industry.
Together, the panel tackled the tension between innovation and legacy concepts, particularly where exemption boundaries, outsourcing models, and evolving service definitions can materially affect VAT exposure.
Technical sessions turn to exemption tests and ECJ case law
The second half shifted into deeper technical territory.
Alexis Tsielepis delivered “Practical VAT challenges in fintech and funds: exempt or taxable?” providing a structured framework for assessing VAT treatment, common pitfalls observed in practice, and the importance of mapping supplies and contractual arrangements to the underlying economic reality.
The programme then turned to European jurisprudence with Prof. Dr. David Hummel, Legal Secretary (Référendaire) at the European Court of Justice, presenting “Case law in motion: where the financial services exemption stands, and where it is headed.”
His analysis connected recent and emerging case law themes to real-life structuring decisions, offering attendees valuable direction on how legal developments may influence future interpretations of exemption scope and related VAT principles.
The conference concluded with closing remarks from Brandon Gatt, who reiterated the event’s core message: proactive VAT governance is increasingly critical as financial services models evolve.
The conference was accredited by the Malta Institute of Accountants with nearly four hours of structured continuing professional education under core competency requirements.
Zampa Partners host regular accredited and non-accredited conferences bringing regulators, policymakers, and industry experts together to discuss pressing matters facing various industries.
