The support for undertakings operating from Gozo

This measure supports manufacturing undertakings operating from Gozo by reducing the additional inter-island transport costs incurred for transporting materials, goods and finished products between Malta and Gozo. This assistance serves to reduce the cost-disadvantages for manufacturers based in Gozo, rendering these businesses in a better position to compete
effectively within the single market.

Applicability

The Corporation may support an eligible undertaking, in respect of expenses related to the transportation of machinery, plant, materials, goods and products, required for the undertaking’s manufacturing activities in Gozo. The Corporation shall award a grant to eligible beneficiaries in relation to the specific costs listed below.

Eligible Costs

• Transport Expenses incurred using owned or leased commercial vehicles: the Corporation will calculate the grant on the basis of the number of trips which shall be established by taking into account the number of ferry tickets submitted.
• Subcontracted Haulage Expenses: subcontracted haulage expenses (including ferry costs) are eligible for a refund of 100% of the invoiced value excluding VAT.
• Courier Services: subcontracted Courier services are eligible for a refund of 70% of the invoiced value excluding
  VAT. Courier services shall be deemed as eligible if the invoice provided clearly indicates the points of collection and drop off and as long as one of these locations is in Malta and the other in Gozo.

Eligible Undertakings

Gozo based undertakings engaged in manufacturing (NACE rev. 2.0 Section C) and in possession of an entitlement certificate confirming that the Corporation is satisfied that all or a significant part of the manufacturing activity is being carried out in Gozo.

To be eligible for this aid, undertakings shall be:
a) duly incorporated under the Companies Act, Chapter 386 of the Laws of Malta being a partnership en nom collectif, en commandite or a limited liability company;
b) anybody of persons constituted, incorporated or registered outside Malta, and of a nature similar to the above;
c) be duly registered as a Cooperative under the Co-operatives Societies Act, Chapter 442 of the Laws of Malta

Undertakings shall be considered as ineligible if they are:
a) Defaulting on VAT, Income Tax, or Social Security payments.
b) Engaged in activities specifically excluded under the de minimis State Aid Regulations

Duration

This aid scheme is applicable to transportation costs between Malta and Gozo incurred between 1st January 2021 and 31st December 2022. Aid will be granted by 31st December 2023.

For more information or advice contact the Malta Business Agency team.