VAT in Malta
The Value-Added Tax (VAT) in Malta, which came into effect in 1995, has been revised multiple times since its inception. With Malta’s entry into the European Union in 2004, the country’s VAT was adjusted to align with the EU’s Council Directive on VAT. A large portion of EU VAT policies stem from these directives.
The EU VAT Directive 2006/112/EC, often referred to as the “EU VAT Directive,” serves as the principal VAT directive. Although adherence to an EU directive is obligatory for all member nations, the specific method and manner of its implementation is left up to the discretion of the individual Member State, who is tasked with integrating it into their national law.
Everything related to VAT in Malta is included in our comprehensive guide below.
Selling in Malta?
Scope of Taxation
The Maltese VAT system imposes a tax on goods and services provided in Malta by taxable persons for consideration, except for those exempt under the Fifth Schedule to the VAT Act. It also applies to imported goods and certain services from countries outside the EU and other EU member states brought into Malta. The VAT system follows a multistage consumption model, where businesses along the production and distribution chain are charged VAT, and the final consumer typically bears the full cost. However, it is the responsibility of each VAT registered supplier at each stage to collect, report, and pay the VAT to the VAT Department.
The Value-Added Tax (VAT) is applicable to the following operations:
- The delivery of goods and services within Malta by an individual who is taxable, as part of or to promote an economic enterprise.
- The internal purchase of goods by a taxable entity from another member state of the European Union.
- The procurement of new means of transport within the Community.
- The purchase of products subject to excise tax within the Community.
- The import of goods into Malta, barring those that are exempt from importation.
Download the Maltese VAT Guide
Malta – General VAT information
| Tax authority | Commissioner for Revenue
|
| VAT in local language | Att dwar it-Taxxa fuq il-Valur Miżjud |
| Currency | € Euro |
| VAT number format | MT + 8 characters |
| MT12345678 | |
| VAT rates
|
Standard 18%; Reduced 7% 5%; |
| Zero-rated (0%) and exempt | |
| Thresholds | |
| Registration | |
| Established | EUR 35,000 |
| Non-established | None |
| Intra-EU Distance sales and electronically supplied services to consumers (OSS) | EUR 10,000 |
| VAT Group | Allowed – but limited to financial regulated sector |
| Voluntary Registration | Available – for resident business onlyaaaa |
| Intra-EU Dispatches | EUR 700, 000 |
| Intra-EU Arrivals | EUR 700, 000 |
| Recovery of VAT by non-established businesses | Yes |
| Compliance Returns and Deadlines | |
| VAT Returns | 15th of the month following the reporting period |
| Frequency | Monthly and Quarterly |
| European Sales Listing | 25th day following the reporting period. |
| Intrastat | 10th of the month following the reporting period |
| Electronic Invoicing | For business-to-government (B2G) transactions, the ability to receive and process electronic invoices is compulsory as per the Law of May 16, 2019, concerning Electronic Invoicing in the Context of Public Contracts and Concession Contracts. |
Last Updated: 27/12/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax