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VAT Registration in Malta

Register your company for VAT in Malta

A person in Malta who is engaged in taxable activities but not registered for VAT must apply for registration under Article 10 within 30 days of making their first supply for consideration in Malta that is not exempt without credit or of supplying services in another EU Member State that are subject to the reverse charge.

Taxable individuals are required to register for VAT through the electronic VAT Online Services Portal of the Commissioner for Revenue of Malta.

Read all about VAT registration in Malta in our comprehensive guide.

vat guide malta

Register for VAT in Malta

Following registration, a VAT certificate containing the person’s VAT identification number will be provided. All requests concerning registration:

  • Reactivation of a VAT number
  • Deregistration
  • Reprinting of a VAT certificate must also be submitted electronically.
 Taxable Persons

Taxable persons are those who engage in economic activities, regardless of whether it is full-time or part-time. However, if a person who does not carry out an economic activity but occasionally makes an intra-Community supply of new means of transport, they are considered a taxable person for that specific transaction and are required to register under Article 10. This supply is considered exempt with credit, but if a person carries out a single new means of transportation supply, they are not considered a taxable person.

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Mandatory Registration

 

In Malta, there are no specific thresholds for VAT registration. Instead, taxable persons who are established in Malta must register for VAT within 30 days from either the date of their first supply for consideration in Malta (excluding exempt supplies without credit) or the date of their supply of services in another EU Member State subject to the reverse charge.

 

Voluntary registration and small undertakings

 

Even if not required by law, a taxable entity can still opt for VAT registration in Malta in order to recover any input tax paid on expenses in Malta. This is applicable provided that the supplies connected to these expenses (either within or outside Malta) qualify for a refund, even if these supplies do not necessitate VAT registration.

 

Typically, small businesses are characterized as taxable entities established in Malta that have an annual turnover of less than:

  • EUR 35,000 for entities primarily involved in supplying goods, or
  • EUR 30,000 for entities primarily engaged in other economic activities.
  • Such entities are obliged to file an annual VAT return.
 Foreign Entities

 

Generally, companies not established in Malta are mandated to register for VAT if they provide services or products in the country. Regardless of their annual income, such businesses are not qualified to register as small enterprises under Article 11 since they are not founded in Malta.

 

Conversely, a company based in Malta that sets up a permanent office within the country and solely engages in exempt supply activities is not bound by this VAT registration requirement.

 

 Exemption from Registration

 

In general, certain persons are exempt from registering for VAT:

  • Those who only carry out supplies that are fully exempt without credit
  • Those that are not considered to be engaged in economic activities, such as pure holding companies

However, small enterprises that meet specific criteria are required to register for VAT, but they may opt for an exemption from accounting for Maltese VAT.

 

Registration Procedures

 

Taxable individuals have the option to register for VAT online through the VAT Online Services Portal managed by the Malta Commissioner for Revenue. Following registration, the individual’s VAT identification number is inscribed on a VAT certificate.

Additionally, any queries related to registration must also be submitted electronically. These include:

  • Application for the reactivation of a VAT number
  • Application for deregistration, and
  • Request for a reprint of a VAT Certificate

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Group and Divisional Registration

 

A VAT group is a collection of individuals subject to VAT. When it comes to VAT grouping, the regulations set by the various Member States differ in terms of whether grouping is permitted, which organizations are allowed to join in the VAT group, and whether grouping is voluntary or mandatory.

 

Malta’s Grouping Regulations allow legal entities in the finance and gaming sectors, which are established in Malta and meet specific criteria, to form a VAT group voluntarily. These regulations are in line with Article 11 of the EU VAT Directive, which enables EU Member States to treat two or more legally independent persons established within the territory of that Member State as a single taxable entity. This group of individuals or entities is known as a VAT group and is closely connected by financial, economic, and organizational ties. The rules governing VAT groups vary across Member States, including whether grouping is an option, which entities are eligible to join the group, and whether the grouping is mandatory or voluntary.

 

Registration non established businesses

 

Businesses that are not established in Malta and make supplies in the country are generally required to register for VAT. They do not have the option to register as small undertakings under Article 11, regardless of their annual turnover. However, a registration requirement does not apply to non-established businesses making supplies of services subject to the reverse charge mechanism. In addition, foreign businesses or legal entities may be required to register for VAT if their intra-Community acquisitions into Malta exceed the intra-Community acquisitions threshold.

 

VAT Representative

 

For Maltese VAT matters, a business that is established in an EU Member State has the option to designate a VAT representative to act on its behalf. However, a business established outside the EU is obligated to appoint a VAT representative.

 

Distance Sales

 

Following the EU ecommerce VAT package reforms from 1 July 2021, local Maltese VAT must be charged on all sales by non-Maltese EU e-commerce sellers shipping from within the EU. Imported distance sales not exceeding €150 liable to Maltese sales VAT with IOSS return option.

 

 

 

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

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