Key takeaways
- Malta VAT rates: The standard VAT rate is 18%, with reduced rates of 12%, 7%, and 5%, plus a 0% rate for certain food, medicines, and transport services.
- Registration threshold: Businesses must register once turnover exceeds €35,000, with no threshold for non-resident businesses.
- Filing & penalties: VAT returns are filed quarterly, and late submissions or payments can result in monthly penalties (from €20, capped at €250) and 0.6% interest per month on unpaid VAT.
Malta VAT key facts (2026)
| Item | Malta |
|---|---|
| Standard VAT rate | 18% |
| Reduced rates | 12%, 7%, 5% |
| Registration threshold (domestic businesses) | €35,000 |
| Registration threshold (non-resident businesses) | None – register from first taxable supply. €10,000 EU-wide distance-selling threshold for B2C sales (OSS available). |
| VAT return filing frequency | Quarterly, by the 15th of the second month after the quarter |
| E-invoicing status | No mandate; MTCA preparing e-invoicing and real-time reporting (no date set) |
| Fiscal representative required for non-EU businesses? | No |
Register for VAT in Malta with Taxually: CrossTax handles your Malta VAT registration and returns.
Expanding your business to Malta requires a comprehensive understanding of the local Value Added Tax (VAT) system. This guide offers a detailed overview of Malta's VAT regulations, encompassing aspects like rates, registration, returns, and more.
Updated October 2026: Corrected late-filing penalties and late-payment interest, and added sections on e-invoicing plans and key VAT deadlines.
What is the Maltese VAT rate?
In Malta, VAT is known as It-taxxa fuq il-valur mizjud. Maltese VAT is structured with a standard rate and three reduced rates for specific goods and services. There is also a zero VAT rate.
| Type of VAT | VAT Rate | Applicable Goods/Services |
|---|---|---|
| Standard VAT rate | 18% | All other taxable goods and services. |
| Reduced VAT rate (1) | 12% | Includes some health care services, hiring a pleasure boat, and management of credit and credit guarantees. |
| Reduced VAT rate (2) | 7% | Applicable to hotel accommodation and the use of sporting facilities. |
| Reduced VAT rate (3) | 5% | Specific goods and services, including electricity supplies, medical equipment for disabled persons, admission to cultural events, books (including e-books), and newspapers and periodicals. |
| Zero VAT rate | 0% | Certain foodstuffs, prescribed medicines, intra-community supplies, and international passenger transport. |
Registering for VAT in Malta
Businesses based in Malta must register for VAT if their annual turnover exceeds the domestic threshold of €35,000. There is no threshold for non-resident businesses.
An EU-wide threshold of €10,000 also applies for cross-border trade within EU member countries. Exceeding this limit mandates VAT registration in Malta, as does storing goods in the country or participating in fulfillment programs like Amazon's FBA (Fulfilled-by-Amazon).
To register for VAT, submit the necessary forms and documents to Malta's tax authority, the Commissioner for Revenue. The process typically takes between three to four weeks, after which a Malta VAT number will be assigned.
Who must register for VAT in Malta?
Malta has three main VAT registration types, depending on where you are established and what you supply.
- Article 10: the standard registration for businesses established in Malta that make taxable supplies. Apply within 30 days of the first supply.
- Article 11: an exempt registration for small enterprises within the €35,000 threshold. They do not charge VAT and file one simplified declaration by 15 February each year.
- Article 12: for businesses not registered under Article 10 whose intra-EU acquisitions of goods exceed €10,000 a year, or that receive services taxable in Malta.
Fiscal Representative in Malta
Neither EU nor non-EU businesses selling in Malta are required to appoint a fiscal representative.
Maltese VAT return filing and penalties
All Malta VAT returns filings are quarterly and are due by the 15th of the second month following the quarter-end. Returns filed online and paid within seven days of that date (by the 22nd) do not attract a late-filing penalty. They should be submitted electronically unless the business has ten employees or fewer, in which case the VAT return can be a paper filing.
The penalty for a late VAT return is the higher of €20 or 1% of the net VAT due, for each month or part of a month of delay, capped at €250. Late payment of VAT incurs interest of 0.6% per month.
E-invoicing and digital reporting in Malta
Malta has no e-invoicing mandate for businesses today. B2B, B2C and B2G suppliers can still send paper or PDF invoices.
- Public sector: government bodies must be able to receive structured e-invoices under EU Directive 2014/55/EU. Malta uses the Peppol network for this, through a certified provider contracted by the Ministry for Finance for departments, regional authorities and local councils. There is no legal duty for suppliers to send e-invoices to public bodies, according to the Ministry for Finance.
- What is not an e-invoice: scanned PDFs and emailed images do not count. An e-invoice must be in a structured format that systems can process automatically.
- Plans: the Malta Tax and Customs Administration (MTCA) is preparing mandatory e-invoicing and real-time digital reporting. No start date has been confirmed.
The EU ViDA package sets the outer timeline. Digital reporting for cross-border B2B transactions starts on 1 July 2030.
Key VAT deadlines in Malta
Most Maltese VAT deadlines fall on the 15th of a month. Missing them triggers fixed penalties and monthly interest.
- VAT return and payment (Article 10): by the 15th day of the second month after the tax period ends. If you file online and pay within seven days of that date, no late penalty applies.
- Annual declaration (Article 11 small enterprises): by 15 February of the following year, filed electronically.
- Leaving the Article 11 scheme: apply to move to Article 10 within 15 days of no longer qualifying (this was 30 days before 2025).
- Intrastat: by the 10th of the month after the reporting period.
Since 1 January 2025, turnover of related persons counts towards the €35,000 Article 11 threshold. Small businesses can also use the EU cross-border SME scheme if their EU-wide turnover stays under €100,000, according to the MTCA explanatory notes.
Maltese Intrastat declarations
Both resident and non-resident businesses engaging in trade within the EU must submit Intrastat declarations. The thresholds for reporting are €700 for arrivals and €700 for dispatches. The deadline for Intrastat returns is the 10th of the month following the reporting period.
Reverse charge in Malta
The reverse charge mechanism in Malta shifts VAT reporting and payment responsibility from the supplier to the recipient in specific situations, including EU cross-border supplies and particular industries. In many circumstances, this mechanism removes the need for foreign suppliers to register for VAT in Malta.
Frequently asked questions
What is the VAT rate in Malta?
Malta’s standard VAT rate is 18%, with reduced rates of 12% (for certain financial and health services), 7% (for hotel accommodation and sports facilities), and 5% (for electricity, books, medical equipment, and cultural events). A 0% rate applies to exports, medicines, and international transport.
When do I need to register for VAT in Malta?
Resident businesses must register once annual turnover exceeds the domestic threshold of €35,000. Non-resident businesses must register immediately upon conducting taxable activities. The EU distance selling threshold is €10,000.
How do I register for VAT in Malta?
VAT registration is done through the Commissioner for Revenue. The process takes around 3–4 weeks, after which you’ll receive your Malta VAT number.
Do foreign businesses need a fiscal representative in Malta?
No. Neither EU nor non-EU businesses are required to appoint a fiscal representative to operate or register for VAT in Malta.
How often must VAT returns be filed in Malta?
VAT returns are filed quarterly, due by the 15th of the second month following the quarter’s end. Returns filed online and paid within seven days of that date (by the 22nd) do not attract a late-filing penalty. Returns are usually filed electronically, unless the business has 10 or fewer employees.
Are Intrastat declarations required in Malta?
Yes. Businesses trading goods within the EU must file Intrastat returns by the 10th of the following month once annual trade exceeds €700 for arrivals or €700 for dispatches.
