VAT Malta Guide

Read our guide and find out everything you need to know about VAT in Malta, from registration to filing, and more.

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.

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 threshold of €35,000 for goods and €30,000 for services. 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.

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. 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 failing to submit a VAT return on time is €20 per day or 1% interest, whichever is higher. Late payment of VAT will incur a fine of 0.06% in interest per month.

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.

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