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VAT Malta 2024
- Last update: 23.02.2024
- Published: 01.08.2023
- Read in: 5 min
Malta, being an EU member state, adheres to VAT regulations established by EU directives. However, it’s essential to recognise that these regulations may differ from those in other countries. Variations can be found in VAT rates, the scope of services and products subject to VAT, and the VAT registration process. This information holds significant importance, especially for businesses selling goods and services to Maltese customers and seeking VAT registration in Malta, a subject we will delve into in the following article.
In the following article you will find out:
- What are the applicable VAT rates in Malta?
- Which types of goods and services are subject to the VAT rates in Malta?
- When is VAT registration required in Malta?
- What types of VAT registration apply?
- What are the Intrastat thresholds in Malta?
VAT rates in Malta
Malta maintains a standard VAT rate of 18%, which is notably one of the lowest among the European Union member states. You can find VAT rates for other EU countries in our article, “VAT Rates in Europe 2023“.
The standard rate applies to all goods and services that do not fall under Malta’s four lower VAT rates of 12%, 7%, 5%, and 0%.
12% VAT rate Malta
From January 1, 2024, a new VAT rate of 12% applies in Malta. It includes:
- Hiring of pleasure boats,
- Some health care services,
- Securities custody services,
- Some credit and credit guarantee management services.
7% VAT rate Malta
In Malta, the VAT rate of 7% is applicable to tourist accommodations and the utilisation of sports facilities.
5% VAT rate Malta
Malta has a second reduced VAT rate of 5%, which applies to the following categories:
- specific food products, such as confectionery items,
- medical equipment and related accessories,
- equipment designed for individuals with disabilities,
- printed materials, like newspapers and books,
- works of art, antiques, and collectible items.
0% VAT rate Malta
Malta applies a VAT rate of 0%, which is the lowest, and like in other EU member states, it is relevant to intra-Community transport. Furthermore, this rate also encompasses processed food, prescription medications, and the operation of food production facilities.
When does the obligation to register for VAT in Malta arise?
Malta, as a member of the European Union, adheres to VAT regulations based on EU directives. Consequently, the necessity for VAT registration in the country pertains to foreign entrepreneurs who:
- import and export goods between Malta and third countries,
- sell goods from another EU Member State to private customers in Malta, exceeding the intra-community distance sales limit,
- sell goods from Malta to private consumers in another EU country,
- warehouse goods in Malta.
It’s crucial to understand that VAT registration in EU countries becomes obligatory when an entity conducts intra-Community transactions, which include the sale of goods and the provision of services to recipients in other countries. This obligation is triggered when the total value of such transactions exceeds €10,000. Once this threshold is surpassed, the business must handle its VAT in the buyer’s country or via the VAT OSS system. However, as long as the threshold is not exceeded, the company can apply local VAT rates and settle these transactions within its own country.
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How to register for VAT in Malta?
To register for VAT in Malta, you can conveniently use the online portal accessible at Online VAT Registration (gov.mt). As part of the registration process, it’s necessary to submit the following documents to the Malta Office of the Commissioner for Revenue:
- a copy of the company’s articles of association.
- a copy of the entry in the company’s register.
- a copy of the identification document of the person who signs the registration application.
VAT Returns and Registration Options in Malta
In Malta, the VAT regulations offer three distinct categories of VAT registration, with the selection contingent on a business’s annual turnover and the nature of its operations.
Article 10 VAT registration
One of the potential registration methods is the “Article 10 registration,” which is intended for individuals or businesses with an annual turnover below €30,000. When selecting this registration, they are required to impose taxes on their transactions, file quarterly reports, and are eligible to request a VAT reimbursement. Those who register under Article 10 will be issued a VAT number prefixed with ‘MT’.
Article 11 VAT registration
The second type of VAT registration is grounded in Article 11, and those who qualify are given exempt status. They are not allowed to surpass the EUR 30,000 threshold or request a VAT refund, and are required to submit an annual report. Individuals or businesses registered in this manner will receive a VAT number that lacks the ‘MT’ prefix.
Article 12 VAT registration
However, the third and final VAT registration process is rooted in Article 12 and pertains to businesses that surpass the €10,000 threshold and engage in intra-Community acquisitions of goods within Malta. Individuals or entities registered under Article 12 are required to submit their VAT returns on a monthly basis, with a deadline of the 15th of the month following the accounting period. If you seek further insights into VAT registration in Malta, you can explore the government’s FAQ page.
Being a part of the European Union, Malta is subject to Intrastat statistical reporting requirements, which encompass the import and export of goods to and from the country. What’s intriguing is that Malta maintains the EU’s most minimal Intrastat thresholds, set at €700 for both imports and exports, with the deadline for reporting falling on the 10th of each month.
VAT Malta - summary
Malta’s VAT system boasts unique attributes that sets it apart from the tax systems in other European Union countries. The standard VAT rate in Malta is set at 18%, which is among the lowest in the EU. Furthermore, Malta offers four lower VAT rates of 12%, 7%, 5%, and 0%, each applicable to specific goods and services.
In addition to these distinctions, entrepreneurs must complete VAT registration when involved in the import and export of goods to and from Malta or when they store their products within the country. This registration process is exclusively conducted online via the website of the Office of the Commissioner for Revenue in Malta.
If you are considering expansion into European Union member states and require VAT registration, or if you are already operating within the EU and need assistance with VAT returns, VAT OSS, or VAT EU-related matters, we are here to provide our expertise. Feel free to schedule a free consultation and tell us the specific challenges you are facing. Our team of VAT Compliance specialists will take care of the rest!