VAT in Malta

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Malta VAT

Malta comes under the EU VAT rules, and is part of the EU single market economy. VAT Directives are issued by the EU which lay out the principles of the VAT regime to be adopted by the member states, including Malta. These Directives take precedence over the local legislation.

Maltese VAT law

Malta introduced VAT in 1991. It is administered by the Maltese Ministry of Finance.

Maltese VAT registration

There is a VAT registration threshold of EUR 7,000 in Malta. A non-established business making supplies in Malta may appoint a tax representative, or the Maltese tax authorities may require the business to appoint a tax representative.

Registering for Maltese VAT generally takes around four to six weeks from the date when the application was submitted, although this can vary.

Malta VAT compliance

There are detailed rules controlling the recording and processing of Maltese transactions. These include guidelines on:

  • Maltese invoice requirements
  • foreign currency invoicing and reporting
  • correcting errors in previous returns
  • what records must be kept.

Maltese VAT rates

The standard VAT rate in Malta is 18%. There are reduced rates of 7% (tourist accommodation) and 5% for confectionery, medical equipment, printed matter and supply of electricity. There rates for  “exempt with credit” and  “exempt without credit” which apply to specific goods and services.

Maltese VAT returns

Companies with a Maltese VAT number must submit periodic VAT returns detailing all taxable supplies (sales) and inputs (purchases). Returns are submitted quarterly within a month and a half after the tax period end. Payment must also be made at the same time.

Returns can be filed electronically.

Malta - Intrastat and EC sales lists

In addition to VAT returns, companies may be required to submit additional statistical information. The Intrastat returns and EC sales lists must be submitted online by the 15 day of the month following the end of the relevant month or quarter, depending on the amount that needs to be declared.

Maltese VAT refunds

If a foreign company is not making taxable supplies in Malta but is incurring Maltese VAT on local goods or services, then Maltese VAT may recovered through a VAT reclaim.

View more information on other countries, or find out more about VAT.